With its objective of increasing the economic contribution of three key focus sectors by up to R59-billion, the Western Cape government has put in place its Project Khulisa growth strategy, which also aims to add about 260 000 jobs across these sectors.

Through Project Khulisa, the Western Cape government will focus on a set of high-potential sectors, namely tourism, agroprocessing and oil and gas, notes Western Cape Minister of Economic Opportunities Alan Winde.

“Project Khulisa is part of a set of ‘game changers’ identified by the Western Cape Cabinet for roll-out in its 2014-2019 term of office,” he says.

“International best practice shows that countries that have given specific attention to high-growth initiatives have made a significant impact on job creation and economic growth. Our high-potential initiatives fall within the high-growth initiative spectrum. In all of them, we have determined that we also have a clear, but as yet unrealised, competitive advantage,” says Winde.

Meanwhile, enabling factors such as energy security, skills, e-learning, after-school programmes, better living, reduction of alcohol harms and broadband, which Project Khulisa entails, will receive the dedicated attention of a steering committee comprising the economic portfolio leaders of the Western Cape government and key metros, working together with the private sector, Winde explains.

The Western Cape government has identified energy security as an important “strategic enabler”, as it believes that, for an economy to thrive and attract investment, it must have stable and affordable power.

The possibility of the development of gas-to-power infrastructure is on the horizon for the province, which will assist in achieving that goal, he says.

Oil and Gas Hub

“One of our flagship initiatives in driving growth in the oil and gas sector is the Saldanha Bay Industrial Development Zone (IDZ) along the West Coast, which is being managed by the Saldanha Bay IDZ Licensing Company, in partnership with local, provincial and national departments. Significant progress is being made at the IDZ. We’re seeing a good flow of vessels along our coast and in the pipeline is a major project to refurbish vessels here,” he adds.

“We are also making sure that we equip residents with the skills they need to take advantage of the economic boost this sector is delivering. In this regard, skills development and local enterprise development are top priorities,” he notes.

Winde further explains that to illustrate the kind of positive economic benefit that the oil and gas sector has on the economy, attention can be brought to turnkey ship and rig repair solutions provider DCD Marine Cape Town and a contract they brought to the Western Cape region in 2014.

The company won a R1-billion repair contract from leading international oil and gas firm Saipem.

“DCD Marine hired 166 subcontractors for that job and of that 75% of the contract value went into the South African value chain. This is the economic power of this sector and the real benefits to citizens,” he adds.

It is further estimated that 1 500 people from 30 different occupations – such as boilermakers, fitters and turners, pipe fitters as well as specialist welders – are needed to repair one rig.

By the time the IDZ comes fully on line, Winde notes that there could be demand for 18 000 jobs in Saldanha.

“We have set a target of introducing 32 500 qualified apprentices into the labour market by 2019. This target includes apprentices who will qualify as artisans, semiskilled workers who achieve partial qualifications, and top-up qualifications for existing artisans and semiskilled workers,” Winde adds.

“While it is clear we are serious about growing this sector, we are also aware of the challenges posed by the oil price. The oil price is looking more stable, but certainly we have noted that the upstream sector cannot commit to any new investments. At the same time, downstream services are recording increased revenue,” he concludes.