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INCLUSIVE ECONOMIC GROWTH &
OPPORTUNITIES ACCELERATE CAPE TOWN 5TH MAY 2017
ECONOMIC
OVERVIEW
2.3%
7.6%
12.4%
2.2%
3.6%
13.7%
8.6%
19.9%
20.6%
0.5%
0.1%
12.2%
1.2%
3.6%
15.5%
10.2%
32.6%
15.8%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Agriculture
Mining
Manufacturing
Electricity
Construction
Trade
Transport
Finance
Community services
Cape Town GVA
National GVA
CAPE TOWN ECONOMY – TYPICAL URBAN ECONOMIC STRUCTURE
OVERVIEW OF CAPE TOWN’S ECONOMY - GGP
Cape Town
9.9%
eThekwini
9.2%
Ekurhuleni
7.5%
Jo’burg 15.3%
Nelson
Mandela Bay
2.7%
Tshwane 8.8%
Mangaung
1.7%
Buffalo City
1.7%
Rest of SA
43.1%
2015 – R301b
INEXTRICABLY LINKED TO THE NATIONAL ECONOMY
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
SA GDP
Cape Town GDP
1,6%
1,2%
GGP PER CAPITA – HIGHER THAN SA BUT SLOW GROWTH
-5.00%
-4.00%
-3.00%
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
GD
P p
er
ca
pita
gro
wth
ra
te (
%)
Re
al G
DP
pe
r c
ap
ita
(R
an
d)
Year
South Africa City of Cape Town South Africa City of Cape Town
LATEST LABOUR MARKET INDICATORS
Indicator South Africa Cape Town
Q4:2016 Q3:2016 Q4:2015 Q4:2016 Q2:2016 Q4:2015
Working Age Population (000s) 36 905 36 750 36 272 2 814 2 800 2 758
Labour Force 21 849 21 706 21 211 1 949 1 908 1 901
Employed 16 069 15 833 16 018 1 482 1 469 1 511
Employed by the Formal Sector 11 156 11 029 11 180 1 207 1 212 1 231
Employed by the Informal Sector 2 695 2 641 2 684 165 152 175
Unemployed 5 781 5 873 5 193 467 440 390
Not economically active 15 055 15 044 15 061 865 892 856
Discouraged work-seekers 2 292 2 291 2 279 11 13 9
Other 12 763 12 753 12 782 855 879 847
Unemployment rate (%) 26.5 27.1 24.5 23.9 23.0 20.5
Youth Unemployment rate (%) (15-24) 50.9 54.2 50.4 48.0 49.1 45.1
ENTERPRISE AND
INVESTMENT
Positioning Cape
Town as a
forward-looking,
globally
competitive
business City
Enterprise & Investment
Catalytic Sectors
Enterprise Development
Place Marketing
International Relations
Investment Facilitation
Development Facilitation
CATALYTIC SECTORS
• Sector development agencies funded by the City to perform specific functions on its behalf
• Strategic direction provided by the City
• Outputs and outcomes specified and measured
• PROJECT CAMISSA used to inform sectors
SUPPORT OF STRATEGIC AND HIGH GROWTH SECTORS
CAMISSA METHODOLOGY
Comparative Advantage
Recent Growth
Socio-economic
impact Influence Potential
Baseline Statistical Analysis
Institutional Review
Competitiveness • Chamber interviews • Company interviews
Demand
• Global market trends
• Global best practice
• Industry forecasts
POSITIVE TRENDS IN KEY MANUFACTURING SECTORS
31,000
31,500
32,000
32,500
33,000
33,500
34,000
2011 2012 2013 2014 2015
Em
plo
ym
en
t
Employment in textile
industry
Clothing and textiles
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Va
lue
(R
bill
ion
)
Food and Bev exports
Exports Imports Trade balance
STRONG PROSPECTS ACROSS MULTIPLE SECTORS
BUSINESS PROCESS OUTSOURCING:
• Leading creator of jobs
• Offshore clients benefit from weakening rand
• Good growth prospects
CLOTHING AND TEXTILES:
• Turnaround potential
• Retail head offices and manufacturer locational advantage for fast fashion
• Technical production
FOOD AND BEVERAGE MANUFACTURE:
• Growth of African middle class
• Increase in demand for diverse food and beverage products
STRONG PROSPECTS ACROSS MULTIPLE SECTORS
ELECTRONICS:
• Increased electronic production/assembly facilities in the city
• African markets account for 51% of Cape Town’s electronic exports
• Entry point to sub-Saharan Africa ?
RENEWABLE ENERGY:
• Affordability of renewable energy production and storage options
• Creation of a green technology Special Economic Zone (SEZ) in Atlantis.
ICT AND MEDIA:
• Diverse, professional and well priced destination
• Increasing opportunities for vertical integration of film value chain
• Leading location of tech start-ups, e-commerce companies and venture capital deals
THE ECONOMIC PERFORMANCE INDICATORS FOR CAPE TOWN
ENTERPRISE DEVELOPMENT
• Business support line
• Reports and manages City efforts to improve World Banks Ease of Doing Business Report Rankings
• Provides referrals and information to SMME’s
• Skills development
• Outcomes-based tender aims to support economic inclusion
• High impact three-year plan to develop residents’ skills and place them in work opportunities
• Service provider only paid once they have placed residents into education, training, or
employment opportunities. The more sustained placements made, the more they stand to
earn from the City of Cape Town. City pays for success, not just services rendered.
SUPPORT OF SMME’S / SKILLS / EASE OF DOING BUSINESS
INVESTMENT AND DEVELOPMENT FACILITATION
• Deals with large scale investment or development in the City
• Reduces Red tape related to City processes/procedures/incentives
• Dedicated resources in Atlantis to support green manufacturing hub and rapid land release
programme
• RECENT INVESTMENTS LANDED
SUPPORT OF SMME’S / SKILLS / EASE OF DOING BUSINESS
INTERNATIONAL RELATIONS
• Manages historical relationships with sister cities
• Responsible for strategic selection of new productive international relationships
• Manages inbound and outbound missions and delegations
• Focussed on activating relationships that have specific economic, operational and social outcomes at their core
RELATIONSHIPS WITH INTERNATIONAL ORGANISATIONS & CITIES
PLACE MARKETING
• Manages strategic input, mandate and oversight of Cape Town Tourism
• Responsible for managing perceptions of destination Cape Town
• Generates media and content for promotional and aspirational value
• Leverages and maximises ROI for events that the City participate in
• INVEST CAPE TOWN :
TOURISM, DESTINATION MARKETING AND INVEST CAPE TOWN
WHAT IS IT…
• South Africa’s second largest city economy actively competing to attract
global capital to our shores.
• A globally competitive business destination leveraging its natural beauty and
tourism achievements for economic inclusion and growth.
• Crafting an authentic narrative about what we stand for as an investment
destination, building on our compelling success stories and sharing our
competitive advantages.
• Looking into the future; how do we plan to provide economic resilience and
ensure we develop, attract and retain talent?
ECOSYSTEM
• Crafting an authentic narrative about what we
stand for as an investment destination
• Seed market place with messaging and
collateral
• Unify and amplify messaging
• Sector development agencies funded by the City to perform specific
functions on its behalf.
• Strategic direction provided by the City
• Outputs and outcomes specified and measured
ECONOMIC
AMBASSADORS
QUESTIONS ?
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