Growing the Cape: Accelerating Economic Development Dr Laurine Platzky Western Cape Department of...
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Transcript of Growing the Cape: Accelerating Economic Development Dr Laurine Platzky Western Cape Department of...
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….