The Western Cape government is moving ahead with several key projects that could benefit the construction sector in the province.

Agroprocessing, tourism and the oil and gas sector had been earmarked for development, Western Cape Economic Opportunities Minister Alan Winde told delegates at the Cape Construction Conference, in Cape Town, this week.

The oil and gas sector on the West Coast, near Saldanha Bay, was a key focus area for the province.

“We’re spending time in the industrial development zone in Saldanha Bay. Even though oil prices have halved, the numbers show that we must continue pushing in that space. We expect to see more advantages for South Africa, given its close proximity to the oilfields,” said Winde.

He outlined that R7-billion would be spent on the rail corridor in Saldanha Bay over the next three years, which would dovetail with other infrastructure projects. 

Tourism was another a key sector for the province. Tourism grew by 6.7% in the province last year, with job growth outpacing this.

Winde said plans had been passed for the construction of five new hotels in Cape Town, while the V&A Waterfront would finance, design, build and operate the Cape Town cruise-liner terminal.

Further, the Western Cape was considering the establishment of a R1-billion halaal agroprocessing food park, either near the Cape Town International Airport or the Cape Winelands.

The proposed park would be made up of a cluster of manufacturing and service firms in the halaal industry. The Western Cape government was working in partnership with the Western Cape Fine Foods Initiative and the private sector to develop the project.

“There’s a huge gap in the market. We’re considering how to ramp up our game in agroprocessing. The global halaal market is worth R2.3-trillion globally and we see great opportunities,” stated Winde.

The provincial government expected the proposed halaal park to double the province’s share of the fast-growing halaal market. The target market would be North Africa and the Middle East, home to about 20% of the world’s Muslim population.

Winde said agroprocessing was growing at a rate of 4.7%, with jobs in the sector growing at 7.8% in the province.

Western Cape Transport and Public Works Minister Donald Grant said the province was responsible for 6 500 properties and a road infrastructure with a net asset value of R68-billion. The province was delivering an economic yield on R150-billion worth of assets.

He noted that the provincial government was also on a drive to get the private sector to invest in at least 12 regeneration projects in the province.

He conceded that the trend in education and health was declining, but said there were still a lot of opportunities in maintenance. “We are looking at prolonging the life cycle of our assets.”

With declining government infrastructure spending, industry experts have seen a sharp shift from public spending to private spending.

“We’re seeing companies changing their footprint from the provincial sector to the national sector. We’re also seeing a big shift to the international market, especially into Africa,” said Bosch Stemele Cape Town regional manager Francois Botma.