Western Cape

Economic Development PartnershipAn introductionNovember 2011

Introduction

• EDP mandate derived from PGWC Strategic Objective One: Creating opportunities for growth and jobs

• Cape Town Partnership appointed in Jan 2011 to conduct a Planning and Stakeholder Engagement process (Phase II):• 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

• 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 (phase III):• Establish Economic Development Partnership as a corporate entity• Establishment of interim Work Programme• Build EDP Communication Programme

Diagnosis of the economic delivery system

Significant global and national economic trends are beyond our control, but, given its resources, assets and people, the Western Cape region should be performing better:• No shared economic vision and common agenda• Disjointed regional economic delivery system• Not achieving our full growth potential• Crisis of jobless growth and persistent poverty and inequality• Insufficiently competitive, productive and resilient as a region• Relatively weak regional business brand

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 by concentrating on:

1. Economic and market intelligence and monitoring to ensure evidence-led strategy and planning

2. Economic vision and strategy through building leadership and a common agenda

3. Business attraction, retention and expansion through building an improved business and investment climate

4. Creation of a single brand platform through a regional marketing alliance

5. Organisation of the economic system for optimum delivery through performance monitoring and on-going coordination of reform

What will the EDP do?

Economic and market intelligence

and monitoring

Economic vision and strategy

Business attraction, retention

and expansion

Creation of a single brand

platform

Organisation of the

economic system for optimum delivery

What are the EDP’s prioritised outcomes?

• Building a shared economic vision and a common agenda• Shift to a more collaborative approach on the economy• Better economic and market intelligence, and evidence based

planning• Incentivising business organisations’ collaboration• Closer working relationship with national government Ministries,

Departments, state-owned enterprises and development finance institutions

• Better coordination of economic effort between Province and municipal government

• Single strategy towards contested activities and markets (trade, investment, visitors, events and festivals, conferences and expos, students, innovators, entrepreneurs, research, etc.)

• Single brand platform for Western Cape and Cape Town

Growth

DevelopmentInclusion

Take growth more seriously

Ensure that our development efforts have greater impact

Expand and strengthen the

inclusion agenda

Re-examine our economic vision and strategy

EDP Steering Committee: members

• 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 – MD of Old Mutual Investment Group Property Investments and 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 of the Savings and Investment Association of 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

EDP Steering Committee: roles and functions

• Guide the EDP design and establishment process to April 2012• Promote concept of economic partnership• Assist in communicating to potential EDP members

EDP Project Management Committee

• Andrew Boraine, Convener• Yumnaa Firfirey, Project Manager• Solly Fourie, PGWC• Bianca Mpahlaza, PGWC• Tammy Evans, PGWC• Thembinkosi Siganda, City of Cape Town• Alison Goldstuck, City of Cape Town• Dilshaad Gallie, City of Cape Town• Karin Palmer, City of Cape Town• Terri Carter, Cape Town Partnership• Advisors: KPMG and National Treasury Technical Advisory Unit

(TAU)

EDP design criteria

• The EDP will be established as a cross-sector partnership rather than a traditional government-owned agency or statutory body

• The EDP can be characterised as an intermediary or relational organisation, which facilitates activities 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

Why are partnerships needed for economic development?

Representation

Services

Planning & Regulation

Development &Investment

This fourth role is different… markets, geographies, timeframes, partners, financing, clients, stakeholders… and therefore requires additional expertise and

different arrangements

Economic development is a ‘vision driven’ activity that seeks to assess comparative and competitive

strengths and opportunities, define a path into the future and to shape the behaviour of other actors, most of whom are not in the control of

governments and public bodies.

It is highly desirable that economic development is orchestrated as a partnership activity between

public, private, and institutional sectors, with substantial vertical and horizontal collaboration

on the public sector side

Provincial Government

DEDAT

Municipalities

EconDev.

function

National Ministries,

Departments and Agencies

Prov Govt roles shift beyond micro-projects to:• ‘Whole of

government’ approach

• Advocacy agenda (inter-governmental)

• EDP client relationship

• Ongoing priority interventions

• Participation in EDP work-streams

Municipal roles shift beyond LED projects to:• ‘Whole of

government’ approach

• Advocacy agenda (inter-governmental)

• EDP client relationship

• Ongoing priority interventions

• Participation in Regional Partnerships

EDPEconomic & market intelligence; Cape economic vision & strategy; Business attraction, retention & expansion; Brand platform; System organisation

Division of labour: example of roles and responsibilities in economic delivery system

Economic CEOs Forum

Representatives of all departments, agencies and organisations involved in economic development and promotion

Sub-regional economic partnerships

• Cape Town city-region• South Cape• Karoo• West Cape

1st stage work-streams1. Economic intelligence2. Vision & strategy3. Business and investment

climate4. Common brand platform and

marketing alliance

Economic partners Business

Government is primarily citizen- and government-facing; EDP primarily market- and industry-facing

Establishment process: Call to partners

Bilateral discussions currently taking place with potential business partners:• 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)

Establishment process: Call to partners

Discussions are underway or are planned with other potential partners:• Local government• Institutions, i.e. universities, research organisations• Labour• Economic organisations in civil society• Professional and sector organisations

EDP Establishment: Transition Steps

EDP Steering Committee established

Circulate Draft Member’s Agreement (November)

Provincial Cabinet 07 December

Incorporate EDP as Not for Profit

Company (December)

Commence PGWC legislative process

(January)

Finalise Company Objects (January)

Finalise Memorandum of

Incorporation (March)

Elect Interim Board (April) Launch EDP (April)

Economic CEO’s Forum

• EDP Project• Aims and Objectives:• Build culture of cooperation• Improve aggregation of effort• Knowledge and information sharing• Strengthen economic partners and partnerships

• Membership• Open to CEOs of organisations, associations, departments, entities and

agencies involved in system of economic delivery (public, private, institutional, labour, community, cross-sector partnerships)

• First meeting: 21 November 2011, thereafter on quarterly basis

Future Cape and City Development Strategy

• EDP Project• Aims and Objectives:• Align vision for Province (Future Cape) and City of Cape Town (City

Development Strategy)• Evaluation of key dynamics and long term trends affecting economy,

society, governance and environment• Provide information base and platform for debate• Set common agenda for implementation and action

• First step: publication of Contextual Report• Cross reference: National Planning Committee Diagnostic Report and

Plan; DBSA Development Report; Provincial Economic Report and Outlook