Weekend Argus (Saturday Edition)
Oceans of potential on our doorstep
WHEN the Dutch East Indian Company was mandated to map a route to India around the tip of Africa some 400 years ago, nobody would have anticipated the latent future economic potential that South Africa’s 2 800km coastline, which straddles three oceans, held for the country.
The southern tip is no longer a stopover for spice merchants, but the vast coastline supports many communities in the vicinity and beyond and is a hub for a thriving ocean economy.
Findings of a Nelson Mandela Metropolitan University study show the oceans have the potential to contribute R54 billion to GDP and an estimated potential to create 316 000 jobs.
At the launch of Operation Phakisa in 2015, marine transport and manufacturing were estimated to contribute nearly R25bn to GDP, and an excess of 15 000 direct and 45 000 indirect jobs by next year. According to government figure, the ocean economy has the potential to contribute up to R177bn to GDP and create just over a million jobs by 2033.
As part of Operation Phakisa, a project spearheaded by the Department of Environmental Affairs in partnership with other departments, the potential is concentrated within marine transport and manufacturing activities, (coastal shipping, boat building and so on), offshore oil and gas exploration, aquaculture, and marine protection services and ocean governance.
South Africa accounts for 3.5% of world sea trade and where 80% of trade value being driven by the sea, according to the South African Maritime Safety Authority, it is in the top 15 countries that conducts trade on sea by distance.
According to a 2018 PwC report, trade in the region is dominated by South African ports, which make up 76% of containerised traffic in sub-Saharan Africa. Durban is the largest container port in the region, accounting for almost half of all containers moving through the region’s ports. In terms of factual freight handled, 10 ports in sub-Saharan Africa handle more than 500 000 twenty-foot equivalent units (TEUs) a year, and two of them handle more than a million a year; only Durban handles more than two million. Four of the eight largest bulk ports are in South Africa.
South Africa’s oceans economy also presents an opportunity to stimulate growth in the management of shipyards, dry docks, marine repair shops and similar enterprises.
These are the competency Operation Phakisa seeks to plug.
The maritime economy can give impetus to eco-tourism.
The expansive coast with its sandy beaches, coupled with a ecotourism activities – from snorkelling to whale watching – help to position the country as a preferred tourist destination.
In the area of fossil fuels, the government has identified offshore oil and gas as a focus area for rapid development. It aims to accelerate the drilling of 30 wells in the next few years as part of Operation Phakisa, and develop infrastructure, such as a phased gas pipeline network.
The maritime economy holds immense potential where entrepreneurs can be incubated and grow.
Operation Phakisa has identified small harbours that can stimulate economic growth and accelerate enterprise development. The commercial activities include infrastructure to support fishers and new recreational fishing points. Operation Phakisa also identified ice-making, desalination and other ventures.
The oceans have tremendous potential. However, all role players need to be cognisant of the delicate ecosystem and ensure all economic activities are undertaken in a sustainable and responsible manner.