Finance and Economic Opportunities

Question by: 
Hon Nobulumko Nkondlo
Answered by: 
Hon David Maynier
Question Number: 
8
Question Body: 

With reference to the target of 597 000 jobs that was envisioned as a provincial strategic goal (PSG) and the report by the Department of Economic Development and Tourism that a total of 331 514 jobs were created in the three strategic sectors of Project Khulisa (oil and gas, tourism, and agro-processing):

1. (a) Which investment projects can be linked directly to this job output and (b) how was it measured;

2. what are the (a) gender, (b) geography, (c) age, (d) racial profile and (e) nature (casual, permanent or contact appointment) of these jobs;

3. which employment data are used to extrapolate this information, given the fact that Statistics South Africa defines the economic sectors of Project Khulisa but does not have the tourism sector as an example?

Answer Body: 

(a) It should be noted that the PSG goal was a cluster goal which was contributed to by multiple departments in the cluster. It is thus not accurate to equate the job creation figures from the Project Khulisa sectors which overall achievement against the PSG target. Given that Project Khulisa and the Western Cape Government’s broader strategy was to influence an enabling environment for the Western Cape economy to grow and create job opportunities, there are a range of investments that flowed into the economy. However, of the investments captured by Wesgro, it is estimated that R7,5 billion worth of investments were landed in the three strategic sectors specifically.

Please see part (c) for the measurement used.

[1] The 331 514 job figures are: 79 000 Agri-processing jobs, added to 217 514 Tourism jobs figure, and 35 000 Oil and Gas jobs. Figures were sourced from the ‘Overview Report’ and the Departments 2019/20 APP, 2017/18 Annual Report and the 2018 PERO.

(b) The requested breakdown (gender, geography, age, racial profile and nature of these jobs) is not measured at this granular level across the strategic sectors.

(c) Each of the three Project Khulisa sectors oil and gas, tourism and agro-processing sectors have specific data sources as described below.

Tourism: Output data is generated from International arrivals data and SA Tourism data. The output data is applied to a Western Cape Social Accounting Matrix (SAM) model to generate employment data. In addition, data is reviewed against a number of other industry sources such as OAG Aviation, STR, ACSA, Forward Keys, Wesgro reports.

Agri-processing: The Western Cape Department of Agriculture produces the data from underlying data. This data underpins the production of the Quarterly Labour Force Survey (QLFS).

Oil and Gas: The output data is calculated from ship movement’s data, in other words, it is based on the length of time ships are stationary for repair. This data is sourced from Transnet National Port Authority (TNPA), South African Maritime Safety Authority (SAMSA) ship registration data and industry costing data. The output data is applied to the Western Cape SAM model to generate employment data.

 

Date: 
Friday, October 4, 2019
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