Premier Ebrahim Rasool says the Western Cape has made significant gains in growth and development over the last three years, but stressed the need for sharing the spoils of a booming local economy.
Speaking at the Western Cape's second Growth and Development Summit in Cape Town today(Tues), Rasool said the province's growth rate of 5.5% was the most significant achievement since the last summit in 2003.
"In the five years leading up to our first Growth and Development Summit in 2003, our average growth rate was 4.1%. In the three years following that to 2007, average growth is averaging at 5.5%," Rasool said.
The Premier was addressing more than 400 delegates from civil society, labour, business and government representing the social partners in the Provincial Development Council.
"That has not been an inconsequential achievement," said Rasool.
"On the contrary, it is quite significant, especially given the fact that the national growth target set by the President is 6% to be achieved by 2010."
The Western Cape's growth had been nurtured by the development of a sector-based micro-economic strategy which the province had been following in recent years. A strategic infrastructure plan was putting in place the infrastructure required by different sectors to help them grow. Also, a human capital plan was in place which understood the skills that would be required to boost the economy. That plan gave rise to focus schools, to FET colleges and to greater rigour in the way in which the government distributed bursaries sectors which had scarce skills.
The province had far exceeded its infrastructure targets of R5-bn set at the 2003 summit. "As we speak now, our infrastructure investment is exceeding R12bn as public transport infrastructure is being put in place. This includes: a rail extension in Khayelitsha and other plans that will come to fruition by 2010; the airport being upgraded; property transactions which have risen; the 2010 stadium being built; hotels are mushrooming, and; the energy sector is being secured - we launched 2 weeks ago two gas-fired powerstations and the Berg River Dam is being built, amongst others."
"A R12bn investment does not mean that infrastructure is simply fallen from the heavens - someone has built it," said Rasool, adding that 99 000 jobs had been created in the Western Cape since 2003.
However, the Western Cape's 'iKapa Elihlumayo' growth strategy also emphasized the need to test whether the province's growth in investment and GDP had translated into shared in a province that was "chronically unequal".
It was for this reason, amongst others, that the Western Cape had responded to the President's call for a developmental state. "We need and are building a state that understands our history and understands that if we leave it to the market, that will perpetuate and exacerbate the apartheid fault lines by pushing our people to the periphery of society and making inequality even greater."
"It is in that context that government sets about intervening in the economy, not merely setting the environment for growth, not merely creating the conditions for the economy, but beginning to give direction to it," said Rasool.
The Premier called on government's partners in civil society, labour and business to inject new energy into their partnership to ensure that the economy grew even faster, but also to ensure that the benefits reached those who needed it most.
Issued by:
Jeremy Michaels
Chief Director: Communications (Acting)
Director: Media Relations
Office of the Premier
Provincial Government of the Western Cape
Cell: +27 (0)82 772 1122
Office: +27 (0)21 483 9955
Fax: +27 (0)21 483 7196
Email: jmichaels@pgwc.gov.za
Postal address: PO Box 659, Cape Town, 8000.
Physical address: Office of the Premier, Mezzanine Level, M23, 7 Wale Street, Cape Town, South Africa, 8001.
Website: http://www.capegateway.gov.za/premier
