By Sue Segar
THE Western Cape Government’s Growth for Jobs (G4J) strategy, launched in July this year, is now in full implementation, and already showing potential to build an economy even larger than the trillion rand anticipated in the original formulation of the strategy.
This was the positive view put forward by Mr Velile Dube, HOD: Economic Development and Tourism for the Western Cape Government when he delivered the keynote address at a client event for the infrastructure development group of companies, the Bigen Group.
The ambitious strategy has, as its stated goal, to “build a trillion rand, jobs-rich, inclusive, sustainable, diverse and resilient provincial economy.” It has set a target of achieving between 4% and 6% growth a year in real terms by 2035 and could potentially create over 600 000 jobs. Core to the plan is that the private sector creates jobs, while the role of the Western Cape Government is to ensure ease of business – ensuring the private sector has sufficient access to energy, water, infrastructure, skills and technology.
Dube said when the strategy was developed, the GDP of the Western Cape in rand terms was about R642 billion. “That is where the target of a trillion rand came in and we think there is even more potential. So far this first quarter, on the back of this strategy we’ve seen R6,72 billion new investment into the Western Cape Province. We are starting to think that that number is actually far less than what the real potential is for the province.
“Our job is to enable the private sector and then step out of the way and let them do what is best …”
Dube spoke about the seven pillars of the strategy, which include:
- Driving growth opportunities through growth and investment: “The goal is that private sector investment will be 20 percent of regional GDP, translating to R200 billion, by 2035”;
- Stimulating market growth through exports and domestic markets: “The goal is for the value of Western Cape exports of goods and services (including tourism), to triple by 2035”;
- Energy resilience and transition to net-zero carbon: “The goal is to reduce reliance of energy from Eskom of between 1 800 to 5 700 MW by 2035, estimated to attract between R21,6 billion and R69,4 billion in related investment”;
- Water security and resilience: “The goal is to double the amount of water available for secondary and tertiary economic sectors (primarily from non-productive use) by 2035 and honour existing allocations to agriculture.”;
- Technology and innovation: “The goal is, by 2035, for research and development expenditure to increase by 300% in real terms, reaching R35 billion and venture capital deals will total R20 billion);
- Infrastructure and connected economy: “The goal is that, by 2035, the Western Cape economy will have the infrastructure required to support and enable a R1 trillion economy and public sector capital investment in the Western Cape will be 10% of regional GDP.; and
- Improved access to economic opportunities and employability skills; “The goal is that all citizens who want to be economically active have improved access to economic opportunities and employability through at least one pathway.”
Dube said the Western Cape is doing better on many fronts, than other provinces, “but compared to our peers globally we’re still far short of what is possible.”
Mr Luthando Vutula, Group CEO of Bigen, said the group, along with the Western Cape Government, are united by a common purpose – the development of infrastructure in the Western Cape.
“The importance of infrastructure cannot be overstated. It is an enabler of progress, a catalyst of innovation and a gateway to new horizons. It’s the foundation on which we build the economy, communities and the future.
“It’s the roads that connect us, the schools that educate us, the hospitals that heal us and the services that power our homes and businesses.”
Mayor, Geordin Hill-Lewis spoke about the massive economic opportunities for the Western Cape as a province.
“We know we are growing faster than the rest of the SA economy, which is why we have 21 % compared to (the national) 36% unemployment rate. But to decrease unemployment, we have to have economic growth. It is our obsession in this province. Everything we do is about that, because we are obsessed with bringing people out of poverty; that is what is holding our people back.”
He stressed that infrastructure development is the “engine room of economic growth”
“You can’t have economic growth without infrastructure investment.”
According to the latest census figures, Hill-Lewis said, the Western Cape has gone from the fifth to the third most populous province in SA; with Cape Town having moved from the third most populous city to the second, just behind Johannesburg which is suffering population shrinkage.
“In a couple of months, Cape Town will cross over the 5 million person mark, so we are booming from a population perspective which puts huge pressure on existing infrastructure.” He said if even four or five of the pillars envisaged in the province’s growth strategy are achieved, the province and the city will enjoy an “unprecedented economic boom”.
