Finance and Economic Opportunities

I am informed of the following:

 1 and 2.

The Growth for Jobs (G4J) Strategy has an overall economic growth target for the Western Cape of becoming a R1-trillion inclusive economy in real terms and growing at between 4% and 6% per annum, by 2035. This goal has been based on the principle that redress, which is needed to correct the wrongs of the past, is achieved by pulling more people into the economy, by stimulating competition, improving skills and productivity, raising investment, reducing poverty, and increasing employment. Reaching the Gross Domestic Product (GDP) target of R1 trillion will require an annual growth rate of 3.8% per year until the year 2035, although it is expected that GDP growth will be exponential – that is, growth will be initially lower before ramping up to 4 – 6%. Historically, a 1% increase in GDP has shown to increase employment by 0.6% on average. On this basis, reaching the R1-trillion target and the targeted growth rates of 4-6% could create between 600 000 – 1 000 000 new jobs by 2035.

The G4J Strategy is sector agnostic and seeks to enable the whole economy and pull many more citizens into employment through the horizontal enablement of the private sector, which includes the formal, informal and township-based businesses.

The vision and goal statements craft the Western Cape Government’s 2035 picture of success:

• Break-out growth of 4−6% per year.

• Increasing inclusion, driven by jobs-rich growth in the formal, informal and township sectors, benefitting all citizens, communities and enterprises – both urban and rural – and especially women and young people.

• A competitive business environment, that ensures total factor productivity growth through competition, productivity enhancing spatial policies, and investment in infrastructure, connectivity and skills, with government officials who all apply an ease-of-doing-business approach.

• Increased sustainability, as the Western Cape Government accelerates progress to a net zero carbon and resilient province, conserves the natural environment and mitigates the impact of climate change.

• Resilience, through diversifying economic activity and strengthening the Western Cape Government’s ability to anticipate, prepare for and respond to exogenous shocks, including climate change, migration, adverse political/geopolitical events and the Fourth Industrial Revolution.

• Thriving people and places whose social and economic potential is being realised through improved access to opportunities, and where solutions to challenges build on a diversity of cultures and talents.

• Confidence and hope, with businesses and citizens that are positive about their economy and the Western Cape’s future, and a high level of trust among the private sector, communities, residents and government, who work together to address challenges and realise opportunities.

• Prosperity, with everyone in the region having an improved quality of life, increased wealth and more opportunities.

The Goal Statement explicitly states that the Western Cape aims for an “R1-trillion inclusive economy”, by which the aspiration is that the growth will be jobs-rich and encompass the formal, informal and township sectors of our economy and ultimately benefit all citizens, communities, and enterprises across the urban and rural divide. Within this, it is understood that an inclusive economy actively seeks to enhance the participation of the historically disadvantaged in the economy.

Disempowerment and social inequities continue to disproportionately limit the economic participation and productivity of vulnerable groups – and in the case of women and youth, contribute to the prevalence of gender-based violence. Therefore, vulnerable groups need support to enable them to participate in the economy and to thrive economically. Prioritising access to opportunities (including for employment and self-employment) and improving employability (individuals’ knowledge, skills, experience, as well as their personal circumstances, location and labour market environment) create pathways for greater economic participation and inclusion. Apart from increased output due to increased employment, widening economic inclusion also boosts aggregate demand. Upskilling is critical to inclusive growth, with opportunities in the unmet demand in a range of skilled jobs, especially in the digital economy. In addition, a focus on supporting informal and township economies will increase economic participation and reduce unemployment. Redress is one of the principles of the G4J Strategy. As part of the monitoring mechanisms, the Province will be developing systems to track data across interventions to ensure that disadvantaged communities are beneficiaries of the G4J interventions.