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Andrew Boraine: Presentation to CEO's forum 20th November 2011

Andrew Boraine: Presentation to CEO's forum 20th November 2011






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  • Very exciting to see all the activities that have taken place over past two weeks:Designation of Cape Town as World Design Capital 2014Naming of Table Mountain as one of seven natural wonders of the worldSuccessful Cape Town Entrepreneurship WeekIrene Grootboom Memorial Lecture series – Uniting a Divided City – by Social Justice CoalitionInspiration sessions of the Climate Smart Cape Town coalition, in preparation for COP17Publication of the National Development Plan by the NPCAnd now, launch of the Economic CEO’s Forum of the Western Cape Economic Development Partnership
  • United Democratic Front Memorial outside Rocklands Civic Centre, Mitchell’s Plain
  • Transforming waste into something productive. Heath Nash lamp made out of recycled plastic.Five attempts in the past 12 years to plan and reorganise the economic delivery system. For a variety of different reasons, all have failed.No good applying the same old solutions to the same old problems and expect a different outcome. Need to think out of the box
  • Focus on putting the economy and jobs at the heart of regional development processes. This ‘corrective action’ is necessary because of the comparative lack of economic effort (as opposed to service delivery) in the past, and the scale and complexity of the economic challenges facing us in the futureFocus on the overall system of delivering economic strategy, not just the role of a single institution such as the EDPBuild a central ‘brains trust’ for the economy
  • One of the problems identified is competing and overlapping mandates within the economic delivery system.The EDP cannot and should not been seen as a ‘cure-all’ for all the gaps in the system. Rather, we need to identify roles and responsibilities for the EDP very carefully so that it can add value to existing organisations and the system as a whole
  • We currently have competing and contradictory economic data sets at different levels of government and between different organisations. We have learned from other city-regions that economic information, in particular, demand trends, is critical to ensuring evidenced-based planning as opposed to ‘wish lists’.
  • NPC recommends getting the basics right, rather than putting new complicated strategies and processes in place.Are we (collectively and individually) doing the right things? And are we doing things in the right way?
  • Need to constantly remind ourselves of the major challenges. It cannot be more of the same in terms of growth and investment. The current model is not working.
  • We need to overcome the unhelpful dichotomies that we often find ourselves locked into.It is not ‘either/ or’ but a case of ‘both/ and’ – all are a necessary part of the effort for all partners.For example, business needs to become much more part of the economic inclusion agenda – it can’t just be left up to the public sector.Similarly, the public sector needs to be far greater attuned to the conditions of business growth and investment, rather than continuing to be faintly suspicious
  • What then is the basis of a shared economic inclusion agenda?
  • EDP establishment process
  • EDP establishment process
  • Sectors and organisations that we are currently engaging with, or are planning to engage withProfessional associations include:Agri Wes KaapAssociation for Investment and Savings South AfricaFederated Hospitality Association of Southern AfricaSouth African Property Owners AssociationSouthern African Association for the Conference IndustryWhich other sectors and organisations should be part of the EDP process?
  • Member’s Agreement:ObjectivesMembershipCategories (Full; Associate; Strategic Partner; Shareholder)Voting, non-voting or bothQualifications for membershipElection of Board of DirectorsFinalization of Memorandum of IncorporationBusiness CaseFunding model FY 1-3 Phase Two (2013)Shareholding in EDP subsidiary
  • Will be discussed in more depth at this inaugural meeting – what will add value to your work?Aims and Objectives:Build culture of cooperation and improve aggregation of effortImprove knowledge and information sharing networksMonitor performance of economic delivery systemIdentify gaps in business and investment climateMutual accountabilityStrengthen the ability of partners to deliver on their mandatesMembershipOpen to CEOs of organisations, associations, departments, entities and agencies involved in system of economic deliveryWhich other organisations need to be here?
  • Aims and Objectives:Align vision for Province (Future Cape) with other local development strategies including City of Cape Town (City Development Strategy)Evaluation of key dynamics and long term trends affecting economy, society, governance and environmentProvide information base and platform for debateSet common agenda for implementation and actionFirst step: publication of Contextual ReportCross reference: National Planning Committee Development Plan; DBSA Development Report; Provincial Economic Report and Outlook

Andrew Boraine: Presentation to CEO's forum 20th November 2011 Andrew Boraine: Presentation to CEO's forum 20th November 2011 Presentation Transcript

  • Western CapeEconomicDevelopmentPartnershipProgress report to Economic CEO’s Forum 120 November 2011
  • Introduction• The EDP mandate is derived from PGWC Strategic Objective One: Creating opportunities for growth and jobs• Cape Town Partnership was appointed in Jan 2011 to conduct a Planning and Stakeholder Engagement process: • Consult economic partners and stakeholders • Assess the state of the regional growth strategy and economic agenda • Assess the system for delivering economic strategy • Design and submit proposition to Provincial Cabinet 2
  • Introduction (continued)• On the basis of the CTP report, Provincial Cabinet agreed in August to establish an Economic Development Partnership for the region• CTP has been appointed to facilitate and coordinate the EDP establishment process: • Engage with potential members and strategic partners • Establish Economic Development Partnership by April 2012 • Establish interim Work Programme 3
  • Diagnosis of the economic delivery systemThe main global and national economic factors are beyond our directcontrol, but… given its resources, assets and people, the Western Cape regionshould be performing betterReasons for sub-optimal performance include• No shared economic vision and common agenda• Disjointed regional economic delivery system and a ‘culture of disaggregation’ of effort• Inability to translate plans into action• Many economic programmes and projects with insufficient impact• Insufficiently competitive, productive and resilient as a region• Relatively weak regional business brandThis means that we are not achieving our full growth potential, and thecrisis of jobless growth, poverty and inequality persists 4
  • Doing thingsdifferently? 5 Heath Nash lamp created from recycled plastic waste material
  • What will the EDP do?The EDP will be a partnership-basedorganisation that will lead, coordinateand drive regional economic 6growth, development and inclusion
  • To ensure betterWhat will the EDP do? evidence-led strategy and 1. planning Economic and market intelligence and monitoring 7
  • Trusted, shared information is key to future “The recently released national development plan highlights the need for good information flow… To achieve this we need leadership across all sector of society – and trust between them” – Mike Muller, NPC Commissioner, Mail and Guardian, 16-24 November 2011 8
  • To ensure betterWhat will the EDP do? evidence-led strategy andThrough 1. planningperformance Economic andmonitoring and market intelligence Throughimprovement and monitoring building leadership and a 5. common Organisation of 2. agenda the economic Economic vision system for and strategy optimum delivery 4. 3. By focusingBy building Creation of a Business on an single brand attraction, retentio 9a marketing improved platform n and expansionalliance business and investment climate
  • Focus on systemic approach “For the most part, it does not want dramatic new interventions to tackle unemployment and poverty. We just have to do what we already do, but better or, in some cases, much better” – Kevin Davie, Mail and Guardian, 16- 24 November 2011 10
  • Delinking of growth and employment in theWestern Cape, 2001-2011 “The real economy expanded by close to 45 per cent between 2001 and 2010. Yet, the regional workforce only grew by close to 16 per cent over 11 this period” – Provincial Economic Review and Outlook, 2011
  • The ‘lenses’ through which the EDP objectiveswill be viewed Growth Take growth more seriously Inclusion Development Expand and Ensure that our strengthen the development efforts 12 inclusion agenda have greater impact
  • Economic Inclusion Agenda Inclusion Agenda e.g. Social services Household services Informal settlement upgrade Urban renewal Public transport Land restitution Inclusive memorialisation Rights protection Economic Inclusion Agenda e.g. Inclusionary infrastructure New employment nodes Informal economy Skills; Micro-enterprises Jobs Fund; EPWP; CWP Youth Employment 13 Procurement and supply-chain activities EDP Linking inclusion & market demand Social Entrepreneurship Corporate Citizenship
  • EDP Steering CommitteeMinister Alan Winde - Western Cape Minister of Finance, Economic Development and TourismMr Ashoek Adhikari - General Counsel of Media24Alderman Belinda Walker - City of Cape Town Mayco Member for Economic DevelopmentMr Ben Kodisang - Chairperson of Wesgro BoardProfessor Brian Figaji - Director of Nedbank Group Limited and Chairperson of the DBSA Development FundMr Conrad Sidego - Executive Mayor of Stellenbosch MunicipalityDr Iqbal Surve - Chief Executive of Sekunjalo InvestmentsMr Jannie Mouton - Non-Executive Director of PSG Financial Services limitedMs Lele Mehlomakulu - Head of HR at Allan GrayProfessor Leon Campher - CEO, Association of Savings and Investment South AfricaMr Michael Bagraim - President of the Cape Chamber of CommerceMs Nontwenhle Mchunu - Entrepreneur and owner of Ezulwini ChocolatMr Otto Stehlik - Executive Chairman of Protea HotelsMr Patrick Parring - Entrepreneur and co-founder of WECBOFMr Peter Bacon - Chairperson of Cape Town Routes UnlimitedMr Solly Fourie - Head of the Western Cape Department of Economic Development and TourismDr Walter Baets - Director of the UCT Graduate School of Business 14
  • EDP ProjectManagementCommitteeAndrew Boraine, ConvenerYumnaa Firfirey, Project ManagerLindiwe Mavuso, CommunicationsSolly Fourie, PGWCBianca Mpahlaza, PGWCTammy Evans, PGWCThembinkosi Siganda, City of Cape Town 15Alison Goldstuck, City of Cape TownDilshaad Gallie, City of Cape TownKarin Palmer, City of Cape TownTerri Carter, Cape Town PartnershipAdvisors: KPMG and National TreasuryTechnical Advisory Unit (TAU)
  • EDP design criteria• The EDP will be established as a cross-sector partnership rather than a government-owned agency or statutory body• The EDP can be characterised as an intermediary organisation, which facilitates dialogue between government, business and other economic partners• The EDP will be primarily market-facing (understanding long-term demand trends) and industry-facing (understanding the needs of firms and investors)• The EDP will seek to organise a more coherent and effective system of economic delivery in the region between the partners, rather than substituting for the mandates of the partners• The EDP will be a relatively small, agile, creative, well-resourced leadership and coordinating body, attracting top talent• The EDP will be an independent non-partisan organisation
  • Partnership success factors Partners’ organisational commitment to the initiative Clear and Trust well-defined developed goals agreed among by all partners partners Virtuous or vicious circle Organisational Partners’ and facilitative accountability to capacity of the their constituencies partnership and to the partnership An organisational culture conductive to 17 interest based negotiationFrom Hamann et al (2009): What makes cross-sector partnerships successful? A comparative case study analysis of diversepartnership types in an emerging economy context
  • Partnership for dialogue and action “The mistake of the commission… is to assume that by pronouncing a policy ideal or a set of goals, you actually achieve it. What the planning report lacks… is a theory of action. That is to say, how exactly will we get there, or at least plan to get there?” – Jonathan Jansen, Sunday Times, 17 November 2011 18
  • EDP evolution• EDP will evolve as a hybrid (two in one) partnership. The initial focus on the EDP will be on leadership and strategy (innovation, dialogue and rule-setting partnership). However, to be effective, a common agenda needs to lead to joint action. Over time, the EDP will also become an implementation partnership• The EDP will be incorporated as a not for profit organisation (NPC), to house the dialogue partnership (2012). The organisational design will allow for the future establishment of not for profit and/ or for-profit subsidiaries to house implementation initiatives (2013)• Provincial legislation will be drafted to authorize public sector investment in joint venture projects via the EDP 19
  • Engagement with potential members andstrategic partners• Local government• National Government Departments, State-owned Enterprises and Development Finance Institutions• Provincial Government Departments, Agencies and SPVs• Business associations and organisations• Universities, research organisations, business schools• Labour• Civil society• Professional associations and sector organisations 20
  • Engagement with business organisations • Accelerate Cape Town (ACT) • Afrikaanse Handelsinstituut (AHI) • Black Management Forum (BMF) • Business Western Cape Council • Cape Regional Chamber of Commerce and Industry • Foundation for African Business and Consumer Services (FABCOS) • National African Federated Chamber of Commerce (NAFCOC) • South African Black Entrepreneurs Forum (SABEF) • South African Chamber of Commerce and Industry (SACCI) • Western Cape Black Business Chamber • Western Cape Business Opportunities Forum (WECBOF) 21
  • Approach to Spatial & Sector DevelopmentIt is intended that the EDP will:• Organise both economic spaces and sectors• Apply principle of ‘cooperative differentiation’ rather than ‘one size fits all’• Support the establishment of four sub-regional economic partnerships: • Cape Town City-Region Partnership • South Cape Partnership • Karoo Partnership • West Coast Partnership• Promote greater economic linkages between urban and rural, and leading and lagging areas 22
  • Transition Steps & Timeframes Circulate Draft Registration of Not Report to Provincial Incorporation of EDP Member’s For Profit company Cabinet as legal entity Agreement lodged (07 December) (December) (end November) Discussions with Finalise Company Commence PGWC Finalise Member’s strategic partners Objects and legislative process Agreement continue Performance Areas (January) (March) (February) (March) Finalise Finalise Memorandum of Elect Interim Board Launch EDPorganisational design Incorporation (April) (April) (March) (March) 23
  • Economic CEO’s Forum 24
  • EDP working group on economic evidenceand data: Monday 28 November 25
  • Future Cape 26
  • Economic Inclusion Agenda workshopplanned for February 2012 27 Illustrations taken from SJC ‘Uniting the Divided City’ lecture series
  • Next CEO’s Forum: Wed 22 Feb 2012 12h00 to 16h00Andrew Boraine chiefexec@capetownpartnership.co.za 021-419 1881Yumnaa Firfirey yfirfirey@towardsuhuru.co.za 083-641 5106 28