Economic development in the Western Cape is proceeding well but the implications of development have also to be considered. To weigh up and balance the interests of the environment, human development and industrial progress, a number of overarching planning strategies have been put in place.

At municipal level there are integrated development plans and various levels of government are expected to cooperate in planning, and the Western Cape has a Provincial Spatial Development Framework. In terms of this, the development of Saldanha as an industrial hub and the Southern Cape as a ‘regional motor’ for development can be seen as efforts to encourage investment to where it can do the most good.

Several major projects are set to make a big impact on the Western Cape economy. The Saldanha Steel Project will extend the base of provincial manufacturing and create many downstream opportunities. This will assist the province in adapting to the change that has been forced on it by the slowdown in the textile and clothing industry.

The exploitation of gas fields off the West Coast has the potential to boost the economy, as has the development of wind farms in the same area. The City of Cape Town has already received huge injections of infrastructural spend through the upgrading of the Cape Town International Airport and the construction of the new Cape Town Stadium for the 2010 FIFA World Cup South Africa.

Berg Water Project
Supplying Cape Town and surrounding areas with enough clean drinking water has been a challenge since the time of Jan van Riebeeck. The Table Mountain streams that the Dutch colonists used soon proved inadequate.

In recent times, the situation has become quite serious. Dry summers and ever-increasing population numbers have combined to put severe pressure on water supply to the metropole. The former president of the Cape Regional Chamber of Commerce and Industry, Jeremy Wiley, told Engineering News in 2009 that ‘the province is already overpopulated, given its limited freshwater resources’.

The Berg Water Project is the megaproject that aims to solve the problem. Inaugurated in March 2009, the Berg Water Project is the result of a 14-year process initiated by the national government. Funding for the complicated and ambitious scheme came from the Development Bank of Southern Africa (R500-million), Absa (R300-million) and European Investment Bank (R800-million). The citizens of the Western Cape contributed by way of annual water-tariff increases of 2.5% for 10 years.

The scheme comprises three major components: a 62m-high, 929m-long dam wall across the Upper Berg River near Franschhoek, a smaller dam below the confluence with the Dwars River, and a pipeline linking the two. Construction of the main dam wall was undertaken by Berg River Project Joint Venture, a consortium comprising WBHO, Grinaker-LTA and Western Cape Empowerment Contractors.

The yield from the whole scheme will be 81 million cubic metres per year. Environmental achievements of the project include:
• An outlet system that simulates natural river flow
• A management regime for the entire upper catchment area of the Upper Berg River including plans for alien vegetation, fire and erosion control.

The scheme encompasses a variety of economic applications. Apart from a major upgrade of picnic facilities at Wemmershoek, an active tourist node has been developed at La Motte. Recreational activities are plentiful in the area, which is bounded by the Hottentots Holland Nature Reserve, a Cape Nature facility. Several agricultural zones have also been established for the cultivation of wine grapes, plums, citrus, figs, vegetables and oils.

In concert with this water-supply scheme, the City of Cape Town has put in place a Water Demand Management plan that aims to reduce demand by 20% by 2010.

Film initiatives
Bollywood came to Cape Town in March 2009 when the contestants and production team of Fear Factor India were welcomed to the city. In 2008, films such as Life Partner, 8 by 10 and Season’s Greetings were shot in the city. Indian interest could have big implications for the film industry in the Western Cape.

The Cape Film Commission (CFC) is the official body promoting the film industry and is a joint undertaking of the City of Cape Town and the Western Cape Provincial Government. CFC commissioned the University of Cape Town’s Graduate School of Business to undertake an impact assessment of the industry. Among its findings were:
• The provincial film industry turnover was R2.65-billion in 2005/06
• The Western Cape film industry contributed R3.5-billion to national GDP and R936-million to the province’s gross geographic product (GGP)

The injection of R430-million into the building of a world-class film studio is a further boost the Western Cape’s capacity to host and produce films and commercials. The project, which will be operational in 2010, was undertaken by a private company but with the support of national and provincial government and the City of Cape Town, which provided bulk infrastructure.

Foreign investment in the film industry is being targeted by the Trade and Investment South Africa (TISA) arm of the Department of Trade and Industry. A location film- and television-production incentive offers a 15% rebate to foreign productions, while South Africans can qualify for a 35% rebate on the first R6-million they commit.

Incentives such as these are making the Western Cape even more attractive to investors and are set to help the film industry become a major part of the province’s economic profile.