INCLUSIVE ECONOMIC GROWTH & OPPORTUNITIES ACCELERATE CAPE TOWN 5 TH MAY 2017
ECONOMIC OVERVIEW
CAPE TOWN ECONOMY TYPICAL URBAN ECONOMIC STRUCTURE Community services 15.8% 20.6% Finance 19.9% 32.6% Transport 10.2% 8.6% Trade 15.5% 13.7% Construction Electricity 3.6% 3.6% 1.2% 2.2% Cape Town GVA National GVA Manufacturing 12.2% 12.4% Mining Agriculture 0.1% 0.5% 2.3% 7.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
OVERVIEW OF CAPE TOWN S ECONOMY - GGP 2015 R301b Cape Town 9.9% ethekwini 9.2% Rest of SA 43.1% Ekurhuleni 7.5% Jo burg 15.3% Buffalo City 1.7% Tshwane 8.8% Mangaung 1.7% Nelson Mandela Bay 2.7%
INEXTRICABLY LINKED TO THE NATIONAL ECONOMY 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 1,6% 1,2% SA GDP Cape Town GDP 0.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-1.00% -2.00%
Real GDP per capita (Rand) GDP per capita growth rate (%) GGP PER CAPITA HIGHER THAN SA BUT SLOW GROWTH 80,000 5.00% 70,000 60,000 50,000 4.00% 3.00% 2.00% 1.00% 40,000 0.00% 30,000 20,000 10,000-1.00% -2.00% -3.00% -4.00% 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year -5.00% 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
Catalytic Sectors Positioning Cape Town as a forward-looking, globally competitive business City Development Facilitation Investment Facilitation Enterprise & Investment Enterprise Development Place Marketing International Relations
CATALYTIC SECTORS SUPPORT OF STRATEGIC AND HIGH GROWTH 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
CAMISSA METHODOLOGY Institutional Review Competitiveness Chamber interviews Company interviews Comparative Advantage Recent Growth Socioeconomic impact Influence Potential Baseline Statistical Analysis Demand Global market trends Global best practice Industry forecasts
Employment Value (R billion) POSITIVE TRENDS IN KEY MANUFACTURING SECTORS Employment in textile industry 34,000 33,500 33,000 30.0 25.0 20.0 Food and Bev exports 32,500 15.0 32,000 10.0 31,500 5.0 31,000 2011 2012 2013 2014 2015 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Clothing and textiles 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 SUPPORT OF SMME S / SKILLS / EASE OF DOING BUSINESS 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.
INVESTMENT AND DEVELOPMENT FACILITATION SUPPORT OF SMME S / SKILLS / EASE OF DOING BUSINESS 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
INTERNATIONAL RELATIONS RELATIONSHIPS WITH INTERNATIONAL ORGANISATIONS & CITIES 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
PLACE MARKETING TOURISM, DESTINATION MARKETING AND INVEST CAPE TOWN 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 :
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 ECONOMIC AMBASSADORS 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
QUESTIONS?