The agricultural sector, which suffered setbacks in Mpumalanga and the Western Cape as a result of weather related events, was one of the major contributors to the recession. However, transport, storage and communications also contributed to the decline.
In addition, the Absa PMI dropped by eight points- the lowest level in about a year. This index gauges activity in the manufacturing sector, which accounts for 13% of GDP. A figure below 50 in this index indicates contraction in a sector-the August data came in at 43.4 points.
Business confidence in South Africa is taking a knock and despite attempts by President Cyril Ramaphosa to court big foreign investment, we are failing. Government needs to send a clear signal to business on issues of policy.
On the issue of land, the national government needs to lead by example, and first make some of the numerous hectares of their own land available for land reform.
- Our Project Khulisa strategy aims to develop key sectors in the economy, to encourage growth and job creation. These sectors; tourism, agri-processing and oil and gas, have the highest potential to accelerate growth. Under Khulisa, we have successfully doubled wine exports to China, introduced 1.5 million new airline seats into and out of Cape Town International through Air Access and launched three new cycle routes and the Madiba heritage route to expand tourism.
- Red Tape Reduction: Red tape can really hamper growth, and the red tape reduction unit was established to make it easier to do business in the Western Cape. So far, we have saved businesses an estimated R600 million through this initiative.
- Trade and investment promotion: Between January 2008 and December 2017, the Western Cape secured 299 direct investments, attracting R100 billion worth of FDI and facilitating 19 042 employment opportunities for the region. In the first quarter of 2018, Wesgro secured R1.3 billion in investments as a result of traveling to nine international markets including Malaysia, the USA, the UK, Germany, Hong Kong and China to promote investment in Cape Town and the Western Cape.
- In the same quarter, Wesgro hosted 25 inward business delegations to showcase the province. Later this year, the province will also unveil an international campaign aimed at telling the good stories of Cape Town and the Western Cape to potential foreign investors.
“The Cape Town and the Western Cape Convention Bureau and our region's Leisure Tourism team have also been working hard to attract tourists to our beautiful province, helping support a sector that employs over 300,000 people. And our International Trade team continues to lead missions around the world to help Cape companies export their goods to growing markets. We will double-down on these efforts to continue to boost economic growth in the Cape, and by doing so, help the South African economy grow during these challenging times,” Harris said.
Media Enquiries:
Bianca Capazorio
Tel: +27 21 483 3550
Cell: +27 72 372 7044
Email: bianca.capazorio@westerncape.gov.za