Western Cape Business 2018 edition

MESSAGE Building on our

MESSAGE Building on our successes Tourism and agri-processing are on the up and wine sales to China are soaring. Alan Winde, Western Cape Provincial Minister of Economic Opportunities, reflects on the key elements of a targeted growth strategy for the regional economy. Alan Winde, Western Cape Provincial Minister of Economic Opportunities Our Project Khulisa focus areas, agri-processing and tourism, are reporting excellent progress during a challenging time for our economy. In tourism, we have added over 26 000 jobs since the launch of Project Khulisa in 2014. Improved direct air access has played an important role in driving this increase. Through our Cape Town Air Access partnership, we have added ten new direct routes to the destination and secured 11 expansions. We’ve seen an increase of 27% in international air arrivals in the past year. Agriculture and agri-processing remain under pressure due to the drought, and recently the outbreak in avian influenza has severely impacted our commercial poultry industry. Since the start of Project Khulisa, 127 000 jobs have been created in these sectors. According to the latest figures from Stats SA, however, jobs in Western Cape agriculture declined by 21 000 in the last quarter, reflecting the difficulties we are currently facing. We have invested R67-million in drought relief support for commercial and smallholder farmers. There has been steady jobs growth in key sectors in the Western Cape, despite several challenges we face. Over the past year, 84 000 jobs have been added to the Western Cape economy, according to the latest figures from the Statistics South Africa. WESTERN CAPE BUSINESS 2018 12

MESSAGE The findings of the Western Cape Department of Agriculture’s Agri Worker Household Census, released in November 2017, also revealed trends for job seeking in agriculture. The census, which surveyed over 11 000 households, found that over the next 15 years, the number of rural residents who will enter the job market will increase by 34%. Only 12% of the sector’s current employees will be leaving the workplace over that same time period. To accommodate the rise in work-seekers, agriculture must grow by between 8% and 10%. Other milestones we have reached in Project Khulisa include an 80% increase in wine exports to China, the production of which has a positive effect on jobs. In partnership with Wesgro, we have also secured private-sector investment worth over R1-billion into this sector. While we are pleased with our progress, we are concerned about our natural resource base, and realise the need to put urgent plans in place to address the water shortages in our region. A reliable water supply is critical to economic growth. We are working with the private sector to find the best solutions. This includes highlighting best practice in reducing water use, and finding long-term plans to sustain our water supply. I am confident that by working together we can continue to build on these successes across all sectors of our economy. 13 WESTERN CAPE BUSINESS 2018