Red tape restricts Cape’s growth potential

Cut out government red tape and roll out the red carpet instead to encourage and stimulate growth, Alan Winde, Western Cape MEC for finance, economic development and tourism, told Cape exporters last week. Winde was anxious to convey a message of hope and expectation for the province, predicted to grow at 3.2% this year – the highest of any province – compared with national economic growth of 3.5%. The minister says traditional markets such as Europe can expect very little economic momentum in 2011, hence the province chasing opportunities in emerging nations, the Middle East a prime target. Current provincial exports to the region, mainly agricultural, stand at some R1.5 billion a year. The goal is to treble the amount through increased investment, skills and training development. Winde believes the Western Cape needs not only to position itself for moving into growth areas like India, China and Brazil but also West Africa, where oil-rich nations such as Angola are expected to grow 15%. GDP growth in other West African countries is forecast between 7% and 12%. The Western Cape’s intensity will therefore lie in focusing on growth, growth and growth.