Socio-economic Profile, PERO & MERO CFO Forum 06 SEPTEMBER 2013

2 REGIONAL DEVELOPMENT PROFILE: 2013

3 Regional Development Profile 2013 SECTION 1BACKGROUND: REGIONAL DEVELOPMENT ROFILE 2013 SECTION 2PURPOSE: REGIONAL DEVELOPMENT PROFILE 2013 SECTION 3CONTENT: REGIONAL DEVELOPMENT PROFILE 2013 SECTION 4SOURCES OF DATA: REGIONAL DEVELOPMENT PROFILE 2013 SECTION 5STATUS QUO: REGIONAL DEVELOPMENT PROFILE 2013 SECTION 6WAY FORWARD: REGIONAL DEVELOPMENT PROFILE 2013

4 Background: Regional Development Profile 2013 Legislative Mandate: Section 26 of the MSA  The Council’s vision for the long term development of it’s communities.  An assessment of the existing development in the municipality which includes communities that do not have access to basic municipal services.  Council’s development priorities and objectives which includes it’s economic development aims and it’s internal transformation needs.  Council’s development strategies which must be aligned with national and provincial sectoral plans.  A Financial plan, which must include a budget projection of at least three years.  The Key Performance Indicators and Performance targets as determined in terms of section 41 of the MSA 32 OF 2000.

5 Purpose: Regional Development Profile  Provide a regional perspective on the Metro, Districts and Municipalities.  Ensuring that the Metro, District and local municipalities understand the socio-economic reality for their respective regions.  Valuable insight can be gained as to the developmental challenges faced by communities within a specific municipal boundary.  Regional Development Profile to be used as a data tool that can ensure that the information obtained will lead and guide planning & budgetary processes within municipal environment.

6 CONTENT: Regional Development Profile 2013 Demographics1.1 Population Size 1.2 Age and Gender Distribution 1.3 Population Groups Social Development and Well-being2.1 Education and Human Development 2.2 Literacy 2.3 Education attainment 2.4 Learner Enrolment and drop-out rates 2.5 Access to FET colleges 2.6 No fee Schools Health3.1 Health Care facilities 3.2 HIV/AIDS Treatment and Care 3.3 Child Health 3.4 Maternal Health 3.5 Community Based Services Crime4.1 Safety and Security

7 CONTENT: Regional Development Profile 2013 Poverty and Inequality5.1 Human Development Index 5.2 People living in Poverty 5.3 Indigent Households 5.4 Gini Coefficient Access to Municipal Services6.1 Water 6.2 Energy 6.3 Sanitation 6.4 Refuse Removal 6.5 Roads Economically Active Population7.1 Labour Force 7.2 Unemployment 7.3 Unemployment Rate 7.4 Employment by Sector Finance and Resource Mobilisation8.1 National and Provincial Transfers 8.2 Provincial Payments and Estimates

8 CONTENT: Regional Development Profile 2013 Environmental Management9.1 Regional Water Volumes and Losses 9.2 Water Service Levels 9.3 Water Quality 9.4 Waste Water Treatment 9.5 Spatial Planning 9.6 Air Quality 9.7 Climate Change

9 Sources of Data: Regional Development Profile  Statistics South Africa: Census 2001  Statistics South Africa: Census 2011  Quantec Data  Municipal Economic Review Outlook 2013  Sector Departments-Most Recent data

10 STATUS QUO: Regional Development Profile 2013 Released Regional Profiles 2012November/December 2012 Invite municipalities to comment on content of Regional Profiles June 2013 and 01 July 2013 Forward Reminder to municipalities to comment on content or possible information required by municipalities on the Regional Development Profile July 2013 Received Inputs from municipalities on content of the Regional Development Profile July 2013 Data Collection and writing for 2013 Regional Development Profiles August 2013-September 213

11 STATUS QUO: Regional Development Profile 2013 Released Regional Profiles 2012November/December 2012 Release draft Regional Development Profile 2013 to the Metro/ Districts and Municipalities September 2013 Roadshow on draft Regional Development Profiles-DCF/IDP Forum October 2013 Invitation to municipalities to comment on draft Regional Development Profile 2013 October 2013 Incorporate inputs from municipalities into Regional Development Profile 2013 October 2013 Release Regional Development Profiles to Metro/Districts and Municipalities for planning purpose and alignment to Budget 2014/ November 2013

PERO 2013

13 PERO: WESTERN PROVINCIAL ECONOMIC REVIEW AND OUTLOOK  Annual research report which provides an objective review and analysis of past and estimated future economic growth and socio economic development of the Province.  Socio-economic scanning to provide an evidence-based platform to inform and guide provincial planning and budgeting.  Analytical reference point for the provincial economic development strategies and interventions.  Contextualizes the challenge of shifting towards a inclusive growth and development trajectory in the Province.  Informs budget policy formulation and hence the budget of the Western Cape.  The PERO is informed by provincial government policy initiatives while, although not producing recommendations, has some influence on policy decisions.

14 Focus: Provincial Economic Review and Outlook

15 Focus: Provincial Economic Review and Outlook

MERO 2013

17 CONTENT: MUNICIPAL ECONOMIC REVIEW OUTLOOK CHAPTER 1BACKGROUND AND OUTLINE OF REPORT CHAPTER 2ECONOMIC OUTLOOK CHAPTER 3SECTOR GROWTH, EMPLOYMENT AND SKILLS CHAPTER 4VALUE CHAINS CHAPTER 5INFORMAL SECTOR PROFILE CHAPTER 6INFRASTRUCTURE SPENDING

18 MERO: WC INDUSTRY COMPOSITION ACROSS DISTRICTS 

19 WC industry growth across districts (average annual real GDPR growth, ) …

Western Cape: Revealed comparative advantage across districts (2011: LQ > 1) Cape Metro: Tex, cloth & leather Tourism Finance, BPO, ICT ‘Knowledge sector’ Timber & furniture Cape Winelands: Agric & processing Tourism Building & construction Communications & ICT West Coast: Agric & processing Tourism Building & construction Overberg: Agric & processing Tourism Building & construction Timber & furniture Eden: Agric & processing Tourism Building & construction Timber & furniture Central Karoo: Agric & processing Tourism Building & construction Electrical machinery Finance & insurance

21 Business climate in informal sector: key points  Sample of 200 spread across municipalities and towns  Age, gender and education/skills  Regulation: benefits of non-compliance > costs (there is some effort to comply, e.g. by one third of respondents in WCD)  Duration (e.g. WCD): 50% 1 to 5 years; 21% 6 to 10 years; 20% more than 10 years, implying high survival rate  Employment (e.g. WCD): 40% single owner; 40% = 1 + 1; one enterprise 11 employees

22 Infrastructure investment & district economic growth – salient points  Differences in infrastructure investment and maintenance lead to different economic growth outcomes (as economic theory predicts): E.g. West Coast :

23 % Share of agro-processing industry in District GDPR, 2010

24 Non-Metro agricultural real GDPR, (2000=100): sideways or contracting

© Western Cape Government 2012 | WAY FORWARD: PERO & MERO 25  Provincial Top Management and Budget Policy Committee – September 2013 o Presentation on key findings and discussion  IDP Indaba – 16 September 2013  Cabinet – 2 October o Presentation on key findings and discussion o Approval for publication  Tabling in Provincial Parliament by Minister of Finance, Economic Development and Tourism – 17 October 2013  Budget Committee in Provincial Parliament - 17 October 2013

Thank you