1. A Spatial Perspective

2. Policy Context
Cabinet adopted the New Growth Path (NGP), a strategy promoting decent work and inclusive growth.
A target was set nationally to grow employment by 5 million jobs by (around 3 million more than the anticipated growth if we extrapolated from to 2009)
In order to achieve this target 5 key job drivers were determined
The NGP recognises the urgent need to address the extraordinary divergences in terms of the spatial concentration of economic growth in South Africa
The NGP outlines the fact that creating an enabling environment for rural employment will require the finalisation of a spatial perspective
that sets out the opportunities available and the choices to consider in order to lay the basis for aligning government spending, infrastructure, housing investment and economic development initiatives.
The National Infrastructure Plan was adopted in February 2012 to give effect to the NGP infrastructure driver

3. Jobs drivers Main economic sectors: Agriculture & agroprocessing
Mining and beneficiation
Manufacturing (IPAP2)
Tourism/other services
Infrastructure
Energy, transport, communications, water,
housing.
Look for employment opportunities in “jobs drivers” and implement policies to take advantage of them
Spatial opportunities:
Rural development
African regional development
New economies:
Green economy
Knowledge economy
Social capital:
The social economy
The public sector 3

4. NDP: Vision 2030 New Growth Path
Infra-structure for employ-ment and develop-ment
Economic sectors: Agricultural and mining value chains, manufacturing, tourism and high-level services
Investing in social capital: The social economy and the public sector
New economies: The green economy and the knowledge economy
Spatial development: Rural development and African regional development
Infrastructure Plan
Outcome 4: Inclusive Growth deliverables
Other economic sector implementation plans such as IPAP and IRP
Social dialogue commitments: October 2012 Accord, Skills, Education, Local Procurement, Green Economy

5. Infrastructure
The 1st jobs-driver is infrastructure: laying the basis for higher growth, inclusivity and job creation
However, the pace of infrastructure development and spending on infrastructure is projected to fall from 9,1% of GDP currently to 8,1% of GDP (2013)
Blockages include weak implementation capacity in parts of the state (with unspent monies) and poor project development planning
Projects are not always strategic, integrated or aligned with national priorities
Poor co-ordination slows projects and limits their impact

6. Infrastructure....
Through the : the Presidential Infrastructure Coordinating Commission (PICC) Government adopted an Infrastructure Plan that is intended to transform the economic landscape, create a significant numbers of new jobs, strengthen the delivery of basic services
Establish a structure at the highest level to address the challenges through coordination, integration and accelerated implementation
Develop a single common Infrastructure Plan that will be monitored and centrally driven
Identify who is responsible and hold them to account
Develop a 20-year planning framework beyond one administration to avoid stop-start patterns

7. Infrastructure ....
Based on this work, 18 Strategic Integrated Projects(SIPs) have been developed and approved to support economic development and address service delivery in the poorest provinces.
Each SIP comprises a large number of specific infrastructure components and programmes.
An Infrastructure Book has been compiled, which contains more than 645 infrastructure projects across the country
Infrastructure Bill developed and undergoing approval processes.

8. The Infrastructure Plan Initiatives
1. Catalytic
2. Enabling socio-economic devpt
Greening the South African economy
Electricity Generation
Electricity Transmission and Distribution
Integrated Municipal Infrastructure
Integrated Urban Space and Public Transport
Agro-logistics and rural Infrastructure
Regional Integration
Unlocking Northern mineral belt
Durban-Free State-Gauteng Corridor Development
South Eastern Node & Corridor Development
Saldanha-Northern Cape Corridor Development
3. Crosscutting
Access to communication technology,
SKA and MeerKat
National school build programme
Higher Education
Revitalisation of public hospitals
Unlocking the economic opportunities in North West Province

9. Strategic Infrastructure Projects
18 Geographic Strategic Infrastructure Projects (SIPS) identified:
SIP 1: Unlocking the Northern Mineral Belt with Waterberg as the Catalyst
SIP 2: Durban- Free State– Gauteng Logistics and Industrial Corridor
SIP 3: South Eastern node & corridor development
SIP 4: Unlocking the economic opportunities in North West Province
SIP 5: Saldanha-Northern Cape Development Corridor
SIP 6: Integrated Municipal Infrastructure Project
SIP 7: Integrated Urban Space and Public Transport Programme
SIP 8: Green Energy in support of the South African economy
SIP 9: Electricity Generation to support socio-economic development
SIP 10: Electricity Transmission and distribution for all
SIP 11: Agri-logistics and rural infrastructure
SIP 12: Revitalisation of public hospitals and other health facilities
SIP 13: National school build programme
SIP 14: Higher Education Infrastructure
SIP 15: Expanding access to communication technology
SIP 16: SKA & Meerkat
SIP 17: Regional Integration for African cooperation and development
SIP 18: Water

10. Need for a Spatial Vision
National Development Plan indicates that there is a need to tackle inherited spatial divisions as SA’s spatial structure perpetuates exclusion
Distorted growth patterns cannot be ignored as they worsen economic and logistical inefficiencies
Many places are not growing economically because of a lack of infrastructure, inadequate skills, poor innovation capacity and weak governance
Locked-in potential of these areas could be released through targeted investment in economic and social infrastructure investment strategy

11. Spatial Economic Development Principles
Principles of particular significant to economic development:
Spatial Efficiency- Productive activity and job opportunities are optimised and burdens on business minimised. Efficient commuting patterns and circulation of goods and services will be supported with regulatory procedures that go impose unnecessary costs to development
Spatial Justice- The historic policy of confining particular groups to limited space and the reverse of the unfair allocation of public resources.

12. Spatial Considerations
Where would we support development in spaces, where is the potential?
We need to understand demand and supply dynamics in rural areas spatially
How do we shape/ unlock demand potential? Where is labour relative to demand ? Do we understand the distribution of skills across space
We need to understand spatially supply potential in relation to national value -chains
What is the potential for clusters if we know where demand is?
How do we create better access to demand (markets)?
Can we add value to the CWP and EPWP through the use of local inputs ... where will they be sourced (local procurement)?
Where are the opportunities for productive activities in rural areas

13. Considerations cont... NGP sectors – based on labour-absorption
Where are growth sectors (economic and labour absorption)
What is the employment impact of sectors across space?
Access to factors of production (land, water, labour etc)
Comparative and competitive advantages of rural areas
Migration patterns and labour sending areas
Identify potential employment creating activities where demand is adequate to support growth
Consider existing economic activities and what opportunities they provide in terms of skills, infrastructure, institutions and other resources or competencies
What is constraining growth in areas and what can be done to address these constraints

14. Functional Economic Regions Project Overview (1)
Beyond municipal boundaries and projects
In support of the National Growth Path (NGP) and the National Development Plan, the Economic Development Department (EDD) is committed to grow employment by five million jobs by 2020.
The main indicators of success will be jobs (number and quality), economic growth (rate, labour intensity), equity (lower income inequality and poverty) and sound environmental outcomes.
In order to achieve the above, it is critical that:
As a country we wisely utilise our valuable and scarce resources and target our limited capital and capacity in such a way that it maximises the creation of decent work opportunities;
The State coordinates its efforts around core priorities that contribute to sustained expansion of economic opportunities and quality of life for its people;

15. Functional Regions Project Overview (2)
To assist with the achievement of the NGP’s goal of 5 million new jobs by providing a spatial economic understanding of:
Where the most new jobs can be created, in the shortest span of time, with the least new government investment/spending
Where the same amount of government investment/spending can create the most new jobs
Where huge investment can create large number of jobs

16. Functional Economic Regions Project Overview (3)
Approach - Phase 1 (2013):
International and local desktop research to inform the supra-national, national and sub-national context
Focus on spatial economic understanding of key job drivers, spatial priority areas, issue based mapping, maximising impact, identifying & considering trends, and identifying trade offs
Develop spatial economic scenarios given existing trends, understandings & visions and (1) explore and record their impact on the realisation of the key job- drivers, and (2) develop a decision-making tool to assist with determining priority areas (functional economic regions) for State and private sector investment and spending
USE: Interviews, bi-lateral discussions and analyses of space economy and space economy interventions
TO: Identify and describe categories /type of job-area-industry-people value chains & networks, as well as Identify and explore supportive case studies
Consultation, collaboration… on-going
Dissemination and enhancement of perspectives and decision-making and monitoring tool

18. Functional Region Project Overview (4)
Create various entry points for ‘reading’ the space economy: i.e.
Types of jobs (self employment, high skills, low skills). Jobs linked to growth path (short term public employment schemes...)
Types of regional economies (regional industrial economies, rural economies e.g. Grant based, agri-based, Mining based etc.
Types of rural economies (high level socio-economic profile with enables/ constraints) and what are the typical conditions for take off and game changes that currently and could effect change. What are typical place based constraints associated with different rural economies. What are the high level/ dominant value chains?
Types of areas (rural small towns, dense rural settlements, dense urban townships) - Consider networks of places. Investment relationships national, regional and international
Types of people (Types of people/institutions, including the State. Typical industries/sectors (take off time, impact, enablers required)
Types of networks (Sector growth and decline linked to place (e.g. Although tourism is a growing sector nationally some local areas it is declining)
Types of sectors & industries & value chains
Focus on interactions between places/jobs/people/institutions/sectors

19. Rationale for the Functional economic Regions Initiative (1)
This initiative is critical to EDDs mandate for the following key reasons:
Development of spatial economic perspective that will essentially underpin the SIP programme and provide the economic layer to the National Spatial Framework
To create space for cross-boundary planning. Allowing municipalities that configure into functional economic regions to collectively plan catalytic interventions
To be provide a basis for structures such as the MINMEC, Infrastructure Cluster and the PICC, to prioritise of high Impact infrastructure investment across the country
To provide a basis for EDD to proactively determine intervention areas to ensure the impact of strategic economic interventions of the Department are maximised

20. Rationale for the Functional Economic Regions Initiative (2)
To enable the potential basis for Provincial Economic Development Departments to support economic planning on a regional basis with Provinces strengthening the economic component of the PGDS
Addressing development of the former Bantustan (23 Districts) areas within a broader economic context
Providing a spatial platform for scaling up jobs by maximising opportunities resulting from high impact initiatives
To provide an economic context/ platform for key spatial initiatives of government such as the SIP, IDZ and new SEZ and RIDS programme

21. Proposed Regional LED Approach
Based on functional economic regions, the intention is that EDD will follow regional approach to LED
Coordinate actors and create a platform for partnerships i.e. Districts that relate to a functional economic region to identify, engage on and prioritise high impact cross-cutting interventions that affect the broader region identified
Implications of the main çross-boundary economic value-chains as they relate to the functional economic regions will be examined in order to consider opportunities to spread economic opportunities.
Provincial Departments Economic Development can potentially drive this coordination that will fit into the IDP cycle so that reviewed IDPs factor in these priorities
The result will be:
improved cross-boundary planning and projects/ initiatives supported across municipal boundaries
more sustainable catalytic projects that take broader market issues into account
more holistic approach to the development of rural areas as they relate to their urban centres/ nodes
Proposed Regional LED Approach

22. Local and regional focus
Regional Economies – i.e. Regional industrial economies, rural economies e.g. grant based, agri-based, Mining based etc. , types of rural economies and what are the typical conditions for take off and game changes
Local and regional focus
Resource critical areas
Green economy zones
Competitive growth & job centres
Regional growth & service centres
Rural restructuring
Resource based growth regions
Competitiveness and
Regional corridors
Special zones – employment decline, vulnerability (i.e. mining)
Regional Economies i.e.

23. Understanding areas in terms of spatial & temporal trends – i. e
Understanding areas in terms of spatial & temporal trends – i.e. trends of growth & decline of economic activity identifying special intervention areas…

24. Jobs & employment – spatial trends and dynamics, and how that relate to specific job drivers – i.e. trends of growth & decline of employment in identifying special intervention areas…

25. Thank You