Future Cape Vision 2040 Initial thinking. Need for new long-term economic vision for Western Cape To align government action and investment decisions.

Future CapeVision 2040

Initial thinking

Need for new long-term economic vision for Western Cape•To align government action and

investment decisions•To provide common base for private and

public sector collaboration•To facilitate necessary adaptations to

external economic context•To address development and inclusion

imperatives

Non-options• Positioning ourselves as a low cost manufacturing or

service centre ▫ Although there is space for growing manufacturing

linked to strong sectors• Positioning ourselves as the regional business and

financial services hub ▫ Competing against Joburg although there is space for

complementary niche business and financial services growth

• Business as usual▫ Continued jobless growth▫ Fragmented geographically myopic sector based

approach (“each for their own”)

Future Cape – Vision 2040

• Natural and cultural environment

• Services and amenities• Health care and

education• Pathways into

employment for all

Great place to live, study, work and visit

• Supportive efficient regulatory environment

• Entrepreneurial hotspot • Clean and effective

government• Excellent diverse skills

base• Excellent connectivity

Great place to do business

• Economic leadership and partnership training hub

• Globally relevant laboratory for social innovation and green economy

• Hotspot of creativity and design excellenceCentre of global thought leadership

Four strategic drivers of inclusive growth

•A comprehensive system of educational support which ensures every resident has equal access to quality education geared to equipping them with the skills for the future

Education Cape

• Addressing the low levels of productivity and the high levels of unemployment through a combination of a massive work creation initiative to absorb low-skilled and inexperienced unemployed work-seekers and developing a culture of respect for work

Working Cape

• A multi-pronged initiative to promote the Western Cape as a place for enterprising solutions to community needs and as a hub for innovative entrepreneurs and development of enterprises that employ people

Enterprise Cape

•A multi-pronged initiative to provide quality and sustainable working and living environments for all residents and for businesses

Living Cape

Education Cape • World class universities• Most resourced schools produce the best results in the

country• Adhoc educational programmes such as equal

education, healthy tuckshop initiative, Saldanha Academy, Symphonia leadership programme & Wordworks.

• Skills base of teachers• School infrastructure • ECD• Governance• Sports and cultural programmes for young people• Education M&E as basis for funding and new

programmes

• Dysfunctional schools & Bantu education• Underutilising schools as a community asset• Existing skills training SETA and FET system

Working Cape • Nucleus of employment intermediation agencies • Environmental EPWP initiatives – WfW, WoF, WoW, WfE

• Proving bridges into employment including upscaling employment intermediation, job readiness and placement services

• Scale up CWP to address the 1.5 million unskilled work seekers

• Strategies to make the Western Cape an attractive place to work for black professionals

• Information on and targeting of job funding programmes

• Labour market regulation

• Xenophobia • Culture of dependency

Enterprise Cape • Multitude of grassroots enterprising solutions to meet

local needs• Growing nucleus of social enterprise• Attraction and retention of creative entrepreneurs

• How we use and release public assets such as land and buildings

• Natural resource management • Broadband access• Public mobility including transport and spatial planning• Business enterprise support system

• Non entrepreneurs providing entrepreneurial support• Hyper-partisanship• Red-tape

Living Cape • Initiatives to create more sustainable communities

including Green Cape. Climate Change Adaptation Committee and localised green programmes

• Municipal recycling (but some good practice)• Water demand management• Natural asset investment (good examples but lack of

inclusion)

• Urban sprawl and slums on periphery

Key economies that drive the WC Economy

Western Cape

Economy

Agri-economy

Lifestyle economy

Creative economy

Knowledge economy

Services economy (financial, business & services)

The Creative Economy• Includes architecture, advertising, design such as

fashion and engineering, publishing and printing, visual arts, performing arts, cultural heritage sites, audio-visuals/ film, ICT applications and media and the associated value chains

• Positioning: Globally oriented and competitive sector with CT central city a recognised hub. CPUT houses one of the largest design faculties in the country and one of two industrial design facilities

• Challenges:▫Bandwidth▫ Increasing employment and value

The Agri Economy• Food-security, agriculture, forestry, fishing, aquaculture,

agro-processing and related industries in the value chain such as textiles and paper

• Positioning: Still major provincial export driver. Strong resilient and competitive fresh produce sector. Strong food security movement. Large food processing sector which includes several MNC who are on the technological frontier.

• Challenges:▫ Energy costs, and increasing costs linked to carbon footprint▫ Capacity and efficiency of the port▫ Sourcing skilled employees▫ Increasing balance of processed higher value products (e.g

fine foods linked to tourism)

The Lifestyle Economy•Tourism, restaurants, hospitality, events,

sports, health and leisure sectors•Positioning: SA’s premier tourism destination

with strong global profile (particularly in Europe), No 1 convention centre in Africa and 46th in the world, home to key sporting events

•Challenges▫Expand tourism into local, African, Asian

market▫Connecting to other value chains▫Increase inclusion and space for new products

and emerging entrepreneurs

Business and Social Services

• BPO, financial services, business services, health, social and community services

• Positioning: Western Cape is a service based economy with growing clusters in all service sectors but not a market leader in any.

• Challenges:▫Disconnection between social and business services▫Financial services retention strategy linked to

complementary research sector▫ Increasing competition in BPO sector and need to

transition current basic level BPO up to “middle office” services

▫Cost of health research compared to competitors despite health research capacity

The Knowledge Economy•Universities, colleges, schools, training

agencies. research institutions, online data management

•Positioning: Knowledge intensive economy and competitive in SA but not globally.

•Challenges: ▫Poor quality and skills of human capital – from

unskilled to skilled▫Absence of a local innovation system and linkages

between university & business ▫Failure to reinforce and exploit agglomerations▫Broadband capacity

Key economic value chain ideas

Design and

creative hub with

engineering,

ICT, new media and

cultural focus

Healthy living and visitor destination – nutrition to green

Continental knowledge hub and global social enterprise innovation

hub

Agricultural

technologies

processing

expert hub for Africa

Middle income global services and localised

community service systems

Bringing it all together

•Big Ideas list▫as impetus for on-going collaboration and

action•Roles and responsibility framework

▫as basis for accountability and change requirements

•Western Cape Economic Index▫as tool for target setting and monitoring

•Space and movement overview▫as guide for long-term spatial alignment

Education Cape Ideas

Education Cape: School Programme

• Problem: The education system is not equipping young people with the requisite skills for the job market. Literacy and numeracy levels are low ( In 2009,only 48.6% of Grade 6 learners in the Western Cape could read and write at the appropriate level and most of these came from previously resourced areas.) in an economy where less and less unskilled job opportunities are available.

• Idea: To establish the Western Cape as a centre of educational excellence supported by: an expansion of the Telematics programme, improve technological literacy and resources, set up a mobile library service, a volunteer reading programme, roll out of a maths and science clubs programme, link under-resourced schools with private sector adopters and school leadership training circles. Roll out massive teacher training programmes.

• Existing resources: WCED, Equal Education, DG Murray Trust, Symphonia, Adopt-A-School Programme

• Impact: Equal access to quality education and improved schooling outcomes

Education Cape: Healthy kids, healthy schools, healthy neighbourhoods initiative

• Problem: Young children are being fed an unhealthy fast food cheap diet that impairs their concentration and leads to long term health problems

• Idea: To launch a healthy kids, healthy schools programme for Grade R – Grade 2 pupils using school land for food gardens, employing unemployed parents to tender the gardens and prepare food and the best advertising and marketing skills to change consumption patterns towards healthier living

• Existing resources: Abalimi, Healthy Tuckshop Initiative, Discovery Health, ECD and primary education training facilities

• Impact: Increased awareness of nutrition, healthier kids, Household food and livelihood security, increased involvement of parents in schools

Working Cape Ideas

Working Cape: Bridges into work

• Problem: One and a half million unskilled unemployed people reliant on indigent and social grants for livelihoods

• Idea: To register all grant recipients and stream them to receive livelihood (food garden and community works), targeted job readiness/skills training and work experience via community works and apprenticeships or job placement services to reduce their reliance on grants

• Existing resources: Employment Intermediation Agencies, Abalimi, private sector, Provincial Government, Local Government

• Impact: Diversify the income streams in grant recipient households and place 250 000 people in jobs with a combined income of at least five times the cost of the placement service

Working Cape: Community Works Programme

• Problem: One and a half million unskilled unemployed people, degraded and unsafe communities and a breakdown of social capital

• Idea: To launch a massive township renewal programme aimed at cleaning up waste, providing recycling services, sanitation services and clearing, lighting, securing and greening public and recreational spaces using a community works jobs programme

• Existing resources: Government, VPUU, local NGO networks, Social Justice Coalition Janitors Programme

• Impact: One million jobs created and upgrade every township with safe and attractive public spaces

Enterprise Cape Ideas

Enterprise Cape: Social Enterprise Hub• Problem: Lack of understanding of and support for social

enterprises which meet a social need on a break-even or profit basis and therefore the absence of such enterprise in the Western Cape

• Idea: To make the Western Cape a global hub for social enterprise by providing a network, social enterprise incubators – virtual portal and physical and venture capital funding for social enterprises. The fund will be geared using dormant bank account funds to match 1:1 private venture capital funding.

• Existing resources: Grassroots initiatives, UCT Bertha Institute, ASEN, Emerging social Enterprise venture capital funds

• Impact: Create conditions for social entrepreneurs to develop and grow their businesses and support at least 500 new social enterprises

Enterprise Cape: Broadband

• Problem: Global entrepreneurs require reliable, fast and cheap broadband access which is not currently available in SA

• Idea: To provide the infrastructure (underground and undersea cables particularly to new markets) to provide universal free internet access and high speed access at a cost

• Existing resources: Provincial, CCT, Stellenbosch and Knysna broadband initiatives

• Impact: Remove one of the key obstacles to doing businesses in SA and the Western Cape.

Enterprise Cape: Enabling Environment

• Problem: The current regulatory, policy and programme support does not foster entrepreneurship or enterprise development

• Idea: To provide fast-tracked approvals, labour market support, venture capital and policy support for enterprises that create jobs and grow one of the five priority economies and contribute towards a green Cape.

• Existing resources: Government, Red-tape reduction initiatives, Wesgro and EDP

• Impact: Attract investment and create jobs

Living Cape Ideas

Living Cape: Tread Smartly: Zero Waste

• Problem: Unsustainable resource use and carbon footprint

• Idea: Phase 1: Make the Western Cape a zero waste province through a massive waste management system and public education capacity to reduce, reuse and recycle.

• Existing resources: Green Cape, Thrive, Trashback, TWK Recycling, Overstand recycling

• Impact: Zero waste output

Living Cape: Safety Partnership

• Problem: High levels of violence and crime in communities across the Province

• Idea: Target infrastructure and services to produce safer communities through local government planning, community works programmes and volunteer citizen based programmes

• Existing resources: VPUU, High 5 Programme, Safer schools and communities programmes

• Impact: Safe communities and a dramatic reduction in crime and violence particularly against women and children

Framework for assessing economic priorities

Good for growth

Good for jobs and growth

Bad for jobs and growth

Good for jobs