Economic Opportunities

Question by: 
Hon Beverley Schäfer
Answered by: 
Hon Alan Winde
Question Number: 
7
Question Body: 
  1. Whether his Department has any projects to facilitate job creation in the non-metropolitan municipalities in the Western Cape; if not; why not; if so; (a) in which municipalities are these projects, (b) how much does his Department spend on such projects and (c) who stands to benefit form (i) rolling out the projects and (ii) the actual implementation of the projects;
  2. whether there is additional funding for these projects from other partners; if so, what are the relevant details?
Answer Body: 

DEPARTMENT OF ECONOMIC DEVELOPMENT AND TOURISM

 

Programme 2: Integrated Economic Development Services

 

(a) In which municipalities are these projects?

b) How much does this Department spend on such projects

c) Who stands to benefit from :

 

 

  1. Rolling out the projects.
  1. The actual implementation of the projects.

The Emerging Business Support Programme (EBSP) is a joint between ABSA Bank Limited and the Department. The EBSP is an accredited two day entrepreneurial skills workshop and will be rolled out in the following municipalities:

  • Knysna
  • George
  • Bitou
  • Mossel Bay
  • Stellenbosch
  • Drakenstein
  • Overstrand
  • Theewaterskloof
  • Saldanha
  • Swartland
  • Beaufort West
  • Laingsburg

 

R260 000, 00

DEDAT, ABSA and SMMEs across the province

SMMEs operating in these municipalities taking up this opportunity

The series of Investment Readiness workshops is aimed at capacitating SMMEs actively seeking funding. This initiative is a collaborative effort between the Department, corporate partners, business chambers, business development organisations and financiers. The programme will be rolled out in the following municipalities:

  • Saldanha
  • George
  • Stellenbosh
  • Breede Valley
  • Beaufort West
  • Overstrand

R82 000, 00

Financiers dealing with SMMEs and SMMEs actively looking for funding

SMMEs taking up this opportunity

The Supplier Development workshops are aimed at assisting SMMEs in accessing government procurement opportunities.

This took place in West Coast District:

- Citrusdal (7 April 2016)

- Saldanha Bay (12 April 2016)

- Vredendal (15 June 2016)

- Vredenburg (14 September 2016)

 

Overberg:

  • Bredasdorp (19 April 2016)

 

 

A minimal budget of R50 000 was allocated for the workshops for the 2016/2017 financial year.

 

Free venues are sourced and catering costs are shared with partners. The R50 000 covers primarily catering for suppliers in rural areas where citizens may sometimes travel long distances to get to the workshops. Cape

The project supports suppliers to the Western Cape Government and small business owners to better understand government procurement processes and improve their business compliance that creates access to new economic opportunities.

The Procurement Promotion workshops take place across the Province.

It focusses on the following: Western Cape Government Procurement Processes, Amended B-BBEE legislation, Central Supplier Database registration, Western Cape Supplier Database registration, compliance issues, Preferential Procurement Regulations etc.

The project is implemented in collaboration with municipalities, SARS, business support organisations, CIDB, NHBRC and government departments.

The project runs across the 5 district municipal areas as well as the metro.

 

  1. Whether there is additional funding for these projects from other partners; if so, what are the relevant details?

Contributions made to the Emerging Business Support Programme project are as follows:

  • ABSA Bank Ltd – financial contribution towards the facilitation of the accredited workshops.
  • Relevant municipality – provision of venue and related logistics.

Contributions made to the Investment Readiness Programme:

  • Deloitte - provision of venue and related logistics.
  • Business Chambers - provision of venue and related logistics.
  • Financiers – presence at workshops and content development of learning material.

 

 Programme 3 and 6: Economic Sector Support

 

a) In which municipalities are these projects?

b) How much does his Department spend on such projects

c) Who stands to benefit from :

 

 

 

  1. Rolling out the projects.
  1. The actual implementation of the projects.

Facilitate the implementation of the cycle track in the Eden District Municipality stretching from Plettenberg Bay, through to Knysna, George and Mossel Bay.

 

 

 

R2 650 million

Communities in the Garden Route, cycling fraternity, tourism businesses  

Communities in the Garden Route, cycling fraternity, tourism businesses  

Journey to Service Excellence in Clanwilliam

`

R1 million

Communities in Clanwilliam and surrounding areas, tourism industry, and private sector

Communities in Clanwilliam and surrounding areas, tourism industry and private sector

 

(2) Whether there is additional funding for these projects from other partners; if so, what are the relevant details?

       No additional funding leveraged from partners only non-financial support was leveraged.

 

Programme 5: Economic Planning

 

a) In which municipalities are these projects?

b) How much does his Department spend on such projects

c) Who stands to benefit from:

  1. Rolling out the projects.
  1. The actual implementation of the projects.

Internet Champion

The Internet Champion Project is a

3 year project which provides digital literacy to citizens, running in parallel with the public Wi-Fi roll-out.

 

It parallels the Public Access Wi-Fi roll-out which will see deployment to EVERY ward in the WC including all 269 wards outside the metro.

R 35 289 523.51

Total budget over 3 years (2015/16 – 2017/18)

  1. In every ward at minimum 1000 citizens are to be taken through digital literacy training. This will happen in the 269 wards outside the metro.

 

A minimum total of 269 000 citizens are to be reached in the non-metro areas.

  1. 538 unemployed youth in the relevant wards (2 persons per ward are contracted for 3 months) as well as 6 full-time support staff for the duration of the programme

Liquefied Natural Gas (LNG)

 

Saldanha Bay as the likely location for importation facilities.

 

Atlantis with respect to electricity utilisation of gas importation

The budget for the project for the 2016/17 financial year is R1 650 000

  1. Construction companies; contract advisors, participants in the gas value chain – many of these will not be from the LM, but would include consulting engineering firms, legal firms, gas transaction advisors, environmental practitioners etc.. For construction of the importation facilities (expected to commence around 2020) there would be significant local opportunities – an estimated 13 000 jobs per annum over a five-year construction period. It is expected that the infrastructure spend is likely to amount to R13.8 billion.[1]
  1. The availability of gas in the province would mean 1) greater energy security/greater diversity of energy supply options, which will benefit businesses in the region; in addition, gas makes possible industrial fuel switching, which should cut down on input costs, thereby making these firms more competitive. Finally, the availability of gas-fired power enhances the further roll-out of renewable energy projects, which will support manufacturing in this subsector of the green economy

Saldanha Bay IDZ Saldanha Bay

2014/15: R23m

2015/16: R28m

2016/17: R29m

  1. The SBIDZ’s infrastructure roll-out has been focusing strongly on local inclusion and contractor development. e.g.: the main construction contract of R140m included a 27% joint venture with a Saldanha-based, black-owned construction company; the fence project has been designated for local participation and is being facilitated through the SBIDZ Business Forum to work with emerging contractors.
  1. The SBIDZ is expected to create 5000 direct jobs in the next 5 years and is expected to have long-term effect of 25 000 direct and indirect jobs.

West Coast Industrial Plan (WCIP)

  • Saldanha Bay

2014/15 – 16/17: R3m

  1. The immediate aim of the project is to assist with planning coordination. Initially the main benefits will be for the Municipality and Provincial Departments (DEDAT, DEADP, DTPW, DLG, and PT) to understand the bulk infrastructure demand of potential industrial developments.
  1. If industrial investors can be
  2. accommodated in Saldanha Bay, the job-creation potential could be 4000 – 10 000 jobs over 7 – 10 years.

 

(2)  Whether there is additional funding for these projects from other partners; if so, what are the relevant details?

  • Liquefied Natural Gas

There is potentially funding from the United States Trade & Investment Agency (USTDA) for further LNG technical studies. The amount available depends on the specific project; similarly, there is funding available from the Development Bank of Southern Africa (DBSA). The amount depends on the nature and cost of a specific project in respect of which an application is made, up to approximately R50 million per application.

  • Saldanha Bay Industrial Development Zone (SBIDZ)

The DIT’s SEZ fund approved R442m in the first application in 2015/16 and an additional R300m in the second application in 2016/17. Another R30m has been leveraged for skills (SETA funding) and enterprise development (SEZ funding). Transnet spent R200 – R300m on the Offshore Supply Base (completed 2016) and have two additional quayside infrastructure projects, in support of the SBIDZ currently in the market, expected to cost in the region of R6bn – R7bn.

  • WCIP

At this stage of the project, only DEDAT has been funding the demand modelling work. The demand model is aimed at unlocking infrastructure spend on roads, water, electricity infrastructure, etc.

 

 

Programme 7: Skill Development

 

 a) In which municipalities are these projects?

b) How much does his Department spend on such projects

c) Who stands to benefit from :

 

 

Rolling out the projects.

 

The actual implementation of the projects.

Through the Work and Skills Project a number of learners have been placed and trained in the five municipal districts across the Province to gain experiential work placement and some elements of industry demand training with the view of creating more employable youth.

For the first quarter and up now the second quarter of 2016/17 a total of 536 learners have been placed in the metro with 178 learners placed in Eden and the Overberg municipal district.

 

The Department spends on average R15 million per annum on the Work and Skills Programme and the beneficiaries of such interventions to make them more employable are the youth itself.

 

 

1080 learners have been placed with host companies as part of the Work and Skills Programme.

The largest portion of learners is taken up in the Cape Metro, while representation is also from the other districts.

 

Numbers of learners have been exposed through industry demand led training across the five municipal districts across the Province and 833 learners have been trained across the five municipal districts in the Province.

These learners have been placed across the five municipal districts, based on Industry demands and funded with a R2.500 stipend per month as a contribution from the Western Cape Government. In most instances Industry augments these stipends and students are often by protective wear, apparel, industry in-house training supported from the company side.

 

 

 

 

 

 

 

(2) Whether there is additional funding for these projects from other partners; if so,                       what are the relevant details?

 

Funding for the work placement has also been leveraged from the Jobs Fund, which has committed R39 million over a four year period, starting 2013/14.

DEPARTMENT OF AGRICULTURE

(1)       The Department of Agriculture delivers a suite of support services to projects across the Western Cape. The support is primarily through the Comprehensive Agricultural Support Programme (CASP). CASP is administered by the Farmer Support and Development (FSD) programme. Through effective management of CASP funds, we  provide effective agricultural support services. This includes the promotion and facilitationagricultural development by targeting beneficiaries of land restitution and redistribution. Assistance is also provided to black producers who have acquired land through private means and are engaged in value-adding enterprises.

During the 2015/16 financial year a total of 90 projects (smallholder and commercial) had been supported in the following commodities:  6 Wine grapes, 33 Fruit, 3 Citrus, 3 Table grapes, 8 Grain, 9 Vegetables, 1 Vegetable seed, 19 Animals (piggery, beef and poultry), 7 Sheep and Wool and 1 Aquaculture. There are also 26 LandCare projects that will create jobs in all districts in the province;

(a)       Under the FSD programme, we support agricultural projects in all 5 District Municipalities of the Western Cape: i) Eden District; ii) Central Karoo; iii) Cape Winelands; iv) West Coast and v) Overberg.  With regards to the LandCare programme, these are located in 13 municipalities across the province. 

(b)       During the 2015/16 financial year, the Department had spent R160m on agricultural projects, subsistence, smallholder and commercial farmers. This does not include          the expenditure for the delivery of extension and advisory support to these farmers,             which is very important.  Some R3.4 million is allocated to 24 various alien clearing projects and 2 fencing projects that will create jobs; 

(c)       (i) Land reform farmers and rural communities benefit from our investment in these areas. In addition, these investments lead to the creation of new jobs whilst also helping to maintain existing jobs within the sector.

(ii) As part of the commodity approach strategy, the Department had opted to utilise its Implementing Agent, Casidra, to manage project implementation, allowing extension personnel to focus on the business of extension and advisory support to farmers. With regard to the LandCare projects, unemployed rural people in these 13 municipalities are the beneficiaries in terms of the training provided and job creation while the communities in general will benefit from the alien vegetation removal as water is conserved and the natural resources of the area benefit from these projects. It is expected that some 25 000 person days of jobs will be created through these projects. The fencing projects will contribute towards sustainable farming in the Karoo and West Coast and assist to keep animals away from the roads.

(2)       The commodity organisations contribute almost R80m annually through the commodity approach. For instance, the fruit industry has contributed R20m towards the Jobs Fund programme for the fruit sub-sector aimed at the commercialisation of black producers. In addition, the Department receives support from other partners such as SAB Miller, Shoprite Checkers in the delivery of food gardens – mainly for the World Food Day event, commemorated annually during the month of October.

Some R1.5 million will also be contributed towards alien clearing projects in the Breede Valley from our partner, the Breede Gouritz Catchment Management Agency (BGCMA) in 2016/17.

Date: 
Friday, September 23, 2016
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