My Ministry, Department and Government of the Western Cape are in the front line in the battle to create sustainable jobs and economic growth. And, everything we do will, naturally, contribute considerably to reducing poverty and creating a better life for all our people.
The challenge to implement the right policies that lead to job creation and economic growth is therefore enormous. Fortunately my predecessor has done a lot of work to ensure that we have determined the growth path called, iKapa Elihlumayo, the Cape we grow and share.
This strategy is needed because at present, unemployment in our Province stands at around 24 percent. This translates into roughly 500 000 people, mainly in the townships and rural areas. Some 80 percent of the unemployed are people like yourselves, the youth.
In general there are fewer jobs for lower-skilled workers and the decline in employment opportunities for this group is continuing. And we need to realise that there is a need to intensify empowerment and employment, so that the economy can grow through our micro-economic interventions. If we don't do this the economy will not realise its' full potential
Perhaps most critical, is the need to address the very low success rate for African job seekers in the Western Cape. The actual Provincial rate is about 10 percent of the success rate for African job seekers nationally. In simple terms years of successive DA-rule, have made the Western Cape an unwelcome place for Africans.
The Western Cape under the previous government saw its vision as having a world-class Province, a government that not only cares for its people but one that wants to create a home for all. The Western Cape will only become a home for all, if Africans, Coloureds, Whites and Indians, all have access to employment and other opportunities.
The November 2003 Statistics South Africa data show that the Western Cape economy grew in real terms by an average of 3% between 1995 and 2002. Initially it grew faster than the national economy, but its growth rate has been slowing down over the last few years.
Despite high matriculation pass rates there is a dramatic drop in enrolment in the Western Cape after Grade 8. Only half of learners who enrol in Grade 1 reach Grade 12. The result is that only 1 in 4 people over 20 had a qualification of matric or higher by 2001.
With high levels of unemployment and high school dropouts, it is no surprise that the very fabric of our communities is under pressure. Crimes against persons and gender violence in particular are significantly higher in the Western Cape than in South Africa as a whole.
As a direct response to this unsatisfactory scenario last year we developed a human resource development strategy to tackle these problems. The aim of the human resource development strategy is to ensure that the entire labour force has appropriate skills to enter the labour market, on the one hand, and to facilitate additional investment by supplying enterprises with appropriately skilled workers on the other hand.
To do this we have allocated over the next three year budget cycle a total of R17.4 billion or around 29.4% of its overall expenditure plans for the build-up of human capital.
The Province will allocate a total of R946 million to the stimulation of economic activity, including Agriculture, in the Province over the next three years. Of this amount R369 million will support the implementation of the micro-economic strategy with R99.6 million to be spent on supporting the Tourism industry and R127 million will fund other interventions in key sectors in the provincial economy as identified in the Micro-economic strategy.
A key intervention in this is the Red Door Initiative, which will see us investing R110 Million for entrepreneurial development. An important feature of the Red Door Initiative is that youth and women entrepreneurs will be targetted.
These and many other initiatives are an indicator of our resolve to address the stumbling blocks that prevented you the young people, especially those from our African communities, becoming citizens participating in the full life of our Province.
As Oliver Tambo once said a nation that does not look after its youth does not deserve its future. We want a bright and prosperous future for our Province and country. As your slogan says, Empowered Youth Develop The Nation. We agree wholeheartedly with this slogan.
Thank You.
