As we are all aware, there is a serious capacity shortage to undertake economic development planning and implementation in most municipalities. One of the options open to us to address this is to assist municipalities to develop this capacity on their own and at their own pace. We no longer have time to continue on this path. Clearly, far more decisive measures are required.
So we have developed a plan to fast-track the development of high quality economic development capacity in all those municipalities outside Metro areas who want it. It is called DIE PLEK PLAN or die Plaaslike Ek onomiese Plan (DPP).
In effect, my department will 'parachute' fully trained and equipped staff into municipalities, with a full 'head office' support to get high quality LED initiatives going in all municipal areas over the next three years.
They will help develop potential business opportunities for local people.
They will deliver information and advice through the identification and articulation of economic opportunities.
This programme will be informed globally, aligned provincially and nationally, and sensitised locally.
It will translate sector information from the Macro Economic Development Strategy - also known as MEDS - into intelligence that will identify and carry out interventions needed in local areas to create real enterprises in a conducive environment for economic activity.
My department will assist in the establishment of the economic profiles of regions through the procurement of verifiable local economic data. My department will also provide competent HR capacity for the unit to implement and deliver on DPP, with a head office support system located in the department. The unit will be staffed by personnel who are well trained, competent, with extensive understanding of municipal LED challenges, and focused on delivering a service to local authorities, people and businesses.
The MEDS will inform and prioritise sector and theme-based interventions made by provincial government to achieve economic development in the region. For local economic development this means the MEDS will provide a blueprint plan for future economic development opportunities in regions. It will be released in June 2005 and will highlight and provide information on sectors of significance and those with potential, for the region.
Further, a Global Business Intelligence Unit, along with the agencies Wesgro and Cape Town Routes Unlimited, will engage with DPP in the regions. This is critical in identifying key market opportunities. Information on import markets will also be sourced as these provide intelligence as to where local markets can be developed. The DPP will ensure that the intelligence generated will be readily accessible to local businesses and organisations and so foster investment in a region.
Another key intervention by my department is the establishment of an Enterprise Shop. This unit will be a critical link between a local DPP and the local RED Door. The Enterprise Shop will articulate the broad category business ideas or opportunities identified by DPP and produce detailed business opportunities/plans that will be available through the RED Doors to local people.
The DPP programme recognises that different local regions will require different types of support to promote and stimulate economic activity. The DPP manager will ensure that the broad category business interventions identified are suited to the region; and that local people are linked to the right public and private sector resources and assistance.
DPP's broad target market is anyone who is willing and prepared to take up an opportunity in the local economy of the region.
Further, the DPP manager will be an 'active-unlocker of blockages'. The unit will provide access, or source access to: relevant business information, resources, and support services; as well as any available networking opportunities that would assist the client.
To ensure more effective local economic development at municipal level, establishing partnerships is critical. My department has not only recognised and acknowledged the need for an intervention of this nature, but will provide the necessary environment to support DPP. The successful establishment and implementation of a DPP programme will be impossible without the buy-in and
support of local government. Municipalities will need to view DPP as a catalyst in promoting local economic development in a region. DPP will provide the municipality with access to mobilise relevant stakeholders and resources in their LED planning. This is to address the extensively uncoordinated and fragmented external support, as well as the lack of appropriate internal budgeting for LED activities in a region.
The private sector is crucial in realising the objectives of DPP. Buy-in and commitment is required from big business, local business associations and chambers of commerce, informal business associations, and local SMME and cooperative-support organisations.
DPP aims to:
- Increase the quality and quantity of economically meaningful and viable projects.
- Assist with the design and appraisal of tailor made projects that will encourage participation of all in the local economy.
- Guide local municipalities on economic policy formulation and strategy development; and IDPs with appropriate economic development plans.
- Improve alignment of municipal economic development plans and programmes with provincial and national policies and interventions.
- Provide quality service to all its clients.
The model to be applied is one of co-operation. Partnerships, participation and buy-in will be voluntary and flexible as far as possible. However, a municipality keen on this intervention to unlock the potential in its region will have to make accommodation for this intervention within its budget, at the start of the nearest budget cycle.
DIE PLEK PLAN programme in the spirit of co-operation and partnership, will impact on the key objective of greater economic participation & more jobs for people in the Western Cape.
Thank you.
I'd now like to open the floor to questions of a general nature, and then I'll hand you over to my Head of Department, Brendon Roberts, who will explain how the Department carries its provincial mandate.
