Overview

Section 152 (1) (c) the Constitution sets as an objective for local government the promotion of social and economic development within the area of its jurisdiction.  Furthermore, the Constitution allocates the local tourism function to municipalities in terms of Section 156(1)(a): Schedule 4 Part B.  Furthermore, The White Paper on the Development and Promotion of Tourism (1996) states that municipalities should promote tourism through:

• Undertaking responsible land-use planning, urban & rural development
• Providing & maintenance of tourist services, sites & attractions
• Providing road signs
• Marketing & promoting local attractions
• Controllling public health & safety
• Facilitating participation of local community
• Facilitating public transportation services

Other relevant pieces of legislation and policy pertaining to the economic development function include the:

• White Paper on Sustainable Tourism Development & Promotion in the Western Cape
• Broad-Based Black Economic Empowerment Bill
• National Small Business Act (1996)
• National Skills Act & Employment Equity Act
• Land Reform policy
• Provincial Growth and Development Strategy
• iKapa elihlumayo
• National and Provincial Spatial Development Framework
• Agricultural support policies

The aim of the Directorate: Economic and Social Development is to stimulate the growth of the CWDM economy in a manner that creates jobs and reduces poverty.  The objectives of the Directorate are to:

• Develop a well maintained database of businesses, business performance and business opportunities within the district.
• Develop and implement a clear and targeted marketing strategy.
• Actively identify business and investment opportunities and facilitate libnkages and product development.
• Develop and implement a small business support programme aimed at SMMEs, BEE and co-operatives.
• Engage stakeholders, forge partnerships and ensure community participation. 

The Cape Winelands District Municipality has a number of clear competitive advantages such as:

• A stunning natural environment
• Proximity to Cape Town and the ports
• A well developed transport infrastructure
• Well developed and accessible social services
• Strong brands
• Established firms across sectors
• Strong tertiary training and education institutions
• A variety of sectors and products
• There is substantial local knowledge, co-operation and networking

However, there are also serious challenges, such as:

• Uneven distribution of wealth and participation within the economy
• Seasonal employment owing to the strong backward and forward linkages from the agricultural sector
• Perception of the district as an exclusive, expensive destination
• High land prices
• Deteriorating water quality
• Extremely low participation rate by PDIs and BEEs
• High barriers to new entrants
• The marginalization of farm workers
• Service backlogs in informal settlements and on farms
• The concentration of knowledge and networks in the hands of a few.

Activities

Various activities have been undertaken during 2004/5 – many of which are stated in the chapter on LED within the Annual Report.

The major achievements in 2004/05 were:

1. Completion of a cross sectoral firm level study within the district isolating sector and locational economic trends.
2. An innovative Home-grown tourism marketing campaign targeted primarily at the domestic market.
3. Partnership in district tourism events, such as the: Breedekloof Outdoor festival, the festival of lights, the Awelethemba Heritage day, Chainouqua Festival, Togreyer’s Museum, the Wacky Wine weekend and Whoosh.
4. Product development through the completion of an Arts and Crafts Route study, support to the De Poort Heritage Village, the Stellenbosch Small Farmers’ Trust, an essential oils project and a partnership with the University of Stellenbosch on Aquaculture.
5. Small business support through which 498 firms have received training, and 44 have been placed on mentorships. 14 Home-Stays have received advanced entrepreneurial training.
6. Community awareness has been created through the Schools Tourism project with 5 FET schools and 60 other schools participating.  The programme focuses on teacher training, excursions, road shows and the development of information brochures.  A mayoral tour was also undertaken.
7. The CWDM through its Export Development Programme Agreement with SANEC undertook an outward Trade Mission to the Netherlands in November 2004. The Cape Winelands and SANEC proved to be successful in linking South African and Dutch companies and branding the Cape Winelands as an investment locarion for the Dutch business community.
8. The CWDM was allocated 20 LGSETA LED Leanerships (NQF 4), as one of the three pilots in the Western Cape. The LGSETA LED Learnership is a training programme that combines theoretical training at a training provider with practical work at the workplace. The twenty LGSETA LED Learnerships were divided between the municipalities of CWDM, Breede Valley, Drakenstein, Witzenberg and Stellenbosch.