Economic Opportunities
What (a) programmes, (b) cooperation agreements and (c) projects currently exist in his Department to support the manufacturing sector in the province; for each, what is the (i) extent, (ii) economic impact and (iii) problems experienced?
The Western Cape economy is relatively broad-based and diversified in terms of manufacturing activity. The objective of the Department is closely aligned with National initiatives which identify manufacturing as a key labour absorbing economic sector that could create employment and improve efficiency across the economy.
The Department has therefore established:
- A Trade and Sector Development Programme in which the manufacturing sector features prominently; and
- Through the agreements with a number of sector bodies, the Department aims to stimulate the development of the manufacturing sector.
(b) There are currently cooperation agreements between the Department and the following sector bodies:
• South African Oil and Gas Alliance (SAOGA)
• CLOTEX
• Cape Town Fashion Council (CTFC)
• Cape Clothing and Textile Cluster (CCTC)
• Western Cape Tooling Initiative (WCTI)
• Green Cape Initiative
(c) The main aim of the projects is to facilitate and create an enabling environment to grow and develop the specific subsectors mentioned as well as manufacturing in general. The Department supports the following projects in the manufacturing sector:
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Project 1: Clustering (Promotion and marketing sub-sectors) |
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(i) Extent |
(ii) Economic impact |
(iii) Problems experienced |
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- Research &Development (market intelligence gathering) - Linking and networking events - Leveraging support and funding - Arrange conferences and workshops - Facilitate and participate in strategic sessions to provide strategic direction for the sector - Secure financial and non-financial support for industry members - Maintain database of industry players in the different sub-sectors - Identify business opportunities for economic growth and job creation
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- Create an enabling environment for enterprises to compete internationally - Increase participation of SMME in mainstream economy - Enhance the manufacturing capacity of enterprises - Increase export opportunities - Attract, retain and create jobs and job opportunities - Networking and strengthening relationships within the value chain of the manufacturing industry |
- Limited participation and involvement of key stakeholders in the industries - Securing funding for the implementation of projects - Capacity to implement and monitor programmes and projects |
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Project 2: Trade and investment promotion (working closely with Wesgro) |
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(i) Extent |
(ii) Economic impact |
(iii) Problems experienced |
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- Marketing and participating in outbound and inbound missions, trade fairs and expo’s - Supporting existing and/or potential exporters to identify new markets - Identify and attract local and international investments - Develop and implement marketing strategies - Develop export readiness and participation programmes - Marketing of the capacity and capability of local companies |
- Sustaining existing and creating new job opportunities - Create an enabling environment for enterprises to compete internationally - Increase trade and investment opportunities - Enhance the manufacturing capacity of enterprises - Increase export opportunities - Increase import replacement opportunities |
- Lack of access to and accurate market information - Collating and comparing of information about markets is time consuming - Technical knowledge is needed as data accuracy and methodologies vary - More efficient ports and road networks - Lack of support from FERs in other countries |
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Project 3: Enterprise Development (working closely with IEDS) |
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(i) Extent |
(ii) Economic impact |
(iii) Problems experienced |
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- Profiling and mapping of companies (databases with capacity and capabilities) - Conducting benchmarking exercises - LEAN Manufacturing programmes - Productivity Improvement programmes - Value Chain Alignment - Upgrading, ISO Certification and standard compliance interventions - Identifying new business opportunities (government and private industry) - Facilitate access to incentives (DTI) and other support agencies programmes (SEDA; ProdSA; SETAs; etc.) - Technology and innovation improvement interventions - Establishment of centres of excellence - Development of small businesses (Black and women owned, Youth, Rural and Disabled) - Infrastructure development projects (IDZ and SEZ) - Supplier/enterprise development projects |
- Sustaining existing and creating new job opportunities - Create an enabling environment for enterprises to compete internationally - Enhance skills levels of the manufacturing industry - Increase participation of SMME in mainstream economy - Increase exports and import replacement opportunities - Investment in machinery and equipment to improve quality performance
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- Attractiveness of local markets (size and access) - Access to international markets - Value adding technologies - Gaps in the manufacturing competitive levels - Volatility of the rand - High volume/percentage of imports - Access to raw material - Quality and efficiency of critical infrastructure (rail, water, ports and electricity supply - Lack of investment in research and development - Energy costs and policies |
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Project 4: Skills Development Programmes ( working closely with skills development unit) |
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(i) Extent |
(ii) Economic impact |
(iii) Problems experienced |
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- Artisan Development programme - Work and Skills Programme - Job Placements - Upskilling and incubation - Mentorship programmes - Competency Based Modular Training (CBMT) - Post-artisan development programmes |
- Sustaining existing and creating new job opportunities - Create an enabling environment for enterprises to compete internationally - Enhance skills levels of the manufacturing industry - Increase participation of SMME in mainstream economy - Enhance the manufacturing capacity of enterprises and increase global competitiveness - Reducing the age of the artisan |
- Companies not availing themselves for workplace experience - Investment needed in training and skills development (management, entrepreneurial, marketing and artisan level) - Gaps in the manufacturing competitive levels - Lack of investment in research and development - Lack of feeder system from schools to colleges - Life skills of students |
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Project 5: Advocacy and lobbying |
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(i) Extent |
(ii) Economic impact |
(iii) Problems experienced |
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- Address regulatory and policy issues (tariffs and duties) - Reducing red tape |
- Sustaining existing and creating new job opportunities - Create an enabling environment for enterprises to compete locally and internationally - Increase export opportunities - Increase import replacement opportunities |
- Regulations and policy implementation is driven on national level - Lengthy timeframes to deal with specific matters, depending on nature of issues to be address
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