Province of the EASTERN CAPE - ecsecc.org · • Strategic partners: DoA, RDA, IDZs, commercial...
Transcript of Province of the EASTERN CAPE - ecsecc.org · • Strategic partners: DoA, RDA, IDZs, commercial...
Provincial Jobs Strategy Summary Page 1
EASTERN CAPEProvince of the
REPUBLIC OF SOUTH AFRICA
The Eastern Cape ProvincialJobs Strategy
A BRIEF SUMMARY
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Table of contents
Purpose of the Strategy ................................................................................................................... 3
Status of the Strategy ...................................................................................................................... 3
Depth of the Jobs Crisis .................................................................................................................. 4
Causes of the continuing crisis ........................................................................................................ 4
Guiding Principles............................................................................................................................ 5
Five Pillars of the Jobs Strategy ...................................................................................................... 6
The KIPs .......................................................................................................................................... 9
Provincial Jobs Strategy Summary Page 3
Purpose of the Jobs Strategy
The purpose of the strategy document is to present the Provincial Government’s understanding of the present provincial jobs and skills crises and on the basis of this to:
• Outline,explainandjustifyGovernment’scomprehensiveapproachtotacklingthesecrises;• ShowhowGovernment’sactivitiesarebeingrampeduptoalignwiththeNewGrowthPath(NGP)jobstargets;
• Indicatesectorsandprojectswithjobcreationpotential• Providequantifiedanddisaggregatedjobcreationtargetsfor2012-15;• Identifyanddefinethepriorityinterventionsnecessarytoachievethesetargets;and• Identifykeyissues,challengesandconstraintsthatmustbeaddressedtooptimisejobcreation
outcomes.
Status of the Strategy
AdraftdocumenthasbeencompletedanddetailedKeyImplementationProgrammes(KIPs)arebeing designed. The Draft Strategy is based on key policy documents:
• TheNewGrowthPath(NGP)• TheIndustrialPolicyActionPlan(IPAP2)• TheProvincialIndustrialDevelopmentStrategy(PIDS)
An intial draftwas submitted to theEconomicDevelopmentCabinetCommittee on 19October2011. Further consultation is ongoing. DEDEAT is seeking inputs from all interested parties,includingmunicipalitiesviasixdistrictengagements.Thisarepartofthebuild-uptotheProvincialJobsSummitplannedforMay2012.
The Depth of the Jobs Crisis
Key indications of the seriousness of the current crisis include:
• NearlyonemillionpeopleintheEasternCapeareunemployed(41%intermsoftheexpandedrate);
• Thissituationisnottemporary.Ithasexistedsincethe1980s;• Thesituationwouldbeevenworsewithoutnetout-migrationfromtheProvince;• The crisis is deepenedbya largeand steady inflowof new labourmarket entrants fromourschools;
• Thecrisisisfurthercompoundedbytheskillscrisis.
Main causes of the continuing crisis
Key causes of the continuing jobs crisis include:
• Insufficientanddiminishingformalsectorjobs;• Aninformalsectorwhichistoosmalltoimpactmeaningfullyonjoblessnessandpoorlivelihoods;• Thefactthatsbout71%oftheprovincialpopulationstillliveintheformerBantustans,wheretheconditionsforprivatesectorinvestmentarenot(andneverhavebeen)conducive
• Thefactthatmorelabour-intensivemanufacturingwaswipedoutasaresultofincreasedforeigncompetition (due to trade liberalisation) and the removal of apartheid era wage subsidies to“border industries”
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• Acontinuedbiastowardsskills-intensiveandcapital-intensivenewinvestments• Thefailuresofindustrialpolicies(IDZs,MIDP,NIPFetc.)tofosterasubstantial increase in the
number of industrial jobs• The failure toadequatelyeducateandskill ourworkforce.Anexcesssupplyofunskilledandsemi-skilled labourcontinues toco-existwithan insufficientsupplyofskilled labour (artisans,engineersetc.)
• Insufficientlymodernisedeconomicinfrastructureandashortageofsuchinfrastructure• Miningretrenchmentsandtheglobalrecession(sinceend2008)• Barrierstoentrytoinformalemploymentduetoinsufficientaccessoftheunemployedtoskills,entrepreneurship,marketsandcapital.
Guiding Principles
A successful jobs strategy should:
• Bebasedonanachievableeconomicdevelopmenttrajectoryandrealisticfiscalallocations• Aimatanincreasedshort-termjobcreationimpact(2011-14)andbeyond2014(don’tneglecttheplanningandimplementationoflonger-terminfrastructureinvestments)
• Focusoncreatingnewjobswherethereare(orcouldbe)viableenterprises• Supportidentifiednewjobcreationpotentials,whilesimultaneouslyalsohelpingtoaddressmajor
constraints• Include economic potential based on the Easter Cape’s natural “economic catchment area”(“Gatewayconcept”)intermsofresources,feedstocksandmarkets
• Ensureavailabilityofcompetitively-pricedfeedstocks/rawmaterialsinmanufacturing,agricultureandagro-processing;infrastructureandotherjob-creatingsectors
• Includethedevelopmentofstrategicstakeholderpartnershipsandalliances• Developandutiliseappropriateinstruments• Specifyprovincialstrategicprojectsandtheirroleintransformingtheeconomiclandscape• Bespatiallybalanced,butwithabiastowardsareaswithhigheconomicpotential• IncludearobustandeffectiveJobsMonitoringFramework.
An Overview of the EC Jobs Strategy:
Five Strategic Pillars
Theproposedstrategyhasfivestrategicpillars:
1. Jobsretention2. NewJobs3. Social Economy4. Economic Infrastructure5. Skills Development
Pillar One: Jobs Retention
Labour-intensivemanufacturingcompanieswerecloseddownduetoincreasedforeigncompetition(duetotradeliberalisationinthe1990s)andtheremovalofapartheidwagesubsidiestoso-called“borderindustries”.Furtherde-industrialisationthenoccurredbecauseofglobalrecession.
Provincial Jobs Strategy Summary Page 5
It isnownecessarytobuildproperlyresourcedanddedicatedcapacitytopreventtheclosureofcompaniesthatcanbesupportedtomedium-termviability.
Pillar Two: New Jobs in Priority Sectors
Potentialnewjobcreationopportunitiesandconstraintsarehighlightedinsevenmainareas:
• Minerals• Energy• Agro-industrialvaluechains• Forestry• Manufacturingindustry• Greenindustries• Servicesincludingtourism
Thestrategypaysparticularattentiontothedevelopmentofmineralsandenergyresourceswithinthe catchment area of the Province for industrial job creation. These resources are:
• ManganeseandironorefromNorthernCape• Molteno-Indwecoal• Karooshalegas
The above diagram indicates the potential for Port Elizabeth and its Coega IDZ to act as the “gateway” to minerals and energy resources in the hinterland.
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Pillar Three: Social Economy
TheaimistoincreasethenumberofjobssupportedbyGovernment,through:
• Ahugescale-upintheExpandedPublicWorksProgramme(EPWP)• Theincreasedconstructionofsocialinfrastructure• TheincreasedconstructionofRDPhousing• Improvedemploymentoutcomesfromgovernmentprocurementofgoodsandservices• Strengthenedsupporttoco-ops.
Pillar Four: Economic Infrastructure
Theprovisionofeconomicinfrastructureprovidesastimulustojobcreationintheshort-termduringinfrastructureconstruction.Itisalsonecessarytosupportincreasingactivityinagrowingeconomy.Inadequate infrastructurecreatesbottlenecksand reduces theeconomiccompetitivenessofourenterprises.
AsidefromtheIDZsandNgquraporttheEChasseenlittleneweconomicinfrastructureinvestmentoverlast30years.
Pillar Five: Skills Development
TheNationalSkillsDevelopmentStrategy3(January2011)haseightgoals:
• Improvedskillsplanning• Increasedaccessto(andimprovedqualityof)vocationalprogrammes(trainingofartisansetc.)• IncreasedenrolmentsatFETcollegesandimprovedtrainingquality• Higherlevelsofliteracyandnumeracy(ABET)toenableadditionaltraining• Increasedworkplace-basedtraining• Moreandbettertraininginitiativestoco-ops/communityprojectsandsmallenterprises• Improvedpublicsectorskills• Improvedcareer/vocationalguidance.
Skilling for Job Creation
Asthetablebelowindicates,ourskillspipelineisbroken:
StageNumber of
people Comments
Grade2enrolmentsin2000 234000
Grade10enrolmentsin2008 152000
Matricpassesin2010 37000
Bachelor Degrees 5000 1,400science,engineeringandtechnologydegrees
Diploma/highercertificate 13000 Assuminga50%passratefromthoseeligibletoenter
FET College graduates 7000 2,000inengineeringstudies
SETA learnerships 2000
NSFinitiatives 6000 Short courses for unemployed
EC Strategic Skills Project 1000
Provincial Jobs Strategy Summary Page 7
Pillars and KIPs
Five Pillars
Job
Ret
entio
n
New
Jobs
Soc
ial
Eco
nom
y
Eco
nom
icIn
fras
truc
ture
Ski
llsD
evel
opm
ent
Jobs per year: 3,000 14,000 35,000 12,000 10,000
12
KIP
s
1.JobRetention
2.Agro-processing
3. Forestry
4. Industrial
5. Services
6. Social Economy
7.EconomicInfrastructure
8.SkillsDevelopment
9.WildCoast
10.EnterpriseDevelopment
11.LocalProcurement
12.JobsData
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Selected KIPs
Agro-Industrial Value Chains Programme
• Convenor: ECDC
• Strategic partners: DoA,RDA,IDZs,commercialfarmers’commoditygroups
• Programme description: Subsistence farmers need to be linked to value chains.
711,000 people in the Eastern Cape engage in subsistence agriculture. The aim is to link aprogressively increasing proportion of these. A strong professional team must be established to drive this
Job creation estimates:
• Atleast5000jobs/livelihoodsPAinthenextfewyears,increasingthereafter. • At least2,000 jobscouldbecreated just insupplying thenecessaryvolumeofsoya to the
existingbio-dieselplantinBerlin.
Forestry Progamme
• Champion: RuralDevelopmentAgency(contemplated)
• Strategic partners: DAFF,DWA,DTI,IDC,ECDC,Corporates(Sappi,Merensky,PGBison)
• Programme description: WorkwithSappi,MerenskyandPGBisontoestablish100,000haofnewcommunityafforestation.
• Job creation estimates: 20,000jobs(over10years)
• Priority interventions
• Facilitationofcommunityforestry • Landownership • DWAforestrylicences • Funding
Industrial Jobs Stimulation Programme
• Champion: DEDEAT
• Strategic partners: ECDC,IDZs,IDC,DTI,AIDC,existingmanufacturingindustry
• Programme description: The industrial jobs incentivewasrecently launched in2011,andatthisstagecomprisesanindustrialjobsincentiveequaltoR10,000payableforeachprovennewindustrialjobcreatedintheProvince,targetingthenon-automotivemanufacturingsector,greenindustriesandagro-industries.
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TheprogrammewillbeextendedtoincludeIPAP2-relatedinitiatives,andinitiativestobefundedfromNationalTreasury’sJobsFundandDTIsEmploymentCreationFund
• Job creation estimates: 39,000 manufacturing jobs over the next three years and 11,000constructionjobs(ProjectMthomboandManganesesmelter)
Sector / Area Construction Full time/year
NewECindustrialjobsincentive 4000
NewIDZjobsincentive 4000
Automotive Cluster Initiative 1000
ManganeseSmelter- 1000 400
Project Mthombo 10000 2000
Informal manufacturing 2000
OtherIPAP2initiatives
TOTAL 11 000 13 400
Economic Infrastructure: Preliminary Jobs Targets
Sector/AreaEstimated Job
Creation potentialComments
NgquraPortexpansion 1000Ongoing;constructionoffutureberths dependent on demand
LogisticsCorridor(PE-Gauteng) 1000Ongoing;includesdedicatedmanganeseline(approved)
Motherwell-CoegaPRASArail-link 500 Approved
PEWaterfront 5000
Commence construction in 2013?Tenyearproject;jobsimpact should increase in outer years
R72-N2TollRoad 5000 Designed and costed: R5 billion
Upgrade EL Harbour 3000R4.9 billion allocated by Transnet?
N2TollRoad 6800 R9billion;3yearcontract
WildCoastMeander 3000 R4.1billion
30large-scalerenewableenergyprojects 3000
NtabelangaDam 4000 R1billioncost
Otherconstruction(includingprivatepropertydevelopmentcatalysed)
2000
TOTAL 34 300
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Social Economy
Social Economy: Potential New Jobs
SectorExisting Jobs
ImpactPotential newjobs (2011-14)
EPWP 49000 105000
Social Infrastructure 46000 5000
RDP housing 9000 4000
Government Procurement 15000 12000
Co-ops 5000 2000
TOTAL 124 000 128 000
Jobs Data Programme
• Champion: DEDEAT• Strategic partners: ECSECC,DR&PW,DBSA,SITAetc.• Programme description: Ensure that the implementation of the Jobs Strategy is supported by relevantandreliabledataflows
• Priority interventions:
° Amathuba Jobs Portal (DR&PW): skills intelligence gathering & job/training opportunitiesmatching
° JobsStrategyMonitoringandProjects/InterventionsDatabase ° Provincial Labour Markets Research Unit ° TheAmathubaJobsPortalaimstomatchdiscouragedunemployedyouthtoworkandtraining
opportunitiesinGovernmentDepartmentsandtheprivatesector.Theportalwillbeweb-basedandwork-seekerswillberegisteredineachoftheProvince’s715wards,withtheassistanceofNYS,DBSAandSITA.DR&PWhasallocatedR30milliontothisprojectinFY2012-13.
Concluding Remarks
Thepreliminarytargetofthestrategyis150,000newjobsby2014.ThiscanrealisticallybeachievedandisalignedtotheNGPtargets.Alotofworkmusthoweverstillbedone.Furtherworkincludes:
• DesigningoftheKIPs• Furtherstakeholderconsultation• Resourcemobilisation• PreparationsfortheJobsSummitinMay2012
Provincial Jobs Strategy Summary Page 11
Who to contact
Pleasesubmitallenquiresandinputsonthisdocumentto:
Ms Mickey Mama at 071 880 [email protected]
12GloucesterRoad,VincentEastLondon,5247Postnet,Vincent,P/BagX9063SuiteNo3025246,Vincent,5247
Tel+27(0)437013400Fax+27(0)[email protected]
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