Economic Opportunities, Tourism and Agriculture:

1. Saldanha Industrial Development Zone

Brief Overview

The Industrial Development Zone in Saldanha Bay will be a purpose-built industrial estate linked to an international port, which contains a controlled customs secured area in the Saldanha Bay area.

Progress to date

In partnership with DTI, Saldanha Bay Municipality and the IDC, the following was achieved:

• Phase 1 construction complete (internal bulk services)
• External bulk upgrades to municipal infrastructure (1 project complete; 1 in progress)
• Offshore Supply Base construction complete [by TNPA]
• Phase 2 planning complete and funding secured from SEZ Fund

Successes and Accomplishments to date

Infrastructure Investment value to date:

Cumulative total of R200 million from SEZ Fund committed for infrastructure up to end of 2015/16 financial year – additional R200m to be spent in 2017/18.

Economic impact:

An estimated 1047 jobs created in 2016, expected to rise to an estimated 20 000 jobs over the next 5 years.

No of investors in the pipeline:

First investor secured in January 2016. More than 30 potential investors under non-disclosure (negotiation), 18 of which are in the investor pipeline, with some more investor announcements expected before the end of the Financial Year.

2. Cape Town International Convention Centre Expansion

Brief Overview

The expansion will see the capacity footprint of the CTICC expand by 10 000m².

Progress to date

The project is due for completion in 2017.

Successes and Accomplishments to date

Infrastructure Investment value to date:

The value of expansion is R836 mil  which is funded through a partnership between City of Cape Town and WCG, with the City of Cape Town contributing R550 Million, the province contributing R161 790 000; and Convenco itself contributing R60 Million.

Economic impact as per feasibility study:

R531 Million per annum and 3 055 jobs by year 8. The expansion will allow the CTICC to attract larger conventions and exhibitions adding to the WC offering to business tourists. Convenco, supported by Wesgro, has already secured the International Symposium on Microbial Ecology which will take place in August 2020 and the 18th International Congress of Immunology in August 2022.

3. Atlantis Special Economic Zone

Brief Overview

This project is aimed at developing a GreenTech Special Economic Zone [SEZ] in Atlantis.

Progress to date

The Western Cape Government has applied for the designation of the entire Atlantis Industrial Area, with Greentech investments qualifying for SEZ incentives. Incentives include infrastructure development support as well as lower corporate tax rates. The project will leverage the underlying economic value of existing, underutilised infrastructure through the current Greentech opportunity, as well as ensuring that even non-qualifying /non-Greentech companies benefit from the general upgrades to the business environment brought about by the SEZ.

Successes and Accomplishments to date

Infrastructure Investment value to date:

The City has invested R80 million in infrastructure upgrades over the last three years; it is envisaged that infrastructure investment in the first year after designation will amount to R1.25 billion. Total private sector investment to date: R680 million.

Economic impact as per feasibility study:

From a cumulative perspective, it is expected that approximately R3.51bn would have been added to Western Cape GGP by the end of the initial capital period in 2020.  By 2040, the end of the 25 year analysis period, the cumulative contribution to GGP is expected to amount to R29.37bn.

Starting with approximately 250 new jobs being added in year 1 of the SEZ, a total of 4500 direct new jobs would have been created by the end of the 10^th year. A number of companies have invested in Atlantis with the express intention of being included in the SEZ, the most notable of these is a wind turbine tower manufacturer that employs 230 people, the majority of whom are from Atlantis.

No of investors in the pipeline and the potential collective value of these projects?

21 investors in pipeline, totalling potential investment of between R33 billion and R54 billion over a 20-year period.

4. Neotel Wifi Hotspots

Brief Overview

Installation of a public access Wi-Fi hotspot at a Western Cape Government building across 384 different wards throughout the Province. The hotspots allow citizens around these buildings to access the Internet, with 250MB of free data every month, free access to government websites, and free access to a basic digital literacy course.

Progress to date

150 Wi-Fi hotspots have been installed and are functional across 150 different wards in 11 municipalities. The remaining 234 hotspots will be installed by March 2018.

Successes and Accomplishments to date

Infrastructure Investment value to date:

Neotel has invested approximately R34,831,050 since July 2014, with the WCG contributing R134,850. WCG pays primarily for bandwidth costs. Economic impact as per feasibility study: The full transversal Western Cape Broadband Initiative is based on World Bank research that shows GDP growth of 1,38% for every 10% increase in broadband penetration. Currently 89,594 unique devices have accessed the hotspots.                                   

No of investors in the pipeline and the potential collective value of these projects:                                                                                         Currently 1 other investor; total infrastructure value of R89,512,704 (of which R345,216 paid by WCG, remaining R89,167,488 sponsored by Neotel)

5. iCAN Elsies River

Brief Overview

The ICAN centre is a proof of concept in Elsies River that opened its doors to the public in October 2015. The centre provides a host of basic to advanced digital skills training programmes, as well as spaces for learning and innovation. Skills development offerings include digital gaming, study spaces, limited free internet access, audio-visual training, mobile app-development training, internet radio production, community hackathons, digital entrepreneurship and 3D printing, amongst others.

Progress to date

Since its inception, DEDAT has funded 813 training opportunities on full digital skills courses plus more than 350 training opportunities in short courses and workshops.  The Centre Operator has provided over 600 free short course sessions to citizens. In addition, a further 230 training opportunities were paid for by third party organisations and citizens.

Successes and Accomplishments to date

Infrastructure Investment value to date:

Total: R7,560,000 since March 2014 [all project partners].

Economic impact as per feasibility study:

The full transversal Western Cape Broadband Initiative is based on World Bank research that shows GDP growth of 1,38% for every 10% increase in broadband penetration.

No of investors in the pipeline and the potential collective value of these projects?

The proof of concept comes to an end in 2017, where lessons from the Elsies River ICAN proof of concept will be drawn into the new I-CAN model network, i.e. the I-CAN Learn project, where an adapted version of the project methodology will be used to roll out a network of I-CAN operators across municipal districts in the province. 

6. Bandwidth Barn Khayelitsha

Brief Overview

The Khayelitsha Bandwidth Barn (K- BwB) is a community based ICT incubator which provides an integrated set of interventions and programmes that assist entrepreneurs / businesses. The K-BwB aims to assist with the creation of new enterprises; and assist enterprises to develop sustainable and viable businesses that create employment and generate economic wealth.

The project commenced in October 2013 with the initiation of the first of a three-phased programme of incubation namely: Foundational, Development and Mature Incubation Phases. It is located at Lookout Hill Khayelitsha.

Progress to date

The K-BwB facility has been set up in Khayelitsha and delivers demand-led enterprise  development  programs including:

• Tenant support and incubation: 53 registered beneficiaries, 12 participating on a daily basis and the remainder obtaining  ad hoc support;
• Youth ICT Skills development programs:  200 beneficiaries ;
• Micro Enterprise Support  through training programs: 140 beneficiaries

R796 000 programmatic funding leveraged

Successes and Accomplishments to date

Infrastructure Investment value to date:

R4,4 million refers to DEDAT funding to date

Economic impact as per feasibility study:

The full transversal Western Cape Broadband Initiative is based on World Bank research that shows GDP growth of 1,38% for every 10% increase in broadband penetration. Three program partners involved to date, that have collectively contributed R796,000.

7. Air Access

Brief Overview

The Air Access projects seeks on the one hand to increase air traffic into-; and from CTIA while ensuring that a suitable airport infrastructure network exist in the Western Cape to accommodate such increases. . The Air Access project is driven by Wesgro in partnership with DEDAT, City of Cape Town, ACSA and Cape Town Tourism.

Progress to date

The Air Access project has added over 600 000 seats through expanding and establishing routes since 2015 to date. Six routes were expanded in the 2016/7 financial year, but most significantly is the recent announcement by TAAG that it will be expanding the Luanda- Cape Town route as from October 2017. Two new routes were also established due to the support of the Air Access team between Cape Town and Frankfurt [Germany] and Cape Town to Nairobi [Kenya] respectively. Wesgro estimates that the expansion and establishment of the 9 routes has led to an economic impact of R3billion to the economy already.

Successes and Accomplishments to date

Economic impact as per feasibility study:

R392M per annum and 3 950 for a specific route by year 6.

8. Cape Health Technology Park

Brief Description

The Cape Health Technology Hub is a joint initiative of Department of Science and Technology (DST) and DEDAT, with the project management of the pre-implementation stage being housed by Wesgro. Set to come on line in the latter part of the 5-year strategic time-frame, the Park will provide the necessary stimulus for the growth of the health technology sector, which has been identified as a medium-term game changer by Project Khulisa.

Progress to date

• Feasibility completed .
• Inputs provided into TRUP property precinct plan.
• Medical Devices cluster facilitated towards establishment with DTI funding. Write – no bullets

Successes and Accomplishments to date

Economic impact as per feasibility study:

R9.5 bn and 13 000 jobs by year 10

9. Design Hub

Brief Description

The Design hub seeks to provide suitable infrastructure that houses design and innovation skills development programmes; business incubation; and product/ services development space between multi-disciplinary and quad-helix partners.

Progress to date

Phase 1 of the Hub was established at 37 Barrack street and 75 Harrington street and launched in 2014.

Unfortunately phase 2 and 3 could not be initiated at this stage, despite the need for increased space, due to budgetary and property constraints.

Successes and Accomplishments to date

The Design Hub provides offices and shared-services space for 75 creative companies; and supports over 3 500 designers and innovators annually in business/ skills/ product development.

The Hub, together with the CCDI Design and Innovation programme, has resulted in over 593 new products/ services being identified, with 16 being prepared for commercialisation which includes: 3 New IP registrations; R3M in turnover, R7M in orders and R11m raised investment for 2 companies.

The CCDI has also successfully applied for another round of Jobs fund targeting 60 companies to establish 600 jobs in partnership with DEDAT and other stakeholders. The CCDI’s first Jobs Fund process, which ended in 2016, resulted in 464 jobs created, with 45 companies supported towards R104 M combined turnover, from a R14.5 M investment.