Local Economic Development (LED) Strategy

A comprehensive Economic Development Strategy was approved by Council in 2021 and an Economic Recovery Plan due to Covid-19 was also developed and approved. Both strategies have been incorporated to ensure a single approved strategy.

The purpose of LED is to enhance economic growth to ensure an improvement in the quality of life for all its residents firstly and secondly to enhance the revenue of the municipality. It is a process where the public sector, business and non-governmental sector collectively apply focussed attention and energy to create an environment conducive for economic growth and employment generation and improve the sustainability of the local economy based on a local competitive and comparative economic profile.

One of the national perspectives for economic development is the distinction between the First Economy, the Second Economy and the Third Economy and as LED is a mechanism to reduce poverty systematically through all these 3 levels, clearly defined short term to long term interventions are required. It will also be critical to clearly identify the beneficiaries per strategy as the focus will necessarily have to be on all levels: from SMME development, enterprise development, a focus on ensuring that no retention on existing businesses occurs and to direct job creation.

The main objectives of the LED strategy are therefore:

1. To provide a situational analysis of the economy of Bergrivier to serve as baseline information for the LED strategy;

2. To define and describe the institutional mechanism for implementation; and

3. To identify and describe potential short-term projects to commence with a process towards achieving the strategic objective of LED.

In working towards achieving the LED objectives, the following points of departure in the drafting of the strategy, include:

1. It must be realistic and be able to manage expectations;

2. Stakeholders’ participation must be by choice;

3. Over ambitious plans tend to result in LED losing credibility; and

4. The identified strategy and plans must be able to meet with available resources and capacity for implementation.

The initiatives for a LED Strategy led to the establishment of the Bergrivier Economic Development Forum. The BEDF is a collaborative platform between the municipality, corporative business sector and strategic shareholders. Several strategic partners have also been identified and relationships have deepened over the last few months. Challenges with the LED Strategy remain an inability to implement it on a continuous basis due to a lack of capacity. For the purposes of the IDP, it is important to summarize again the competitive advantages and disadvantages of Bergrivier:

The competitive advantages and disadvantages of specific sectors namely, Agriculture (and agro processing) and Tourism (inland and coastal) was also assessed.

Agriculture (and agro processing)

COMPETITIVE ADVANTAGES

• Agriculture

• Tourism which also contributes to retirement

• N7 feet and wheels is a major advantage that should be utilised to benefit the local economy.

• R27 (end of West Coast road) feet and wheels (Velddrif) is of major advantage.

• The local retail centre is growing fast.

• Bergrivier Municipality has a developmental mind set

• Good quality crops in table grapes, wheat, rooibos, berries, fruits and other are yielded.

• Well established business for export markets exists (fruit farmers and cooling facilities)

• Farmers are well organised and up to date.

• Well-developed agro-processing ventures exist.

• New opportunities exist in rooibos cultivation and processing.

• There is space and water to expand higher value crops such as grapes and berries.

• Agri-tourism creates new opportunities and funding streams

COMPETITIVE DISADVANTAGES

• Limited marketing of attractions

• Provincial roads are in an inadequate condition.

• Variation in quality of school education o Limited skills and training, including business skills training.

• Limited activities for the youth

• Racism persists in many areas which implies a lack of social cohesion.

• Cases of gatekeeping in the private and public sector stifles/wastes opportunities for growth

• Limited affordable business property

• Limited investment in town beautification is required.

• Limited of rental housing

• Slow internet connectivity and weak cell phone reception in some areas

• Difficulty of access to DTI grants are stifling business opportunities

• High import tax on agriculture equipment and machinery (to be confirmed)

• Trend of reduction in farmers due to economies of scale.

• Agro processing does not create room for small & emerging players.

• Over spraying of pesticides may have negative environmental impact and economic consequences

Tourism (Inland)

COMPETITIVE ADVANTAGES

• Numerous natural resources and attractions creating things to do – 22 waterfalls, Beaverlac, mountain biking, hiking, 4X4.s

• Beautiful landscapes and vistas which change over seasons

• Roads allow for access to top of mountains

• World class paragliding – multi-site venue

• Safe and affordable quality of life for retirement community – access to hospitals

• Potential for wedding tourism

• Multiple heritage sites

• Experience the country life only 1.5 hours from Cape Town with agro processing (breweries, wineries, farmers markets)

• Eco-tourism – Berg estuary, Verlorenvlei, Rocher Pan

• Bo-Berg farm experience

COMPETITIVE DISADVANTAGES

• Room for improved strategy around marketing the tourism sector

• Very little cross marketing and sharing of things to do

• Anchor attractions need upgrading and better facilities for the public

• Signage inadequate and delayed by red tape – treasures are hidden from by-passers

• Society still divided by race

• Unnecessary petty rivalry in tourism and amongst businesses

• Short-term thinking about tourism, e.g., farmers not opening farms for cycling routes

• More public information

• Not yet targeting the mountain biking market

• Need stronger focus on preserving what we have in Bergrivier

Tourism (Coastal)

COMPETITIVE ADVANTAGES

• Authentic fishing village experience

• Safe and affordable quality of life

• Good for retirement, with hospital proximity

• Variety of birds and opportunities for photography

• Good, safe beach at Dwarskersbos – shallow and small waves

• Numerous heritage assets

• Wedding tourism potential

• Niche sailing market

• Housing rental opportunities – empty holiday houses for IDZ staff in Saldanha

COMPETITIVE DISADVANTAGES

• Room for improved strategy around marketing the tourism sector – very little cross marketing and sharing of things to do

• Anchor attractions need upgrading and better facilities for the public

• Limited signage – treasures hidden from passers by

• Poor customer service in retail and service sector

• Poor attitude towards tourism within pockets of the community

• Limited skills to unlock value in the area