Economic Development & Tourism Introducing the Western Cape’s

1. Economic Development & Tourism Introducing the Western Cape’s Micro-Economic Development Strategy [MEDS] Lynne Brown 17 November 2004 … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 1

2. Economic Development & Tourism The Global Economy The Western Cape economy is less than one ten thousandth of the global economy • We are price takers • Our place in the Global “division of labour” … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 2

3. Economic Development & Tourism The Global business environment There are very powerful forces operating in the global business environment • Currency fluctuations • Agricultural subsidies • Technological advances • Primary & Secondary sector job-shedding • Mobility of manufacturing plants and jobs … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 3

4. Economic Development & Tourism The Western Cape economy: 1 If the economy continues on its present trajectory without intervention, the future is bleak for the lower skilled workers and the unemployed • One in four potential workers unemployed: Youth, Over – 40’s • Lower capacity to absorb school leavers and low-skilled workers • A skills mismatch … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 4

5. Economic Development & Tourism The Western Cape economy: 2 • High potential growth sectors vulnerable to exogenous shocks • Labour intensive sectors highly sensitive to currency fluctuations • Significant in-migration of lower skilled job seekers • Marginalization of the masses; low levels of participation … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 5

6. Economic Development & Tourism Where we want to be: 1 • A growing, sustainable [globally competitive], labour absorbing regional economy • Unemployment below 10 percent • A thriving, dynamic Culture of Entrepreneurship … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 6

7. Economic Development & Tourism Where we want to be: 2 • All citizens participating fully at all levels of Ownership, Control, Management and Employment within all sectors • Differently skilled workforce; able to cope well with changes stemming from the global forces; able to participate effectively in the global environment both here and abroad … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 7

8. Economic Development & Tourism 10 Year Targets Number of enterprises created 15,000 to 30,000 Number of jobs created 200,000 to 450,000 Entrepreneurs/business operators enskilled10,000 to 12,000 … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 8

9. Economic Development & Tourism How we get there: 1 • Government and its social partners make extraordinary interventions in the economy over the next 25 years - Based on a fully integrated social and economic growth & development plan for the Western Cape (iKapa elihlumayo) - Such a plan integrates all the key strategies and approaches of the PGWC seamlessly … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 9

10. Economic Development & Tourism How we get there: 2 • A core component of such an integrated social and economic growth & development plan is a rigorous, constantly updated micro-economic development strategy - which articulates possible interventions in economic sectors [agriculture, clothing and so on] and in cross-cutting themes [HRD, Small Business and so on] - to shift the economy from its present trajectory to the achievement of the vision … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 10

11. Economic Development & Tourism What it will contain: 1 • A summary of the global, continental, SADC context and policy environment • The state of the Provincial economy • Current summary reports of the state of to sectors and sub sectors in the economy … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 11

12. Economic Development & Tourism What it will contain: 2 * State of the Province Transversal Theme Reports: Like The Impact of HIV/Aids, The Circumstances of the Majority of Black People in the WC, The Informal Economy, Economic-stimulatory Infrastructure Development, The Potential of Land Reform, The Western Cape Global Competitiveness Rating, and so on * Proposed Interventions based on all three types of reports … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 12

13. Economic Development & Tourism What it will contain: 3 * Synthesis & conclusions - A summary of the major thrusts of the MES - Proposals around how synergies & coherency of recommendations may be effected - Prioritization of potential actions on behalf of PGWC and its social partners and other spheres of Government * Authoritative forecasts … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 13

14. Economic Development & Tourism … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 14

15. Economic Development & Tourism … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 15

16. It eventually becomes: - An authoritative basis for action and planning by all four social partners, foreign economic players, analysts, researchers, planners - An Oracle for FAQs about the Western Cape economy for economic citizens - The point of departure for 80 percent of the work of the Department of Economic Development Economic Development & Tourism … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 16

17. Economic Development & Tourism First sectors & themes: 1 Themes • Themes SMME Development • HRD to meet the needs of the economy Primary Sector • Agriculture & Aquaculture • Fishing & mariculture … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 17

18. Economic Development & Tourism First sectors & themes: 2 Secondary sector • Metals & Engineering • Clothing & Textiles Tertiary sector • Tourism • ICT … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 18

19. Economic Development & Tourism When it will be available Version 1 01/05 * 6 Sectors * 2 Themes Version 2 06/05 * 16 Sectors * 6 Themes … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 19

20. Economic Development & Tourism Contact us at: E-mail: EcoHead@pgwc.gov.za Telephone: 021 – 483 3840 … the two key issues confronting our people: creating work and fighting poverty. Premier Ebrahim Rasool, April 2004 20