Final Report:

CESVI

Job Market Research – Analysis to Determine Job Demand in the Sport, Art, Culture Sector

September 2013

This research is produced within the framework of the project “Inyanda arts and sports as a form of social cohesion for the vulnerable youth of Cape Town” DCI-AFS/2012/274-503 co- funded by the European Union, Cesvi Foundation and Cordaid

The contents of this publication are the sole responsibility of Creative Consulting & Development Works and can in no way be taken to reflect the views of the European Union.

1 TABLE OF CONTENTS

Chapter 1: Introduction...... 10 1.1 Purpose of the Report ...... 10 1.2 Structure of the Report ...... 10 Chapter 2: Methods ...... 11 2.1 Sources ...... 11 2.2 Limitations...... 12 Data Classification...... 12 Chapter 3: Context: Understanding the Relevant Economic Structure of Cape Town ...... 13 3.1 Economic Growth...... 13 3.2 Cape Town as a Youthful Growing City...... 13 3.3 Employment in Cape Town...... 14 3.4 Making Sense of the Economy by Sector Performance ...... 14 3.5 Education...... 15 3.6 The Informal Economy...... 16 3.7 Spatial Economy and Social Exclusion...... 18 Chapter 4: Creative Sector Profiles ...... 20 4.1 Defining the Creative Industries...... 20 4.2 Film ...... 21 The Cape Film Commission (CFC)...... 21 4.2 Crafts ...... 22 CCDI data...... 23 CCDI and World Design Capital 2014...... 25 Practical Opportunities for New Craft and Design Entrants ...... 25 Youth and the CCDI...... 26 4.3 Music...... 27 4.4 The Performing Arts Sector...... 28

2 Theatre...... 29 Cape Town Initiative: Artscape...... 29 4.5 The Visual Arts Sector ...... 30 4.6 Design...... 32 Cape Town: World Design Capital 2014 ...... 33 4.7 Fashion Design ...... 35 4.8 Cultural and Heritage Tourism...... 36 4.9 Summary of sector profiles and their relative potential: ...... 37 1. Film ...... 37 2. Crafts ...... 38 3. Music...... 38 4. Performing Arts...... 39 5. Visual Arts...... 39 6. Design...... 40 7. Fashion Design ...... 41 8. Cultural and Heritage Tourism...... 41 Chapter 5: Work in the Creative Industries...... 42 5.1 Entry requirements ...... 43 5.2 Gaps in the Creative Sector ...... 43 5.3 Influences on Future Demands for Skills ...... 45 5.4 The Nature of Skills Supply ...... 46 5.5 Creative Sector Salient Features...... 48 Chapter 6: Sports Sector Profiles ...... 50 6.1 Background ...... 50 6.2 Participation in Sport...... 53 6.3 Sporting Types and Their Economic Contribution...... 53 6.4 Sport and Social Development ...... 54 6.5 Quantifying the Contribution...... 55 6.6 Employment in Sport...... 55 6.7 Sporting Events ...... 56 Chapter 7: Work in the Sports Sector...... 56

3 7.1 Nature of Work...... 57 7.2 Entry Requirements...... 58 7.3 Hard to Fill Vacancies...... 58 7.4 Skills Supply...... 59 Chapter 8: Conclusions and Recommendations ...... 59 8.1 Tertiary education...... 59 8.2 Other Avenues of Skills Development ...... 62 8.3 Challenges for Youth Entering the Jobs Market ...... 63 8.4 The Informal Sector and Youth Entrepreneurs...... 63 8.5 Relative Size of Opportunities in Terms of Available Jobs and Growth Potential ...... 64 8.6 Successes and Recommendations...... 65 References ...... 70 Annex A: Key Informants ...... 71 Annex C: Data Tables ...... 73 Annex C: Participation in Sport in the Western Cape...... 78

4 Executive Summary

The main aim of the research is to identify job opportunities in the art, sports and cultural sector and required relevant education. Multiple data sources were used to generate this report, which limits the extent of quantitative comparison across the sources.

Cape Town has a strong creative and sports economy showing signs of economic growth at a higher rate than traditional sectors like manufacturing. The city has a diverse and globally competitive economy with strong performance in finance and services sectors indicative of a metropolitan structure. In some ways the picture of economic growth in the last few years for Cape Town is promising, but there are some negative features of the Cape Town economy pointing to social exclusion and spatial expressions of poverty with an enduring correlation between race and class. The informal economy, while significant, lags behind other South African cities such as Johannesburg and Durban.

The report details creative economy subsector profiles including film, crafts, music, performing arts, visual arts, design, fashion design, and cultural tourism. A range of support structures, initiatives and organisations in Cape Town to support the creative sector shows considerable government priority for this part of the economy. New research quantifying the economic contribution of the sporting sector suggests a significant contribution to GDP, but not as many clear job opportunities as in the creative economy.

It would appear that the potential for growth and jobs in the City of Cape Town in the creative sectors is high in the subsectors of film, craft and design. Medium or intermediate potential for growth and jobs is apparent in fashion design, culture and heritage subsectors. Low potential for growth and jobs is evident in the music, performing arts and visual arts subsectors. Within the sporting sector it is the sporting codes that utilise grounds, coaches and administrators that create job opportunities. These tend to be the traditional sports offered at schools such as athletics, rugby, soccer/football, and cricket. However statistics show that participation is concentrated in golf, tennis, bowls, athletics, cycling, gymnastics, karate, rugby, football, chess and squash. The largest number of jobs is created in bowls, tennis, cycling and sailing. The MOD centres funded and managed by DCAS are a major opportunity for school coaching jobs. A range of specialist skills and gaps are identified for the creative, sports and heritage sectors. In addition the support services which form part of the full value chain offer attendant opportunities for third party support. In the creative subsectors there are a number of immediate opportunities: a) Film: Internships are available through the Cape Town Film Commission, there is funding for productions through DTI and the NFVA, co-operatives funding is also available for capital equipment for groups of entrepreneurs. Film shows strong growth year on year in the City. b) Crafts: The product development support offered by CCDI is unique and highly valuable and deserves special mention. Design capital 2014 will be a year of events and exposure which new entrants will find inspiring. Craft sector short specialised courses can be accessed through CCDI. DTI co-operatives funding is also an avenue for capital inputs especially. The craft sector shows strong growth in the city. c) Performing arts: Artscape offers valuable training and internship programmes. However more opportunities are to be found in Gauteng than Cape Town. d) Design: The product development support offered by CCDI is unique and highly valuable and deserves special mention. Design capital 2014 will be a year of events and exposure which new entrants will find inspiring. Training for the design sector in short specialised courses can be accessed through CCDI. DTI co-operatives funding is also an avenue for capital inputs especially. Design has shown strong growth. e) Fashion design: The Fashion Council offers courses and a bridging programme, as well as a service centre lab to access technology and production innovation. They also run competitions in conjunction with the retail sector which are opportunities for youth to gain access to markets. Cape Town annual Fashion Week is highly successful and offers opportunities for new talent to break into the high-end market. The informal sector of fashion design is sizeable, allowing flexible working conditions. f) Cultural and heritage tourism: Post World Cup growth in tourist numbers visiting the City offer greater uptake of experiential tourism products. Remuneration levels are comparatively favourable in the cultural tourism sector.

Music and the visual arts have fewer city-based opportunities than the other creative sub- sectors profiled. These sub-sectors may have better prospects in Gauteng. Difficulties entering the formal job market as well as starting a business show significant obstacles face youth in an economic growth context which has slowed since 2008. Some suggestions for successful interventions are proposed for further consideration among stakeholders working in the youth development sector, including:

 Tutoring and mentoring at high school level  Career exhibitions and expo’s  Internships, work experience and mentoring  Competitions and incentives for exceptional performance  Youth Volunteering to get work experience  Expectations of qualified students need to be realistic  Bridging programmes  Services matching youth with opportunities and jobs such as Cape Town Activa  Public sector support and facilitation for the Informal economy  Empowering youth to turn their passion into a business and charge accordingly  Targeted enterprise support for fresh ideas rather than copy-cat or survivalist businesses  Out of season work placement and training  Affordable live and work spaces for incubation of creative talent  Quota’s for filming permission from the City to ensure better rates of PDI participation  Specialist public-sector funded sector body support such as the existing SPV’s  Third party specialist functions in the value chain  Collective procurement and other measures to exploit economies of scale  Third party support to free-up artists’ time to concentrate on where their talents lie. List of Abbreviations

CCDI Cape Craft and Design Institute

CESVI Cooperazione e Sviluppo

CPUT Cape Peninsula University of Technology

CV Curriculum Vitae

DCAS Department of Arts and Culture

DEDAT Department of Economic Development and Tourism

DOL Department of Labour

DPRU Development Policy Research Unit

DTI Department of Trade and Industry

EPWP Expanded Public Works Programme

EU European Union

FET Further Education and Training

HSRC Human Sciences Research Council

MOD Mass participation, opportunities & access, development and growth centres

NFVA National Film and Video Association

NGO Non - Governmental Organisation

NSFAS National Student Financial Aid Scheme

NYDA National Youth Development Agency PDI Previously Disadvantaged Individual

SADEC Southern African Development Economic Community

SEDA Small Enterprise Development Agency

SETA Sector Education and Training

SPV Special Purpose Vehicle

Stats SA Statistics South Africa

SWOP Sociology of Work Programme

UCT University of Cape Town

UWC University of the Western Cape

Wesgro Western Cape growth and export agency Chapter 1: Introduction

1.1 Purpose of the Report

CESVI through the Inyanda Youth Network have been working to empower youth while delivering art and sport activities involving youth of disadvantaged communities. Creative Consulting and Development Works were commissioned to develop this report in order to document a profile of the sports, arts and culture market in Cape Town. This includes:

 A statistical profile: market demographics, organizational landscape, trade statistics  Trend analysis from key industry opinion  Small business opportunities: market analysis of informal sector business (low barriers to entry) and levels of demand  Job market analysis (entry level opportunities profiling: requirements, remuneration, growing needs, declining sectors)  Recommendations for transitioning internships, mentoring, volunteer work and other placement opportunities  Skills and available course offerings analysis

The main aim of the research is to identify job opportunities in the art, sports and cultural sector and required relevant education. The Inyanda project wants to ensure that education opportunities provided coincides with required skills and knowledge in the business sectors.

The report is meant for a broad audience including government officials, Non- Government Organisations (NGO’s) and business to in order to enhance a discussion on the current situation for arts and sports professionals. In addition the report should initiate a discussion of actions to enhance work done by various stakeholders. Youth and learners can also benefit from the findings of this research in terms of making informed career and study decisions based on the potential of each subsector within the sports, arts and culture industries.

1.2 Structure of the Report

This report is structured around providing a broad economic context for the City of Cape Town before honing in on work in the creative sectors and sports sectors specifically. Sector profiles in arts and culture are presented, followed by an analysis of the nature of work in the creative sector. Sector profiles for sport are then explored, but with less detail than the arts owing to a lack of data on the sector and the dominant perspective of sports as a social transformation issue rather than a driver of economic growth and jobs. The nature of work in the sports sector is then analysed. Finally some conclusions based on key findings are offered along with recommendations for moving forward. These are not offered in the form of a simple plan of action as it is the intention of this report to facilitate discussion among role- players in order to come to a consensus on a concrete plan of action for implementation among themselves.

Chapter 2: Methods

2.1 Sources

This report is based on a number of data sources:  A literature review of existing studies on various economic sectors within Cape Town and South Africa  Economic data and statistics from quantitative sources  Qualitative interviews with local sector representatives and professionals  Reports from structures and organizations directly engaging in the creative and sports sectors within the City

The research was undertaken in four phases as shown below:

PHASE 1 PHASE 2 PHASE 4  Desktop Key Informant Interviews  Reporting: review: Final job Baseline data market research report PHASE 3 Data Analysis A number of means were used to ensure the reliability and validity of the data collected and of the conclusions reached:  Purposive sampling ensured that a broad range of perspectives are included in the study.  Team members consulted with the client particularly during the design and initial planning of the research study. This helped to ensure that all the relevant variables, issues, and stakeholders were identified.  Data collection was semi-structured. Findings were gathered through note-taking by the interviewer.  During data analysis ‘triangulation’ between various sources and kinds of data was used.  Preliminary findings are presented to key stakeholders, followed by discussion. This process will allow for any additional information to be incorporated.  All interview participants were encouraged to participate on a voluntary basis. They were informed of what the information provided is for and how it will be used. They were free to not answer questions without any negative consequences. Their anonymity is protected in that no comments are linked to any names.

2.2 Limitations

Multiple data sources were used to generate this report, which limits the extent of quantitative comparison across the sources. However, many of the qualitative reports consulted are of high quality, and using the most up-to-date and reliable data sources. Cape Town is a well- researched city, and with three credible Universities within its geographical area there is considerable academic rigour attached to many of these studies.

This means we can infer with some reliability the nature of the creative, sports and leisure economy of Cape Town which is the focus of this study. Honing in on the jobs market within these sectors requires the application of analysis to the information gleaned from multiple sources, which is where the experts interviewed in their specific sector specialization adds important value.

Some of the quantitative economic data is over five years old. This is unfortunate but in the nature of statistical macro-data that the turn-around times from events to publication of the final data is often many years. Nonetheless we can be confident that the most recent available data has been used to generate this report. Data Classification Sectoral data classification has had a specific impact on the focus of this study which bears special mention. In South Africa statistical data is collected in line with international norms and definitions of economic sectors that do not fit with the units of analysis which would be optimal for this study. Sectors such as tourism are not measured separately from other sectors for example, hampering our ability to disaggregate the data to achieve meaningful conclusions. The most recent SIC classification from 2012 is shows how data is currently collected and organised.

Chapter 3: Context: Understanding the Relevant Economic Structure of Cape Town

Cape Town is one of the continent’s most dynamic and powerful metropolitan areas. In order to situate the creative economy and also the sport-related economy it is necessary to first paint the broad brushstrokes of the economy by sector before focusing on more specific sub- elements to understand the prospects for youth employment. The spatial geography of Cape Town is an important element of this context.

The spatial geography of apartheid has been slow to change in Cape Town. Youth seem particularly caught in a spiral of poverty, poor education and limited job prospects, arguably more so than in other South African cities. Understanding the economic drivers behind this helps to identify possible access points for intervention.

3.1 Economic Growth Income inequality has a strong racial dimension in Cape Town. The average income of a white household is roughly seven times greater than that of an African household, and nearly three times greater than that of a coloured household. The racial profile of poverty is linked to the economies spatial design. The city’s black and coloured population live on the outskirts of the city’s economic heartland. In these areas, access to affordable quality services and amenities is limited. In addition, it is expensive and time consuming for people living in the city’s outskirts to commute to areas where the city’s opportunities are located. We will return to this issue in more detail once a basic outline of the economy is explored.

3.2 Cape Town as a Youthful Growing City Cape Town’s position as the Western Capes economic growth engine is in part attributed to a growing young population increased the domestic demand for goods and services. The city’s population grew by 22.26% between 2001 and 2009. The city’s impressive population growth rate (the largest growth rate in the country) is largely due to domestic in-migration from the broader Western Cape (66%), Eastern Cape (17%) and Gauteng (7%) (Boraine et al., 2006 cited in OECD, 2008:53).

In South Africa unemployment is rife among people younger than 35 years old. Although the city has a lower number of young unemployed people between 25 to 34 years of age than the national average, the number of young people unemployed in the city is relatively high (OECD, 2008).

3.3 Employment in Cape Town The city’s economy currently creates more formal employment opportunities for skilled labour than unskilled and semi-skilled labour. This has not always been the case. The economy of Cape Town has historically been built off manufacturing, where other parts of South Africa had minerals Cape Town was never a significant player in the minerals-energy complex which characterized the South African economy for decades. Cape Town benefitted from a more diverse economy early on in its development than areas like Johannesburg. Nonetheless the economy of Cape Town has undergone massive change in the last 20-30 years, most notable the shift away from manufacturing toward services. It is important to understand the trajectory of the Cape Town economy in order to anticipate future demand and likely job opportunities for new entrants especially.

Statistics SA reports that 1 million jobs were lost in the South African economy between the fourth quarter of 2008 and the third quarter of 2010. Since then 646 000 jobs were gained as at the second quarter of 2013. Although this does indicate some recovery after the global financial crisis of 2008/9, the jobs lost in that period have still not been regained.

3.4 Making Sense of the Economy by Sector Performance The health of the city’s economy is largely shaped by three sectors. These sectors are (1) finance, insurance, real estate and business services (2) manufacturing and (3) wholesale and retail trade, catering and accommodation. In 2008 these sectors contribution to the city’s real GGP, employment and gross capital formation was 66.61%, 58.56% and 57.32%, respectively. The structural change in the city’s economy has had the following effect on the city’s demand for labour, capital and knowledge. The demand for unskilled and semi-skilled labour will continue to decline as the sectors driving economic growth are skill intensive sectors that require skilled workers to manipulate knowledge. In addition the demand for skilled labour will increase at a faster rate than the education system can produce this type of labour. Sectors that produce knowledge based high value specialised services and products are known for their rapid change. The education system has failed to keep abreast of the structural changes in the economy. As a consequence there is a mismatch between the education graduates receive and the education they need to be productive in the workplace. This mismatch is a symptom of a reactive education system. One of the critical factors to be successful in the high quality service sector and building a brand as an innovation hub is securing a ‘first mover’ advantage. This implies that the education system must adopt a proactive stance to industries skill requirements if the city is to become the regions leader in providing high-quality services in the creative industry, tourism and ICT space.

3.5 Education The Western Capes level of education is better than the national average. The province has the second highest education level in South Africa after Johannesburg (Gauteng). According to the 2007 Community Survey (undertaken by Stats SA in all nine provinces), the education profile of the city surpasses the provinces profile. Of the 3,2 million people over the age of 15, only 4% in Cape Town had no formal education, equal to the provincial proportion, although much better than the 9% recorded nationally. Furthermore, 13% of the city’s population have tertiary education compared to 12% in the Western Cape and 8% in South Africa. However it is widely acknowledged that the education system does not give students the skills they require to be productive in the workplace.

The city’s good quality primary and secondary schools are located on the city’s northern corridor, whereas the majority of the city’s population live in the South-East. As a consequence the majority of the city’s population do not have affordable access to good quality schools.

The City accounts for 63 per cent of the Province’s learners. However, the current number of schools only accommodates 50 per cent of learners in the City. The City has the highest backlog in the Province with a deficit of 156 schools coupled with a pupil-teacher ratio of 39.19 While the school education system may not be the one of the worst in South Africa, what is clear is that it is insufficient to meet the needs of a globalised City economy in matching skills with the needs of the local economy. At a tertiary level the education profile of the City is perhaps more optimistic. Many of the city-regions tertiary institutions are nationally and globally renowned for their quality education. These institutions include: numerous Further Education and Training (FET) colleges, the University of Cape Town, the University of the Western Cape, the Cape Peninsula University of Technology and the University of Stellenbosch. Furthermore, a fair percentage of these universities courses are internationally accredited and UCT is ranked as one of the world’s top 200 universities. Between 2005 and 2009 the number of students enrolled at these universities increased to over 90, 000, and the majority of these students studied humanities, engineering and health.

3.6 The Informal Economy One of the relative weaknesses of the city’s economy is its lack of informal economic activity. This problem is a symptom of the structural nature of the city-region’s economy and the Western Capes economy. In both these economies the informal economy is involved in non-base activities and these activities are not embedded in the economy’s extensive production chains” (OECD, 2008: 67). As a consequence activity in the city-regions informal sector is low compared to other middle-income metro-regions, where 30% of the regions labour force is employed in the informal sector (OECD, 2008). Given the lack of informal activity at the provincial and city-region level, it is in line with expectations that the city’s informal sector is underdeveloped.

The second economy is often overlooked in terms of economic development. It is estimated that this sector produces about 12% of the economic output and employs 18% of the economically active in the City. The informal sector is therefore an important part of Cape Town’s economy even while it is less than other South African cities. The following initiatives have been put in place by the City of Cape Town to support this sector:  A citywide informal trade policy, which spells out where trading should and should not take place, the types of trading that can be promoted, suitable operating hours and the obligations and responsibilities of stakeholders.  Trading areas are continually being demarcated. It is an ongoing project of which two good examples are Parow and Goodwood  A model has been put in place to look at the management of the markets that have been built in Nyanga, Guguletu, Philippi, Ntlangano, iSithandathu, Hanover Park and Lentegeur. Experts have argued that local policy makers and town planners need to streamline activities in the informal sector and bring about acceptance of its contributions to job creation and social well-being. This has been highlighted at various conferences and policy debates across the City.

According to Skinner (2013), street trade is the most visible element of informal sector, one that worries councillors, members of the public and thus city officials most. However public space traders are only one component of the informal sector. The informal sector contributes between 8 and 10% to South Africa’s GDP. Country wide the total expenditure in the informal retail stood at R52 billion in 2004. This compared well with the big retailers. Unlike their formal counterparts, the profits from these activities sustain large number of dependants in households located in poorer parts of cities and towns.

Statistics show that black South Africans and women are over represented in the informal sector. This may well be a reflection of gender and racial inequality, with informal retail offering low barriers to entry for people otherwise marginalised from the first economy. Although individual incomes are often low (between R500-R1500 a month), cumulatively these activities contribute significantly to local economies.

There are numerous signs that street trading is making an important contribution in Cape Town. Street and market vendors are distributors of affordable goods and services providing consumers with convenient retail options. Informal fresh produce traders in Cape Town have been shown to provide better quality goods at lower prices than formal retailers – thus highlighting their role in food security. Waste collectors divert waste from municipal dumps – and thus play an important role in climate change mitigation.

However the City of Cape Town’s approach to informal trade does not compare well to that of similar cities in South Africa. Cape Town has declared a bigger area than any of the other 4 cities as restricted or prohibited trade zones in recent years. Cape Town has far fewer public space traders in general and inner city traders in particular than other South African cities. Cape Town had spent less on street trader infrastructure. Informal traders like their formal counterparts need ‘passing feet’. The trading capacity of public spaces should be harnessed. Skinner notes the missed opportunities of the new MyCiti Bus Stops, and the PRASA redesign of the Cape Town railway station. Previously the square outside the railway station was a bustling market place. How it has been cleared completely. The open space, a shadow of its former self now lacks character and is quite dead as commuters pass through it in their thousands everyday into the City. However the flower market in Adderley Street retains its original vibrancy and is widely acknowledged as part of the fabric of the City, attracting locals and tourists alike.

Municipal councils can “make or break” informal trade. It is within their competence to provide essential infrastructure such as water and toilets which protects traders and their customers. Provision of basic infrastructure like shelter and storage substantially reduces stock damage; and storage allows traders to increase stock levels. Access to electricity allows for more sophisticated trade. Provision of infrastructure creates a more functional and aesthetically pleasing environment for all users of public space. Yet numerous local markets are privately owned and funded, such as the Old Biscuit Mill in Woodstock, and the Blue Bird Garage in Muizenberg. These markets are examples of a growing international trend of neighbourhood markets capturing the imagination of the middle-class and more affluent consumers looking inward for hand-made quality goods and services that add value to their lifestyles. These are often referred to as lifestyle markets. The City is also home to some long-running flea markets such as the Milnerton Market and the Muizenberg Flea Market held on weekends and public holidays. These markets cater to the less affluent consumer often selling used goods, factory-shop rejects and cheap imported goods of dubious quality.

Given that the creative sectors tend to rely on customers with discretionary spending power, it is the lifestyle markets that offer good opportunities for exposure to customers and better returns for traders producing unique hand-made goods and services.

3.7 Spatial Economy and Social Exclusion

Cape Town’s comparative advantage in the tourist industry is tied to the city’s spectacular geographical and ecological features. Furthermore, the city’s image as a lifestyle destination is a key factor that attracts talented entrepreneurs to Cape Town. These individuals are crucial for the growth of the city’s creative industries and the boom in the ICT sector.

Social challenges have led to the existence of two cities within Cape Town. At is most stark characterization one city attracts capital and skilled labour, whereas the other city breeds crime and unemployment. The majority of the city’s low income communities live in the South-East.

The spatial design of the city’s economy is inefficient and inequitable. It traps the city’s economic opportunities and capital in the Northern area, whereas the majority of the city’s residents live in the South East. So while the City of Johannesburg might have a higher Gini- coefficient than Cape Town, the stark spatial geography (and therefore visibility) of inequality is more pronounced. This is disheartening for young people of a previously disadvantaged background growing up in the City.

Scholars have argued that persistent racial inequality in Cape Town is caused by deindustrialization that has led to high unemployment among blacks (Africans, coloureds and Indians) and the polarization of the occupational structure into a class of mostly white highly- paid managers and professionals and a class of mostly black low-paid service sector workers. Crankshaw demonstrated in a study published in 2010 that deindustrialization has not produced a large class of black low-wage service sector workers. Instead, it has produced a professionalizing occupational structure alongside high unemployment. He shows that although whites benefited from the growth of professional and managerial jobs, these occupations have been substantially de-racialised. The consequence for the racial geography of Cape Town is that the city is becoming divided into racially-mixed, middle-class neighbourhoods and black working-class neighbourhoods characterized by high unemployment. This more nuanced understanding of the spatial economy of Cape Town offers insight into future economic trends. For example we can infer that with continued in- migration of unskilled workers to Cape Town in a declining job market the extent of poverty in marginalized outlying townships will increase. This is despite improvement since 1994 in the provision of housing and services which reduce poverty, because the rate of in-migration outstrips the rate of jobs and service provision. Nonetheless statistics from the 2007 Community Survey do confirm a substantial slow-down in in-migration to Cape Town from all provinces of South Africa. On the more positive side we can infer that the suburban middle-class are growing and becoming steadily more de-racialised. This is the segment of the market that can afford discretionary spend on non-essential items and services being offered by the creative economy of Cape Town, as well as the sports and recreation sector. Both the creative economy and sports and recreation fit squarely within Cape Town as a life-style destination. The lifestyle of Cape Town is more than simply the natural resources such as the mountains and seaside. Clearly the ancillary economic activities connected to this, such as leisure tourism and adventure sports form part of the complex mix that makes Cape Town a highly attractive destination for both South Africans and foreigners.

Chapter 4: Creative Sector Profiles

4.1 Defining the Creative Industries

For the purposes of this report the creative economy sector profiles cover film, crafts, music, performing arts, visual arts, design, fashion design, and cultural tourism. These are the classic elements of South African definitions of the creative economy which are well represented in the economy of Cape Town.

The creative economy in OECD countries has grown at an annual rate that was more than twice that of the services industries and more than four times that of manufacturing in the last five years. Cape Town has developed a reputation as the creative hub of South Africa, attracting the country’s most talented individuals to live and work in the City. At a provincial level this has resulted in the establishment of a number of Special Purpose Vehicles (SPV’s) or Agencies to promote and develop the sector through practical implementation programmes. These are specifically the Cape Craft and Design Initiative, The Film Commission, the Fashion Council, and the Western Cape Furniture Design Initiative. 4.2 Film

The film industry is project-based with filmmakers – from director, scriptwriter, producer to editor and animator – working principally as freelancers, making it extremely difficult to get accurate employment figures. The Independent Producers Organisation (IPO) estimated production employment at 3,925 for South Africa in 2008. Depending on the nature of production, the number of people employed behind the camera varies from 40-50 (commercial or documentary) to 75-100 (feature films) to more than 1,500 (for larger productions lasting a few months). Using these estimates in 1997 there were 24 324 people directly employed across the entire value chain, while further jobs are stimulated in the transport, hospitality and catering industries closely aligned to film.

Cape Town is the second largest City in terms of the South African film industry. Specifically Cape Town is the preferred destination for stills and commercials which outstrip Gauteng. This is a specific niche within the film sector. The Cape Film Commission question these statistics and assert that feature film shot in Cape Town amounted to R5billion in the last financial year. They point out that major production companies like the BBC and National Geographic go uncounted in these statistics because they do not access the DTI grants of other local support structured.

The Cape Film Commission (CFC) The Cape Film Commission (CFC) is particularly active in the Western Cape film, television, commercials, video and stills photography production sector. It was established as a Section 21 company and plays a significant role in promoting the indigenous industry and acting as an interface between the industry and government. The CFC works with the NFVF to enhance incentive and support programmes. The Film Commission also works with the SETA to get funding for training projects locally.

The Film Commission confirm a shortage of skills in the film industry locally, even saying that Cape Town may have oversold itself as a film destination.

The Film Commission have been able to work with the World Film Collective to train 12 previously disadvantaged individuals to make documentary films using cell phone cameras. They also have a Youth Media Movement in Mitchells Plain. They teach 20-30 children how to make a film and then hold a film festival to judge the films. This is held during school holidays when children might otherwise get caught up in anti-social behaviour and crime associated with such areas.

The extent to which professional adults from previously disadvantaged backgrounds gain access to work in the local industry is of come concern. An international series starts filming in Cape Town toward the end of 2013 creating 200 new jobs, of which about 40% will be filled by PDI’s, ten of whom have come through the Film Commissions internship programme. However they note that often this figure is more like 5-10%. Their film liaison officers monitor productions that have permits to film from the City of Cape Town, and suggest that a PDI quota could be attached to the film permission and monitored by their officers. Currently the City of Cape Town has no quotas attached to the granting of filming permissions and permits.

In terms of education there are 2-3 good film and animation schools in the City according to the Film Commission. But these film schools also create unreasonable expectations and students expect to graduate and be able to go straight into the industry without working their way up from the bottom and learning on the job. Basic skills are also needed to adapt to the work environment, such as business skills and time-keeping.

In terms of future demand the projections of the Cape Film Commission are optimistic. They predict a growth of 30% in the next 3-5 years in the City film industry. However they note that a small number of established ‘old school’ film companies tend to dominate the market in Cape Town. These are reportedly family-owned businesses and competing with them as a new entrant is difficult.

The film value chains touch on many support industries such as catering, logistics, set design etc. Many of the work opportunities are not however in skilled trades and therefore often do not pay very well. It is in the specialist scarce skills that good opportunities for youth entering the industry lie.

4.2 Crafts

In South Africa, the Department of Trade and Industry’s Craft Sector Programme (Craft CSP), published in 2005, defines the sector as follows: “Craft refers to the creation and production of a broad range of utilitarian and decorative items produced on a small scale with hand processes being a significant part of the value- added content. The production of goods uses a range of natural and synthetic materials” (ACTAG, 2004).

The local market for South African products is showing strong growth and with an annual economic growth of between 3-4% annually and rising middle class with increasing disposable income, the local market is set to expand. The rise in local interest in South African craft is also attributed to a general trend towards African styles.

The sector contributes approximately R2 billion to GDP in retail sales, which represents approximately 0.14% of GDP, of which approximately R150 million is in export sales. Over the last 5 years, the number of production enterprises has increased by 40%, an average growth of 8% per year which is double the national average for economy growth. This growth can largely be attributed to two factors: growth in tourism visitor numbers which grew by 82% over the last 10 years; and the impact of interventions on the sector.

Recent estimates indicate that there are 5,725 full time craft production enterprises nationally, with a concentration in KwaZulu-Natal, the Western Cape and Gauteng. Craft retail takes place through just over 750 outlets nationally which include craft markets, galleries, small retailers and national chains. The latter has seen increased activity in the last 5 years although the bulk of these are in the provinces with greater urban-based populations and strong tourism economies such as Cape Town.

CCDI data In a recent state of the sector report by the Cape Craft and Design Initiative in 2013, a number of interesting findings were noted. The report notes positive indicators of a sector that is not only stabilised in the current economic climate, but is showing good signs of growth. The gender spread of CCDI work is largely with women and most are PDI. 70% of their work is in the Metro. They have 3617 craft enterprises on their books currently.

In summary, the 150 respondents to the 2013 ABS generated a total of R73.5m in annual turnover in the last year. The reported average of R7m in total monthly turnover for all of these companies broadly supports this figure. Ten percent (16) of these companies generate the most earnings of over R100k/month. Of the 150 companies, 41 reported a profit totalling R2.4m (an average of R59k per company) and 87 report a total asset base of R37.7m. The 150 respondents employ a total of 633 people. Of these, the majority (417) are permanent full-time jobs, with 98 part-time full-time jobs and 118 contract jobs. The data also shows that the majority of business owners earn from R4k-R15k a month which is a healthy income, way above the poverty and minimum-wage thresholds. The retail price range of products sits predominantly in the R90 – R250 range, although 40% of the least expensive products are under R50, while 53% of producers indicate that their most expensive products retail for more than R1,000/product. Lowest retail price ranges from R3.50 to R4k while the highest retail prices ranges for R10 to R150k. The sector in the Western Cape continues to outperform that in other provinces. The report notes some key features:  Growth in the establishment of new businesses both from a positive perspective where the sector is seen as viable for SMEs but also from a negative perspective where people have entered the sector because of the recession and job losses  Stability and longevity of businesses that appears to be greater than the average for small businesses in general.  Increasing formalisation of the sector with a majority of registered businesses, a quarter registered for VAT (minimum turnover) and a third registered as exporters.  Consistent and growing turnover withapproximately82% of craft businesses showing same or higher turnover than previous year and a proportional turnover range.  Stable and growing employment with approximately 80% of employment figures staying the same or having grown in the last year showing at least job retention and business stability in the recession. CCDI figures show the sector conservatively contributes 12,729 jobs in the province but this would need to be properly tested.  Relatively good wages with an average wage of above R2, 500 at minimum level and R7, 000 at high level.  Majority selling on to local or national retail indicating more stable and consistent businesses that are less reliant on direct-to-consumer sales.  Positive attitude to challenges of the sector and the impact of the recessionshows a fairly robust sector that is positive and tenacious.  Equitable spread across a number of factors (provincial, metro and race) which suggests the CCDI is representing and servicing a cross section of the population.  Uptake of communication technology is fairly high with 53% with email and 90% with cell phones. This represents potential opportunity for the development of mobile technology and programmes to encourage and build access to ICT.  Relatively high education levels with 63% with tertiary education.  A predominantly ‘mature’ age demographic which means greater potential for growth given the levels of experience and expertise required to navigate a business in a competitive environment.

CCDI and World Design Capital 2014 The opportunity of WDC2014 is a great one for the sector as all eyes will be on Cape Town and the creative industries for the next 24 months. The CCDI has developed two projects to tap in to this potential – a Beautiful Things: from tradition to modernity Exhibition and the development of a Handmade [Cape] accreditation system. They hope to raise funds to fulfil the promise of these two projects. We will return to the Design Capital opportunities in the section profiling Design initiatives more specifically.

Practical Opportunities for New Craft and Design Entrants The CCDI has a comprehensive programme of support to people with talent and ideas across three areas: a) Product support

The CCDI assist producers to take an idea to the prototype stage. They effectively mentor on a one-on-way basis through the R&D phase to product realization. Access to the support is free of charge and open to anyone with an idea. There is no selection process to exclude any ideas, and even hobbyists make use of the service although the CCDI emphasise income generation. A product developer works with the individuals discussing their ideas and taking the next steps onto fabrication based on specialist technical expertise. Where CCDI staff does not have the specialist knowledge in-house, they will bring in specialists. Key to their resources is the Fab lab, a facility housed on an entire floor of CCDI full of prototyping technology from later 3d cutters to printing technology, metal and woodwork workshops, computers for research etc. This is a fantastic resource for people who would otherwise never have access to such sophisticated technology and staff to guide them through using it. Users simply make an appointment a few days in advance so that staff can be assigned to work with the client on a one-on-one basis. The facility is restricted to the proto-typing or R&D phase as once the product is ready for production in greater volume the clients are passed on to the market so that new producers can get access to the lab. b) Business support

Clients are given foundational skills support for running a business, such as administration, pricing, compliance, product visioning, work experience, sales and negotiation, social media engagement and even creativity workshops. During this phase there is considerable training, mentoring and coaching on offer. This support is extremely valuable and unique, representing a fantastic opportunity to committed individuals in the craft and design sector. c) Market support

This part of the CCDI offering assists clients to access markets. The CCDI do not act as an agent directly, but they to link buyers and sellers through their database of producers. The CCDI assist clients to access selling platforms through targeting key trade fairs for example. Individual support is also available, for example problem-solving, subsidized access to platforms like the Design Indaba Expo.

The services of CCDI are free except for some nominal workshop costs typically R30 per day. They do offer a bursary programme. There is some selection in terms of market support as the incubation costs are high. Events also have limited space so the CCDI staff has a selection process. CCDI work with funding from sources such as DTI, SEDA and WESGRO to cover the cost of participation in shows and the like.

Youth and the CCDI Young designers are a significant part of the CCDI focus. Staff pointed out that young people have a fresh view of the world and are able to ‘think out the box’, which allows for greater creativity. The challenge for youth is that they lack life experience however.

The CCDI believe that a tertiary qualification is not vital to success in the craft and design sector. However the physical and ideological space of a structured programme facilitates skills development. They note that CPUT is including entrepreneurial skills into their curriculum. The CCDI point out that being part of the craft and design sector is a passion or a calling. It is not something that is classically financially rewarding and that making a living and enjoying the process is what attracts people to the sector. It is an exciting sector with innovation featuring strongly. Many products succeed because they are unique: “customers don’t know what they need until they see it”

4.3 Music

There are three unique components that comprise the music value chain.  The recording sector, which concerns the production and consumption of tangible music products such as CDs, cassette tapes, music videos and internet downloads.  The performance sector, which focuses on live performance which is the principal means of income generation for musicians in South African and the rest of the continent.  The multidisciplinary sector, where music is a component of a product or performance such as audio-visual material (film, theatre performance, commercials and tourism). In South Africa this definition is particularly important as most musicians do not earn a living from recorded music but rather from performance or working in other creative enterprises (theatre, film, commercials). Local artists that are most active in the live performance sector are also those who achieve the highest record sales.

An important niche market for South Africa and the other developing countries is the growth of World Music although it is still dominated by specialised record labels located primarily in Europe. The South African music industry has not yet benefited fully from the opportunity this growth represents for artists, composers or independent record labels.

Recording Industry of South Africa (RISA) figures show that music sales (local and international music) are topping the R1bn-a-year mark despite the rise of piracy and internet downloads. There is also significant growth in sales for local artists with sales of 11.7m units amounting to R383m in 2005, higher than the R349m sales in 2004. Sales of local music consistently accounted for more than 20% of the total value of music sales between 1997 and 2002 and reached 37% in 2004/5.

There are two local growth factors which offer promise for the music industry in Cape Town:  A growing number of tourists visiting the country from major music markets around the world, facilitated by access to information and music via the internet.  The continued growth and success of festivals as live music avenues.

In terms of direct support programme to young entrants to the sector there are however limited support programmes outside the tertiary education institutions such as FET colleges and universities. The Western Cape does not have an SPV to support the sector unlike film, craft and design for example. This translates into fewer opportunities for young people and greater barriers to entry into the professional music market in Cape Town. Nonetheless the appetite for live-music performance is present, with events like the Kirstenbosch summer concerts selling out regularly. Another significant event in the annual Jazz Festival held in the City which attracts large audiences.

The music industry was worth around R1.7 billion in sales nationally and ranked 17th in the world in 2007 according to DCAS. The music industry is labour intensive and has many economic multipliers with the potential to generate significantly more employment than it already does. The Gauteng province appears to be the centre of the South African music industry however, with Cape Town far behind in terms of employment and GDP. The provincial sector bodies do not include a music-related SPV, which reflects perhaps that lack of prioritization for this creative sector component of the industry locally.

4.4 The Performing Arts Sector

The performance arts sector deals with theatre, dance, orchestra, opera, music theatre to various multimedia performances and musical forms. The sector generally relies on some form of state subsidy given the high production costs, the lack of paying audiences and the operational costs of specialist venues such as theatres and opera houses. The core activities include the production and presentation of performances in theatres by both local and overseas art groups. In South Africa, the performing arts and dance comprises about 19% of the creative industries (CreateSA, 2003).

Dance is a relatively small sector with limited employment opportunities provided by a small number of companies although South Africa is well respected internationally for its dancers and choreographers, for example Robyn Orlin and BoyzieCekwana. Compared to many other arts practices, the commercial industry is also small and artistically limited. There is anecdotal evidence to suggest that performing arts audiences are declining and in the dance world, concern that contemporary dance is particularly affected. In general, dance artists undertake the highest number of years of training of all artists but tend to earn reasonably low incomes (PANSA, 2005).

Theatre According to research conducted by the Performing Arts Network of South Africa (PANSA) in 2005, there are approximately 100 theatres in South Africa offering 35 shows per year on average. Half (50%) are privately owned, 30% are supported by the three spheres of government and 20% are located within educational institutions.

As such, performing artists work on an irregular, self-employed basis, with periods of unemployment between engagements being a normal feature of their working lives. Their situation can perhaps more accurately be described as underemployment.

Relatively high numbers of performing artists are engaged in activities across the spectrum of their particular art, or also have jobs in other fields. Members of successful choirs and orchestras, for example, are often employed in quite different occupations and come together for rehearsals and performances. The nature of performing arts activities is not likely to change, particularly as funding is tight.

Consequently, the patterns of employment are likely to remain fragmented and intermittent. Training can help to prepare performing artists, and those who are considering a career in the performing arts, for the conditions of their employment, in particular, by developing business and organisational skills. At the same time, there are opportunities for those who can use their business skills to promote and organise the work of performing artists.

The majority of companies in this sector are small with a few companies with a staff complement of 20 and above. These tend to be the large state supported theatres such as Artscape in Cape Town. Even the larger commercial theatres have a staff complement of less than 10 employees.

Cape Town Initiative: Artscape Artscape is a nationally funded theatre with training and internships for talented youth in the performing arts. Work opportunities with Artscape may be prestigious but are seasonal relating to individual productions which have limited running times. Similarly touring with artists may bring in enough income to survive during the production, but there are considerable down-times when there is no work. The lack of stability along with demanding work hours forced people into more lucrative jobs in other sectors.

Other theatres like the Baxter and Fugard theatres can host productions but do not have in- house training programmes. Established artists with a show can access these theatres. For artists from previously disadvantaged areas their audience is not located in Rondebosch or the City bowl (Baxter and Fugard respectively), and they need theatre space within their communities in order to retain a local following and audience.

In South Africa, the performing arts sector as a whole depends on public funding and private sponsorship, and also on both public service and private/commercial broadcasting companies. The live performing arts also receive direct if small revenue from their audiences. The dependence on public funds and private sponsorship are very old European traditions, based on a complex web of beliefs about the value of the arts in terms of national prestige and their social benefits.

Community dance is a growing area of practice. There is a growing recognition of conditions for effective community dance work, including the benefits of long-term commitment (money and time). The practice includes but is much more rich and complex than the notion of audience development. It is recognised that as a sector dance is more community based than other art forms; youth or community dance participation may be a pathway into the industry.

With such a small network of organisations, most not terribly well resourced, the sector has limited employment opportunities and most work is on short-term contracts. There is a danger of the various companies being in competition rather than working together: and any schism between the “haves and have nots” is counter-productive.

4.5 The Visual Arts Sector

In visual arts, the individual (the artist) uses various elements or material to express his or her feelings, emotions and differing perceptions of the world that surrounds him or her. The result of this work is judged mainly by the sense of sight. Painting, drawing, sculpture in various materials, printmaking, photography, plans, maps, performance art, installation art, mail art, assemblage art, body art, textile arts, fashion design, multimedia, video art, web design, web art, digital art, graphic and product design are some expressions of visual arts (Kristafor and Budhram, 2003).

Visual artists generally perceive themselves as creative individuals, and not as business people. Their focus is much less on skill or craftsmanship, and more on artistic talent, creativity and aesthetic appreciation. They may have a formal education in the arts, or may be completely self-taught.

Arts workers tend to be a highly mobile class of worker, and are most commonly self- employed, offering their services in a highly competitive commercial market. The contemporary visual arts and craft sector is largely unregulated, and arts workers are generally unable to access the types of support other workers enjoy on a day-to-day basis. Within the sector there are high levels of volunteerism, and a general absence of employment-related benefits and union representation.

Galleries are generally privately-owned small businesses that operate on a commission basis, generally taking 35-50% of the sales of artists’ works. In addition, a few highly specialised companies, mainly based on Johannesburg and the Western Cape account for millions of Rands in art sales and auctions annually (DTI, 2005). Corporate collections are major sources of sales for artists, and companies like Sasol, Sanlam, Rand Merchant Bank, MTN, Standard Bank and ABSA have large curated collections. For artists, income is highly irregular and many depend on grant funding from various agencies to cover their costs while working towards an exhibition or a major opportunity to sell their work.

Since the sales of art are regarded as luxuries, they do well when the economy is on the rise, when individuals have disposable income. Internationally, art competitions, art residencies, prestigious biennales and art libraries (works of artists are bought and the public may lend these works to hang in their homes) are important sources of income for artists, or ways of developing new markets for their work.

Research into arts education has shown that: • There is a decline in the number of tertiary courses and increased specialisation, creating pressures on arts schools to increasingly provide niche education. • There are gaps in arts education which are not fulfilling professional needs and requirements.

Under-resourced schools tend not to offer art as a subject in high school, which denies talented young people the chance to develop their skills. The strong policy emphasis on maths and science in schools does come at the cost of other sectors such as the arts. FET colleges and universities offer a range of qualifications for students to become visual artists, however the applied arts offer easier access to a living wage over the visual arts. The visual arts are extremely competitive, with only the very best able to sustain a living in the sector. This makes it exclusive and highly individual.

Research shows there is an underdeveloped opportunity linked to tourism which Cape Town is well positioned to develop. The concept of art holidays has boomed internationally, but has not taken off in South Africa despite the rise in tourism. Art holidays are package tours created for international collectors and buyers to visit local galleries, museums and studios and to purchase art, but also to learn new skills if they are themselves are artists. Studio space could be provided for artists and this could make it attractive for their families and friends to follow as visitors. Scenic countries like Italy have been able to offer art holidays for many years as a way of rending the sector more financially sustainable for artists willing to teach and facilitate experiencing the arts for visitors.

4.6 Design

Design is a process of purposeful creative thinking, planning and work used to identify and make opportunities that lead to commercial and cultural advantage. Design gives tangible dimension, shape, colour, pattern and character to products, information, communications, spaces and services. It is a strategic means of making knowledge, technology and future orientated thinking accessible, understandable and “ownable” by end users. It is physical evidence of the integration of philosophy and action (Haythornthwaite, 2001 cited in Massey University, 2002).

Design is a significant contributor to the creative and broader economy by providing services, goods and outputs that increase economic competitiveness enrich and improve the quality of life and express cultural identity. Products, environments and communications produced as a result of design services generate overseas earnings and thus contribute to a growth in GDP.

Research conducted by the MAPPP-SETA in 2006 identified the following skills needs in the design sector: • Business management and administration. • Operations management including contract and intellectual property management. • Marketing and research. • Specialist skills, especially related to keeping abreast with developments in technology, presentation and product development (MAPPP-SETA, 2006). Cape Town as a life-style city of South Africa has long attracted some of the nation’s best designers.

Cape Town: World Design Capital 2014 With the launch in January 2013 of Cape Town Design, the not-for-profit company established to implement World Design Capital 2014, Cape Town's bid vision is now being translated into reality. Ideas and plans outlined in Cape Town's World Design Capital bid will become tangible through the collection and curation of a rich diversity of projects for inclusion in the official 2014 programme. The year long programme consists of a dynamic mix of design projects, activities, exhibitions and events that will bring to the public eye the range of innovative and creative services, processes,‐ products and objects that have been developed to transform lives. The project submissions are one aspect of the 2014 programme.

Cape Town’s World Design Capital 2014 bid theme – Live Design. Transform Life – focuses on the transformative power of design. Designers need to play an integral part in reimagining an inclusive city - a Cape Town that is rebuilt, reconnected, repositioned and ready for whatever the future holds.

The first call for WDC 2014 submissions was officially launched on 28 February 2013 at Design Indaba by Cape Town Executive Mayor, Patricia de Lille. Successful projects will receive official WDC 2014 recognition, endorsement and promotion. All and any, existing or conceptual, design-driven projects, products and ideas from across the African continent are eligible for submission. It's important to note that unfunded projects will need to raise their own sponsorships, since the WDC 2014 implementation company will focus on promoting and marketing projects but is not in a position to directly fund projects. This is unfortunate as many youth do not have access to resources to realize their projects in tangible ways. There is however some indication that good conceptual projects could be assisted to attract funding, should they be selected during the public submissions. The support service of the CCDI could dove-tail well with tangible ideas that can be taken to proto-type stage.

The first call for proposals saw 572 submissions. The second call closed end July 2013 and further calls are expected during the year. This is an opportunity for talented individuals to think creatively and pitch ideas, services and products in an environment focused on nurturing design that is inclusive and relevant to everyday lives. The event has the potential to popularize design and expose young people to a better organized design community that is working together for common public goals. Even if a person or group submits a project that is not selected, the learning and networking opportunities of the year-long programme are a great opportunity for exposure to a strong sector associated with the City. There are numerous projects and structures related to the bid which can also open doors for young people entering the creative economy, for example the Creative Cape Town network with all its events, plus annual events like the Design Indaba and support structures like the numerous government funded SPV’s set up to nurture design. These are specifically the Fashion Council, The Western Cape Furniture Initiative, The Film Commission and the Cape Craft and Design Initiative. Each of these organizations offer various kinds of support and representation of the sector, run events including training and competitions etc. These are very practical interventions where youth can participate.

In a research study completed in early 2009, Creative Cape Town found that of 1000 creative entities mapped in the central city, half are design oriented. These businesses are creating buildings, fashion, jewellery, furniture, advertising and ICT innovations, among other things. It can be argued that the large film and publishing sectors also make use of, showcase and influence design.

The Cape Peninsula University of Technology houses one of the largest design faculties in the country, including one of the only two industrial design programmes. Disciplines include fashion, surface design, interior design, multimedia and architectural technology. The Design and Informatics Departments here are merged recognising the synergies: for example, software programmes need interfaces designed, designers need software programmes. Other design-oriented schools in the City include the College of Cape Town, Red & Yellow, Vega Brand Communication, the Advertising College of Southern Africa, Inscape and City Varsity

On a more informal basis, the facilities at the Fab Lab at the Cape Craft and Design Institute helps developing designers problem-solve, allowing them to create 3D prototypes of their ideas. It offers software packages, a laser cutter, milling machines and more, and is the most design-oriented of the country’s six Fab Labs, which are usually used by engineering and electronics innovators. This valuable assistance with the R&D phase of product development can launch designers through a phase that is normally costly and protracted.

4.7 Fashion Design

The province of the Western Cape has a number of Special Purpose Vehicles for implementing support to priority sectors in the local economy. The Fashion Council is one such specific structure.

The Cape Fashion Council is a unique institution in the country with 1700 people as members in the value chain from clothing designers through to bloggers writing about fashion. The Fashion Council facebook page has 3700 members. Their largest public event is the Fashion Week held in Cape Town annually. According to the CEO Brian Ramkiliwan, the Fashion Council work with emerging designers to understand fashion as a business rather than as entertainment. They run 20-30 workshops per annum for designers to develop specialist skills such as pattern-making.

The Fashion Council offer a bridging programme in response to universities not teaching designers business skills such as tax compliancy etc. This is a six month process to ease newly qualified designers into the profession.

They also run emerging designer programmes with the private sector such as the Mr Price Elle rising star and Renault new star competitions, Forshini fashion awards etc. They started a fastrack programme in 2007 as part of fashion week where a day is devoted to talks about fashion careers. Their work is not limited to clothing but also visual merchandising. Although there is a strong design showing locally the fashion council has noticed a decline in manufacturing taking place locally. Production is occurring in places like Mauritius. The CEO attributes this in part to a lack of raw materials domestically. The textiles sector has declined massively over the last twenty years as subsidies were phased out and South Africa opened up to the highly competitive international market. Cheap imports of Chinese textiles and clothes have impacted on the local market. Product development is hampered by comparatively high local production costs.

The Fashion Council believe the mass market for cheap fashion is not the way forward for South African designers. They believe that the South African government needs to promote made in SA as a brand, tapping into the Ethical and Fair Trade movement to penetrate the European market especially. South Africa lacks the technology to compete with the international mass market. Instead they propose ‘hunting in packs’ as designers. By this they mean working in parallel to develop an SA design brand where there is some overlap giving coherency to the brand without contamination or copying.

The Fashion council point out the significant size of the informal market in fashion design, with prices and salaries in the informal sector no different to that of the formal sector. They assert that informal home-based work gives better ownership, pride and work flexibility when work and home are geographically close. However they note the difficulty in getting access to the market as international brands continue to enter into the local market. European brands like Mango, Topshopetc are penetrating the South African market more recently.

In terms of youth opportunities the Fashion Council lament the lack of exposure to design at schools and run outreach programmes even at primary school level. The Fashion Council have a service centre lab in their building offering technology and work stations for designers to produce items with the support of in-house expertise. This is a great opportunity for young people who would not otherwise have access to sewing machines, cutting technologies etc.

4.8 Cultural and Heritage Tourism

Cultural tourism can be defined as: “Tourism that facilitates an experience of the arts, culture, history, heritage, way of life, and uniqueness of people in a given region.” (ComMark Trust, 2005) Data from the South African Tourism Agency (SATOUR) shows that the country produces over 55 million trips, both domestically and internationally per annum. The ComMark report estimates that between R500 million and R1 billion is spent on the consumption of cultural products and services per annum nationally (ComMark Trust, 2005). It is thus a very large market for the creative industries that appears to be largely untapped in many sectors and regions.

It is important to note that there is delicate balance to be struck between exploiting the tourism market and being led by the market in this regard. Attempting to match cultural product and services purely to the tourism market can devalue the cultural, aesthetic and heritage importance of goods and services and critically alienate them from the local market.

The Department of Culture Arts and Sport did a study in the Western Cape to analyse and quantify the economic contribution and impact of heritage in the Western Cape in early 2010. The study analysed data from Robben Island, 8 national parks and botanical gardens, 24 provincial nature reserves, 29 museum and 2 visitor attractions. The study did not include private institutions which were reluctant to provide information. The study is an indicator of the relative performance of the heritage sector. In 2008/9 the direct income of the heritage sites studied amounted to R 176m and 716 people were directly employed.

4.9 Summary of sector profiles and their relative potential: 1. Film Value to Cape Town economy: R5 billion from feature films alone in 2012. Total including stills and commercials could well double that to R10 billion. Translating this into number of jobs would be guesswork given the variance of remuneration levels across the different skills needed in the film sector. Nonetheless the value chain is complex and varied, offering job opportunities largely in the lower paid bands such as catering and logistics. Growth prospects: Estimated at 30% over the next 3-5 years by the Cape Film Commission. This amounts to very strong growth prospects as long as the Rand remains weak against other currencies Immediate opportunities: Internships available through the Film Commission, funding for productions through DTI and the NFVA, co-operatives funding for capital equipment for groups of entrepreneurs Entry requirements and remuneration levels: Study is crucial for direct participation in the film industry and requires hard skills. The City is home to numerous reputable film and animation schools. Remuneration is low to begin with and students cannot expect to jump into work without first working their way up from the bottom

2. Crafts Value to Cape Town economy: No reliable statistics but worth R2 billion per annum nationally. Crafts benefit from tourism in the retail side, and can therefore be expected to mirror the performance of the tourism sector which is strong and growing in Cape Town. No reliable data is available for the number of jobs in Cape Town. Crafter may also be underemployed, complicating the parameters of what constitutes a job, especially when most craft work is in the informal sector (unrecorded) Growth prospects: 2011 and 2012 have seen 8% growth per annum which is above average. In addition a consistently growing turnover has been registered among CCDI clients, which attests to the effectiveness of their support services. Immediate opportunities: The product development support offered by CCDI is unique and highly valuable and deserves special mention. Design capital 2014 will be a year of events and exposure which new entrants will find inspiring. Training got the craft sector in short specialised courses can be accessed through CCDI. DTI co-operatives funding is also an avenue for capital inputs especially. Entry requirements and remuneration levels: Existing data shows that further education is the norm, however it is not a requirement for success. Low to medium wages have been recorded in the average range of R2500 to R7000 per month.

3. Music Value to Cape Town economy: No reliable statistics but worth R1.7 billion per annum nationally. Music also benefits from tourism in the heritage side. No reliable data is available for the number of jobs in Cape Town. Musicians may also be underemployed, complicating the parameters of what constitutes a job, especially when much music work is in the informal sector and intermittent Growth prospects: Recording sales are expected to be hurt by internet downloads, although measures are continually being sought to prevent piracy and protect intellectual property. Few artists are able to work in the music sector full time, unless they are the very top bands such as Gold Fish and Freshly Ground. These are both Cape Town bands with international success. Immediate opportunities: With no provincial sector support body or SPV the sector is not a key priority for government in the Western Cape. Gauteng has far more opportunities in the music sector with the main consumption in specialisations like gospel music. Entry requirements and remuneration levels: Music can be studied at FET colleges and universities in the Cape Town area. However further study is not a pre-requisite for success. Remuneration for part-timers is low and work intermittent. No reliable data for musicians pay is available. For extremely successful bands like Gold Fish the remuneration is much higher, however they are the exception to the rule. Disparities in earnings according to levels of success in the industry are stark. High levels of live performance correlates with success in music sales, so performing opportunities are key.

4. Performing Arts Value to Cape Town economy: estimated to be just over 1% of the creative economy in Cape Town, which is extremely small. The number of jobs counted in the sector does not even reach 1000. Growth prospects: Audiences declining and a lack of public funds is hurting the industry. The growth prospects are poor. Immediate opportunities: Artscape offers valuable training and internship programmes. More opportunities are to be found in Gauteng than Cape Town.

Entry requirements and remuneration levels: Many years of training is the norm in the performing arts, dance for example is 7 years. Remuneration levels are low, with average monthly earnings of under R5000 per month, and work highly intermittent. Most performers have other jobs to make ends meet or are severely underemployed

5. Visual Arts Value to Cape Town economy: No data was available, but the visual arts compose a relatively small component of the creative sector in the City. Data on the number of jobs is not available. Almost all visual artists are self-employed with intense periods of work leading up to showings. Growth prospects: As a luxury product the market is extremely small, but arguable recession- proof. The art market is high bifurcated into top-end pieces circulating in the market for good prices and a huge amount of low-end pieces often changing hands at below the cost of the materials input. The artists don’t always benefit from higher prices as their initial purchase price may be much lower than later prices achieved as collectors start to prize certain artists and rarity is a factor. Immediate opportunities: There is no provincial sector body support which reflects a lack of prioritisation of the sector, perhaps in favour of the applied arts such as design and craft. Galleries typically take 35-50% of sales, and are highly selective of which artists they host exhibitions for. Cape Town does not yet have an arts Bank unlike Gauteng. With corporate investors and sponsors a critical part of financial support Gauteng also has the edge over Cape Town with most companies having head offices in Johannesburg. Competitions such as the Standard Bank Young Artists award given annually are the kinds of rare opportunities for advancement among artists. Entry requirements and remuneration levels: Visual artists typically require four years of tertiary education. They can however be self-taught. There are many Universities and FET colleges in the City offer visual arts training. Few schools offer meaningful arts programmes to building up a portfolio for young people wanting to gain entry to study in important. The structure and rigour of arts courses allows for professional development to take place. Remuneration levels are typically low, highly variable and unreliable with most visual artists having to have another job such as teaching to make ends meet. Full-time artists find the cost of living and studio space in Cape Town prohibitive, which drives many into the surrounding countryside.

6. Design Value to Cape Town economy: No reliable data. However a study in 2009 found 500 design businesses in the city bowl alone. When design is considered at its widest definition, the size of the design-related economy in the City is large. No reliable data on the number of jobs in the city is available. Growth prospects: Growth prospects are good as the 2014 Design Capital year approaches. Hard data is difficult to access, however CCDI covers both craft and design. In 2011 and 2012 CCDI recorded an 8% growth rate per annum which is above average. In addition a consistently growing turnover has been registered among CCDI clients, which attests to the effectiveness of their support services. Immediate opportunities: The product development support offered by CCDI is unique and highly valuable and deserves special mention. Design capital 2014 will be a year of events and exposure which new entrants will find inspiring. Training for the design sector in short specialised courses can be accessed through CCDI. DTI co-operatives funding is also an avenue for capital inputs especially. Entry requirements and remuneration levels: Existing data shows that further education is the norm, however it is not a requirement for success. Low to medium wages have been recorded in the average range of R2500 to R7000 per month.

7. Fashion Design Value to Cape Town economy: Not quantified, but the Cape Fashion council has 1700 members in the City who are all working in the sector. The size of the sector is therefore considerable when compared to other creative arts like the visual arts, but probably not as large as the Design or craft sector. Fashion design is really a sub-sector of Design. The fashion design informal sector is estimated to be of equal size to the formal sector. Growth prospects: Fair growth prospects in the niche market of fair trade and locally-specific design. Manufacturing of clothing and accessories is declining domestically as production is moved off-shore to places like Mauritius. Cheap Chinese’s imports saturate the mass market at the lower end. Provincial prioritisation of the sector is evident through the creation and funding of the SPV sector body to support growth (Fashion Council itself). Immediate opportunities: The Fashion Council offers courses and a bridging programme, as well as a service centre lab to access technology and production innovation. They also run competitions in conjunction with the retail sector which are opportunities for youth to gain access to markets. Cape Town annual Fashion Week is highly successful and offers opportunities for new talent to break into the high-end market. The informal sector is sizeable, allowing flexible working conditions. Entry requirements and remuneration levels: Tertiary study is available at a number of Cape FET colleges, but designers can be self-taught. Many fashion designers are self- employed, and may work at numerous jobs to make ends meet. Unless designers are extremely successful they are unlikely to earn high incomes. There are exceptions to the rule, for example a famous designers like Errol Arendz hails from Cape Town and is widely renowned with an income to match.

8. Cultural and Heritage Tourism Value to Cape Town economy: Quantified nationally at R1billion per annum, but not disaggregated down to City level. Employment research shows under 1000 jobs in the culture and heritage tourism sector in Cape Town Growth prospects: Given the growth in tourism at about 10% per annum over the last two years, the prospects for growth look good. This is however, coming from a low base. Increasingly tourists are looking for an ‘authentic’ experience, which bodes well for new offerings in the market. External factors such as political instability and the volatility of the currency can adversely affect tourism, making it a vulnerable sector Immediate opportunities: Post World Cup growth in tourist numbers visiting the City Entry requirements and remuneration levels: Tertiary education is available at FET colleges in the City, but is not a pre-requisite for professions such as tour-guides. Remunerations levels can be good in season (R20 000 per month for a tour guide for example), but work is intermittent and dependent on seasons.

Chapter 5: Work in the Creative Industries

For individuals in the creative industries; whether contractual or full-time employees and whether working in the for-profit or not-for-profit sectors; employment conditions tend to be very difficult, characterised to a large degree by:

• Poor pay levels. • Excessively heavy workloads. • Lack of full-time work. • Overwork. • High performance expectations despite insufficient training and support. • The requirement to multi-function, leading to poorer quality work and crisis management. • Lack of opportunities for advancement. • Lack of security and benefits. • Devaluation by Boards, employers, government and the general public.

It is important to note a number of issues that impact significantly on the ability of the creative industries to recruit and retain high levels skills. Among these are working conditions which often are stressful because of the project based nature of work with strict deadlines and the lack of capacity, resources and equipment. Employment requirements are also demanding, particularly flexible specialisation and the expectation of a wide range of “soft skills”. The instability of organisations, given the small turnovers of organizations and the instability of the grant funding environment is another challenge. Turnover and mobility of experienced workers who are able to find more lucrative opportunities in other fields negatively affects the sector. The high attrition of cultural managers has been identified as due to working conditions, the lack of opportunities, limited compensation, little recognition and support and the lack of professional development opportunities.

Acute capacity problems face historically disadvantaged communities, especially those in rural areas, not least of which is the lack of adequate art curriculum and teacher training at school level.

5.1 Entry requirements

There are many in the creative industries that are self-taught or have been trained informally. Even those who have qualifications may continue to educate themselves as they push back particular boundaries in music and media for example. However, there are some fundamental skill issues that go across the different sub sectors of the creative industries. • Higher-level technical and creative skills are needed in all sectors. • Multi-skilled staff as well as specialists are needed in all sectors. • Business related skills are needed for enterprises to survive.

Arts workers need to constantly update their specialist art-form knowledge whilst keeping abreast of changes in such areas as government legislation (particularly copyright, data protection, health and safety and contract law), and new technology (particularly multimedia, digitisation, Internet opportunities and sound and lighting equipment).

5.2 Gaps in the Creative Sector

A table of hard to fill vacancies and scarce skills are annexed to this report, showing a detailed breakdown for each sector profile. In summary the following gaps are evident, which can assist youth in career planning and selection is study specialization: a) Film Hard to fill vacancies and scarce skills include PDI and women producers, production accountants, assistant directors, script and screen writers, PDI editors, continuity personnel and unit publicists. This is a wide range of skills across film, and can be studied as a specialisation in tertiary education in the city. b) Craft Hard to fill vacancies and scarce skills include product developers and designers, craft entrepreneurs agents and brokers, operations managers, technicians and specialist packers and shippers. The CCDI in the city is well placed to build these skills, bar specialist packers and shippers. c) Music Hard to fill vacancies and scarce skills include marketing managers, information technology specialists, specialised legal skills, financial managers, public relations professionals d) Performing Arts Hard to fill vacancies and scarce skills include physical theatre skills, entrepreneurial skills, business skills including occupational health and safety, new technologies and experience in managing community dance. The direct performance skills can be taught through City institutions like Artscape, and the more generalist skills through FET colleges. e) Visual arts Hard to fill vacancies and scarce skills include curators, managers, technical producers and art development specialists. The full range of business and entrepreneurial skills are also in short supply to the visual arts, for example financial management, marketing etc. These are support services to artists which are not necessarily filled by artistic persons. The standard further education options in business form a basis for breaking into this sector as a support specialist. f) Design Hard to fill vacancies and skills include entrepreneurial skills, finance, business skills, marketing research, production, quality control, product development, computer-aided design (CAD), negotiations and networking, career management. The CCDI builds many of these skills, while tertiary institutions like CPUT allow for study in CAD. The support services are usually entered into with basic business study such as a bachelor of commerce at a University. g) Fashion Design In common with the design sector, hard to fill vacancies and skills include entrepreneurial skills, finance, business skills, marketing research, production, quality control, product development, negotiations and networking, career management. The Fashion Council offers support in many of these functions and fashion can be studied at city Universities and FET colleges. h) Cultural and Heritage tourism Hard to fill vacancies and skills include heritage product developers, managers, tour guides, curators and outreach officers. FET colleges in the city of tourism studies, and at University level arts degrees in social anthropology, history and sociology for example can open up opportunities for jobs in the heritage sector such as in museums.

In addition skills issues for small businesses in the creative industries centre on the skills businesses need to survive. Many in the creative industries have creative talent, and are well established in their field, but they lack the following skills: • Marketing. • Distribution. • Legal knowledge, specifically an understanding of intellectual property. • Fundraising and sponsorship. • Public relations. • Research. • Project management.

5.3 Influences on Future Demands for Skills

There are a number of key drivers that will influence the future demand for skills in the creative economy, which include: • Economic factors. • Changing patterns of demand in the market place through local and export market growth. • Changing patterns of doing business. • Public subsidies for cultural activities.

The overall level of economic growth is a fundamental driver in the demand for the products and services provided by enterprises in creative industries. The overall demand for staff in the creative industries is clearly related to the overall health of the economy, with an assumed relationship in that the faster the rate of overall economic growth the greater the expansion of demand for staff. It is important to note that this is not a linear relationship in the creative industries. The pattern of increased demand will depend on changes in the pattern of that demand and the way in which companies do business.

Technological change is perhaps the most important driver of skill demand, which is changing the ways in which companies produce their output. The move towards digitisation means that there will be more digital communication between communication firms and their clients and much less face-to-face communication. This is particularly important because it increasingly means that certain services such as design, post production, editing and so on can be carried out anywhere in the world where prices are most competitive or where the creative skills base is concentrated. Often this new technology is expensive to invest in, but it is difficult to meet customer demands without its adoption. The pace of change is such that any new technology relatively soon becomes outdated. Smaller firms in particular are under enormous competitive pressure.

Many of the sub-sectors comprising the creative industries are heavily dependent on public sector investment. This is especially true for the heritage and performing arts sectors. Any growth in these sectors, and resultant demands for labour, are dependent on increased public sector investments.

The creative industries are typified by a few large companies and a large number of small organisations. In addition, the sectors covered have relatively high levels of "non-traditional” employment patterns, with flexible forms of employment contract often in use in the creative industries. Most make wide use of freelance workers.

Portfolio careers

The notion of a ”graduate level” job and a linear career path are no longer realistic expectations for the 21st century graduate in creative industries as many create their own enterprises, work on a freelance basis or work for SMMEs.

“Portfolio” based careers have complex career paths with individuals managing several jobs in different fields, often simultaneously. These careers emanate from or result in self- employment. In addition to the skills generally associated with the creative industries or individual sub-sectors, new entrants will require the ability to interact (i.e. communication, interpersonal skill and team work) and have personal capabilities including problem solving, analytic, critical and reflective ability, flexibility and adaptability as well as risk taking (Harvey, Locke and Morey, 2002).

In summary, the implications for the future are that graduates, whether working as employees, entrepreneurs or freelancers, will need to: • Network effectively to promote themselves and generate income opportunities. • Have the skills to plan their careers and manage diverse activities. • Be able to communicate effectively, manage interpersonal relationships and conduct research. • Integrate themselves into organisations in a very short space of time, work well with others and assume responsibility very early on in their careers. • Be able to manage time and work with very little input and supervision (Bell, 2003).

It is clear that continuous professional development, whether formal or informal is paramount to successful “portfolio” careers in the creative industries.

5.4 The Nature of Skills Supply

Enterprises in the creative industries most often get the people and skills that they need from other employers in the sector, or in closely related sectors. Most people who obtain a job do so from the position of already being employed. New entrants are obtained from a range of different sectors including: • Initial supply from formal education, although this will mainly be at degree level. • External supply sources, either through potential employees engaged in other occupations or sectors. • Existing employees able to acquire new skills.

Recruitment of people, particularly those who have come straight from the education system will generally be accompanied by some employer based training.

In general, despite a range of scarce and critical skills, the creative industries are oversupplied with new entrants in particular. Given the small business base however, some of these skills are absorbed into self-employment opportunities.

School arts education The overwhelming view of role players is that the arts, culture and heritage sector has low visibility and is perceived to be a “nice to have” in relation to the challenges of meeting basic needs. The view articulated repeatedly was that the implicit and explicit message from government is that mathematics and science matter most. Arts and Culture remains a neglected area in the school curriculum, despite commitments in the White Paper to a balanced curriculum.

In the case of school enrichment programmes for the arts there are clearly a number of exacerbating factors: • The historical absence of art from the curriculum in most schools: many schools are implementing arts and culture as part of the curriculum for the first time, without trained educators and appropriate resources. • The additional infrastructural and physical resource requirements of curricular and school enrichment programmes. • The complex demands placed on educators by the arts and culture curriculum (requiring the integration of multiple arts disciplines). • Lack of a specific policy framework for school enrichment programmes. • Lack of a co-ordinating body for arts and culture in schools

Higher Education As an increasingly high proportion of entrants into the media and creative industries are graduates, the higher education system is a key supplier of new people and skills into the sector. This number has decreased in the face of general policy and funding priorities shifting to a science and commerce focus.

It is important to note that there are sectoral variations in the nature of skills supply in the sector. In the design sector for example, the main avenues for education and training in the sector are private colleges, FET colleges, independent colleges and technikons. The same is true for film and television. The entry level starts from NQF 3 in some FET colleges and independent colleges to NQF level 4 in technikons and independent colleges. Courses range from 3 to four year diplomas. In the performing arts and music sectors, a similar picture emerges with education and training provided by FET colleges, technikons, HET institutions. In the craft and visual arts sectors, informal training is the primary source of skills.

An analysis of HEMIS data shows a consistent downward trend in arts discipline enrolments and completions across approximately 28 applicable fields. This is generally attributed to the low levels of financial aid available to human sciences in comparison to the business and core sciences.

Anecdotal evidence obtained from educators in both FET and HET sectors attribute this, and the low completion rates, to gradually declining funding for arts students in favour of those in scientific and commercial disciplines.

Employer-based training New entrants to the sectors, particularly those who have come straight from the education system but by no means exclusively these, will generally receive some employer-based training. At an overall level it would appear that the majority of enterprises do not engage in human resource planning and in addition, because of their small size and relatively low wage levels, most fall below the ceiling prescribed by the Skills Development Levies Act for mandatory levy contributions.

The weaknesses with existing training opportunities include a lack of awareness or knowledge of the value of what exists, the lack of format to meet the needs of creative industry career characteristics (including the high degree of self-employment), and a perceived lack of the value of training in the eyes of management.

The growth in education provision has led to large numbers of young people studying "relevant” courses, but there is concern about the quality of some of the courses. Anecdotal evidence shows that employers in the creative industries believe that there are too many courses and qualifications that do not have a direct link to occupations and workplaces.

5.5 Creative Sector Salient Features

The following characteristics have been identified across all the creative industries:

Enterprises and Organisations • Small and micro-enterprises predominate – the sectors are all comprised of micro and very- small enterprises employing fewer than 50 people. • The project-based nature of creative industries enterprises – the bulk of opportunities in the sector are one-off, isolated or commissioned projects or contracts that have a set duration and price. • Supply side emphasis – the sectors and development initiatives are dominated by enterprises involved in the production and origination of content; and education and training which supports the supply side of the value chain; by contrast there are far fewer enterprises involved in the distribution of content indicating a bottleneck in supply to markets. • It is a young and growing industry – most enterprises in the creative industries were established in the last 10 years and have not yet achieved stability. • Freelance & contract work predominates – given the inherent nature of the sectors much of the work is freelance, contract or piece based; most enterprises contract in up to 50% of capacity when needed; while this is a strength in that it allows for flexibility; it could also be a weakness hampering stability and development. • Many enterprises and organisations are self-sustaining but operate with low margins and often enterprises and organisations are overly reliant on government and international grant funding to survive. • In general levels of business skills are low – while the education levels of the creative owner-entrepreneurs are quite high, the low profitability of enterprises in the sector is partly attributable to the lack of key skills in marketing, entrepreneurship, management and general leadership. • Dependence on grant funding – large amounts of grant funding are disbursed across the sectors; this is necessary to support particularly the process of origination which can be costly and without immediate returns; however there are times when grant funding creates unnecessary dependencies which in turn can be paralysing. • Evidence of gender equity – the creative industries provide significant employment and management opportunities for women of all races. (DOL 2009)

Understanding the market for the creative sector

The largest gap in the knowledge base relates to the market for creative industries product and services in the local environment. This relates to consumption preferences and trends as well as audience development. These feedback loops are critical to the growth of the creative industries.

The major domestic sector markets for creative industry products and services are the tourism, services and retail sectors – all of which are showing significant growth in South Africa, in most cases above average national growth. There are a number of key challenges facing the creative industries: • Competition for discretionary income has never been greater in some sectors, and it is often difficult for locally produced work to compete with internationally produced work, such as films, created with large budgets. • Given the low income levels for creative workers in many sectors, a large number are dependent on income from other employment to support themselves. This reduces the overall capacity of the sector to create and innovate, with only the most dedicated managing to continue long enough to create viable careers. • There is a gap between the large number of graduates from arts and creative industries disciplines and the limited number of opportunities in the sector. • The small size of domestic markets for the products and services of the creative industries. • The unstable base of the creative industries given that most enterprises are small and micro that, in some sectors at least, have very low income levels. • The lack of co-ordination between government departments at levels in their development efforts. • The low levels of investment in the creative industries. • The lack of access to conventional business finance opportunities.

Current educational and vocational efforts tend to focus on the entry level to the market, and while the vocational aspects do include experiential training, it is clear that employers would like to see more and more experiential learning in the profile of potential applicants.

Chapter 6: Sports Sector Profiles

6.1 Background

Recent research commissioned by DCAS has shown that major opportunities exist to position sport and recreation as a sector with a comparative advantage in increasing economic growth and tourism as well as related employment and social development in a the Western Cape. The research investigation was commissioned by the Department of Cultural Affairs and Sport (DCAS) in the Western Cape and conducted in partnership with the Interdisciplinary Centre for Sport Science and Development (ICESSD) at the University of the Western Cape (UWC) in 2012. The Province is extremely well positioned to do so as a leading destination due to the natural resource-based economy. Numerous cross-sectoral linkages exist, also in other industries, such as hospitality and the cost competitive advantages that these sub-sectors have to offer. However, the report laments a dearth of relevant information resulting in a lack of evidence- based decision making on policy priorities and resource and budgetary allocations.

Although baseline information is scarce, information was gathered to show that sport and recreation and sport tourism are some of the fastest growing economic contributors in the Western Cape. The research estimates that the GDP contribution of sport and recreation to the Western Cape economy is at least 4.3%.

Sport and recreation in the Province are closely linked with sport and cultural events and the environment acts as pull-factor for tourism and the hospitality industry. The Province has a competitive edge in offering mega and large sport and recreation events as a destination. Cultural and community based sport and recreation events are seen as an important priority in the context of the weak and vulnerable socio-economic conditions that many Cape Town communities find themselves in.

Other than the large and popular spectator sport types such as rugby, cricket and soccer it was found that a critical mass of minority sport types hold substantive economic power and potential and warrant further attention. Sport and recreation types such as motor sport, golf, deep sea fishing and racing pigeons are shown to be of significant financial value, and it was found that emerging types of sport and recreation such as online computer gaming, social networking, as well as music and cultural festivals are growing fast and enjoy massive support.

Sport and recreation have a major impact on social development and impacts positively on health, education, human and social capital, and especially the youth. In local research it has now been proven that increased activity improves health and reduces health costs. The research has shown that sport and recreation act as a significant vehicle for skills training and education and various NGOs and the MOD Centres are making a significant difference in this respect. The Case for Sport study found that sport and recreation has a major impact on the youth and that considerable efforts are aimed at massification, talent management and the development of the youth. In this respect the recently completed Behaviour Change and Longitudinal Evaluation Study of the Department of Cultural Affairs and Sport (DCAS) that was conducted during March and June 2013 is regarded as a highly significant report as it contains valuable results-based on the MOD Programme. The Report showed that that the MOD Programme is achieving its objectives in terms of increased participation in sport and recreation at schools, that a substantive number of MOD participants were talent spotted and were receiving special support and opportunities.

A major finding of the study has been that participation rates of learners in physical activity in sport and recreation at schools in the Province was very low and the worst in the country in 2008 but that against this low base, massificationprogrammes in the Province have shown substantial impacts. The poor rate of participation by woman (66% not active) requires urgent attention. Research shows that NGO and Government efforts in this respect through the MOD centres, community events and by targeting specific sport types, such as netball, has been successful but that a major emphasis needs to be placed on efforts to encourage the youth to be more active and to increase participation in sport and recreation in future.

The Sport and Recreation industry in the Western Cape occupies and uses significant amounts of land and facilities in the Province. These facilities, in public and private hands, provide an economic base for productive activity, serve as social and safe spaces and act as environmental and nature-based zones, both in urban and rural environments.

Sport, recreation and leisure have by large, a positive impact on environmental issues and in the Western Cape several types of recreation and sport is directly linked to nature, climate and the environment. Specific sport and recreation types such as walking trails, mountain biking and beach activities contribute to environmental awareness. Some activities such as unauthorised biking, off-road motoring and illegal hunting damage the environment if not properly regulated and policed.

Although qualitative evidence exists that sport has a major impact on development, an urgent need exists for a systematic approach to record and interpret quantitative and statistical information on the socio-economic benefits of sport. Present national statistics do not capture information on this basis. In similar terms substantive employment is evident in sport, recreation and leisure but formal statistics do not reflect this reality. Furthermore, very few economic studies have been undertaken, other than the impacts of major events, of the micro economic dynamics of the various sport types, including upward and downward economic linkages and interfaces with the ‘formal’ and ‘informal economy’.

Other than sport for the sake of sport, sport and recreation have made a meaningful contribution to economic growth, employment, international and domestic financial investment and that sport and recreation was responsible for the flow of goods and services related to the sport industry

The report asserts that sport and recreation as well as leisure, if properly supported and managed, have a huge potential to improve the standard of living of our people and relates directly to physical and mental wellbeing as well as high development priorities such as employment and job creation.

6.2 Participation in Sport

Information gathered in a 2013 survey conducted in the Western Cape shows a wide range of sports practiced in the region (annexed to this report). What is evident from the statistics is that the largest levels of participation are in athletics, bowls, cycling, gymnastics, karate, rugby, football, chess and squash.

All participants involved with sport in the Province, whether registered or not, are estimated at 497, 881 people. It is estimated that the majority of these will be in the urban area of Cape Town where facilities and transport are more developed than the rural areas.

6.3 Sporting Types and Their Economic Contribution

The DCAS report argues that the combined effect of a number of minority sport and recreation types may far exceed the popular sport types with regards to economic worth and social development impact. In the case of racing pigeons for example, research shows that fanciers spend R65m annually on this sport in the Province and that assets in excess of R100m are evident. There are important linkages and interfaces with respect to sport, recreation and leisure on the one hand and sectors or functional areas such as tourism, ICT, the wine industry, the natural resource-base economy small business, entrepreneurial development and cultural activities. Specific outdoors and nature-based sport and recreation typesthat act as pull factors for tourism includes walking / nature trails, cycling and mountain biking, off-road biking and 4X4 motorsport, swimming and beach activities, surf boarding, and various forms of windsurfing and paragliding.

Tourism is a key economic sector for Cape Town. At least 25% of the contribution of tourism to the national GDP can be ascribed to sport tourism and it can be assumed that the Western Cape percentage is higher than the national average and most provinces, due to the many and large size of events hosted than most provinces.

6.4 Sport and Social Development

Skills programmes, leadership courses and HIV/Aids awareness programmes have now become prominent on sport and development initiatives. The recent DCAS research noted that a major factor in youth was the risky period between 14h30 and 17h30 in the afternoons when youth were finished at school and only saw their parents again in the early evening and where boredom and idleness set in. Sport and recreation activity during the afternoon periods during the week were regarded as a constructive force to address youth at risk issues.

Specific types of sport and recreation make a huge impact on the youth through development interventions. A significant amount of NGOs are using soccer programmes as a vehicle for skills development and other interventions largely due to the popularity and affordability of this sport (for example Dreamfields, Amandla, The SA Football Foundation and the MOD Centres). Chess has drawn the attention for the low-input costs that it requires vis-à-vis the substantive impact that it has on logical thinking, problem-solving and maths. Netball, dance and drama, arts as well as aerobics and gym provide special opportunities for girls and woman to become more active. Increased opportunities in female participation in soccer, rugby and some of the newly emerging field such as handball and canoeing are also emerging. 6.5 Quantifying the Contribution

In South Africa, annual sport-related spending is estimated as being in excess of R3 billion. In terms of sources of investment in the SA sport industry, sport participants were the majority (45%), followed by spectators (17%), commercial (17%), clubs (11%), controlling bodies 6% and local authorities (4%).

The 2013 DCAS report concludes that in the absence of any formal statistics for the contribution of sport and recreation in the Western Cape, and until these statistics are provided, it is estimated the contribution of sport to the Western Cape economy is at least 4.3%.(De Cooning 2013)

The research shows that whatever the reason, there is a universal increase in spending on sport that makes a strong business case for investment in sports goods and services. These typically include products such as sport clothing, footwear and equipment and services such as coaching and tuition, gym and fitness training and hospitality services. Procurement stimulates growth, for example the tracksuits used in school sport. Sport-related procurement holds an opportunity for related economic activity, mostly in the retail sector.

6.6 Employment in Sport

Current labour force statistics generally do not show people employed in sportas a separate industry. However DCAS primary research was carried out through a survey of sporting federations in the province that shows some useful findings.

Although figures for only 77 of the 110 sport federations in the Western Cape was collected, it shows that significant numbers of people are employed in the sporting industry and that substantive amounts of volunteers, in all probability more than in health, education or any other sector, are active in sport. These figures exclude recreation.

The research found 701 persons employed full time across the sporting codes surveyed, with 247 part-time. Part time volunteers was large, at 5 890, and full-time volunteers 446. The codes that stand out for significant numbers of jobs are bowls, tennis, cycling and sailing. Team sports which make use of sports facilities such as fields, requiring coaches and administrators are more likely to hold direct job creation in the sector. Sports offered at schools very often fit these characteristics: typically soccer, rugby and cricket for example.

6.7 Sporting Events

Following financial losses related to major events in especially the 1970’s and 1980’s internationally, heated debates on the cost-benefit of World Cup events, also in South Africa, it is now generally accepted that if planned properly, major events have significant benefits to host countries. Research shows that major events in countries are followed by significant increases in foreign visitors and tourists in subsequent years.

With the hosting of the 2010 FIFA World Cup in South Africa, contributions to real GDP was estimated at 10 billion by Bohlman and van Heerden form the University of Pretoria and at an original estimate by Grant Thornton. It was reported that thousands of jobs were created and that the improvement of new infrastructure was significant. It was expected that the improvement of transport infrastructure also improved longer term economic growth.

It is likely that Cape Town will continue to attract sporting events based on its infrastructure and capacity to host major events built up over years. The annually recurring events such as the Cape Argus Cycle Tour and the Two Oceans marathon offer opportunities for youth to gain work experience, even if just on a voluntary basis. This can often lead to further opportunities for paid work in the sector.

Chapter 7: Work in the Sports Sector

While the recent DCAS commissioned study of the contribution of sport to the Western Cape Economy was comprehensive in its coverage of the general contribution of sports and events, the study did not analyse the nature of work in the sporting sector directly. Data collected on work, both part and full-time across the sporting codes did not focus on vacancies, scarce skills and skills supply though education institutions. Nonetheless this research was able to identify some features of the sport sector and its related work that are worth exploring in terms of youth opportunities The overall level of economic growth is a fundamental driver in the demand for the products and services provided by enterprises in the sport sector. The overall demand for staff in the sport sector is clearly related to the overall health of the economy, with an assumed relationship in that the faster the rate of overall economic growth the greater the expansion of demand for staff.

7.1 Nature of Work

The sporting sector is closely associated with volunteerism in South Africa. Much of the work in the sporting sector is then unpaid and often seasonal-based work. Coaches for example in schools may have an employment contract related to the ‘season’, for example to rugby season or the cricket season. This is because these sports are played only at certain times of the year.

The work is therefore often intermittent and part-time, forcing workers to engage in more than one economic activity in order to make ends meet. Turning a hobby into a business is one way sports workers may try to sustain their participation in the sector. Skills issues for small businesses in the sport industries centre on the skills businesses need to survive. Many in the sport sector have abilities, and are well established in their field, but they lack the following skills: • Marketing. • Fundraising and sponsorship. • Public relations. • Project management.

The value of experience gained through volunteerism gives some youth the advantage over others that have not participated in the economy. As Janine Peterson told us “Young people expect to get paid, they want a salary. When I started I wanted to be a personal trainer, but the market is very limited. I realized I needed to do sports administration too.”

The Western Cape Provincial Government has initiated the MOD programme, with 181 centres at 164 schools in the Western Cape. About half of these are in the Cape Town area. These offer an after-school programme of sport and recreation, with dance and music to be introduced in future.

The MOD programme targets underprivileged schools providing paid coaches and sporting equipment. The schools provide the facility and infrastructure such as fields and courts. The coaches are usually unemployed youth who are part of a club or sometimes even attended the school where they now coach. There are now 500 coaches employed on a part-time basis. Junior coaches work 20hours a week and paid R3000 per month. Head coach’s work 40 hours a week and are paid R6000 per month. Coaches are also sent on training courses by DCAS, for example first aide and code-specific training. The aim is for part-time coaches to work for three years in the centres and then move on to permanent employment making space for a new intake of young coaches. DCAS admit that there is a need to create career pathways for unemployed youth to gain skills such as life skills and administrative skills.

7.2 Entry Requirements

Volunteerism is a stepping stone to employment as it builds general life and business skills in young people. However, hard skills to start a business are severely lacking in local communities. Formal training through tertiary institutions is regarded as vital to making a living in a sport-related field. The need for more short-courses by the sporting federations has been noted during this research.

Anecdotal evidence shows that coaches typically earn around R3500 per month at an entry level on a one year contract. Sports administration remuneration levels are similar. Coaches very often have more than one job to make ends meet. The seasonality of sport also means income fluctuates according to the time of year.

Entry-level to junior MOD centre coaches are matric and some sporting experience. Tertiary education is needed for the higher levels of sport employment. The top 46 MOD centres coaches also offer physical education as part of the school curriculum during the day.

7.3 Hard to Fill Vacancies

No publicly available data on hard to fill vacancies in the sporting sector could be found at the time of the research. The popularity of sport means that unless a specialist rare skill is required, few vacancies would be expected to exist within the sector. Respondents interviewed for this report noted a high turnover in sporting positions such as coaches, which they ascribed to the low remuneration levels forcing participants to find more stable work in other sectors.

A number of features of work in the sports sector are likely to cause vacancies: • Turnover and mobility of experienced workers who are able to find more lucrative opportunities in other fields. • Acute capacity problems facing historically disadvantaged communities, especially those in rural areas. 7.4 Skills Supply

Sports education begins at school level. The historic absence of formal sporting facilities and coaching at historically disadvantaged schools means that learners going on to make a career in sport are more likely to come from the better-resourced schools. Research on the quality of education in South Africa has shown the correlation between poverty, poor education, and unemployment referred to as the ‘poverty trap’.

Many schools do not have sufficient or appropriate facilities, equipment or materials for school sports programmes. In many cases, this situation would appear to primarily relate to the lack of financial resources to acquire and maintain a reasonable level of access to the basic infrastructure required to deliver effective programmes (Department of Education, 2004). The additional infrastructural and physical resource requirements of curricular and school enrichment programmes are seen as a luxury.

There are some grants and bursary programmes offered to young South Africans for sports study at a tertiary level (for example the SETA responsible for sport). Organisations like Ikamva Youth offer services to help learners access financial aid towards further study, as well as career guidance.

Chapter 8: Conclusions and Recommendations

It is apparent that there are growing opportunities in the creative sectors and sports within the Cape Town area which will continue to provide jobs and economic activity. This is despite the economic downturn which has placed pressure on all sectors of the economy. The continued decline of the manufacturing sector and the growth of the services sector has resulted in increasing professionalization of the work force in Cape Town. Skills are vital to work that returns a living wage as never before. Traditionally young people will look to tertiary education to provide them with skills to enter the world of work.

8.1 Tertiary education

Cape Town has a wide array of tertiary institutions catering for students specializing in the creative economy and sports. With three reputable Universities in close proximity, the extent of choice is considerable:  University of Cape Town  Stellenbosch University  University of the Western Cape

Tertiary institutions catering for students wishing to study in the creative or sports sector includes is the Cape Peninsula University of Technology.

There is a wealth of private institutions catering for the creative arts in Cape Town, including:  College of Cape Town  Red & Yellow  Vega Brand Communication  Advertising College of Southern Africa  Inscape  City Varsity  Artscape

This is indicative of the extent to which Cape Town is a creative hub of South Africa. Young people living in Cape Town are well positioned to study and make a career in the creative sector than other cities in South Africa.

Barriers to tertiary education include:  Low marks achieved in a failing school education system  Difficulties applying to tertiary institutions including application fees and complexity of forms which are considerable for disadvantaged youth  A lack of career guidance and information to help learners chose a course of study

NGO’s like Ikamva Youth play a valuable role in assisting high school students to achieve better marks, apply for bursaries and students aid, and apply for study at tertiary institutions. Their results indicate considerable success.

Ikamva Youth have an arrangement with UCT and the local FET colleges for their learner’s application fees to be waived. UWC charges R150 and CPUT R100 application fees. Ikamva Youth organization assists young people with how to apply for financial aid, and have a website where they post a wide array of opportunities for bursaries, grants and the like (www.ikamvanite) A specific problem to the Western Cape and Cape Town particularly for learners in previously disadvantaged areas is the proliferation of gangs. Gangs are territorial and violence involving youth is common. Learners have even been shot and killed while at school in Cape Town during 2013. High schools especially are a charged environment and where learners have no after-school activities the lure of gang participation is strong.

Once at a tertiary institution of study there are many other challenges facing previously disadvantaged students. For example:  School does not prepare learners for how to take notes in a lecture situation, and organise information clearly for future reference. While Universities do have student support programmes in place for these kinds of basic skills, it is sometimes difficult for young people to come forward and ask for help in an intimidating environment like a University  A lack of computer access and literacy at school level means that while some students are well prepared for the demands of study, previously disadvantaged students find themselves trying to catch-up with their counterparts from better resourced schools  Language skills are critical in that lectures and study occurs in English for the most part, where many students from previously disadvantaged backgrounds are using English as a second language. English comprehension and appropriate language use are a challenge in a young generation accustomed to communicating via informal abbreviated forms such as mixit and twitter which dumb-down language and suppress meaning. The widespread use of cell phones is in part to blame for this  How to assess information and acceptable referencing are important skills not well covered in under-resourced schools. Ill prepared students find themselves unable to differentiate between sources of data such as Wikipedia and formal academic published papers due to poor schooling. This is in part a consequence of the digital age in which the internet has replaced libraries as research locations. Analytical skills to discern reliable and unreliable sources of information are lacking in students with limited previous exposure to libraries  Conditions for study in poor households are challenging, for example the space and time for study at home is limited, there may be no electricity for study after dark for example  Distances from home and place of study mean considerable transport costs, and residence on campus is costly for students with few economic resources  Budgeting and financial management of grants received is a challenge to young people with little experience of handling money

In terms of financial aid Ikamva Youth report a large number of organizations and corporate wanting to disburse funds to students for further study. They report the challenge with their website portal for information in this regard is keeping it constantly updated. The National Student Financial Aid Scheme (NSFAS) is a source of financial support for a wide array of students wishing to study further. However there is a high degree of student drop-out after first year, the reasons most likely relate to the broader environment of the student than simply immediate cash constraints.

8.2 Other Avenues of Skills Development

Not all of the skills required in the economy come from tertiary education however. Tertiary qualifications need to be complemented with work experience. This can come through avenues such as internships, mentoring and volunteer work. Institutions like Artscape offer in-house training. The Cape Film Commission offers internships on local productions where students can get real exposure to a commercial film set.

Sector support bodies such as the CCDI offer short courses and one-on-one support for crafters and designers. Sector-specific opportunities are widespread and generally can be accessed through the organisational websites. In addition organisations like Ikamva Youth offer services to match up young people with opportunities. The NYDA report that many companies have internships and the organization is able to link up youth with these kinds of opportunities as part of their service.

Numerous respondents from specialist organisations reported that these opportunities are not always fully utilised by young people. There are instances where young people failed to attend events even after confirming, arrive late, leave early and generally do not display an appropriate business ethic which these professions are associated with. It would appear that the lack of exposure to the culture of work can result in young people not understanding the expectations of them, or not performing as society would expect them to. Just as higher education campuses can be a culture shock, so can the workplace. Proper communication and time to adjust is clearly needed.

8.3 Challenges for Youth Entering the Jobs Market

When youth reach to the point of applying for a job PDI youth face a unique set of challenges for example how to draft an acceptable Curriculum Vitae and present oneself in a formal interview. A lack of life skills and experience outside of the areas where they live impedes their ability to perform in the public eye. With a slow-down in economic growth and job scarcity young people may look to start as business as a way of earning a living. This has its own set of challenges.

8.4 The Informal Sector and Youth Entrepreneurs

Conventional wisdom holds that people first employed in a job are more likely to make a success of their own business than those that have never held a formal employment position. Effectively new entrants to the world of work need the time and space to learn, and with the high rate of failure of new business this is simply too tight. Most new business fail within the first year of operation in South Africa, which is attributable to a wide array of factors impeding entrepreneurs. The optimal age of an entrepreneur is reportedly 40 years of age. Cumulatively these observations point to youth being particularly poorly placed to start a business. The National Youth Development Agency (NYDA) define youth as between 18 and 35 years old for micro-finance purposes. They work with clients to address five areas of support that entrepreneurs need:  Technical skills for the chosen business  Business management skills  Access to markets  Mentorship support  Access to finance

The NYDA report that youth often turn to starting a business only after exhausting opportunities to study or get a formal job. Entrepreneurship is often a last resort rather than a first choice. Not surprisingly there is a high incidence of copy-cat businesses as young people lack fresh ideas, and many businesses fit into the survivalist mode such as street fruit sellers. For youth with a talent for the arts or a passion for sport this seems to be a waste of potential. The NYDA offer a business idea generation workshop for people who do not know what they want to do yet.

The NYDA also offer short training courses for entrepreneurs as well as loan finance ranging from R1500 to R100 000. Until recently the loan was secured by a salaried person signing surety, but with poor results on loan repayments they are now shifting to finance start-up grants without repayment. Businesses in disadvantaged areas often fail for reasons such as theft, owner mismanagement and pure saturation of the market. Cell phone containers are an example of a now oversupplied market which has resulted in the devaluing of the hard infrastructure (containers themselves). Containers which cost R30 000 to purchase are now worth R5000. This is an example of the negative consequences of the copy-cat business.

Encouraging youth into starting a small business can sometimes leave them financially worse off than when they started. Therefore extensive specialist support would seem to be more successful than quick generalist support offered by government agencies struggling to make a positive impact.

8.5 Relative Size of Opportunities in Terms of Available Jobs and Growth Potential

It would appear that the potential for growth and jobs in the City of Cape Town in the creative sectors are high in the subsectors of film, craft and design. Medium or intermediate potential for growth and jobs is apparent in fashion design, culture and heritage subsectors. Low potential for growth and jobs is evident in the music, performing arts and visual arts subsectors.

Within the sporting sector it is the sporting codes that utilise grounds, coaches and administrators that create job opportunities. These tend to be the traditional sports offered at schools such as athletics, rugby, soccer/football, and cricket. However statistics show that participation is concentrated in golf, tennis, bowls, athletics, cycling, gymnastics, karate, rugby, football, chess and squash. The largest number of jobs are created in bowls, tennis, cycling and sailing. The MOD centres funded and managed by DCAS are a major opportunity for school coaching jobs. 8.6 Successes and Recommendations

Based on the research undertaken and the advice of industry specialists, there are a number of specific recommendations that can be put forward. While many respondents pointed to the need for changing the entire living environment of youth to effectively improve their ability to enter the world of work, many of these macro challenges are so vast that it is difficult to know here to start (such as ending poverty and transforming the entire education system).

These recommendations are based on past interventions that have been shown to have an impact as well as fresh ideas proposed by industry experts:

 Tutoring and mentoring at high school level The work done by organisations like Ikamva Youth have yielded significant results in improving learner’s marks and improving their ability to access further study on that basis

 Career exhibitions and expo’s Young people need exposure to information in order to make informed choices about what careers to follow. Career guidance can be obtained from organisations like the NYDA. But of greater impact seems to be the success of career exhibitions and expos when learners meet practising professionals and can ask questions about their field on a personal level.

 Internships, work experience and mentoring These real opportunities for exposure to work situations may not always run smoothly as this research has shown. A major shortcoming seems to be the gap between expectations and reality, which could be overcome by better communication up-front when designing these opportunities and disseminating information. Youth also need to commit to these opportunities and apply themselves in order to ensure that corporates and organisations are not disappointed with the apparent lack of work ethic or enthusiasm among some participants. Patience and a willingness to start at the bottom seem to be key ingredients which respondents raised as shortcomings of youth taking part in such opportunities.

 Competitions and incentives for exceptional performance Talent needs to be recognised in order to be nurtured. Resources put toward encouraging youth to participate, compete and excel can open doors to new career paths and build confidence of individuals. Communities will also start to value their talented youth more as they see how society values their contribution more broadly. The Design Capital 2014 calls for submissions will be a good test of the potential of this approach

 Volunteering to get work experience In order to break into the world of work young people may need to do volunteer work in which they can build up experience, be exposed to industry contacts and become aware of available opportunities.

 Expectations of qualified students need to be realistic Many respondents blamed further education institutions for creating unrealistic expectations among students that they would be able to get a job straight after graduating. Competing education institutions may be ‘talking-up’ their courses and offerings to attract students and thereby creating unrealised expectations of employability

 Bridging programmes Bridging programmes appear to be needed at two transitional points. One is in the transition from a poor high school education system into further education such as Universities and FET colleges, and the other is from tertiary institutions into the world of work. Especially where specialist scarce skills are identified such as in the film industry, work can be done to ensure a better match between industry needs and available expertise.

Financial aid alone cannot solve the difficulties of adjusting to campus life. Student support needs to deal with broader basic issues including life-skills such as budgeting and planning

 Services matching youth with opportunities and jobs South Africa does not have central jobs placement programme linked to unemployment offices unlike many other developed countries. A fragmented private sector often fills this gap, but works more with the established career professional where they can make money off the cut paid by industry to HR firms for successful placements.

 Informal economy support and facilitation The City of Cape Town has some way to go toward improving its informal trading policy and practise. Municipalities control a significant amount of access to markets and public space which can make the difference in the ‘second economy’. Scholars have argued that embracing the informal sector is an important starting point.

 Empowering youth to turn their passion into a business and charge accordingly It is often said that communities value that which they pay for. By empowering youth to treat their abilities like a business and charge for their services, communities will come to value them more and see the economic potential of talent-based work.

 Targeted enterprise support When good ideas are developed into businesses the support around business skills, proto- typing or R&D, marketing, management and communication can be quite effective. However when copy-cat businesses or those based on a poor business model are supported with interventions like micro-finance, youth may end up in a worse financial position than when they started

 Out of season work placement and training Many of the creative, sports and tourism sectors have busy and slow seasons. This means there are periods where workers have more time and fewer funds available to support themselves. During this time short-courses could be offered and attended to retain economic activity in the down-time. The sector specialist industry bodies would be a in a good to broker and provide this facilitation function.

 Affordable live and work spaces for incubation of creative talent In some countries facilities exist to support talented people to live and work in a suitable space, such as a studio and flat in the same building. Grants and financial aid can be offered to give young people a chance to dedicate themselves to their professional development without having to travel far between work and home and face the attendant security concerns which high crime levels cause. Gang violence is of particular concern in the Cape Town area. With a strong creative presence in the CBD as mapped by Creative Cape Town the sense of community and peer learning would be greatly enhanced by opening up affordable space in the city bowl for new talent. An example of successful state-funded incubation is the Cape IT Initiative with its ‘Bandwidth Barn’ in Woodstock.

 Quota’s for filming permission from the City to ensure better rates of participation for previously disadvantaged individuals The strong and growing film sector in Cape Town uses public space and assets to benefit private sector industry without attaching any special conditions such as quota’s for work given to PDI’s. The Cape Film Commission already has liaison officers monitoring adherence to regulations and could simply add this to their tasks

 Specialist public-sector funded sector body support Focused organisations like the CCDI, Fashion Council and Film Commission are tasked with practical implementation of government policy to grow priority sectors in the economy. Their work in training, business development, marketing, technical support and product development move talented individuals along the road toward fulfilling careers in the industry. They play a vital support role that strengthens the value chain within the sectors. Without organisations like these there would be little means to implement policy objectives. These institutions embody the instruments of policy implementation.  Third party specialist functions in the value chain A common problem across the creative sector profiles is the difficulty of individuals to excel in all aspects of running a business, including marketing, distribution, negotiation, financial management, administration and compliance etc. There is some evidence that these functions can be carried out by a third party instead of trying to create “all-rounders” and expect artists to spend more time on these related functions than the creative core of their work. The matter is however complicated. There are dangers in exposing creative people to the free market where middle-men may exploit artists for profit. There is a danger of loss of control where many different functions are outsourced to a third party. In some ways the public sector is better placed to undertake these functions in an altruistic fashion, such as how CCDI currently support artists. CCDI are however loath to create a situation where artists become dependent on their services and fail to build internal skills that create sustainable and independent businesses and jobs.

In terms of the performing arts, the lack of agents based in Cape Town townships has been noted. The niche for spotting and nurturing PDI talent where people actually live is clear. City bowl-based agents and managers are far removed from townships both geographically and conceptually. This is a consequence of the special geography of inequality in Cape Town.

 Collective procurement and other measures to exploit economies of scale The creative arts are particularly individualistic in terms of the nature of work in the sector. This mitigates against collective input procurement through structures such as cooperatives. Collaboration through loose association structures such as Creative Cape Town have however shown considerable results. This could be further developed to take advantage of economies of scale in activities such as procurement of inputs, specialist packaging and shipping services, training and specialist capacity-building provision etc. The arts are typically not unionised or organised in the way other professions are, limiting their collective bargaining power. The sector body support vehicles organised as SPV’s by the Western Cape Government play this role to some extent. They could be further developed to play this role on the initiative of artists themselves.

 Ratio of time spent on creative production relative to delivering product to the market There is some evidence to suggest that artists are in danger of spending large amounts of time in the non-creative aspects of working in the arts sector, which could be better performed by others with abilities in these fields. Artists may be pulled in various directions with competing demands for their time distracting them from the original intention of their passion for the arts. This observation supports the notion that third party support can play a meaningful role in freeing up artists time to concentrate on where their talents lie.  Local platforms for performance to be closer to the mass market The lack of theatres or other performance platforms in the townships where the mass market lies is a barrier to growth in this market. It has been suggested that facilities such as sports stadiums could be used to play multiple functions, including as theatres. This requires further planning and integration of events such as sporting matches to take advantage of the full leisure and entertainment continuum.

 Events organising There is a strong link between events and opportunities for creative outlets which also build community spirit. The more events are organised, the more exposure and economic activity is generated. This supports the priority of the City to host events, but should not be limited to large international events. Smaller local events bring opportunities to disadvantaged communities and have a significant economic impact.

In conclusion South Africa and Cape Town has a youthful population, which is growing at a faster rate than jobs are being created. This means that more and more young people are entering the jobs market and competing for a smaller number of jobs each year. For individuals this means that getting the edge over other candidates in a recruitment environment is vital. Most often this means acquiring a tertiary qualification as well as work experience.

For society as a whole this means that unless economic opportunities outside the formal employment sector can absorb talented youth, a lost generation will emerge. This is likely to cause severe social instability which threatens the sustainability of the economy and society.

The talent-based professions carry considerable prestige but often not the financial remuneration to match. For this reason many experts advise that pursuing a career in a sector like sports or the arts is a calling, in which passion is the sustaining ingredient. Youth entering into these professions should be informed of this from the outset, so as not to be disappointed later on. These professions do not encourage mediocrity, and are thus extremely demanding. The competitive nature of the professions is not for the faint hearted. The value chains they touch on are arguably less individually competitive and offer opportunities for sustained contact with the sector. Many job opportunities in the support sector to arts, sports and culture are needed. The courses of study for these are the mainstream business and commerce courses and degrees, with work experience leading to specialisation in supporting the arts, culture and sports sectors. References

Crankshaw, O 2012. Deindustrialization, Professionalization and Racial Inequality in Cape Town, 1980-2010. Published in 2012 in Urban Affairs Review 48(6), pp.836-862

Department of Cultural Affairs and Sport Western Cape ANNUAL PERFORMANCE PLAN 2013/14

World Design Capital webpage

Department of Culture And Sport National, 2011 Mzansi’s Golden Economy: Contribution of the Arts, Culture and Heritage Sector to the New Growth Path

Department of Labour, 2008. THE CREATIVE INDUSTRIES IN SOUTH AFRICA Sector Studies Research Project: MARCH 2008 (HSRC, DPRU, SWOP)

City of Cape Town, 2009. Detailed Economic Sector Analysis Review. ECONOMIC, SOCIAL DEVELOPMENT & TOURISM DIRECTORATE ECONOMIC & HUMAN DEVELOPMENT DEPARTMENT October 2009

Statistics South Africa, 2009. Standard Industrial Classification of all Economic Activities. Seventh Edition

Skinner, C 2013. The Informal Economy: Current Realities. Cape Town Informal Trading Summit 20 March 2013. African Centre for Cities, UCT

CCDI 2012. Trends, Opportunities and Challenges: State of the Sector Report March 2012

CCDI 2013. Trends, Opportunities and Challenges: State of the Sector Report March 2013

Stats SA, 06 May 2013 QUARTERLY LABOUR FORCE SURVEY: Quarter 1 (January to March), 2013. PRESS STATEMENT

Nicholas Spaull, 2013. South Africa’s Education Crisis: The quality of education in South Africa 1994-2011. January 2013

De Cooning, C. 2013. THE CASE FOR SPORT IN THE WESTERN CAPE: SOCIO- ECONOMIC BENEFITS AND IMPACTS OF SPORT AND RECREATION Results of a research investigation undertaken by the Interdisciplinary Centre of Excellence for Sport Science and Development (ICESSD) University of the Western Cape and The Department of Cultural Affairs and Sport (DCAS) Spaull, N et al. Stellenbosch University, 2011. Low quality education as a poverty trap. March 2011

National Department of Basic Education, 2012. National Senior Certificate Examination Technical Report.

Annex A: Key Informants

List of Key Informant Interviews

Ben Sanders Mass Participation, Opportunity and Access, Development and Growth (MOD) Janine Petersen Western Province Sports Council Bryan Ramkiliwan Cape Town Fashion Council Sarah Polonski Cape Craft and Design Institute Thessa Boss The Fringe Francisca Gebert Cape Town Creative Academy NicoCloette Equal Education NicSpaull Equal Education-Stellenbosch Professor Cristo De Conning UWC consultant to Department of Cultural Affairs and Sport Steven Curry National Youth Development Agency NoluthandoHermanus Former Artscape student Liesel Bakker Ikamva Youth Denis Lillie Cape Film Commission Theresa Massaglia Virgin Active Tammy Job Spier Academy Latecia Hendricks (responded to interview Cape Town Routes Unlimited questionnaire in writing) Annex B: List of key website resources:

Ikamva Youth study finance site: http://ikamvanitezone.org/bursaries Creative Cape Town network: http://www.creativecapetown.net/ Cape Craft and Design Institute: http://www.ccdi.org.za/ Cape Film Commission: http://www.capefilmcommission.co.za/ Cape Town Fashion Council: http://ctfc.co.za/ The Fringe Innovation District: http://thefringe.org.za/ The Biscuit Mill lifestyle market: http://www.theoldbiscuitmill.co.za/ Hout Bay Harbour lifestyle market: http://www.bayharbour.co.za/ Blue Bird Garage lifestyles market Muizenberg: http://www.bluebirdmarket.co.za/ City of Cape Town networking resource for jobs and entrepreneurs: http://www.capetownactiva.com/ Design Capital 2014: http://www.capetown2014.co.za/ National Youth Development Agency: http://www.nyda.gov.za/nydabranch/Pages/WesternCape.aspx Small Enterprise Development Agency: http://www.seda.org.za/Pages/Home.aspx The National Student Financial Aid Scheme: http://www.nsfas.org.za/ Western Cape Department of Culture, Arts and Sport: http://www.westerncape.gov.za/dept/cas Cape Peninsula University of Technology: http://www.cput.ac.za/ University of Cape Town:https://www.uct.ac.za/ University of Stellenbosch: http://www.sun.ac.za/english University of the Western Cape: http://www.uwc.ac.za/Pages/default.aspx City Varsity School of Media and Creative Arts: http://www.cityvarsity.co.za/homepage.php Red and Yellow School: http://www.redandyellow.co.za/home.php Inscape Design College: http://www.inscape.co.za/ Vega School of Brand Leadership: http://www.vegaschool.com/ Artscape Theatre: http://www.artscape.co.za/ Annex C: Data Tables

Scarce skills:

Annex C: Participation in Sport in the Western Cape