Langeberg Local Economic Development Strategy Compiled by HS Business Solutions May 2018 Langeberg Local Economic Development Strategy May 2018 Table of Contents List of Tables ............................................................................................................ 8 List of Figures ........................................................................................................ 10 List of acronyms and abbreviations ..................................................................... 13 1. Introduction ..................................................................................................... 18 2. Purpose and Objectives ................................................................................. 19 3. Methodology .................................................................................................... 21 3.1. Approach.................................................................................................... 21 3.2. Data collection ........................................................................................... 21 3.2.1. Primary data .................................................................................................................... 22 3.2.2. Secondary data ............................................................................................................... 23 3.3. Analysis of data .......................................................................................... 24 3.3.1. Analysis of primary data .................................................................................................. 24 3.3.2. Analysis of secondary data ............................................................................................. 24 3.4. Formulation of the LED strategy ................................................................ 24 3.5. Validity and Reliability of the research ....................................................... 25 4. Structure of the report .................................................................................... 27 4.1. Factors of production ................................................................................. 27 4.1.1. Human Capital (Labour) .................................................................................................. 27 4.1.2. Entrepreneurship ............................................................................................................. 27 4.1.3. Capital ............................................................................................................................. 28 4.1.4. Natural Resources (Rural Development) ........................................................................ 28 4.2. Contents of the report: ............................................................................... 28 5. Economics, Economic Growth and Economic Development ...................... 30 5.1. The Quantity and Quality of the four production factors in South Africa ..... 31 5.1.1. Human Capital and Entrepreneurship ............................................................................. 31 5.1.2. Capital ............................................................................................................................. 32 5.1.3. Land and natural resources ............................................................................................. 32 5.2. Economic Growth versus Economic Development .................................... 33 6. The principles of Local Economic Development .......................................... 34 7. Regulatory Framework ................................................................................... 39 7.1. Introduction ................................................................................................ 39 7.2. National Level ............................................................................................ 40 7.2.1. The Constitution (1996) ................................................................................................... 40 7.2.2. The White Paper on Local Government (1998) .............................................................. 40 7.2.3. National Spatial Development Framework (2006) .......................................................... 40 1 HS Business Solutions Langeberg Local Economic Development Strategy May 2018 7.2.4. The Municipal Structures and Municipal Systems Acts (1998)(2000) ............................ 40 7.2.5. National Framework for Local Economic Development (2006-2011) ............................. 41 7.2.6. New Growth Path (2010-2020) ........................................................................................ 41 7.2.7. Spatial Planning and Land Use Management Act (2013) ............................................... 42 7.2.8. Comprehensive Rural Development Programme (CRDP) 2009 ..................................... 43 7.3. Provincial Level .......................................................................................... 43 7.3.1. Western Cape Provincial Strategic Plan (2014-2019)..................................................... 43 7.3.2. Provincial Spatial Development Framework (WCPSDF) (2014) ..................................... 43 7.3.3. Western Cape Province Growth and Development Strategy (Ikapa GDS) (2007) ......... 44 7.3.4. Western Cape Infrastructure Framework (2013) ............................................................. 44 7.4. Local government level .............................................................................. 44 7.4.1. By-laws ............................................................................................................................ 44 7.4.2. Policies of the Municipality .............................................................................................. 45 8. Municipality’s Legislative Mandate ............................................................... 46 8.1. Policy, legislative and strategic framework: tourism (the interface between Local Government and the Tourism sector) ........................................................... 47 9. National, Provincial and Regional Planning Framework ............................. 49 9.1. Provincial Strategic goals ........................................................................... 53 9.2. Strategic goals as per Langeberg IDP 2017/2022 ..................................... 55 10. Brief Background of Langeberg Local Municipality ................................. 57 11. Human Capital (Labour) .............................................................................. 60 11.1. Demographic profile of Langeberg Local Municipality ................................ 60 11.1.1. Population size and growth ............................................................................................. 60 11.1.2. Number of households .................................................................................................... 62 11.1.3. Population composition ................................................................................................... 64 11.1.4. Dependency ratio ............................................................................................................ 64 11.1.5. Human Development ....................................................................................................... 65 11.1.6. Health .............................................................................................................................. 66 11.1.7. Education ......................................................................................................................... 71 11.1.8. Income ............................................................................................................................. 74 11.1.9. Safety and Security ......................................................................................................... 85 11.1.10. Farmworkers ............................................................................................................... 86 11.2. Stakeholder Feedback ............................................................................... 87 11.3. Objectives .................................................................................................. 92 11.4. Conclusion: ................................................................................................ 92 12. Economic Profile: Langeberg Local Municipality ..................................... 94 12.1. Economic Growth ....................................................................................... 94 12.2. GDP per capita (per person) ...................................................................... 95 12.3. Gross Domestic Product of a Region (GDPR) ........................................... 96 2 HS Business Solutions Langeberg Local Economic Development Strategy May 2018 12.4. Equality of the economy ............................................................................. 99 12.5. Structure of the Economy......................................................................... 101 12.5.1. National Economy ......................................................................................................... 102 12.5.2. The structure of Langeberg Local Municipality’s economy ........................................... 102 12.5.3. Gross Value Added ....................................................................................................... 105 12.5.4. Employment ..................................................................................................................