OECD Cape Town Territorial Review
description
Transcript of OECD Cape Town Territorial Review
The Cape Town City-Region
South Africa is an urbanising country
• Since the mid-1980s the bulk of the national population lives in urban areas
Cap
e T
own
c.r.
Dur
ban
c.r.
Joha
nnes
burg
c.r
.
• Between 1996 – 2007 population growth has been higher in the largest urban-regions
GVA spatial concentration in 2004
1904 2001
BlacksWhitesTotal
50% 1985
The three city-regions are home to 53% of national population
The Province of the Western Cape in South Africa
•The province of the Western Cape,5 million inhabitants in 2006 – 11% of national population
•and 14.8 % of national GDP
The Cape Town c.r. in the Western Cape
Cape Town city-region87% of provincial population
92% of provincial GDP
City of Cape Town3.2 million inhabitants
89% of city-region’s GDP
Cape Town is a poly-nodal city-region
(1 + 6 municipalities )
A sprawling and low density city-region
0
200
400
600
800
1000
1200
1400
0-20 20-40 40-60 60-80 80-100 100-120 120-140 140-160
Po
pu
latio
n D
en
sity (
po
p.
pe
r km
2 )
Distance f rom City Center (km.)
Population densities (y) and distances from city centre (x) in the Cape Town city-region in 2008 Commuting distances comparable to Los Angeles
An engine of the national economy
11.8 % of National GDP
Cap
e
Tow
nS
ou
th
A
fric
a
Cape Town’s GDP pc was USD 15
25041% more than
national average
• The richest region of the country after Johannesburg
Cape Town is 16th out of 79 metro-regions
A growing city-region
Increasing international competitiveness
Cape Town’s GDP pc is roughly equal to that of
Seoul, Naples, and Mexico City
Globalised value chains…
18.5% of manufact.
employment
17% of regional exports
– Agro-food
– Tourism
Trends in 2006
20% manufact. Gross Value
Added
A flourishing wine industry
In 2006 Cape Town was the first SA destination for Europeans and Americans
Catering and hospitality activities have expanded their contribution to regional GDP by 77% over
1995-2005
…emerging “urban” clusters
Financial and business servicesThe finance and insurance
industry + 50% GDP contribution between
1995-2005Business process outsourcing
(BPO) attracts foreign investment especially in sectors
such as communication (call centres) and finance.
LogisticsCape Town is a soft gateway to Africa. The city-region handled 23.3% of South Africa’s total cargo in 2006Logistics support regional specialisation in the oil industry and repair and maintenance of ships and offshore drilling platforms
Knowledge intensive and Creative industries
Medical Tourism
Food biotechnology
Film and publishing industries
And increasing urban consumption
– Wholesale and retail
– Construction and housing
17% of regional GDP in 2006
Victoria and Albert Waterfront
+11.5% of GDP contribution between 2004-200516 000 social housing units built between 2006-2007
Public investment and
social grants
Current positive business cycle
Yet Cape Town faces extensive social problems
• Unemployment Regional unemployment stands at 22%, taking into account discouraged workers, (2006)• Increasing poverty and deprived areas
Townships:Khayelitsha is home to
12% of the regional population yet
generates 0.77% of regional GDP
Percentage of households living in poverty (trend between 1999-2005)
Regional Gini Index0.69
(Average in OECD countries is 0.30)
• HIV/AIDS
• CrimeThe city has one of the highest crime rates in the nation: Cape Town has 7% of the nation’s population, but it is responsible for 10% of the country’s reported homicides and 21% of its drug-related crime.
• Inadequate housing and lack of affordable housingHousing deficit (410 000 units)
Inadequate housing tripled since 1993 – 31% of total housing units are informal
Issues affecting regional competitivenessLack of skills and skills mismatch
• 5.22% of workers with tertiary education (0.004% in RSA)
• Spatial mismatch between housing and location of jobs
Backlogs in capital infrastructure maintenance • USD 380 million in 2006 (road infrastructure: roads, bridges, and
culverts – some 2% of regional GDP).• Power-cuts
Environmental contamination• Ecological footprint as large as that of Greece• Rising contamination of water and land• Most affected by global warming• Impacts agro-food & tourism value chains
Innovation capacity• Innovation falls behind Johannesburg• Lack of specialisation in high value added manufacturing• Innovation does not concentrates in key value chains
Competing through social inclusion
Produce enabling conditions (collective goods)
Creative industries
Logistics
Regional competitiveness
Agro-food Tourism Urban consumption
Financial services
Active labour policy and skills improvement
Innovation capacity (Regional innovation system)
Built environment (housing and transportation)
Environmental sustainability (“climate proof” Cape Town)
Specific policies for economic development in townships
National growth strategy
Halve poverty and unemployment by
2014
AsgiSAImprove economic growth
(average 5% per year between 2004-2014)
Binding constraints • Volatility and level of the currency• Barriers to entry, limits to competition. • Regulatory environment burdens SMEs.• Shortage of skilled labour - impact of apartheid spatial
patterns on the cost of labour• The cost, efficiency and capacity of the national logistics
system• Deficiencies in state organisation, capacity and leadership
Strategy to reduce binding constraints• infrastructure investment
• sector strategies
• skills and education development
• eliminating the Second Economy
• macro-economic issues
• Governance and public administration issues.
The lack of a spatial approach• A complex framework that lacks a strategic vision and reduces
policy effectiveness and implementation capacity
AsgiSANSDP
MEDS
GDS-iKAPA
IDPs
BEE
National Government
Treasury DTIPresidency
Province of the. W.Cape
City of Cape Town
Civil society
?
Need for a new generation of governance reform
• Clarifying competencies among spheres (e.g. built environment)
• Consolidating and mainstreaming frameworks for strategic planning at the regional/metropolitan level.
• Building and retaining capacity in the sub-national civil service.
• Creating an efficient public finance framework.
• Strengthening civil engagement.
Issues for discussion• Issue 1. Skills mismatch and metropolitan competitiveness.
• Issue 2. Distressed areas and economic development
• Issue 4. Metropolitan competiveness and national growth strategies
• Issue 3. Urban form, sustainable development and competitiveness.
A most significant institutional reform proposed by the OECD Review is the need to explore the establishment of a new regional planning authority that “could help create horizontally co-ordinated regional development planning at the level of the Cape Town city-region. Given that different sectors – land-use, housing and economic development – are intrinsically connected to the spatial economy, a cross-sectoral body would offer much more coherence. This institution would give its delegates the decision-making power to coordinate investments” (OECD 2008: 29).