Oceans Economy delivering results
Operation Phakisa: Oceans Economy is creating waves of investment and employment
Three years since its launch Operation Phakisa: Oceans Economy is creating waves of investment and employment in the country.
The initiative has unlocked investments totalling R24.6 billion, with a government contribution of
R15 billion. Over 6 500 jobs have been created through the Oceans Economy segment of Operation Phakisa, according to President Jacob Zuma.
He recently hosted stakeholders in Durban, where he provided an update on the implementation of Operation Phakisa: Oceans Economy.
Operation Phakisa is an adaptation of the Big Fast Results methodology that was first applied by the Malaysian Government very successfully in the delivery of its Economic Transformation Programme and Government Transformation Programme.
South Africa renamed the programme Operation Phakisa to highlight the urgency with which government wants to deliver on some of the priorities encompassed in the National Development Plan.
Operation Phakisa is being implemented in the ocean economy, improvement of clinics, rolling out information and communication technologies in education as well as the agriculture, mining and tourism sectors.
Contribution to GDP
Government predicts that by 2030, the oceans economy will contribute R177 billion to the country's Gross Domestic Product (GDP). So far,
R444 million has been invested to create jobs in aquaculture.
Speaking at the gathering attended by several Cabinet Ministers, stake-
holders in the maritime and environment sector as well as local business, President Zuma said the first implementation of Operation Phakisa had focused on unlocking the potential of South Africa's oceans.
“We brought together in the Oceans Economy project representatives from government, industry, labour, civil society and academia to collaborate in unlocking the economic potential of our oceans.
“The largest contribution to the total investment in the oceans economy was from infrastructure development, mainly in our ports, manufacturing, mainly in boat building, aquaculture and scientific surveys in the oil and gas sector, having been facilitated through government incentives,” said President Zuma.
South Africa is also targeting the Oceans Economy as it is one of the key drivers in the Nine-Point Plan to grow the economy, create jobs, transform the economy and attract investment.
In addition, the ocean sectors contribute approximately 4.4 percent to South Africa's GDP, with the largest contribution coming from the value chains.
The President visited the Port of Durban and was impressed with the specialised super tugboats that were being built at Southern African Shipyards.
“This is a R1.4 billion project.This is a demonstration of South Africa's capacity and capability to build specialised vessels locally. Seven of the nine tugboats have already been built as part of this project and around 500 jobs have been created.
“The South African Navy seeks to build their complex and specialised hydrographic survey vessel to map the sea floor, an investment of approximately R1.8 billion.”
Ports of investment
President Zuma added that government intends to establish the KwaZulu-Natal Boatbuilding Park as part of the maritime vessel industrial complex at Bayhead in the Port of Durban.
The boatbuilding sector has long been recognised in government's strategic plans as a major opportunity to stimulate new investment, exports and job creation.
The park is planned to be a worldclass space for the production and repair of leisure and commercial boats. It will be the single largest boat building facility in southern Africa.
It will also accommodate emerging and Black-owned boatbuilding companies and key suppliers, the President said.
The project represents an investment of more than R250 million and will have the capacity to produce up to 150 boats annually, mainly for the export market.
The park will have a Marine Skills Development Centre to provide onthe-job and practical training for the unemployed and youth.
In the marine transport and manufacturing focus area, the Port of Dur-
ban has seen the completion of the Outer Dry Dock Caisson to improve safety.
The upgraded Durban Dry Dock will be key to attracting ship repair business to Durban.
At the Port of Cape Town, the Burgan Fuel Storage Facility, a substantial private sector investment of over
R660 million, has recently commenced operations, to augment the fuel supply and energy demand in the Western Cape.
A Cruise Terminal concession to fund, design, build and operate has been awarded to the V&A Waterfront Company in the Port of Cape Town, which will see an increase in cruiseliners docking in this port and bolster the tourism market.
In the Port of Saldanha Bay, the new Sunrise Energy Liquid Petroleum Gas Facility, through a concession issued by the Transnet National Ports Authority, has also commenced operation.
The construction of the Offshore Supply Base berth at the Port of Saldanha has been completed as part of the establishment of Saldanha Bay as an offshore oil and gas support hub.
With regard to the offshore oil and gas focus area, 14 exploration rights, six production rights and two technical cooperation permits have been issued.
Catalyst projects
Detailing the progress made in the aquaculture focus area, the President said the initial target of 24 catalyst projects had been exceeded and there were now 36 aquaculture projects.
These projects include the marine species and inland freshwater fish and have empowered more than 15 small, medium and micro enterprises.
The development of small harbours has the potential to unlock economic opportunities along the coast and stimulate local economies, said the President.
“To exploit this potential, we have commenced with preparations for the planned National Small Harbours Development Laboratory. Investor conferences are being held in the coastal provinces as a build-up to the national lab engagement.
“Already, critical capital and maintenance projects of approximately R400 million rand have been identified to modernise and develop the 12 proclaimed fishing harbours.”
Developing skills
President Zuma pointed out that the country will not be able to grow the Oceans Economy without skills development, research and technology and innovation.
The newly launched South African International Maritime Institute at Nelson Mandela University coordinates the skills development programme.
“Our training programmes include cadet and seafarer training, marine engineering, various apprenticeships as well as specialised training.
“The Marine Youth Development Programme of the South African Maritime Safety Authority has also facilitated the training of 125 young people from Orange Farm, Port St Johns and Buffalo City Municipality in hospitality and seamanship.This will help them gain jobs on international cruise liners,” he said.
In addition, many high schools now offer maritime subjects, including 18 schools in KwaZulu-Natal.The Department of Basic Education is working with the South African International Maritime Institute to designate dedicated maritime schools.
“We have gone quite a distance indeed in unlocking our oceans to find economic value and jobs for our people,” said the President.
He expressed appreciation for the contribution made by all sectors, including business, labour, academia and government, in making Operation Phakisa: Oceans Economy a success so far.