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WESGRO’SGLOBAL ECONOMIC PRIORITIESFOR THE CAPE

2017 / 2018

an inspiring place to do business

2142 CT Wesgro Economic Brochure Cover-297x420-2.indd 1 2017/06/13 2:47 PM

CONTENTS

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1012141515161720

Message f rom the Ch ief Execut ive Of f icer

Message f rom the Board Chai rperson

Research Uni t

Trade Promot ion Uni t

Investment Promot ion ( IP) Uni t

Agr ibus iness Investment Uni t (A IU)

F i lm and Media Promot ion

S t rateg ic Pro jects : Cape Town A i r Access

S t rateg ic Pro jects : Cape Investor Centre

St rateg ic Pro jects : Cape Health Technology Park

St rateg ic Pro jects : Real T ime Data Pro ject

Market ing Uni t

Dest inat ion Market ing Organisat ion (DMO)

Corporate Serv ices


01

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

Tim HarrisFor more than thirty years our agency has been the champion for economic opportunities on behalf of the City of Cape Town, the Western Cape Provincial Government and the Cape’s private sector, facilitating economic growth and job creation.

Having just finished my first two years at Wesgro I can say that I am proud of our team’s efforts to promote tourism, trade and investment in the Cape, and excited by the numerous projects and plans we have developed to build on this success.

Our provincial economy would be the 13th largest in Africa (larger than Uganda or Côte d’Ivoire) if we were a country, while Cape Town’s economy would be set up as the 17th largest. This is partly due to the number of international companies Wesgro has worked with to enable their investments in the Cape. Examples of such investments supported by Wesgro in the past 5 years include Acciona (R1.1 billion), Longyuan (R750 million), Hisense (R800 million), and Kimberly-Clarke (R221 million). Wesgro is also currently working with a Czech firm Pegas Nonwoven to secure an investment into the Atlantis region estimated at more than R1.3 billion.

Thirteen of the top 20 tourist attractions in South Africa are in the Western Cape, and Cape Town in particular has been rated ‘The Best City in the World’ by the Telegraph Travel Awards for four consecutive years.

These figures are a serious vote of confidence in the Cape as a tourism, trade and investment destination, and are testament to the work Wesgro has done to promote our region as a modern economic hub for Africa.

This document sets out our priority markets and sectors for 2017/18, and we invite all Cape businesses looking to attract investment, growing exports, or the advantage of opportunities in the tourism economy to partner with us in the financial year ahead.

Prof. Brian Figaji As Wesgro embarks on yet another ambitious year, it continues to focus on its core mandate as the province’s official tourism, trade, and investment promotion agency.

The Agency has completed a realignment of staff functions that the Board is confident will ensure delivery on its mandate and programme of action.

Wesgro will continue to collaborate with other agencies and public sector stakeholders – both public and private – that operate in the sectors we aim to promote.

Over the next year we look forward to engaging further with the City of Cape Town and province and growing our private sector partnerships quite significantly.

MESSAGE FROM THE BOARD CHAIRPERSON

02

APPROACH:The Research Unit tracks and analyses global economic developments, and global trends in tourism, trade and investment promotion in order to provide the Agency with strategic intelligence on key sectors and foreign markets in these areas. The unit shares this information in a variety of formats from publications to presentations and other key collateral as required, collaborating extensively with other units within Wesgro, in order to drive the Agency’s strategy of promoting the Western Cape and Cape Town as business and tourism destinations.

THE YEAR AHEAD:Real time data: Development and implementation of real time data for the tourism sector.

Recreational tourism: Development and promotion of cycling tourism in the Western Cape.

Film and Media Industry Study: A study of the Cape Town and Western Cape film industry aimed at understanding the industry, so as to identify opportunities and constraints and estimate its economic contribution.

Decision Support Model (DSM): An additional tool which will be implemented to guide trade activities.

Global collaboration: Extensive interaction with global investment institutions and multilateral organisations so as to stay abreast of global economic and investment trends.

Top 100 Companies Study: An in-depth study of the Cape’s leading businesses.

Knowledge-sharing partnerships: Growing and building these partnerships with other travel, investment, film and tourism entities across the globe.

PUBLICATIONS – Developing relevant tourism, trade and investment publications. Specifically, informative publications on the Western Cape and Cape Town as investment and business destinations.

TREND ANALYSIS – Monitor recent trends in the Western Cape tourism sector through a primary research programme, and provide feedback to the regions on recent tourism performance.

( F R O M T H E W E S G R O 5 Y E A R P L A N ) :

RESEARCH UNIT

OVERVIEW:Wesgro’s Research Unit provides evidence-based economic and marketing intelligence to units within the Agency and Wesgro’s clients. The focus is on presenting relevant market and sector knowledge to potential investors and exporters, while furthering research on the Western Cape’s tourism sector.

S TRATEGIC OBJECT IVES :

03

TRADE PROMOTION UNITOVERVIEW:Wesgro’s Trade Promotion Unit works to promote Cape Town and the Western Cape’s exports, while maximising the international competitiveness of our exporters. The unit’s approach is two-fold: to promote global exports of goods and services from local companies, and to support the operations and expansion of Cape companies into the rest of Africa with the overall aim of creating opportunities for economic growth and sustainable job creation.

APPROACH:The Trade Promotion Unit aims to achieve these goals by focusing on priority markets and using international trade shows as a means to gain leads and access to international markets. Locally there is a focus on showcasing regional exports and matching international buyers with local exporters. The unit’s Export Advancement Programme (EAP) also works to assist businesses in capitalising on their export potential by addressing their various needs and the development of niche sectors.

A key tool in market consideration is the findings of the Decision Support Model (DSM); a model which considers all possible worldwide product-country combinations and systematically eliminates less promising markets until those with the greatest prospects are revealed. These in turn, in combination with the findings from strategic intelligence generated by the Research team, provide the leads for engaging with foreign embassies, consulates, high commissions and chambers’ of commerce, both locally and abroad. All of which have the potential to foster the promotion of regional exports and investment.

GLOBAL EXPORTS – Promote and facilitate global exports of goods and services from qualified Cape companies.

R500M IN TRADE DEALS – Commit an estimated R500 million worth of trade promotion business deals resulting in 2,000 jobs by the end of 2019/2020.

A F R I C A N E X PA N S I O N ( O F D I ) :

R250M OUTWARD INVESTMENT BUSINESS – Commit an estimated R250 million worth of business through outward investment into the rest of Africa by the end of 2019/2020.

EXPANSION INTO AFRICA – Support and facilitate operations and expansion of Cape companies into the rest of Africa.


04

AGRO-PROCESSING

AND AGRIBUSINESS

WHOLESALEAND RETAIL

GREEN

INDUSTRIES

CLOTHING, TEXTILES,LEATHER, FOOTWEAR &

FURNITURE

INFRASTRUCTURE

DEVELOPMENT (OFDI) IN AFRICA

BOATBUILDING ANDASSOCIATED SERVICES

AEROSPACE AND DEFENCE

INFORMATION AND COMMUNICATION

TECHNOLOGY (ICT) SERVICES

AFRICA – Africa’s three megacities – Cairo, Kinshasa and Lagos – with their populations of 10 million or more, as well as smaller cities with populations over 250,000 present trade and investment opportunities due to their rapid urbanisation and growing consumer demands.

WINE AND BRANDY INTO AFRICA – A strategic objective, as mandated by Project Khulisa, is to double the value of Cape wine and brandy exports to Angola (and China) by 2025. In addition, trade and outward investment missions to Ghana and the Ivory Coast, Nigeria, Kenya and Namibia are scheduled for the next year in line with the City of Cape Town’s Africa Strategy.

TURKEY

UNITED KINGDOM

ANGOLABOTSWANA MOZAMBIQUENAMIBIA

NIGERIA GHANA

RWANDA

IVORY COASTKENYA

TANZANIA

ETHIOPIA

CHINA

VIETNAM

THAILAND

JAPANJORDAN

U.A.E

U.S.A

CANADA

BRAZIL

GERMANY POLAND

IRAN

SAUDI ARABIA

QATAR

MALAYSIA

PORTUGAL

RUSSIA

INDIA

SINGAPORE

AUSTRALIA

ITALY

NEW ZEALAND

PRIORITY SECTORS:

PRIORITY MARKETS:

05

THE YEAR AHEAD:South American Trade: Identifying key potential trade partner countries in South America via the implementation and findings of the Decision Support Model (DSM).

Brazil: Engaging Brazil in terms of the BRICS Strategy.

Canadian Potential: Exploring opportunities with the largely untapped Canadian market; both from an export potential and possible inward investment perspective.

Eastern European Engagement: Development of strategy and a framework to enhance engagement with Eastern European countries (Poland and Turkey in particular).

Opportunities “Down Under”: Running the DSM for potential opportunities in Australia and New Zealand.

Local Export Partnerships: Engaging the Western Cape’s top exporters for partnership in export development and in-market partnerships.

Trade Expertise: Researching and developing Trade expertise in Non-Tariff Barriers (NTBs) to trade affecting Western Cape companies.

MOZAMBICAN TRADE – Mozambique’s FACIM Trade exhibition is of interest due to its scale - it racked up 92,689 visitors, 3,760 exhibitors (of which 750 were foreign) and National Pavilions from nine countries in 2016 and exhibits a range of goods.

ASIA – With its rapidly expanding middle class, and increasing sophistication of the consumer, Asia presents a number of opportunities. Testimony to this has been the sharp increase in sales of communications devices, electronics, and services such as healthcare, entertainment and tourism in recent years.

AGRIBUSINESS INTO ASIA – Wine exports are a key area of opportunity into Asia, with the doubling of the value of wine and brandy exports to China and Angola by 2025 a key objective. Changing dietary preferences and increased food safety awareness also means increasing demand for high-quality products and healthier food product ranges. Project Khulisa’s ‘Halal Export Promotion Plan’ aims at growing the Western Cape’s share of the global Halal market from <1% to >2% by 2025.

BRICS – Fellow BRICS countries, China and India in particular, present additional opportunities, as does the establishment of the New Development Bank (NDB), a multilateral development bank established by BRICS partners Brazil, Russia, India, China and South Africa. Set up in 2014, the Bank is mandated to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging and developing countries.

THE EU POST BREXIT – The United Kingdom’s (UK) impending exit from the European Union (EU), could potentially hold additional opportunities for producers in the Western Cape; not only in the UK but in the EU too. Much will be determined by the impending renegotiation of trade agreements.

THE UNITED STATES OF AMERICA – In terms of trade with the U.S.A., under the auspices of the USA-backed AGOA (Africa Growth and Opportunity Act) programme, Western Cape exporters are accorded duty free access for eligible products to the USA. This allows local exporters in areas such as apparel, footwear and agricultural products a significant competitive advantage over non-AGOA countries.

CANADA – A number of trade opportunities have been identified with Canada, including export of wines, fruit juices and assisting the Investment team in attracting Canadian investment in the renewable energy and ICT sectors. The Western Cape’s boat building expertise can also be leveraged in development of trade ties with Canada.

06

PR IORITY SECTORS:

APPROACH:The IP Unit successfully attracts direct investment into the region by actively positioning Wesgro as the ‘first port of call’ for investors by providing essential knowledge, access and expertise to both potential and existing investors. The unit tasks sector-specific relationship managers to proactively recruit investors, by maintaining solid relationships throughout, and post investment, while the unit’s Business Retention and Expansion (BR&E) division provides dedicated support to businesses already established in the Western Cape.

The unit fosters potential investment by utilising relevant intelligence generated by the Research team to provide the leads for engaging with foreign embassies, consulates, high commissions and chambers’ of commerce, both locally and abroad. The unit also leverages relationships with a number of players from Sector Development Agencies and State Owned Enterprises to district municipalities and stakeholders.

The IP Unit seeks to operate as a strategic bridge between government and the private sector, through fostering key relationships with private sector entities that include: financial institutions; professional service providers; policy experts and sector associations. This serves to assist inbound investors in accelerating the investment process.

JOBS AND INVESTMENT – To attract and facilitate between R4.8 billion and R9.3 billion worth of inward foreign and domestic direct investment; supporting the creation of 2,970 - 6,240 jobs in the Western Cape before the end of 2019/2020.


INVESTMENT PROMOTION ( IP) UNIT

OVERVIEW:The Investment Promotion (IP) Unit is tasked with attracting and facilitating foreign and domestic direct investment into the Western Cape and Cape Town.


AGRO-PROCESSING

HOTEL AND REAL ESTATE DEVELOPMENT: TOURISM

OIL AND GAS

ICT

MANUFACTURING

PHARMACEUTICALS AND MEDICAL DEVICES

GREEN ECONOMY AND RENEWABLE ENERGY

07

TURKEY

UNITED KINGDOM


NIGERIA GHANA

RWANDA

IVORY COASTKENYA

TANZANIA

ETHIOPIA

CHINA

VIETNAM

THAILAND

JAPANJORDAN

U.A.E

U.S.A.

CANADA

BRAZIL

GERMANY POLAND

IRAN

SAUDI ARABIA

QATAR

MALAYSIA

PORTUGAL

RUSSIA

INDIA

SINGAPORE

AUSTRALIA

ITALY

NEW ZEALAND

QATAR AND THE UNITED ARAB EMIRATES

- HOTEL AND REAL ESTATE DEVELOPMENT INDIA

- MANUFACTURING

CHINA

- ICT AND MANUFACTURING

SOUTH KOREA

- ICT, MANUFACTURING AND AGRIBUSINESS

NETHERLANDS

- ICT AND MANUFACTURING

FRANCE

- RENEWABLE ENERGY

GERMANY

- MANUFACTURING

UNITED KINGDOM

- ICT, BUSINESS PROCESS OUTSOURCING (BPO) AND REAL ESTATE DEVELOPMENT

THE YEAR AHEAD:Strategic Global Markets: Directly promoting investment opportunities in the Cape in nine strategic global markets.

End-to-end Support: Formalising a strategic relationship with the Cape Investor Centre to provide comprehensive end-to-end support to inbound foreign and domestic investors.

Private Sector Support: The development of a Private Sector Service-based Support Initiative for the promotion of linkages between inbound investors and local businesses, to allow for strong investor support and opportunities for local business.

Investment Lead Management System: Development of a system to enhance support provided to investors and generate insights regarding strategic markets.

BRICS Engagement: Continued emphasis on engaging with BRICS countries through strengthening relationships to promote investment opportunities.

PRIORITY MARKETSO F I N T E R E S T F R O M A N I N V E S T M E N T P E R S P E C T I V E :

08

APPROACH:The AIU adopts a proactive approach towards investment recruitment, business facilitation, and policy advocacy which saw it exceeding set targets in 2015/16. The unit is specifically funded by the Department of Agriculture, and is well positioned to deliver on strategic objectives aligned to Project Khulisa.

The unit’s approach is similar to that of the Investment Promotion Team i.e. actively positioning Wesgro as the ‘first port of call’ for potential investors, while providing essential knowledge, access and expertise; assigning relationship managers to projects; and leveraging relationships with Sector Development Agencies (SDA’s), as well as research-driven investment missions to promote the region.

JOBS AND INVESTMENT – To recruit and facilitate between R1.4 billion and R1.9 billion worth of investment, and between 935 and 1,290 jobs into the Western Cape by the end of 2019/2020.

AGRIBUSINESS INVESTMENT UNIT (AIU)

OVERVIEW:The aim of this unit is to attract and facilitate foreign and domestic investment into the Cape’s key agricultural sector. In addition, the unit focuses on retaining existing investments and supporting their expansions in the agricultural space.


FOOD PROCESSING BEVERAGES

ROOIBOS AND HONEYBUSH

AQUACULTURE AGRICULTURE (INCL. OSTRICH FARMING, FRUIT AND

VEGETABLES, BEEF AND DAIRY)

HORTICULTURE (INCL. VITICULTURE AND WINE PRODUCTION)

MEDICINAL, AROMATICS

AND FLAVOURANTS

(INCL. ESSENTIAL OILS)

CAPITAL EQUIPMENT AND INDUSTRIAL MACHINERY

(INCL. COLD STORAGE)


THE PRIORITY SECTORS AND MARKETS TARGETED BY THE AIU ARE ALIGNED WITH THOSE OF THE NATIONAL AND PROVINCIAL DEPARTMENTS OF AGRICULTURE, THE NATIONAL DEVELOPMENT PLAN, THE PROVINCE’S PROJECT KHULISA AND THE CITY OF CAPE TOWN’S PROJECT CAMISSA.

PRIORITY SECTORS:

09

THE YEAR AHEAD:Growth in Agro-Processing: Grow the agro-processing sector in line with the Project Khulisa strategy.

Agribusiness Investment Pipeline: Develop a quality and robust agribusiness investment pipeline in order to grow the agribusiness sector and create jobs.

Foreign Investment: Attract foreign direct investment to create a robust pipeline to Cape Town and the Western Cape.

Targeted Investor Strategy: Developed after engaging Foreign Embassies and Foreign Chambers.

Strategic Relationships: Formalise a strategic relationship with the national Department of Agriculture, Forestry and Fisheries, and the Western Cape’s Department of Agriculture and the Department of Economic Development and Tourism to provide comprehensive end-to-end support to inbound foreign and domestic investors.

Industry Association Relationships: Formalise strategic relationships with industry associations both at provincial level and at a national level in order to benefit the people of the Western Cape.

Six Strategic Markets: Directly promote investment opportunities in the Cape in six strategic global markets.

Agri Parks Strategy: Work closely with the Department of Rural Development and Land Reform in order to support the Agri Parks Strategy as laid out by national government.

TURKEY

UNITED KINGDOM


NIGERIA GHANA

RWANDA

IVORY COASTKENYA

TANZANIA

ETHIOPIA

CHINA

VIETNAM

THAILAND

JAPANJORDAN

U.A.E

U.S.A.

CANADA

BRAZIL

GERMANY POLAND

IRAN

SAUDI ARABIA

QATAR

MALAYSIA

PORTUGAL

RUSSIA

INDIA

SINGAPORE

AUSTRALIA

ITALY

NEW ZEALAND

PRIORITY MARKETSF O R A N A G R I B U S I N E S S I N V E S T M E N T P E R S P E C T I V E :

10

APPROACH:Cape Town and the Western Cape offer incredible locations as well as a wealth of industry expertise and world-class facilities, all at a fraction of traditional industry costs in other locations. Global production companies are increasingly recognising the region’s qualities, with the Cape as the preferred destination for 13 co-production projects in 2010, 2011 and 2012.

As well as encouraging global companies to film in the Western Cape, there will be a focus on growing companies into Africa, with this pan-African potential being tapped into via outward Trade and Investment missions, and film and media invitations. This will be facilitated by the support of the likes of the National Film and Video Foundation (NFVF), the dti and its Export Marketing and Investment Assistance Scheme (EMIA), Sector Specific Assistance Scheme (SSAS), and/or foreign markets, festivals and governments who invite the Western Cape film industry to partake in their festivals and markets.

COMPETITIVE FILM SECTOR – To firmly establish a competitive film sector by 2020.

R200M IN FILM & MEDIA: – To attract R200 million worth of film and media production and facilitate 280 film and media jobs within the period ending 2019/2020.


FILM AND MEDIA PROMOTION (FMP)

OVERVIEW:The aim of this unit is to attract the production of local and international film and new media productions into Cape Town and the Western Cape. Its objectives to grow the local industry are linked to the Department of Economic Development and Tourism’s (DEDAT) 5-year film and media strategy, the Cape Town Film Studios, as well as the film and promotion mandate from the City of Cape Town.


PRIORIT IES IN THE SECTOR

THE INTANGIBLE ASSET MANUFACTURING OF

ANIMATIONS (TV, FEATURE, GAMES) AND POST PRODUCTION

EXPANDING ANDINCREASING STUDIOS

INDEPENDENT FEATURE FILM

LONG FORM TV SERIES

11

CANADA, GERMANY, FRANCE, IRELAND, NEW ZEALAND, AUSTRALIA, ITALY, UK & NETHERLANDS

- CO-PRODUCTION TREATY COUNTRIES

BRAZIL, RUSSIA, INDIA, CHINA

- BRICS COUNTRIES – IMPORTANT DUE TO THE LARGE POTENTIAL CULTURAL LINKS, NATURAL UNOFFICIAL CO-PRODUCTIONS AND FUTURE OFFICIAL CO-PRODUCTION POTENTIAL

U.S.A

- THE USA IS THE LARGEST PRODUCER OF CONTENT AND THE LARGEST CONSUMER MARKET

AFRICA

- PLAN TO GROW COMPANIES INTO AFRICA AND THIS PAN-AFRICAN POTENTIAL IS BEING WORKED VIA TRADE, INVESTMENT MISSIONS INTO AFRICA AND THE OCCASIONAL FILM AND MEDIA INVITATION

THE YEAR AHEAD:Research Outcomes: Development and implementation of the City of Cape Town and Western Cape research baseline outcomes (e.g. presentation of findings, uptake of suggested opportunities).

Global Engagement: Development of strategy and a framework to enhance engagement with Canada, Germany and France and intensify engagement with the BRICS countries.

Regional Opportunities: Exploring opportunities with the dti and other national and regional governmental agencies to unlock opportunities by lowering red tape.

Creative Locations Catalogue: Development and expansion of the Creative Locations Cape Town and Western Cape catalogue, a flagship marketing tool.

Focus on Cape Companies: Development of a focused and targeted lead pipeline of Cape companies, particularly pushing links and projects that have legs into the African continent (e.g. Animate Africa).

PRIORITY MARKETSF O R F I L M A N D M E D I A :

12

STRATEGIC PROJECTS (Previously Special Pro jects)

OVERVIEW: CAPE TOWN AIR ACCESS (CTAA)The Cape Town Air Access team is a unique Wesgro-led collaboration, started in July 2015, with the aim of promoting, developing and maintaining air routes in and out of Cape Town International Airport. This in turn boosts the local economy and job creation.

APPROACH:The Air Access programme has successfully developed six additional new routes and eight route expansions, bringing more than half a million extra two-way direct seats to Cape Town since the programme’s inception in July 2015 and tourism income in the Western Cape continues to surge as a result. This bodes well for achieving Wesgro’s stated target of growing foreign arrivals to 2 million and domestic trips taken to 3 million by 2019/20.

Things are on track with the Cape Town International Airport (CTIA) reaching the 10 million passenger per year mark for the first time on 28 December 2016. A record number of international and regional passengers were processed during December 2016 (240, 380), an increase of 26% on that recorded in December 2015.

The future looks promising with forward bookings from January to June up by 23% y-o-y between 2016 and 2017, with France, the Netherlands, USA, Turkey, Ethiopia and Namibia showing significant growth. The impending R3.6 billion investment by CTIA over the next three years to the realignment of the runway, and significant investment into the expansion of its international and domestic terminals, stands to further boost the sector. As will the relaxing of visa rules, and the impending launch of the Cape Investor Centre in late 2017.

PRIVATE SECTOR

13

CHINA

VIETNAM

JAPAN,

BRAZIL

RUSSIA

AUSTRALIA

NEW ZEALAND

SWITZERLAND - Zurich

FRANCE - Paris

NETHERLANDS - Amsterdam

GERMANY - Frankfurt & Munich

NAMIBIA - Walvis Bay & Windhoek

TURKEY - Istanbul

ANGOLA - Luanda

ZIMBABWE - Victoria Falls

UNITED KINGDOM - Gatwick & Heathrow

THE YEAR AHEAD:Direct to the U.S.A: Landing a direct route to the United States.

Funding: Crowding in of additional private sector funding.

Expansions: New route expansions.

Combat seasonality: Direct Lufthansa flight from Frankfurt to Cape Town secured, commenced in December 2016; initially with a seasonal long-term view to make the route permanent; compliments daily year-round flights from Frankfurt to Johannesburg.

Increase demand: Maintain existing routes & to stimulate demand on new routes.

Air Access has added half a million international seats since July 2015.

CTIA was the most punctual airport in South Africa for 2016.

CTIA is the 2nd largest airport in South Africa.

CTIA is the 3rd largest airport in Africa.

Airport charges being dropped by 35% on average from 1 April 2017.

CTAA and CTIA won the Routes Africa award.

YEAR NR OF PASSENGERS

2014 8,6 MILLION

2015 9,4 MILLION

2016 10 MILLION

CT IA :

KENYA - Nairobi

UNITED ARAB EMIRATES - Dubai

ETHIOPIA - Addis Ababa

ZAMBIA - Livingstone

MAURITIUS - Port Louis

SINGAPORE - Singapore

QATAR - Doha

BOTSWANA - Maun & Gabarone

14

STRATEGIC PROJECTS

OVERVIEW: CAPE INVESTOR CENTRE (CIC)In line with the national InvestSA initiative, Wesgro will set up a Cape Investor Centre to co-locate services required by investors in the Cape in the second half of 2017.

The centre will operate as a “one stop shop” for large investors, and will allow them to complete local, provincial and national regulatory processes in a single location, in a process facilitated by a Wesgro relationship manager.

The purpose of the CIC is to promote the ease of investing in the Cape by shortening the regulatory and administrative cycle.

APPROACH:The CIC will be open to all major investors and both appointments and walk-ins will be accommodated.

The CIC will perform the functions of:

Lead referral

Project management of the regulatory process

Serve as a co-ordination for referral to relevant bodies to process applications

The core services of the CIC will be the following:

Dealing with land use applications

Dealing with SARS registrations

Providing assistance with dti incentives

Providing assistance with Companies Intellectual Property Commission registrations

Providing assistance with Home Affairs and Visa Facilitation Service applications

The CIC will provide an environment where collaboration between the relationship owner, government agencies and the investor is enhanced and streamlined, resulting in a faster investment process.

15

STRATEGIC PROJECTS

OVERVIEW: CAPE HEALTH TECHNOLOGY PARKThe Cape Health Technology Park (CHTP) project is aimed at developing the region’s health technology innovation sector so as to firmly establish Cape Town as Africa’s Pharma R&D and Biotech Hub (the Western Cape is already home to leading scientific research and 43% of medical technology start-ups.)

The project is a partnership between the National Department of Science & Technology (DST), Western Cape Government’s Department of Economic Development and Tourism (DEDAT), the City of Cape Town and Wesgro. The Park, in Pinelands, will be home to a knowledge based biotech economy cluster, with the long-term vision being to become the Hub for Biotech in Africa.

Upon completion, the CHTP will be a world-class innovation facility. It will provide an innovative scientific environment for both corporates and start-ups with specific supportive services for global approval of products for export markets.

STRATEGIC PROJECTS

OVERVIEW: REAL TIME DATA PROJECTWesgro launched tourism dashboards on its website in 2016 in order to provide the most recent trends and performances of the Western Cape tourism sector to industry stakeholders. In the coming year, tourism data will be gathered on a real-time basis and provided at more frequent intervals, with the ultimate goal of live data on the website for most of the key tourism indicators. By tapping into the power of big data, this project aims to combat the challenges of delays in tourism data by providing insights that the industry can respond to quickly and effectively.

16

APPROACH:The unit achieves this by engaging with a wide variety of audiences and works to position the Agency and the Cape amongst its stakeholders and the larger business community. This includes the creation of content and management of Wesgro’s digital and social media platforms; collateral development; managing communications and media relations; implementing Customer Relationship Management campaigns; and the logistical management of strategic corporate and external events.

THE YEAR AHEAD:Conferences: International media hosting around conferences.

Collateral Extension: Translation of collateral into a number of relevant languages (e.g. Mandarin).

New Value Proposition: Updating of the Agency’s value proposition (in partnership with new, chosen advertising agency).

Corporate Identity: Creation of version two of corporate identity in line with new value proposition.

Going Global: Global marketing campaign to launch our new value proposition.

Visual Focus: Bespoke photography for Western Cape priority sectors, city visuals etc.

POSITIONING OF WESGRO – To improve the position of the Agency and the destination with shareholders, citizens, domestic and international businesses.

REPUTATION MANAGEMENT – To manage the reputation of the Agency and destination through media opportunities.

MARKETING UNIT

OVERVIEW:Wesgro’s Marketing Unit conducts the marketing and communication for the Agency and the trade, investment, film & media promotion and research business units.

S TRATEGIC OBJECT IVES :( F R O M T H E W E S G R O 5 Y E A R P L A N ) :

17

APPROACH: DMO – Leisure Marketing

The Leisure team’s objective is to promote and increase the number of international and domestic tourists to the Cape’s five regions (Cape Karoo, Cape West Coast, Cape Winelands, Cape Overberg and Garden Route & Klein Karoo), and Cape Town, during the traditional low season which falls between April and September. It achieves this by promoting the attractiveness of the province via the region’s niche tourism activities such as cycling, gastronomy and culture and heritage.

A key priority is to create and drive demand internationally and domestically through a number of pioneering marketing campaigns and agreements with the industry (airlines, operators etc.) to ensure high returns on investment for marketing activities. Extensive collaboration with various provincial (e.g. regional and local tourism offices) and national (e.g. South African Tourism) organisations is key in supporting and promoting regional events during the low season.

DMO – Convention Bureau

The Convention Bureau is a unit within Wesgro’s DMO that focuses on growing and attracting meetings, incentives, conferences, and exhibitions (MICE) to the Cape. Within this, an important focus is to bid for these business events, including domestic and international conventions and conferences. Leveraging the team’s Best Cities Global Alliance membership remains a key focus, as does offering meeting planners access to the unit’s four unique programmes: Delegate Boosting, Legacy, Networking and Business Conversion. Wesgro’s Trade and Investment team also offers cross-selling opportunities to the Convention Bureau team. The Bureau has a close strategic relationship with the South African National Convention Bureau.

PROMOTE THE WESTERN CAPE – To improve the position of the Agency and the destination with shareholders, citizens, domestic and international businesses.

ECONOMIC IMPACT – An estimated economic impact of R641 million will be generated from the marketing initiatives supported over the five-year period ending 2019/2020.

DESTINATION MARKETING ORGANISATION (DMO)

OVERVIEW:The Destination Marketing Organisation (DMO) team is made up of two units: Leisure Marketing and Convention Bureau. Its purpose is to promote the Cape internationally and domestically in order to increase the number of leisure and business tourists, thereby supporting economic growth and job creation.

S TRATEGIC OBJECT IVES :( F R O M T H E W E S G R O 5 Y E A R P L A N ) :

18

AGRO-PROCESSING

RENEWABLE ENERGYBUSINESS TOURISM HEALTH AND PHARMACEUTICALS

ICT

OIL AND GAS INCLUDINGMARITIME

REAL ESTATE AND TOURISMINFRASTRUCTURE

MANUFACTURING

TURKEY

UNITED KINGDOM


NIGERIA GHANA

RWANDA

IVORY COASTKENYA

TANZANIA

ETHIOPIA

CHINA

VIETNAM

THAILAND

JAPANJORDAN

U.A.E

U.S.A.

CANADA

BRAZIL

GERMANY POLAND

IRAN

SAUDI ARABIA

QATAR

MALAYSIA

PORTUGAL

RUSSIA

INDIA

SINGAPORE

AUSTRALIA

ITALY

NEW ZEALAND

PRIORITY IS GIVEN TO BUSINESS EVENTS (E.G. MEETINGS, CONFERENCES, EXHIBITIONS ETC.) WHICH FOCUS ON SECTORS THAT ALIGN WITH THE WESTERN CAPE GOVERNMENT AND WESGRO’S STRATEGIC APPROACH:

PRIORITY SECTORS:

PRIORITY MARKETS:

GERMANY, FRANCE, UK & THE NETHERLANDS

- SOURCE MARKETS, to drive volume.

CANADA, USA, CHINA, NAMIBIA, INDIA AND AUSTRALIA

- EMERGING MARKETS

ANGOLA, BOTSWANA, LESOTHO, KENYA AND U.A.E

- TACTICAL MARKETS

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LEISURE TOURISM PRIORITY MARKETS INCLUDE:

• Source markets: to drive volume

• Emerging markets: that show potential to grow during our low season of April - September

• Tactical Markets: representing high value tourists

BUSINESS TOURISM:

The unit’s sources for leads come from sectors rather than countries, with the main ones being pharmaceutical/medical, education, IT and communication sectors for the association market and India, China, North America for incentive travel.

WITHIN THIS THE MARKETS ARE SEGMENTED INTO:

High season and volume: i.e. United Kingdom, Germany, France and the Netherlands. These are volume markets that travel during the high season. On-the-ground support and partnerships with South African Tourism, media and trade (e.g. airlines and operators) and digital marketing maintain these markets. Marketing promotes the attractiveness of the province through niche tourism activities such as cycling, gastronomy and culture and heritage.

Low season and promote: i.e. the United States of America, Australia, China, India and Namibia. These markets travel during our low season (April – September) and need to be actively encouraged. Marketing promotes the attractiveness of the province through niche tourism activities such as cycling, gastronomy and culture and heritage.

Tactical: These markets align with Project Khulisa and have the potential to grow quickly and offer a high value tourist. The focus is on educating tourists about the destination and on positioning the province through unique offers such as a family-friendly destination for the Halal market.

THE YEAR AHEAD:

1. AWARENESS OF THE WESTERN CAPE: To boost awareness of the Western Cape in key markets and sectors, the following strategic initiatives will be launched:

Competitive identity: The focus will be on the implementation of the new brand and social media marketing campaigns.

Partnership growth strategies in key markets: A strong focus on joint marketing opportunities in priority markets will assist in generating more impact and better return on investment.

Digital management and real-time intelligence: Wesgro Research will focus on the maintenance and enhancement of the digital platform launched in 2016.

Grow business tourism.

Our Customer Relationship Management and Stakeholder Management: Strong focus on business-to-business communication and the building of strong working relationships with the tourism industry. This year’s focus will be on a Customer Relationship Management programme, continuing the RTO forums and then quarterly trade and media engagements.

2. ACCESSIBILITY TO THE WESTERN CAPE: To improve accessibility to Cape Town and the regions, two strategic initiatives are in place, including:

Air Access (which forms part of a separate strategic unit within Wesgro).

Cape Investor Centre.

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CORPORATE SERVICES

The Corporate Services team plays an integral role in providing extensive support to all units within the Agency, from procurement, to office management to financial management of the Agency. Core strategic objectives include providing efficient, cost effective, transparent and responsive corporate services to the Agency, while ensuring that principles of good corporate governance are implemented. All of which are linked to the Agency’s five-year strategic plan and Provincial Strategic Goal (PSG) 5: to embed good governance and integrated service delivery through partnerships and spatial alignment.

Corporate Services – Strategic Objectives (per unit)

1. Financial Management: To attain a high level financial management capability over five years.

2. IT and Administrative Services: To provide first class IT and administration services to the Agency.

3. Human Resources Management: To create a culture and climate to attract, sustain and retain a motivated, talented and skilled workforce and ensure that the Agency becomes the employer of choice.

4. Wesgro Monitoring and Evaluation: To ensure that an effective monitoring and evaluation system is implemented and aligned to the legislative and regulatory prescripts pertaining to performance management.

A number of new initiatives and goals are lined up for the team in the year ahead, the most prominent of which include:

Development and implementation of an asset management system;

Improvement of workflow system;

Implementation of a budget and forecasting web-based system for non-financial managers;

Policy updates in compliance to Provincial Treasury Guidelines; and

Development of an annual board and sub-committee programme.

3. ATTRACTIVENESS OF THE WESTERN CAPE: To boost the attractiveness of the Cape through a competitive offering the following projects are in place:

The promotion of the Cape Cycle Route Network (CCRN): Positioning of the Cape as the cycling capital of Africa, including the marketing of the Network and its routes (e.g. the Cross Cape) and other marketing campaigns (e.g. partnerships with Western Cape cycling teams or races).

Culture & Heritage: The team will promote culture and heritage routes within our province, (e.g. Madiba legacy route and the Cape to Namibia) to domestic and international visitors.

Gastronomy tourism promotion: Focus on promoting the province’s food and wine experiential offering to visitors. Strong partnerships with the SA Wine Routes Forum and Wines of South Africa (WOSA) will also be amplified.

Cape of Great Events promotion: The promotion of regional events to consumers, trade and media will be done through activities such as the marketing of the digital events platform developed during 16/17, trade partnerships (e.g. airlines for on-board flighting), hosting and the development of video content for international exposure. Support for events that take place April – September will be given priority as these help drive geographic spread during the low season.

CONTENTS

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Message f rom the Ch ief Execut ive Of f icer

Message f rom the Board Chai rperson

Research Uni t

Trade Promot ion Uni t

Investment Promot ion ( IP) Uni t

Agr ibus iness Investment Uni t (A IU)

F i lm and Media Promot ion

S t rateg ic Pro jects : Cape Town A i r Access

S t rateg ic Pro jects : Cape Investor Centre

St rateg ic Pro jects : Cape Health Technology Park

St rateg ic Pro jects : Real T ime Data Pro ject

Market ing Uni t

Dest inat ion Market ing Organisat ion (DMO)

Corporate Serv ices


WESGRO’SGLOBAL ECONOMIC PRIORITIESFOR THE CAPE

2017 / 2018

an inspiring place to do business


wesgro’s global economic priorities for the … economic priorities.pdf · wesgro’s global...

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