INCLUSIVE ECONOMIC GROWTH &

OPPORTUNITIES ACCELERATE CAPE TOWN 5TH MAY 2017

ECONOMIC

OVERVIEW

2.3%

7.6%

12.4%

2.2%

3.6%

13.7%

8.6%

19.9%

20.6%

0.5%

0.1%

12.2%

1.2%

3.6%

15.5%

10.2%

32.6%

15.8%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Agriculture

Mining

Manufacturing

Electricity

Construction

Trade

Transport

Finance

Community services

Cape Town GVA

National GVA

CAPE TOWN ECONOMY – TYPICAL URBAN ECONOMIC STRUCTURE

OVERVIEW OF CAPE TOWN’S ECONOMY - GGP

Cape Town

9.9%

eThekwini

9.2%

Ekurhuleni

7.5%

Jo’burg 15.3%

Nelson

Mandela Bay

2.7%

Tshwane 8.8%

Mangaung

1.7%

Buffalo City

1.7%

Rest of SA

43.1%

2015 – R301b

INEXTRICABLY LINKED TO THE NATIONAL ECONOMY

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

SA GDP

Cape Town GDP

1,6%

1,2%

GGP PER CAPITA – HIGHER THAN SA BUT SLOW GROWTH

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

GD

P p

er

ca

pita

gro

wth

ra

te (

%)

Re

al G

DP

pe

r c

ap

ita

(R

an

d)

Year

South Africa City of Cape Town South Africa City of Cape Town

LATEST LABOUR MARKET INDICATORS

Indicator South Africa Cape Town

Q4:2016 Q3:2016 Q4:2015 Q4:2016 Q2:2016 Q4:2015

Working Age Population (000s) 36 905 36 750 36 272 2 814 2 800 2 758

Labour Force 21 849 21 706 21 211 1 949 1 908 1 901

Employed 16 069 15 833 16 018 1 482 1 469 1 511

Employed by the Formal Sector 11 156 11 029 11 180 1 207 1 212 1 231

Employed by the Informal Sector 2 695 2 641 2 684 165 152 175

Unemployed 5 781 5 873 5 193 467 440 390

Not economically active 15 055 15 044 15 061 865 892 856

Discouraged work-seekers 2 292 2 291 2 279 11 13 9

Other 12 763 12 753 12 782 855 879 847

Unemployment rate (%) 26.5 27.1 24.5 23.9 23.0 20.5

Youth Unemployment rate (%) (15-24) 50.9 54.2 50.4 48.0 49.1 45.1

ENTERPRISE AND

INVESTMENT

Positioning Cape

Town as a

forward-looking,

globally

competitive

business City

Enterprise & Investment

Catalytic Sectors

Enterprise Development

Place Marketing

International Relations

Investment Facilitation

Development Facilitation

CATALYTIC SECTORS

• Sector development agencies funded by the City to perform specific functions on its behalf

• Strategic direction provided by the City

• Outputs and outcomes specified and measured

• PROJECT CAMISSA used to inform sectors

SUPPORT OF STRATEGIC AND HIGH GROWTH SECTORS

CAMISSA METHODOLOGY

Comparative Advantage

Recent Growth

Socio-economic

impact Influence Potential

Baseline Statistical Analysis

Institutional Review

Competitiveness • Chamber interviews • Company interviews

Demand

• Global market trends

• Global best practice

• Industry forecasts

POSITIVE TRENDS IN KEY MANUFACTURING SECTORS

31,000

31,500

32,000

32,500

33,000

33,500

34,000

2011 2012 2013 2014 2015

Em

plo

ym

en

t

Employment in textile

industry

Clothing and textiles

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Va

lue

(R

bill

ion

)

Food and Bev exports

Exports Imports Trade balance

STRONG PROSPECTS ACROSS MULTIPLE SECTORS

BUSINESS PROCESS OUTSOURCING:

• Leading creator of jobs

• Offshore clients benefit from weakening rand

• Good growth prospects

CLOTHING AND TEXTILES:

• Turnaround potential

• Retail head offices and manufacturer locational advantage for fast fashion

• Technical production

FOOD AND BEVERAGE MANUFACTURE:

• Growth of African middle class

• Increase in demand for diverse food and beverage products

STRONG PROSPECTS ACROSS MULTIPLE SECTORS

ELECTRONICS:

• Increased electronic production/assembly facilities in the city

• African markets account for 51% of Cape Town’s electronic exports

• Entry point to sub-Saharan Africa ?

RENEWABLE ENERGY:

• Affordability of renewable energy production and storage options

• Creation of a green technology Special Economic Zone (SEZ) in Atlantis.

ICT AND MEDIA:

• Diverse, professional and well priced destination

• Increasing opportunities for vertical integration of film value chain

• Leading location of tech start-ups, e-commerce companies and venture capital deals

THE ECONOMIC PERFORMANCE INDICATORS FOR CAPE TOWN

ENTERPRISE DEVELOPMENT

• Business support line

• Reports and manages City efforts to improve World Banks Ease of Doing Business Report Rankings

• Provides referrals and information to SMME’s

• Skills development

• Outcomes-based tender aims to support economic inclusion

• High impact three-year plan to develop residents’ skills and place them in work opportunities

• Service provider only paid once they have placed residents into education, training, or

employment opportunities. The more sustained placements made, the more they stand to

earn from the City of Cape Town. City pays for success, not just services rendered.

SUPPORT OF SMME’S / SKILLS / EASE OF DOING BUSINESS

INVESTMENT AND DEVELOPMENT FACILITATION

• Deals with large scale investment or development in the City

• Reduces Red tape related to City processes/procedures/incentives

• Dedicated resources in Atlantis to support green manufacturing hub and rapid land release

programme

• RECENT INVESTMENTS LANDED

SUPPORT OF SMME’S / SKILLS / EASE OF DOING BUSINESS

INTERNATIONAL RELATIONS

• Manages historical relationships with sister cities

• Responsible for strategic selection of new productive international relationships

• Manages inbound and outbound missions and delegations

• Focussed on activating relationships that have specific economic, operational and social outcomes at their core

RELATIONSHIPS WITH INTERNATIONAL ORGANISATIONS & CITIES

PLACE MARKETING

• Manages strategic input, mandate and oversight of Cape Town Tourism

• Responsible for managing perceptions of destination Cape Town

• Generates media and content for promotional and aspirational value

• Leverages and maximises ROI for events that the City participate in

• INVEST CAPE TOWN :

TOURISM, DESTINATION MARKETING AND INVEST CAPE TOWN

WHAT IS IT…

• South Africa’s second largest city economy actively competing to attract

global capital to our shores.

• A globally competitive business destination leveraging its natural beauty and

tourism achievements for economic inclusion and growth.

• Crafting an authentic narrative about what we stand for as an investment

destination, building on our compelling success stories and sharing our

competitive advantages.

• Looking into the future; how do we plan to provide economic resilience and

ensure we develop, attract and retain talent?

ECOSYSTEM

• Crafting an authentic narrative about what we

stand for as an investment destination

• Seed market place with messaging and

collateral

• Unify and amplify messaging

• Sector development agencies funded by the City to perform specific

functions on its behalf.

• Strategic direction provided by the City

• Outputs and outcomes specified and measured

ECONOMIC

AMBASSADORS

QUESTIONS ?