andrew boraine: presentation to ceo's forum 20th november 2011
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Western Cape
Progress report to Economic CEO’s Forum20 November 2011
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Economic Development Partnership
Introduction• The EDP mandate is derived
from PGWC Strategic Objective One: Creating opportunities for growth and jobs
• Cape Town Partnership was appointed in Jan 2011 to conduct a Planning and Stakeholder Engagement process:
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• Consult economic partners and stakeholders• Assess the state of the regional growth
strategy and economic agenda• Assess the system for delivering economic
strategy• Design and submit proposition to Provincial
Cabinet
Introduction (continued)
• On the basis of the CTP report, Provincial Cabinet agreed in August to establish an Economic Development Partnership for the region
• CTP has been appointed to facilitate and coordinate the EDP establishment process:
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• Engage with potential members and strategic partners
• Establish Economic Development Partnership by April 2012
• Establish interim Work Programme
Diagnosis of the economic delivery system
The main global and national economic factors are beyond our direct control, but… given its resources, assets and people, the Western Cape region should be performing better
Reasons for sub-optimal performance include• No shared economic vision and common agenda• Disjointed regional economic delivery system and a ‘culture of
disaggregation’ of effort• Inability to translate plans into action• Many economic programmes and projects with insufficient impact• Insufficiently competitive, productive and resilient as a region• Relatively weak regional business brand
4This means that we are not achieving our full growth potential, and the crisis of jobless growth, poverty and inequality persists
Doing things differently?
5Heath Nash lamp created from recycled plastic waste material
What will the EDP do?
The EDP will be a partnership-based organisation that will lead, coordinate and drive regional economic growth, development and inclusion
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What will the EDP do?
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Economic and market intelligence
and monitoring
1.
To ensure better evidence-led strategy and planning
Trusted, shared information is key to future
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“The recently released national development plan highlights the need for good information flow… To achieve this we need leadership across all sector of society – and trust between them” – Mike Muller, NPC Commissioner, Mail and Guardian, 16-24 November 2011
What will the EDP do?
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Economic and market intelligence
and monitoring
1.
To ensure better evidence-led strategy and planning
Economic vision and strategy
2.
Through building leadership and a common agenda
Business attraction,
retention and expansion
3.By focusing on an improved business and investment climate
Creation of a single brand
platform
4.By building a marketing alliance
Organisation of the economic
system for optimum delivery
5.
Through performance monitoring and improvement
Focus on systemic approach
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“For the most part, it does not want dramatic new interventions to tackle unemployment and poverty. We just have to do what we already do, but better or, in some cases, much better” – Kevin Davie, Mail and Guardian, 16-24 November 2011
Delinking of growth and employment in the Western Cape, 2001-2011
11“The real economy expanded by close to 45 per cent between 2001 and 2010. Yet, the regional workforce only grew by close to 16 per cent over this period” – Provincial Economic Review and Outlook, 2011
Take growth more seriously
The ‘lenses’ through which the EDP objectives will be viewed
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Growth
Ensure that our development efforts have greater impact
DevelopmentExpand and
strengthen the inclusion agenda
Inclusion
Inclusion Agenda e.g.Social services
Household servicesInformal settlement upgrade
Urban renewalPublic transportLand restitution
Inclusive memorialisationRights protection
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Economic Inclusion Agenda
Economic Inclusion Agenda e.g.Inclusionary infrastructureNew employment nodes
Informal economySkills; Micro-enterprisesJobs Fund; EPWP; CWP
Youth EmploymentProcurement and supply-chain activities
EDPLinking inclusion & market demand
Social EntrepreneurshipCorporate Citizenship
EDP Steering Committee
Minister Alan Winde - Western Cape Minister of Finance, Economic Development and Tourism
Mr Ashoek Adhikari - General Counsel of Media24
Alderman Belinda Walker - City of Cape Town Mayco Member for Economic Development
Mr Ben Kodisang - Chairperson of Wesgro Board
Professor Brian Figaji - Director of Nedbank Group Limited and Chairperson of the DBSA Development Fund
Mr Conrad Sidego - Executive Mayor of Stellenbosch Municipality
Dr Iqbal Surve - Chief Executive of Sekunjalo Investments
Mr Jannie Mouton - Non-Executive Director of PSG Financial Services limited
Ms Lele Mehlomakulu - Head of HR at Allan Gray
Professor Leon Campher - CEO, Association of Savings and Investment South Africa
Mr Michael Bagraim - President of the Cape Chamber of Commerce
Ms Nontwenhle Mchunu - Entrepreneur and owner of Ezulwini Chocolat
Mr Otto Stehlik - Executive Chairman of Protea Hotels
Mr Patrick Parring - Entrepreneur and co-founder of WECBOF
Mr Peter Bacon - Chairperson of Cape Town Routes Unlimited
Mr Solly Fourie - Head of the Western Cape Department of Economic Development and Tourism
Dr Walter Baets - Director of the UCT Graduate School of Business 14
EDP Project Management CommitteeAndrew Boraine, ConvenerYumnaa Firfirey, Project ManagerLindiwe Mavuso, CommunicationsSolly Fourie, PGWCBianca Mpahlaza, PGWCTammy Evans, PGWCThembinkosi Siganda, City of Cape TownAlison Goldstuck, City of Cape TownDilshaad Gallie, City of Cape TownKarin Palmer, City of Cape TownTerri Carter, Cape Town PartnershipAdvisors: KPMG and National Treasury Technical Advisory Unit (TAU)
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EDP design criteria
• The EDP will be established as a cross-sector partnership rather than a government-owned agency or statutory body
• The EDP can be characterised as an intermediary organisation, which facilitates dialogue between government, business and other economic partners
• The EDP will be primarily market-facing (understanding long-term demand trends) and industry-facing (understanding the needs of firms and investors)
• The EDP will seek to organise a more coherent and effective system of economic delivery in the region between the partners, rather than substituting for the mandates of the partners
• The EDP will be a relatively small, agile, creative, well-resourced leadership and coordinating body, attracting top talent
• The EDP will be an independent non-partisan organisation
Partnership success factors
17From Hamann et al (2009): What makes cross-sector partnerships successful? A comparative case study analysis of diverse partnership types in an emerging economy context
Partners’ organisational commitment
to the initiative
An organisational culture
conductive to interest based
negotiation
Clear and well-defined goals agreed
by all partners
Organisational and facilitative capacity of the
partnership
Trust developed
among partners
Partners’ accountability to
their constituencies and to the
partnership
Virtuous or vicious
circle
Partnership for dialogue and action
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“The mistake of the commission… is to assume that by pronouncing a policy ideal or a set of goals, you actually achieve it. What the planning report lacks… is a theory of action. That is to say, how exactly will we get there, or at least plan to get there?” – Jonathan Jansen, Sunday Times, 17 November 2011
EDP evolution
• EDP will evolve as a hybrid (two in one) partnership. The initial focus on the EDP will be on leadership and strategy (innovation, dialogue and rule-setting partnership). However, to be effective, a common agenda needs to lead to joint action. Over time, the EDP will also become an implementation partnership
• The EDP will be incorporated as a not for profit organisation (NPC), to house the dialogue partnership (2012). The organisational design will allow for the future establishment of not for profit and/ or for-profit subsidiaries to house implementation initiatives (2013)
• Provincial legislation will be drafted to authorize public sector investment in joint venture projects via the EDP
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Engagement with potential members and strategic partners• Local government• National Government Departments, State-owned Enterprises and
Development Finance Institutions• Provincial Government Departments, Agencies and SPVs• Business associations and organisations• Universities, research organisations, business schools• Labour• Civil society• Professional associations and sector organisations
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Engagement with business organisations• Accelerate Cape Town (ACT)• Afrikaanse Handelsinstituut (AHI)• Black Management Forum (BMF)• Business Western Cape Council• Cape Regional Chamber of Commerce and Industry• Foundation for African Business and Consumer Services (FABCOS)• National African Federated Chamber of Commerce (NAFCOC)• South African Black Entrepreneurs Forum (SABEF)• South African Chamber of Commerce and Industry (SACCI)• Western Cape Black Business Chamber• Western Cape Business Opportunities Forum (WECBOF)
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Approach to Spatial & Sector Development
It is intended that the EDP will:• Organise both economic spaces and sectors• Apply principle of ‘cooperative differentiation’ rather than ‘one size fits all’• Support the establishment of four sub-regional economic partnerships:
• Cape Town City-Region Partnership • South Cape Partnership• Karoo Partnership• West Coast Partnership
• Promote greater economic linkages between urban and rural, and leading and lagging areas
Transition Steps & Timeframes
Registration of Not For Profit company
lodged
Circulate Draft Member’s Agreement
(end November)
Report to Provincial Cabinet
(07 December)
Incorporation of EDP as legal entity (December)
Commence PGWC legislative process
(January)
Discussions with strategic partners
continue(February)
Finalise Member’s Agreement
(March)
Finalise Company Objects and
Performance Areas (March)
Finalise organisational design
(March)
Finalise Memorandum of
Incorporation (March)
Elect Interim Board (April)
Launch EDP (April)
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Economic CEO’s Forum
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EDP working group on economic evidence and data: Monday 28 November
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Future Cape
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Economic Inclusion Agenda workshop planned for February 2012
Illustrations taken from SJC ‘Uniting the Divided City’ lecture series
28Andrew Boraine chiefexec@capetownpartnership.co.za 021-419 1881Yumnaa Firfirey yfirfirey@towardsuhuru.co.za 083-641 5106
Next CEO’s Forum: Wed 22 Feb 2012 12h00 to 16h00
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