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