Wesgro CEO Nils Flaatten and Western Cape MEC of Cultural Affairs and Sport Dr Ivan Meyer emphasised the power of design as an economic driver in the Western Cape, at the recently held Design Indaba expo and conference at the CTICC.
Both Flaatten and Dr Meyer highlighted the province's unique approach to prioritising design as a tool to build stronger communities and promote democracy.
"The Western Cape Government has made economic growth and job creation its number one strategic objective. We know economic growth and job creation will only happen through foreign direct investment (FDI) and trade relations. We have realised that one of the more innovative ways to deal with poverty reduction is through design, innovation and creativity," Dr Meyer said. He acknowledged that the Design Indaba played an important role in increasing trade into the Western Cape, to create jobs, and reduce poverty and inequality.
According to data collected by Wesgro's in-house economic research unit, a total of 5 394 FDI projects were recorded in creative industries worldwide between 2003 and 2011, equating to a 4.1% share of global FDI. These projects represent a total capital investment of R544.41billion which is an average investment of R100.69 million per project. During the period, a total of 268 124 jobs were created.
From 2003 to 2011, Cape Town attracted the highest value of FDI projects to South Africa in the creative industries cluster. Fourteen projects were initiated, with a capital value of R1.8 billion. The majority of these projects were in new media and communications companies, with activities in advertising, digital media and business services. In the same period, creative industries in Johannesburg attracted R1.2 billion in FDI and Pretoria attracted R465 million.
"The Design Indaba Expo has seen incredible growth since it was established eight years ago, proving that creativity and the design industries in particular can fuel economic growth," said Flaatten. "In an economic impact assessment conducted by the UCT Graduate School of Business, it was found that the 2011 Design Indaba contributed R261.5 million to the national GDP, a 12.71% increase from the R232 million in 2010, the bulk of which comes from business orders to the value of R141.3 million."
Over the past three years, the Design Indaba has contributed a total of over R600 million to the national GDP. The 2011 Design Indaba directly and indirectly sustained and created a total of 1 008 full and part-time jobs, an increase of 52 jobs from the previous Design Indaba.
