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Regional Focus - Unlocking Economic Potential
North West’s Roadmap To growth and Job Creation
By Jessie Taylor
The North West province of South Africa, often referred to as the “Platinum Province” due to its rich mineral deposits, stands as a beacon of economic potential within the nation. Beyond its renowned mining sector, the province offers a diverse array of opportunities across agriculture, tourism, manufacturing, and renewable energy. The recent establishment of the Economic and Investment Advisory Council (EIAC) underscores the provincial government’s commitment to harnessing these opportunities for inclusive growth and sustainable development.
Tackling Economic Challenges
Despite the province’s earning potential, it faces one of the highest unemployment rates in the country, above 50%. The North West contributes around 6% to South Africa’s national Gross Domestic
Product (GDP), with the mining sector accounting for 33% of the provincial output. However, the North West is not solely defined by its mining activities; it boasts a multifaceted economy with substantial contributions from agriculture, tourism, and manufacturing.
Premier Lazarus Kagiso Mokgosi announced the formation of the Economic and Investment Advisory Council (EIAC) to navigate the province towards sustainable economic development.
The Council is tasked with guiding the provincial government in implementing the Provincial Growth and Development Strategy (PGDS) and developing sector-based plans to drive inclusive growth, reduce unemployment, and address inequalities.
Premier Mokgosi emphasized the Council’s role, stating, “Central to the work of the Economic and Investment Advisory Council (EIAC) will be to guide the provincial government in the implementation of the Provincial Growth and Development Strategy (PGDS) and to develop sector-based plans to drive inclusive growth, and reducing unemployment and inequalities.”
The EIAC comprises experts from various sectors, including academia, business, and civil society, ensuring a comprehensive approach to economic planning. Premier Mokgosi highlighted the Council’s autonomy, noting that it is “free to robustly review any economic policy/plan, whose implementation will not translate to any improvement to the situation.”
Premier Mokgosi said labour force statistics “paint a grim picture about the standard of living” in the province.
“We are facing a provincial emergency of disastrous proportions which challenges us to expedite intervention measures aimed at finding solutions to our ailing economy and the poverty afflicting our provincial population,” he said.
He said the composition of the Council is intended to facilitate cooperation and collaboration across economic sectors.
“Government alone will not achieve much. We are limited by the constraints of our fiscal size in comparison to other provinces. Over 60% of our provincial budget is consumed internally through funding government administrative costs and salaries. However, we have a great potential as a province to revive our economy, industries and create jobs,” said Premier Mokgosi.
Focus on Economic Growth
Among the focuses of the Council are the agricultural sector and tourism. “If we introduce correct policies and plans, the agricultural industry is expected to attract investments to the tune of over R10 billion, followed by the construction sector at R6.6. This will result in the creation of over 50 000 job opportunities,” the Premier said.
Agriculture remains a cornerstone of the North West’s economy. The province is renowned for its grain and livestock farming, contributing significantly to both provincial and national food security. The fertile lands and favourable climate conditions make it ideal for cultivating various crops and rearing livestock.
There are substantial opportunities for investment in agro-processing industries, which can add value to raw agricultural products and create employment opportunities in rural areas. By focusing on agro-processing, the province can enhance its agricultural value chain, ensuring that the benefits of agriculture extend beyond primary production.
Tourism in the North West province is a vital component of its economy, contributing to revenue generation and employment. While specific provincial data is limited, national statistics highlight the sector’s importance and potential for growth. By addressing challenges and leveraging its unique attractions, the North West province can enhance its tourism sector, leading to increased economic benefits and job creation for its residents.
The Premier said: “There are opportunities to revive and harness the diverse offerings of our tourism industry which could leverage an annual growth rate of 5% by 2030 with a potential investment value of R39 billion where over 100 000 jobs could be created.”
Despite its abundant resources and strategic initiatives, the North West province faces challenges such as infrastructure development, skills shortages, and the need for increased investment. Addressing these issues requires collaborative efforts between the government, private sector, and communities.
The establishment of the EIAC represents a proactive step towards creating a conducive environment for economic growth. By leveraging the province’s strengths in mining, agriculture, tourism, and renewable energy, and by implementing strategic guidance from the EIAC, the North West province is poised to unlock its full economic potential, fostering prosperity for all its residents.
