Cape Town City-Region's Economic Growth, Social Challenges and Governance Reform

South Africa is an urbanising country ,[object Object],[object Object],The three city-regions are home to 53% of national population Cape Town c.r. Durban c.r. Johannesburg c.r. GVA spatial concentration in 2004 1904 2001 Blacks Whites Total 50% 1985

The Province of the Western Cape in South Africa ,[object Object],[object Object],[object Object]

The Cape Town c.r. in the Western Cape Cape Town city-region 87% of provincial population 92% of provincial GDP City of Cape Town 3.2 million inhabitants 89% of city-region’s GDP

A sprawling and low density city-region Cape Town is a poly-nodal city-region (1 + 6 municipalities ) Population densities (y) and distances from city centre (x) in the Cape Town city-region in 2008 Commuting distances comparable to Los Angeles

An engine of the national economy ,[object Object],Cape Town is 16th out of 79 metro-regions 11.8 % of National GDP Cape Town South Africa Cape Town’s GDP pc was USD 15 250 41% more than national average

Increasing international competitiveness Cape Town’s GDP pc is roughly equal to that of Seoul, Naples, and Mexico City

Globalised value chains… ,[object Object],[object Object],Trends in 2006 Catering and hospitality activities have expanded their contribution to regional GDP by 77% over 1995-2005 18.5% of manufact. employment 17% of regional exports 20% manufact. Gross Value Added A flourishing wine industry In 2006 Cape Town was the first SA destination for Europeans and Americans

… emerging “urban” clusters Financial and business services The finance and insurance industry + 50% GDP contribution between 1995-2005 Business process outsourcing ( BPO ) attracts foreign investment especially in sectors such as communication (call centres) and finance. Logistics Cape Town is a soft gateway to Africa. The city-region handled 23.3% of South Africa’s total cargo in 2006 Logistics support regional specialisation in the oil industry and repair and maintenance of ships and offshore drilling platforms Knowledge intensive and Creative industries Medical Tourism Food biotechnology Film and publishing industries

And increasing urban consumption ,[object Object],[object Object],+11.5% of GDP contribution between 2004-2005 16 000 social housing units built between 2006-2007 Public investment and social grants Current positive business cycle 17% of regional GDP in 2006 Victoria and Albert Waterfront

Yet Cape Town faces extensive social problems ,[object Object],Regional unemployment stands at 22% , t aking into account discouraged workers, (2006) ,[object Object],Townships: Khayelitsha is home to 12% of the regional population yet generates 0.77% of regional GDP Regional Gini Index 0.69 (Average in OECD countries is 0.30) ,[object Object],[object Object],The city has one of the highest crime rates in the nation: Cape Town has 7% of the nation’s population, but it is responsible for 10% of the country’s reported homicides and 21% of its drug-related crime. ,[object Object],Housing deficit (410 000 units) Inadequate housing tripled since 1993 – 31% of total housing units are informal Percentage of households living in poverty (trend between 1999-2005)

Issues affecting regional competitiveness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Competing through social inclusion ,[object Object],Active labour policy and skills improvement Innovation capacity (Regional innovation system) Built environment (housing and transportation) Environmental sustainability (“climate proof” Cape Town) Specific policies for economic development in townships Creative industries Logistics Regional competitiveness Agro-food Tourism Urban consumption Financial services

National growth strategy ,[object Object],Halve poverty and unemployment by 2014 Improve economic growth (average 5% per year between 2004-2014) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Strategy to reduce binding constraints • infrastructure investment • sector strategies • skills and education development • eliminating the Second Economy • macro-economic issues • Governance and public administration issues.

The lack of a spatial approach ,[object Object],AsgiSA NSDP MEDS GDS-iKAPA IDPs BEE National Government Treasury DTI Presidency Province of the. W.Cape City of Cape Town Civil society ?

Need for a new generation of governance reform ,[object Object],[object Object],[object Object],[object Object],[object Object]

Issues for discussion ,[object Object],[object Object],[object Object],[object Object]

Cape Town City-Region's Economic Growth, Social Challenges and Governance Reform

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Cape Town City-Region's Economic Growth, Social Challenges and Governance Reform