The Western Cape administration will released its Economic Development Partnership (EDP), which will have a strong focus on “inclusive growth”, at the end of April, Economic Development and Tourism MEC Alan Winde reported in his Budget Vote speech this week.

Resources of R3.5-million had been allocated to the EDP in 2012/13 to allow the Department of Economic Development and Tourism (DEDAT) to formulate a coherent plan for the province’s economy that builds effective partnerships between citizens, business and government.

Winde also announced that Wesgro would, from April 1, serve as the delivery agent of the EDP, while also taking on a new role of tourism marketing. This, he said, would mean Cape Town Routes Unlimited (CTRU) would close and its functions be transferred to Wesgro, along with its budget and fulltime staff.

Wesgro would receive a budget of R22-million for 2012/13 as well as the additional R25-million that had hitherto been allocated to the CTRU. Tourism already contributed more than 10% to the province’s gross domestic product and Winde said the intention was that this would increase to 15% by 2015. A further R53-million would be allocated to the DEDAT’s tourism, arts and entertainment programme to work towards the target. The province, he said, was experiencing its “best summer ever” having increased international arrivals compared to the previous year.

The DEDAT’s integrated economic development services programme would receive R45-million during the year to create and enabling environment for inclusive growth and provide demand-led support to businesses, especially small and medium-size enterprises. The allocation would include R6.4-million for supporting such small and medium-size businesses in accessing procurement opportunities offered in the private sector.

Part of the effort of creating an enabling business environment would include the ongoing support of the province’s ‘Red Tape Unit’, which would receive R3.7-million for the year. The unit was intended to make it “easier to do business in the Western Cape” by removing onerous administrative blockages for business and already since starting in the second half of 2011 the unit’s call centre had recorded more than 300 cases for investigation and had a resolution rate of over 80%.

During 2012 the Red Tape Unit would be extended to all the municipalities in the province.

The DEDAT’s trade and sector development programme would be allocated R96-million in 2012/13 and 67% of this budget would be allocated to supporting four of the province’s most competitive sectors, including oil and gas services, the green economy, information and communications technology and business and process outsourcing (BPO).

Winde was particularly enthusiastic about the BPO sector. “The sector employs approximately 30 000. Despite the economic downturn, the BPO industry has managed to realise 20% growth per annum,” said Winde. With the province having become home to call centres for international brands such as Amazon, Shell and Lufthansa, Winde said that R7.6-million would be allocated to the Business Process enabling South Africa (BPeSA) association during 2012/13, in order to attract further international companies to the province in the BPO sector. A total of R28-million would be allocated to BPeSA in the medium term.

The DEDAT’s skills development and innovation programme would also be allocated R25-million to continue the departments' various initiatives in improving skills and creating employment, especially among the youth.

“While these initiatives will go some way toward tackling youth unemployment, there is still much more to be done. National Treasury is currently sitting on the R5-billion that was intended for the Youth Wage Subsidy. We have piloted the Youth Wage Subsidy in our province and it works well. We will ask Minister Pravin Gordhan to release these funds to continue our programme,” said Winde.