The West Coast region is situated along the Atlantic Ocean and borders on the Cape Metropole in the south. The Cederberg mountains form the boundary in the east and the region borders on the North Western Cape in the north. The region covers a total of 31 099sqkm.

The district comprises five municipalities and a District Management Area (DMA). The five municipalities are:

• Swartland Municipality
• Bergrivier Municipality
• Matzikama Municipality
• Cederberg Municipality
• Saldanha Bay Municipality 

Key issues and principles for economic development in the West Coast DM
The West Coast region is the second largest contributor to the provincial GGP, after the City of Cape Town Metropole. The West Coast in fact outperformed the Western Cape in terms of growth in production over the short and long term while maintaining a lower than average unemployment rate. 

These positive indicators do, however, hide some economic downfalls that are in need of attention if the region is to flourish further:

• A high GINI coefficient suggests that the distribution of wealth in the region is skewed, which explains the disproportionately high percentage of people that earn less than R1000 per month.
• The economy is dominated by two sectors, manufacturing and agriculture, leaving it perhaps prone to any unforeseen crises in either or both of these.
• The region as a whole does not meet the high level of education exhibited by the rest of the Western Cape.

To combat these shortcomings, the following principles were laid out in the economic development strategy:

• Economic development should be driven by local and external market forces, and must be aimed at long term viability and sustainability of economic activities.
• Economic development should be aimed at areas where there a high degree of agglomeration, implying already-established areas of industry and business should be built upon to make use of the existing infrastructure and service structures.
• Economic development should focus on empowering the local communities through education, training and skills development.
• Economic development should be aimed at diversifying the economic base of the region to reduce the amount of dependence on remains a limited number of employers.
• Economic should create employment opportunities and be conducive to economic growth and poverty alleviation.

Key contributing sectors in the WCDM

Agriculture
The agriculture industry in the West Coast comprises:

• Wheat
• Canola
• Olives
• Grapes and wine
• Rooibos tea
• Fynbos
• Fruit farming
• Livestock
• Vegetable production

At present wheat constitutes a significant part of the total farming activities on the West Coast, and in the Swartland Region, known as the province’s breadbasket, in particular. The region produces approximately 300 to 400 000 tons of wheat per annum.

Approximately 8 000 hectares of land is cultivated for canola in the West Coast. This does not meet the local demand however, with the result that canola seeds and other products are imported from international sources.

The fact that South Africa still imports many olive oil products does suggest though that opportunities exist for agro-processing and the manufacture of olive oil products.

The region's winelands are as scenic and as fertile as anywhere else in the province, producing wine and table grapes for the local and export markets.
Rooibos tea is indigenous to the west coast of South Africa. Between five and six thousand tons are produce per annum, but the region has the potential to produce up to 20 000 tons per annum which, with smart marketing, could see huge potential for international growth.

Apples, peaches, pears, grapes, prunes, apricots and figs occur predominantly in the region. Opportunities in the industry exist in exporting, especially to Europe and the Far East, as well as in fruit processing projects locally.

Animal products contribute 45.3% o the agricultural income, including poultry, fresh milk and dairy products, cattle meat, sheep meat and pork and pig products.

The region has excellent potential for the small scale production of vegetables for the export market to Europe. The climate and seasonal availability give the reason a great competitive advantage.

Fishing
Fishing has been a part of life on the West Coast for centuries. It is perhaps more than a part of life, it is a way of life.

Currently, the industry consists of five sub-sectors:

• Deep-sea fishing
• Pelagic fishing
• Rock lobster fishing
• Line fishing
• Mariculture

Fishing is a primary sector, which relies on natural resources. But it does provide various backward and forward linkages and several opportunities arise within these: backward linkages such as fishing and boating equipment, and harbour infrastructure; and forward linkages such as processing and packaging of various products.

The area with the highest growth potential in the region is in value-added processing and expansion into new fishing and mariculture activities. Traditional industry is limited, and so small scale operators must find niche products and markets to exploit.

The areas within the fishing industry with the best potential for growth include:

• Commercial abalone cultivation
• Commercial abalone packaging
• Commercial mussel farming
• Commercial oyster farming
• Partnerships for abalone, mussel and oyster packaging and processing operations

Mining
Although some mining activities occur in the region, the mining sector is not one of the West Coast’s dominant economic sectors. It is, however, considered to be important due to the linkages that exist between this sector and the manufacturing sector.

The following deposits are found in the West Coast:

• Limestone
• Building sand and clay
• Sandstone
• Diamonds
• Gypsum
• Salt
• Granite and marble
• Tungsten
• Kaolin
• Phosphate

The major linkages between the mining sector and other sectors such as manufacturing are transport, to the ports at Saldanha and Cape Town, and in slag and coal processing plants between the mine and the point of departure at Saldanha.

Apart from these processing and transport linkages, the only commercial mining opportunity with real potential for development is commercial mining for building sand and clay.

Manufacturing
The manufacturing sector is the second most prominent economic sector in the municipality, contributing roughly 37% of the region GGP. Unfortunately, the sector is not very labour intensive.

There are three major types of manufacturing activities which occur on the West Coast:

• Agro-processing
• Fish or marine resource processing
• Mineral processing

Because manufacturing is a secondary industry, relying as it does on natural resources and other inputs, there are a number of forward linkages to the sector. These include infrastructure development, mineral resources, tourism, construction and services and labour.

Areas in this sector that have strong prediction presently and exhibit potential for growth include:

• Food processing
• Chemical products
• Non-metallic mineral products
• Iron and basic steel industries
• Non-ferrous metal industries
• Metal products
• Machinery
• Electrical machinery
• Other manufacturing

Within these areas, the following economic development opportunities exist:

• Small scale processing of dairy products
• Small scale preservation of fruit and vegetables
• Commercial preparation of animal feeds
• Commercial and small scale processing of goods on farms
• Commercial production of fertiliser and pesticides
• Commercial production of petroleum refineries and petroleum products
• Commercial and small-scale downstream activities from iron and steel basic industries
• Commercial production of other fabricated metals
• Commercial production of special industry machinery
• Commercial production of other non electrical machinery
• Commercial production of radio, television and communication
• Small scale production of jewellery

Retail, trade and tourism
The relatively small population size of the region is a limiting factor on the trade and services sectors and therefore results in a low level of diversification and specialisation. This is the case in wholesale and retail, but should not also be the case for tourism. Tourism should be actively promoted, to a market based outside of the municipality, to act as a balance against the other activities occurring on the West Coast.

The attraction of the West Coast is as much a cultural thing as anything else. The region offers scenery and style that is unique. The problems standing in the way of the industry, and herein lie the opportunities for development, are in the availability and quality of transport, the nature of seasonality, and a fragmented and inconsistent set-up, with no central organisation of the industry as a whole,

Other sectors
Other sectors that have traditionally not been strong in the region, but that are exhibiting exciting growth include the construction sector, the transport sector and the utilities sector.

The construction sector is the major growth sector here, as infrastructure and residential developments move out of the metropolitan area around Cape Town to the South. While the industry does bring employment opportunities and will benefit local suppliers, the fix is often only a temporary one, and means are needs to ensure that benefits last and development is sustainable.

For more information on the West Coast District Municipality and the opportunities available please contact Mr Marthinus Boois by email on mboois@wcdm.co.za or by tel: +27 22 433 8530.