Premier

Question by: 
Hon Ayanda Bans
Answered by: 
Hon Ivan Meyer
Question Number: 
12
Question Body: 

 

In respect of the Medium-Term Development Plan (MTDP) 2024–2029:

  1. (a) How has the Western Cape Government internalised and localised the Medium-Term Development Plan (MTDP) 2024–2029, (b) what are the set targets and deliverables for each Department in the Province for the implementation of the key pillars of the MTDP, (c) how does the Western Cape Government plan to align its economic policies with national priorities, particularly in support of public employment programmes and small enterprises in rural areas, and (d) what steps has the provincial government taken to ensure that historically marginalised groups, in particular (i) black people (Africans, coloureds and Indians), (ii) women, (iii) the youth and (iv) persons with disabilities, benefit from provincial industrial and localisation strategies;
  2. what are the provincial government’s plans to expand (a) broadband infrastructure to connect rural areas and boost economic activity and (b) the Black Industrialist Programme to integrate marginalised groups into the industrial economy;
  3. what are the provincial government’s plans to strengthen income support, particularly to ensure that all employees in the Western Cape earn the stipulated national minimum wage?
Answer Body: 

The Departments of the Premier, Economic Development & Tourism and Infrastructure informed me as follows:

(1)(a) The Western Cape Government (WCG) has internalised and localised the National Government’s Medium-Term Development Plan (MTDP) 2024-2029, while maintaining its mandates, through the Provincial Strategic Plan (PSP) 2025-2030 and the Departmental Strategic Plans and Annual Performance Plans

Alignment between the PSP and the Strategic Priorities of the MTDP is evident in the PSP’s focus areas, as detailed below:

MTDP Strategic Priority 1: Drive inclusive growth and job creation.

The WCG contributes to inclusive growth and job creation by implementing provincial economic policies, attracting investments, developing skills, and undertaking infrastructure projects that promote inclusive growth.

Aligned PSP Focus Areas:

  • Improving household and youth access to economic opportunities;
  • Expanding economic opportunities to attract investment;
  • Expanding access to domestic and global markets;
  • Ensuring a secure water future;
  • Ensuring a reliable, low-carbon energy supply;
  • Harnessing technology and innovation; and
  • Supporting future-fit infrastructure investment for connectivity and job-creating economic growth

MTDP Strategic Priority 2: Reduce poverty and tackle the high cost of living.

The WCG’s social development programmes, health initiatives, and educational reforms align with the national goal of reducing living costs and enhancing social wellbeing.

Aligned PSP Focus Areas:

  • Improving household and youth access to economic opportunities;
  • Improving child wellbeing;
  • Increasing youth resilience, civic, educational and economic participation;
  • Increasing the wellbeing and agency of adults and older persons; and
  • Improving spatial transformation and access to social infrastructure.

MTDP Strategic Priority 3: Build a capable, ethical and developmental state.

The WCG supports the national priority of building a capable state through the Safety portfolio and innovations in governance, efficient service delivery, and robust regulatory frameworks. Given that the Western Cape Government has consistently received unqualified audits across its departments and is also South Africa’s consistent leader in levels of employment, household income, and Human Development Index indicators, we support national governement in building a capable, ethical, and developmental state.

Aligned PSP Focus Areas:

  • Integrated violence prevention;
  • Building safe and secure communities and infrastructure;
  • Ensuring the effectiveness and responsivness of law enforcement;
  • Institutional enablers in the Innovation, Culture, and Governance portoflio:

o    Innovation,

o    Integration and collaboration,

o    Culture and people-centered delivery,

o    Futures thinking and evidence-informed decision-making, and

o    Ease of doing government.

The alignment between national and provincial priorities is operationalised through departmental Strategic Plans and Annual Performance Plans. The PSP explicitly states which department Strategic Plans are aligned with its focus areas, and the 2025-2030 departments strategic plans and 2025/26 Annual Performance Plans will similarly indicate department alignment with the PSP and MTDP.

  1. The targets and deliverables for each Department, including their alignment with the key pillars of the Medium-Term Development Plan, will be included in the Departments’ Strategic Plans and Annual Performance Plans which will be submitted to the Provincial Legislature on 26 March 2025.
  2. The Growth for Jobs Strategy aligns with the National MTDP Priority 1: Inclusive

Economic Growth and Jobs.  The three key pillars of the G4J Strategy – enabling the business environment, stimulating market growth and supporting growth opportunities – are explicitly underpinned by the spatial economy and the recognition that reducing existing inefficiencies and creating new sources of economic dynamism within the rural – urban relationship can significantly accelerate growth and reduce inequality.  Consequently, the three pillars of the G4J Strategy are linked with an underlaying theme of “Strengthening geographic synergies, spatial transitions and catalyzers”. 

Furthermore, the Growth for Jobs Strategy has identified, as one of its seven Priority Focus Areas (PFA), the Priority Focus Area 7: Improved Access to Economic Opportunities and Employability.  This PFA is focused on improving pathways for learners, entrepreneurs and aspirant job seekers - which has a goal that all citizens who want to be economically active have improved access to economic opportunities and employability through at least one pathway, with pathways comprising improved employability assets (knowledge, skills, experience, and/or competencies), career management skills, workplace-ready capabilities and skills, economic opportunities more accessible to communities, and entrepreneurship.

The Western Cape Growth for Jobs strategy aims to support small enterprises in townships and rural areas through various initiatives. Here are some key aspects:

  • Access to Finance: The strategy includes measures to improve access to finance for small enterprises, such as grants, loans, and other financial instruments tailored to the needs of rural businesses.
  • Capacity Building: Training and mentorship programs are provided to enhance the skills and capabilities of small business owners and their employees. This includes business management, marketing, and technical skills.
  • Infrastructure Development: Investments in infrastructure, such as roads, telecommunications, and energy, are made to create a conducive environment for small enterprises to thrive.
  • Market Access: Efforts are made to connect small enterprises with larger markets, both locally and internationally, through trade fairs, online platforms, and partnerships with larger companies. Support is provided through the enterprise development programme as well as the export development programmes to businesses.

The Western Cape Government (WCG) participates in National Public Employment Programmes (PEP) such as the Expanded Public Works Programme (EPWP) by allocating Provincial resources to ensuring the creation of EPWP work opportunities across Departments and Municipalities. The Department of Infrastructure (DOI) is responsible for the overall provincial coordination and monitoring of the Expanded Public Works Programme in the Western Cape.

The EPWP Phase V has been implemented from 1 April 2024. The minimum target for Western Cape public bodies is 313 250 work opportunities over the next 5 years across all sectors.

(d) The Western Cape Government recognises the critical role that small and medium enterprises play in fostering economic growth, job creation, and alleviating poverty. The provincial government is committed to aligning its economic policies as set out on Growth for Jobs (G4J) Strategy to ensure that these businesses are supported and empowered. This alignment is especially crucial in the context of initiatives such as the National Integrated Small Enterprise Development (NISED) strategic framework, which aims to coordinate governments efforts in partnership with private sector actors to build a supportive ecosystem for smaller enterprises to thrive and grow. Our Department of Economic Development and Tourism is leading on this initiative, which will include ensuring that historically marginalised groups benefit from provincial industrial and localisation strategies, as follows:

  1. People of Colour:
  • Targeted Funding: Leveraging of funding programs designed to support businesses owned by black people- like DTI's Black Business Supplier Development Programme (BBSDP).
  • Inclusive Procurement: Policies are in place to ensure that a significant portion of government contracts are awarded to black-owned businesses.
  1. Women and (iii) youth:
  • Women and Youth Entrepreneurship Programs: Initiatives are launched to support women entrepreneurs through training, mentorship, and access to finance and programs focused on skills development, entrepreneurship training, and internships are provided to empower young people
  • Gender-Sensitive Policies: Policies are implemented to address the unique challenges faced by women in business.
  • Youth Employment Initiatives: Efforts are made to create job opportunities for the youth through partnerships with the private sector.
  1. Persons with Disabilities:
  • Inclusive Business Practices: Encouragement of businesses to adopt inclusive practices that accommodate persons with disabilities.
  • Support Services: Provision of support services, such as assistive technologies and accessible infrastructure, to enable persons with disabilities to participate in the economy.

The WCG, through the Growth for Jobs Strategy, has identified and initiated the Township Action Plan flagship project - a basket of interventions aimed at supporting development of the township economy.  As part of the overall Township Economy approach, the WCG will be initiating the development of a Township Economic Growth Strategy, an investigation of models for development that aims to involve all relevant departments, municipalities, and communities. The plans will identify growth opportunities (e.g., early childhood development, care economy, waste, energy) and prioritize community needs (e.g., digital access, Wi-Fi, clinics, parks). The intervention includes collaborative, innovative solutions for both soft infrastructure (skills, business support) and hard infrastructure (structures). Additionally, it seeks to improve urban management to support investment and economic opportunities within townships, complementing broader township economic infrastructure initiatives.

These measures are part of a broader effort to create an inclusive and equitable economic environment in the Western Cape.

(2) (a) The newly procured Broadband 2.0 project will expand the rollout of infrastructure to Western Cape Government sites that have not yet been connected via the project. In total, 355 new sites will be connected to broadband with 282 (79%) of these sites being outside of the City of Cape Town Metropolitan of which 148 are located in deep rural areas that are “outside of towns”. 

These connectivity requirements will result in additional broadband infrastructure being built to the sites, which enables a number of economic benefits to the areas, including:

  • Improved government service delivery, thereby saving residents time and money.
  • The possibility for the installation of Public Wi-Fi hotspots at the WCG sites, which allows residents to connect to the internet with 6GB of free data per device every month and thereby access educational, skills and employment information, and stimulate business activity.
  • The ability for private sector Internet Service Providers to leverage the improved infrastructure and provide additional or improved connectivity to businesses and households in the areas

(b) Redress is a component of the Growth for Jobs Strategy. However, achieving redress and enhancing services for previously disadvantaged individuals is contingent upon economic growth and employment. The Western Cape Growth for Jobs Strategy aims for an economic growth rate of 5% by 2035, which will significantly boost employment in the region. This growth will broadly increase incomes and encourage greater participation in the economy, in contrast to programs that primarily benefit a select few, such as the black industrialist programme.

A key focus of the Growth for Jobs Strategy is to identify and support growth opportunities in various industries. Economic growth opportunities refer to the potential avenues through which an economy can expand and improve its overall performance. If these growth opportunities are unlocked, they will lead to increased productivity, higher income levels, and improved standards of living in the province.

The purpose of the Black Industrialists Scheme (BIS), an incentive programme of the Black Industrialists Policy, is to unlock the potential of black industrialists that operate in the South African economy through deliberate, targeted and well-defined financial and non-financial interventions. The Department of Economic Development and Tourism (DEDAT) is collaborating with national entities such as the Department of Trade, Industry and Competition (the DTIC) and the National Empowerment Fund (NEF), to provide information, guidance, and support to integrate marginalised groups into the industrial economy and growth opportunities within the province. The details of the programme are shared on relevant platforms, and potential applicants are referred to DTIC to increase awareness of the programme within the Western Cape.

(3) The Western Cape Government operates numerous programs that significantly enhance people's incomes. The Work and Skills programme managed by the Department of Economic Development and Tourism, has enabled thousands of unemployed youth to secure permanent employment at wages well above the minimum. However, it is important to note that the Western Cape Government does not have the legislative authority to enforce minimum wage regulations for employees in the Province other than Western Cape Government staff, who earn above the minimum wage.

Date: 
Friday, March 7, 2025
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