We can, and we will, bounce back in the Western Cape

Today (20 October 2020), Western Cape Minister of Finance and Economic Opportunities, David Maynier, tabled the Western Cape Provincial Economic Review and Outlook 2020 (PERO) and the Municipal Economic Review and Outlook 2020 (MERO) in the provincial parliament in the Western Cape.

The PERO and the MERO are world-class annual research publications produced by Provincial Treasury, aimed at informing policy-makers, departments and municipalities on key economic trends and developments in the Western Cape.

What the PERO and MERO tells us is that the Covid-19 pandemic has caused a major setback to the economy in the Western Cape.

The PERO and MERO forecast a slow recovery in economic growth in the Western Cape, but also that the provincial economy will grow at a faster rate than the national economy in South Africa.

Overall, the economy in the Western Cape is expected to grow at an average annual rate of 1.0% between 2020 and 2024, while the rest of South Africa is expected to grow at an average annual rate of 0.7% between 2020 and 2024.

The PERO and MERO outline the considerable challenges we face as a result of pre-existing risks such as an unstable national economy with increasingly unsustainable debt levels, load-shedding, and the continued burden of failing zombie State-Owned Enterprises like South African Airways, together with new risks as a result of the Covid-19 pandemic.

But the PERO and MERO also outline the many opportunities for investment and growth that have emerged in sectors such as agriculture and agri-processing, business process outsourcing and the green economy, as well as in our regional districts.

We can, and we will bounce back in the Western Cape.

However, we must face the fact that too many people don’t have jobs, too many people are victims of crime, especially violent crime, and too many people are poor and cannot meet their basic needs in the Western Cape.

Which is why, Premier Alan Winde has announced a new set of post-Covid 19 priorities – to deliver “Jobs”, “Safety” and “Dignity” which together form the pillars of the recovery plan in the Western Cape.

And so, we look forward to Premier Alan Winde’s special provincial address later this week where he will outline the tough decisions necessary to deliver jobs, to deliver safety and to deliver dignity in the Western Cape.