Weekend Argus (Saturday Edition)
Zille points to growth and sound economy in W Cape
Premier says preserving business confidence created hundreds of jobs
WESTERN Cape Premier Helen Zille says her government has managed to preserve business confidence in the province, thus creating hundreds of jobs.
Presenting her 10th State of the Province address yesterday, Zille said the province had made significant economic progress as a result of efforts to boost growth in tourism, agri-processing and the energy sectors.
“We’ve managed to keep business confidence 10 points higher than the national average and 11 and 12 points higher than Gauteng and KwaZuluNatal respectively,” the premier said.
Zille said the province had secured over R5.9 billion worth of investment, resulting in more than 1 860 new jobs from 2014 to 2016.
Trade deals clinched since 2014 had yielded about R8.6bn, creating more than 660 jobs.
She said the export sector had expanded, with investment agency Wesgro helping more than 1 470 companies to export goods to global and African markets.
Zille said efforts to boost investment into the region would receive a major boost with the launch later this year of the Cape Investor Centre.
“This will serve as a one-stop shop for investors, enabling them to complete regulatory processes in a single location.”
The centre would function similarly to the Red Tape Unit which resolved blockages hindering investment and growth.
Zille said the province had also seen a significant growth in the small, medium and macro-economic (SMME) enterprises sector as a result of support mechanisms that had been implemented.
“A full 75% of all venture capital deals concluded in South Africa happen right here in the Western Cape,” she said.
The building sector was another component of economic growth, she said.
While the value of buildings completed had declined nationally, the value in the province had grown by 27%.
And more than half of bonds registered by residents of Gauteng during the past year were for properties in the Western Cape.
“People, rich and poor, only migrate voluntarily to places they believe offer them better prospects, and this starts with good governance,” Zille said.
She said the construction sector employed more than 160 000 people in the province and contributed more than R30bn to the economy.
The agricultural sector had seen an increase in the employment rate, and was exporting wines to China and Angola.
“China represents a potential market of 38 million people who drink imported wine twice a year, and Angola is the largest destination for wine exporters in Africa,” Zille said.
She said through partnership with a private entity, Hortgro, and the national Treasury, more than R120m was being made available to boost black farmers over the next four years.
However, water shortages remained a concern and plans were under way to expand the storage capacity of the Brandvlei Dam so additional hectares could be irrigated.
Other efforts to address the water shortage, which has seen the implementation of Level 3b water restrictions in the Cape Metro, included:
diverting surplus into the Voelvlei Dam;
fast-tracking the development of the Table Mountain aquifer; and,
waste water treatment on a macro scale.
“Everyone can save hundreds of litres a month by taking shorter showers and driving around in a dusty car. In a drought, a dusty car is a status symbol,” Zille added.