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INTRODUCTION
Neither the public sector, nor the private sector on their own, has all the insights and answers. However by combining insights, power of influence and resources, much more is possible. This strategy aims to establish improved economic development cooperation amongst stakeholders – to systematically identify and utilise more beneficial economic opportunities.
This strategy is a response to the need to improve performance of the local economy, to benefit local citizens. Economic Development is an ongoing process by which key stakeholders and institutions from all spheres of society, the public and private sector as well as civil society, work jointly to create a unique advantage for the locality and its firms, tackle market failures, remove bureaucratic obstacles for local businesses and strengthen the competitiveness of local firms/SMEs.
Sustainable jobs are created mainly in the private sector, which creates wealth from markets. To grow the economy, businesses need to increase their revenues by competing successfully in markets, which are increasingly contested by global competitors. To grow the local economy, competitive local firms need to earn more revenue from external markets, and spend much of this locally, for more money to flow into the local economy. In addition, improved competitiveness of local firms in local markets ensures that less money flows out of the economy. Distribution within the economy takes place through wages and purchases from other businesses.
The Economic Development Plan is in line with the vision and goals in Swartland Municipality’s Integrated Development Plan, which are as follows.
STRATEGY
Points of departure
The following points of departure are important in the identification of potential interventions for the economic development of Swartland Municipal Area:
All interventions must be realistic and implementable to have an impact.
Distinguish between short, medium and long term interventions.
Support worst-affected sectors such as agriculture.
Be responsive to businesses in crisis through information, communication, guidance, support to access funding and advocacy.
Government does not have the fiscal resources to effect the economic plan and it requires other stakeholders and resources from private sector to contribute.
An integrated aligned approach that includes all three spheres of government will be needed.
Approach to economic development
In support of the above National and Provincial directives, the Swartland municipality aims to stimulate sustained growth in the Swartland jurisdiction, by promoting and implementing a set of mutually supportive economic-, spatial- and social-development initiatives.
The main aim is to increase employment - which leads to increased quality of life, social cohesion and sustainability. Employment is a consequence of increased investment by the private sector and/ or by the public sector institutions. To stimulate growth, Swartland must compete effectively with the alternatives, to secure such investment. In addition, growth can also be enhanced by attracting persons employed in other municipalities, to live in Swartland.
BASIS FOR THE DEVELOPMENT OF IMPLEMENTATION COMMITMENTS
National and provincial initiatives to which local government can contribute
National
Establish a competitive base of infrastructure, human resources and regulatory frameworks.
Realise a developmental, capable and ethical state that treats citizens with dignity.
A social compact to reduce poverty and inequality, and raise employment and investment
Boost private investment in labour-intensive areas, competitiveness and exports, with adjustments to lower the risk of hiring younger workers
Public infrastructure investment at 10% of gross domestic product (GDP) financed through tariffs, public-private partnerships, taxes and loans and focused on transport, energy and water.
SA Economic Reconstruction and Recovery Plan
Ensuring optimal revenue collection, fiscal sustainability, improved efficiency of spending, elimination of wastage and corruption and improved state capacity to collect revenue
Regulatory changes to reduce the cost of doing business and facilitate ease of doing business
Skills development and a population that is equipped for the new normal
Communication and the digital economy
Provincial
Building and maintaining infrastructure
Creating opportunities for job creation through skills development
Creating an enabling environment for economic growth through resource resilience
Western Cape Economic Recovery Plan
Red tape support to remove administrative and legislative blockages
Drive improvements in the planning and approvals system
Efficiency improvement in government procedures and administrative systems across a range of sectors including SMMEs, formal and informal businesses as well as the tourism sector.
Support municipalities to drive government spending on the development, maintenance and protection of core infrastructure, particularly on labour intensive projects.
Focus on identifying the necessary enabling infrastructure gaps.
Improve SMME access to WCG initiatives and opportunities
Support growth through facilitating access to finance
Provide support to businesses (e.g. advisory services and training)
Increase employment through internships and skills programmes
Improve access to skills opportunities specifically focused on the capability of youth.
Support businesses and municipalities through technical, regulatory and financial knowledge development, sharing and partnerships.
Initiatives in this document to which local government can contribute
Support to stimulate demand as businesses are challenged to remain operational. Particularly, businesses in the retail and trade, construction and general services sectors generated no revenue over the lockdown period.
Consider municipal utilities and tax relief or reprieves (like interim concession on carbon tax, PAYE, etc.).
Support people and businesses to access the economic relief measures.
Support businesses to learn about any opportunities that may exist in their sector.
Communication initiatives are still not optimally reaching businesses and increased awareness of websites hosting business information and support available, needs to occur.
Introduce digital / online marketing strategies relevant to the businesses’ target market, e.g. social media marketing, google for business etc.
Introduce diversification of good and services provided, such as promoting Agri-tourism in the Swartland area.
Businesses need to be fed tips and be given assistance on how they could take their business digital.
Effectiveness with dealing with investor queries, applications and by extension creating an overall investment friendly business climate can significantly benefit the pursuits of municipalities in seeking development and job creation through investment.
Wesgro’s role is to attract visitors, both international and domestic to visit the Western Cape. Our event partnership provides various levels of support to leisure events where opportunities exist to promote the Western Cape as an attractive destination.
Buy local from struggling businesses and strengthen SME supply chain inclusion – without hampering effectiveness and efficiency principles.
CONCLUSION AND THE WAY FORWARD
Swartland Municipality is committed to support economic development in order to attract investments and make the Swartland an area of choice to do business. The Municipality cannot grow the economy or create jobs. Therefore, to implement this plan, a collaborative partnership between the public and private sector is inevitable.
The national, provincial and other initiatives identified above provides a framework within Swartland Municipality can develop its own implementation commitments, i.e., how and where the Municipality can become involved or provide support to economic development and recovery initiatives.
With the intended commitment on implementation, key performance indicators and targets have been developed and included in the five-year IDP for 2022-2027. The Municipality’s economic development is aligned with goal 2, which is Economic Transformation and has further been included in the municipal budget.
The above-mentioned KPIs will be expanded on at a later stage after workshop sessions have been held with community and business representatives. Action plans to ensure the implementation of the strategic initiatives will then follow. The Municipality will ensure that it heads in a direction where economic development is centred around collaboration and partnerships.
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