Outcomes of regular Western Cape Government Cabinet meeting

Media Release: Outcomes of regular Western Cape Government Cabinet meeting

Members of the Western Cape Government (WCG) executive held a regular Cabinet meeting on Wednesday, 22 November, to discuss a range of critical issues:

The 2023 Western Cape Medium Term Budget Policy Statement and 2024 Medium Term Economic Framework

At the meeting, Cabinet discussed and noted the outline of the 2023 Medium Term Budget Policy Statement (MTBPS) as well as budget policy priorities and principles that will inform the MTBPS.

Looming budget cuts, caused in large part by the centrally-negotiated public sector wage deal, were also further discussed. Cabinet firmly committed to limiting the impact of the fiscal crisis on Western Cape residents as far as possible.

Cabinet noted policy priorities over the 2024 Medium Term Economic Framework (MTEF) which will focus on driving the WCG’s Growth for Jobs Strategy, ensuring citizen safety, and safeguarding essential services affecting the wellbeing of all residents.

Cabinet thanked the Provincial Treasury for its hard work in managing the impact of the budget cuts crisis.

Deteriorating performance of the Port of Cape Town

Cabinet noted the further deterioration of the Port of Cape Town’s (PoCT) operations. In a presentation by provincial Minister of Finance and Economic Opportunities, Mireille Wenger, it was pointed out that chronic underinvestment in capital expenditure has led to the ongoing deterioration of this key logistics hub's performance. This was measured over the period from 30 October to 5 November 2023:

• The Port is operating below 10 containers per hour when 25 is deemed acceptable. Vessels can experience delays ranging between 12 and 14 days;
• The average waiting time for vessels at anchor was 5.1 days, against a target of 1 day;
• The average turnaround time was 8.7 days, against a target of 4 days; and
• Some vessels are bypassing the PoCT as a result of its underperformance.

The port’s underperformance is a serious impediment to economic growth. Delays and dysfunction have an immediate and direct impact on job creation in what should be a jobs-rich sector. Cabinet was told if improvements were implemented cargo could grow by 5% per year, creating 20,000 new jobs and contributing an additional R1.6 billion to the provincial fiscus per year. However, exporters see huge risk in investing or expanding production and maintaining the quality of perishable products delivered due to port terminal delays.

Minister Wenger outlined interventions the WCG has taken which included regular and focused engagements with key roleplayers, namely President Cyril Ramaphosa, Public Enterprises Minister Pravin Gordhan, Finance Minister Godongwana, Transnet, and the Ports Regulator. There have also been frequent engagements with industry and exporters. It was emphasised that this collaborative approach is not working, though.

It was reiterated during the meeting that there was a desperate need for increased private-sector investment at the PoCT and for further engagements with national government.

Quarterly Labour Force Survey data

Cabinet welcomed the latest Quarterly Labour Force Survey data which shows that the Western Cape stands out with an official unemployment rate of 20.2%, the lowest in the country.

Western Cape Tourism

Cabinet noted that the Western Cape is in for a bumper summer tourism season:

• The Airports Company South Africa’s latest flight data for October 2023 shows continued year-on-year growth for both international and domestic arrivals;
• The Transnet National Ports Authority (TNPA) has opened its 2023/24 cruise liner season;
• Cruise Cape Town powered by the Western Cape’s official tourism promotion agency, Wesgro, looks to build on the success of the previous season that injected an estimated R1.2 billion into the provincial economy;
• As Cape Town prepares itself for a booming peak tourism summer period, the province and city have begun to increase safety and security measures.