Growing the Cape:Growing the Cape:Accelerating Economic DevelopmentAccelerating Economic Development

Dr Laurine PlatzkyDr Laurine Platzky

Western Cape Department ofWestern Cape Department of

Economic Development and TourismEconomic Development and Tourism

Cape TownCape Town

18 November 200218 November 2002

Some basicsSome basics

Cape Town Cape Town – International Gateway International Gateway – Influx of peopleInflux of people– Young, black poor and older whites moving inYoung, black poor and older whites moving in– Young, skilled white and Young, skilled white and ‘‘colouredcoloured’’ moving out moving out

Province: Province: – Manufacturing 24%Manufacturing 24%– government 15%government 15%– tourism 9%tourism 9%– agriculture 6%agriculture 6%

seasonalityseasonality Gini coefficient .58Gini coefficient .58

VisionVision

By 2012 AfricaBy 2012 Africa’’s fairest Cape will be world-s fairest Cape will be world-renowned for its warm hospitality, caring renowned for its warm hospitality, caring community, innovative industries and beautiful community, innovative industries and beautiful natural environmentnatural environment

90% of those who want to work will be earning a 90% of those who want to work will be earning a fair reward, many in their own thriving fair reward, many in their own thriving businessesbusinesses

Between the richest 25% and the poorest 25% of Between the richest 25% and the poorest 25% of the population the income gap will have the population the income gap will have narrowed to no more than 10 fold…narrowed to no more than 10 fold…

Key Measurable ObjectivesKey Measurable Objectives

Broaden ownership base of economy measured Broaden ownership base of economy measured in more small, medium and black owned firmsin more small, medium and black owned firms

Predictable, fair and socially responsible Predictable, fair and socially responsible environment conducive to trade and investmentenvironment conducive to trade and investment

Highly skilled, productive, employed and Highly skilled, productive, employed and networked communitynetworked community

World-class infrastructure directly connecting World-class infrastructure directly connecting passengers and freight locally and globallypassengers and freight locally and globally

Top of mind recall of the Cape as THE place in Top of mind recall of the Cape as THE place in Africa for conferences, holidays, film locations, Africa for conferences, holidays, film locations, value for money trade and investmentvalue for money trade and investment

Where are we now?Where are we now?

in the Western Cape: predictability in the Western Cape: predictability

Future-oriented governanceFuture-oriented governance Intergovernmental cooperative governanceIntergovernmental cooperative governance Knowledge economy White PaperKnowledge economy White Paper Sustainable tourism White PaperSustainable tourism White Paper Integrated tourism development frameworkIntegrated tourism development framework Targeted sectoral analysisTargeted sectoral analysis Focused economic transformation programFocused economic transformation program Explicit pro-poverty approachExplicit pro-poverty approach

we have we have

World-class convention centre addressing seasonalityWorld-class convention centre addressing seasonality Excellent airportsExcellent airports Inadequate ports (logistical blockages)Inadequate ports (logistical blockages) Unsafe, unreliable public transportUnsafe, unreliable public transport Uneven skills and inexperienced workforceUneven skills and inexperienced workforce Poor rural transport infrastructure for people and producePoor rural transport infrastructure for people and produce Uncertain, uninvolved populationUncertain, uninvolved population

We need to addressWe need to address

Our own limited global competitivenessOur own limited global competitiveness Disparities between rich and poorDisparities between rich and poor

Where do we start?Where do we start?

Key sectors for growthKey sectors for growth

Oil and gasOil and gas Auto componentsAuto components Bio-technologyBio-technology ICTICT FilmFilm ClothingClothing Furniture and jewelryFurniture and jewelry CraftCraft TourismTourism Agri-processing eg wine, organics, meat & fish Agri-processing eg wine, organics, meat & fish

productsproducts

GeographicGeographic spread of key sectors spread of key sectors

Oil and gas: Cape Town, Saldanha, Mossel BayOil and gas: Cape Town, Saldanha, Mossel Bay Auto components: AtlantisAuto components: Atlantis Bio-technology: Cape Town, GeorgeBio-technology: Cape Town, George ICT: Cape Town, StellenboschICT: Cape Town, Stellenbosch Film: city and rural locationsFilm: city and rural locations Clothing: City, Atlantis, GeorgeClothing: City, Atlantis, George Furniture and jewelry: City and S CapeFurniture and jewelry: City and S Cape Craft: township and ruralCraft: township and rural Tourism: city and ruralTourism: city and rural Agri-processing eg wine, organics, meat, fish: Agri-processing eg wine, organics, meat, fish:

rural and port/airport relatedrural and port/airport related

Current Current gendergender spread of key sectors spread of key sectors

Oil and gas: mainly maleOil and gas: mainly male Auto components: mainly maleAuto components: mainly male Bio-technology: bothBio-technology: both ICT eg call centres (female), high tech (male)ICT eg call centres (female), high tech (male) Film: bothFilm: both Clothing: mainly femaleClothing: mainly female Furniture and jewelry: bothFurniture and jewelry: both Craft: mainly femaleCraft: mainly female Tourism: mainly femaleTourism: mainly female Agri-processing: bothAgri-processing: both

Growth (or decline) depends on Growth (or decline) depends on growth (or decline) of key growth (or decline) of key

sectors of regional economysectors of regional economy

Pre-conditions for sustained growthPre-conditions for sustained growth

Upgrade ports, improve efficiencies & decision-makingUpgrade ports, improve efficiencies & decision-making Build & repair infrastructure (e.g. roads)Build & repair infrastructure (e.g. roads) Establish Innovation CentreEstablish Innovation Centre Support Cape exportsSupport Cape exports Ensure compliance for exports e.g. meat to USEnsure compliance for exports e.g. meat to US Generate demand-led human resource strategy Generate demand-led human resource strategy Make tourism and wine industries more representativeMake tourism and wine industries more representative Rollout tourism infrastructure plans (NB public Rollout tourism infrastructure plans (NB public

transport)transport) Attend to crime, alcohol abuse, socio-economic accessAttend to crime, alcohol abuse, socio-economic access Integrate planning bottom-up and top-downIntegrate planning bottom-up and top-down

Not rocket scienceNot rocket science

But it is aboutBut it is about

Alignment of effort across spheres of governmentAlignment of effort across spheres of government Resource allocation (budget & human capacity)Resource allocation (budget & human capacity) Constant communication: messages of Constant communication: messages of

– Internal: Internal: ‘‘we canwe can’’, , ‘‘we must focuswe must focus’’, , ‘‘we in the we in the Cape are Proudly SACape are Proudly SA’’

– Domestic: Domestic: ‘‘how we can contribute to rest of SAhow we can contribute to rest of SA’’– International: International: ‘‘feel the warmth, enjoy the beauty, feel the warmth, enjoy the beauty,

admire the capability, buy the products, spread admire the capability, buy the products, spread the message…the message…’’

How do we make the difference?How do we make the difference?

Key sectors Key sectors alreadyalready identified identifiedMicro-economic reform agenda is clearMicro-economic reform agenda is clearSystem of integrated development System of integrated development planning is beginning to workplanning is beginning to work

Now City & Province need toNow City & Province need toResource the micro-economic reform Resource the micro-economic reform

(staff & budget)(staff & budget)Connect Connect it to planning at local levelit to planning at local levelActivate the buy-in Activate the buy-in

Growth and Micro-economic reformGrowth and Micro-economic reform

  

 

Clothing & Clothing & TextilesTextiles

Clothing & Clothing & TextilesTextiles

WineWine

Clothing & Clothing & TextilesTextiles

ICTICT Bio-TechBio-Tech

Clothing & Clothing & TextilesTextiles

WineWine Bio-TechBio-Tech Oil & GasOil & Gas

Clothing & Clothing & TextilesTextiles

WineWine Bio-TechBio-Tech Oil & GasOil & Gas CraftCraft

Clothing & Clothing & TextilesTextiles

CraftCraft Bio-Bio-TechTech

Oil & Oil & GasGas

Wine & FruitWine & Fruit TourismTourism

Clothing & Clothing & TextilesTextiles

CraftCraft Bio-TechBio-Tech Oil & GasOil & Gas Agric eg Agric eg ostrichostrich

Tourism EventsTourism Events

CMTCMT women women ruralrural

Prac-Prac-demicsdemics

LinkLink

procureprocure

JVsJVs Links, procure, Links, procure, financefinance

Eg Eg MonaticMonatic

Start Start upup

targeted targeted investminvestm

40%?40%? land land reformreform

Downstream Downstream procurement procurement

Atlantis Atlantis M PlainM Plain

ruralrural

twnshptwnshp

Mossel Mossel BayBay

Products Products with Coopwith Coop

Integrated Devt Integrated Devt FramwkFramwk locations locations

DesignDesign

Cape Cape TechTech

Maths & Maths & sciencescience EnginrngEnginrng ElsenburgElsenburg

THETA & MAPPTHETA & MAPP

Cape Tech, TEPCape Tech, TEP

Trading Trading HouseHouse

BrandBrand Service Service provisionprovision

PackagngPackagng

R&DR&DDTIDTI incentives, incentives, joint marketingjoint marketing

GeorgeGeorge trade trade centrecentre

CCDICCDI

BndwdthBndwdth

Innovtion Innovtion CentreCentre

harbourharbour

MosgasMosgas

IDCIDC

Container Container port, roadsport, roads

IDZ cargoIDZ cargo

2003 President2003 President’’s s Cup, Storms River Cup, Storms River Welcome Centre Welcome Centre

TEO IDCTEO IDC

SMMESMME

BEEBEE

IDPIDP

LEDLED

JobsJobs

HRDHRD

ExportsExports

Benefic.Benefic.

Infrastr Infrastr

LogisticsLogistics

incentive incentive

Growth Growth withwith Equity matrix gives Equity matrix gives

Sectoral strategies read down columnsSectoral strategies read down columns Transformation strategies along the rowsTransformation strategies along the rows

– SMME work focused on growing sectorsSMME work focused on growing sectors– BEE targeting growth sectorsBEE targeting growth sectors– LED projects in sectors with hopeLED projects in sectors with hope– HR strategies linked to future demandHR strategies linked to future demand– Partners per sector networkedPartners per sector networked

Work programme prioritised for growth/equityWork programme prioritised for growth/equity

Next?Next?

Communicate what has to be Communicate what has to be done and whydone and why

New local government to New local government to work work withwith national and provincial national and provincial

SummarySummary

Need to grow AND share the cakeNeed to grow AND share the cake Target sectors with potential to further goalsTarget sectors with potential to further goals

– Job and wealth creationJob and wealth creation– Rural, township and womenRural, township and women– Forex earnersForex earners

Partners – public and privatePartners – public and private Leverage to transform and broaden ownership Leverage to transform and broaden ownership Review, rework, learn, improve….Review, rework, learn, improve….