The DA-run Western Cape is positioning itself for the day when the ANC government is no longer calling the shots at a national level. There have been two recent developments that underscore the province’s breakaway mentality.
The first was the tabling in the provincial parliament of the Western Cape Provincial Powers Bill. It aims for greater provincial autonomy by seeking the devolution of additional powers from the national government in areas where the latter is failing — policing, energy, trade and ports and public transport.
The second was the launch last week of the province’s Growth for Jobs (G4J) strategy which sets out its blueprint to become SA’s main economic hub by 2035. The province aims to grow 3.5% on average over the coming decade, increasing its size 40% to become a R1-trillion economy by 2035.
But unless the DA becomes part of a national coalition that unseats the ANC in the 2024 elections, and deepens federal autonomy, I’m not optimistic about the province’s odds of achieving breakout growth. After all, for the past decade, the province’s economic growth rate of 1.2% has been only slightly ahead of the national average of 1%.
The problem is not just the drag from national factors such as load-shedding, weak confidence and a failing criminal justice system. The most immediate constraint on the province is inadequate economic infrastructure, which is under the direct control of national departments and state-owned enterprises.
The province is increasing spending on things such as roads, sewerage works, digital connectivity and renewable energy generation but its ability to do so is constrained by the fact that most of its funding comes from the national government. Given the country’s fiscal constraints, the province barely gets enough funding to cover its growing population’s basic needs, let alone shoot for the stars.
Anyway, what it really needs is to get control over Cape Town’s inefficient harbour from Transnet, or at least persuade it to introduce a private ports operator as has been done in Durban. It also needs devolved control over passenger rail from the utterly hopeless Passenger Rail Service of SA (Prasa), so that it can get its workforce moving efficiently again.
But, like all provinces, the Western Cape’s mandate is largely limited to providing education and healthcare — hardly areas that can catalyse a new growth path. Without more levers under its control, and bigger budgets, it is hard to see how the province can decouple from the rest of the country economically anytime soon. This is why the Provincial Powers Bill is so important.
But again, the constitution makes it clear that the assignment of powers must be done by the national government; a province has no right to claim them. So, when police minister Bheki Cele says Western Cape premier Alan Winde will only get policing powers over his dead body, it puts rather a spanner in the works.
Still, one thing about the G4J plan is cause for cautious optimism — it seeks to leverage the private sector’s capabilities in every way possible.
At the heart of the plan is the understanding that it is the private sector that creates jobs. (When President Cyril Ramaphosa said this his party immediately forced him to walk back his comments). The DA has no such ambivalence. It believes the government’s role is to make life as easy as possible for firms by creating an enabling environment. This means providing foundational infrastructure, slashing red tape, and acting in partnership wherever possible.
It is a recipe the national government has mostly shunned. The Western Cape is a test case of what may be possible when the two spheres actively work together. Forging collaborations is Winde’s superpower, but he faces an uphill battle in trying to turn the province into a land of milk and honey amid a cesspool of vice and avarice. He is going to need all the help he can get.
• Bisseker is a Financial Mail assistant editor.
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