Efforts should be redoubled to jumpstart the economy, Winde says

Alan Winde, Western Cape Premier. Picture: ARMAND HOUGH/INDEPENDENT NEWSPAPERS

Alan Winde, Western Cape Premier. Picture: ARMAND HOUGH/INDEPENDENT NEWSPAPERS

Published Sep 7, 2024

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Cape Town - To grow the economy both nationally and provincially much faster, efforts should be redoubled.

Premier of the Western Cape, Alan Winde, made this comment after a Western Cape Government (WCG) cabinet meeting.

Winde chaired the meeting on Wednesday where the cabinet received a presentation on the WCG's proposed approach to the upcoming budgetary process.

The provincial Treasury is already hard at work preparing the province's Medium-Term Budget Policy Statement and the 2024/25 Adjustments Budget.

Winde said that the country's economy only grew by 0.4% in the second quarter of the 2024/25 financial year.

“If we are going to succeed as a country and a province, we must double down on our efforts to grow the economy much faster.

“It has been an exceptionally difficult time for our province and country from a financial perspective. In-year budget cuts forced on us by national government are placing our finances under immense pressure, impacting front line services,” he said.

The Provincial Treasury will work closely with provincial departments to explore alternative funding options.

“We must continue to push the implementation of Operation Vulindlela to unlock the considerable potential of the province and country's logistics sector,” Winde said.

“If we get this right, we can achieve much higher economic growth and more jobs.” However, ANC leader of the opposition in the legislature, Khalid Sayed, described the premier's reflection on the cabinet meeting as a staggering disconnect from the urgent crisis plaguing the Western Cape.

According to him, there has been a 21% increase in killings, and the cutting of almost 2 000 teaching positions for the 2025 school year has left residents terrified and in a panic.

“To show the nonchalant attitude for poor and working-class communities, the cabinet did not reflect on these challenges. The lack of attention given to these pressing matters is not just negligent, it's downright irresponsible,” Sayed said.

The Provincial Treasury has drafted the Provincial Economic Review and Outlook (PERO) 2024, which is being distributed for review and feedback before its official release.

This yearly publication's goal is to educate and advise departments, municipalities, and policymakers on significant economic and socio-economic trends and patterns that will influence budgeting, planning, and policy.

The cabinet decided to broaden the mandate of the Western Cape Energy Council, which was established during the peak of the load-shedding emergency last year.

Cabinet also opted to create the Western Cape Energy and Water Council, which is an integrated council.

Good party secretary-general Brett Herron said the local government had not paid enough attention to the impact of climate change on the province and its residents.

“If the expanded council starts to prepare a comprehensive climate change and resilience plan, then that would be welcome.

“We have seen the devastating impact of extreme weather events in recent months and every year for the past eight to 10 years,” he said.

Herron said that the WCG was known for making announcements that have no follow-through, citing the disappearance of the economic war room and the silence of the safety cabinet as examples.