Background: In Africa, the use of business improvement districts is the strongest in South Africa, which enacted legislation on “City Improvement Districts” (CID) in order to upgrade badly neglected inner cities that had suffered under Apartheid. The strategy targeted businesses and property owners, which were particularly motivated to improve these areas and thus raise property values.

Editor – CID’s are now termed ARS’s

Project: South Africa’s CID policy applies a “self-help through taxation” model, in which all property and business owners within a CID pay a compulsory fee that is used for the provision of additional services in the designated area. In order to be able to submit a proposal for CID status, 25% of the area’s property owners (including residential) must approve of the initial plan. To legally ratify the plan, 51% of property owners in the area must approve the final plan. The services requested must supplement those already provided by the local government. Most CIDs tend to emphasize safety and cleaning services.

Braamfontein in Johannesburg: In 2002, local businesses in Braamfontein district decided to pursue CID status in an approximately 17-block area to stop the area’s downward spiral. At the time, the Johannesburg suburb was characterized by broken sidewalks, inadequate trash collection, homelessness and traffic congestion among other related problems. The CID is managed by Braamfontein Management District (BMD), a non-profit organization to which all property owners contribute a levy. Some of the services provided in the BMD include a fully equipped and uniformed security force; cleaning and maintenance through a subcontractor in charge of removing litter, cleaning, tree wells, basic street maintenance and trash removal; marketing to brand and promote the district. Efficient management ensures the quality of services and the implementation of the strategic vision. As of 2008, BMD has an annual budget of R1,909,896 (about US$280,000) from 78 properties paying an average of R2,040 ($300) a month.

Transferability: Although Braamfontein is a relatively wealthy suburb, the I2UD noted the concept of a CID as part of its advisory services to officials in Arusha, Tanzania, as a means for upgrading the urban environment in and around critical city markets.

Source: City Improvement Districts, South Africa | I2UD