City reviews its Economic Growth Strategy
3 July 2019
We are in the process of reviewing and revising the current Economic Growth Strategy. This is a priority for us to establish Cape Town as the go-to city on the African continent and globally for business, trade and tourism. The strategy was last reviewed in 2013.
The 2013 Strategy was successfully implemented and has established a platform for the City’s economic development. However, the constant changes in the local, national, and global economic environment have dictated that we review the strategy. From 2013-2017, Cape Town’s economy grew at an average rate of 1,8% per annum, compared to 1,7% by the Western Cape and 1,5% at a national level.
Another relevant trend is that of unemployment. Cape Town consistently outperforms the national labour market in this regard, with up to 10 percentage points separating the two. Cape Town’s strict and broad unemployment rates are only 1,3 percentage points apart, indicating a low incidence of discouraged work seekers in Cape Town. While this is a positive sign, the reality is that with almost a full quarter of the local population unemployed, we are in desperate need of job creation through stimulation and support of the private sector.
These trends must be reversed as a priority, and I am confident that an updated Economic Growth Strategy will help us to achieve this.
To position ourselves as a globally competitive city, we need to stay abreast of national and global developments to keep up with market trends.
I had the opportunity to engage with the project leads on this item and I am happy to say that this new ‘Inclusive Economic Growth Strategy’ recognizes that addressing inequality is as important as targeting economic growth in the simplest terms. It seeks to address aspects of both the formal and informal local economy. The proposed approach is also aimed at addressing spatial, technological and environmental components of the economy that previous strategies have not necessarily directly looked at.
The policy will address a full range of economic areas and mechanisms within the City’s control, as well as acknowledging the need for more public-private partnerships, which includes all spheres of government.
The modest vision contained in this strategy is the need for economic growth proportional to our population growth, with more jobs created particularly for women and children, and for a better distribution of wealth across the city as a consequence of that growth. This vision is a commitment to infrastructure development, sustainable investment attraction, ongoing stimulation of the labour market and skills development, and better support for companies and sectors.
This is a transversal document impacting on the entire City, therefore, the drafting process includes inputs from a wide range of line departments, including Enterprise and Investment, Urban Planning, Transport, Economic Research, Area Economic Development, and many more. Various external engagements have also been undertaken, including consultations with academic experts, the Cities Support Programme from National Treasury, and well-placed special purpose vehicles such as Economic Development Partnership and Wesgro. It was informative for me to attend some of the sessions with external partners such as Green Cape to hear first-hand what is necessary for the City to include in our economic strategy as we accelerate growth and opportunities. These plans will only be successful if implemented with a holistic view that supports transversal approaches.
We are confident that the updated Strategy will be tabled before Council before the end of the year, targeting approval and implementation in early 2020.
Issued by James Vos, Mayoral Committee Member for Economic Opportunities and Asset Management, 3 July 2019
