The City of Cape Town is aiming for an economic growth rate of over 7% by 2010 as part of its newly approved Economic and Human Development Strategy.

The objectives of the strategy are to enhance Cape Town's global competitiveness by accelerating economic growth, maximising empowerment and reducing poverty.

According to Cllr Wasfie Hassiem, Mayoral Committee Member for Economic Development, Cape Town has, over the past few years, achieved higher economic growth than the national average.

"The Western Cape economy grew at an average annual rate of 3,3% while the city grew at an average of 3,7%. In order to create some 40 000 jobs annually, we need to lift this rate to over 7%. Cape Town constitutes 76% of the provincial economy and therefore the bulk of the growth must come from the metro area," says Cllr Hassiem.

The new strategy has clearly identified priorities focusing on infrastructure, basic services, public transport and environmental management. The strategy is based on a five point plan of implementation, namely:

*  Growing the formal developed (or first) economy
*  Growing the formal and informal economies of the poor (or second economy)
*  Building economic bridges between the first and second economies
*  Ensuring access for all residents to services
*  Building human, social and natural capital of the poor.

The strategy also aims to create jobs for low and semi-skilled workers, reduce the gap between rich and poor, halve poverty and build social and human capital in line with national and provincial policies. 

With over 30% of Cape Town's residents living below the household subsistence level, definite direct interventions are needed in the economies of the poor. These include skills development and training, informal trade support, job creation for low-skilled people through the expanded public works programme, business support to small, micro and medium enterprises (SMMEs) and consumer security.

"The developed economy is the engine of economic growth. By strengthening this foundation and building economic bridges between the developed and the second economies, everyone will benefit.

"The strategy has identified the most pressing priorities for the City. These are infrastructure, basic services, public transport and environmental management. These are elements which impact on the investment climate and Cape Town's competitiveness in the global arena.

The Economic and Human Development Department will also focus on skills development and facilitating an enabling environment including Red Tape reduction and the establishment of a One-Stop-Shop for Investment Facilitation.

"This strategy provides the City with a lens with which to focus on winning strategies that will benefit its 3,2 million residents," says Cllr Hassiem.

(Source: City of Cape Town)