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Mastercard Growth Index (Africa): Why Cape Town placed eleventh

February 10, 2013
Township living in Cape Town

Township living in Cape Town

The MasterCard African Cities Growth Index is compiled from a range of verified data on variables of city economic growth.

The Index’s methodology uses historical data from the period 2009 to 2011 for:

* GDP Per Capita Growth (Canback Danglar)

* Household Consumption Expenditure Growth (Canback Danglar)

* Governance Factors (World Bank, World Governance Indicators) – included are Political Stability and Absence of Violence,

Other factors considered include: Government Effectiveness, Regulatory Quality, Voice and Accountability, Rule of Law, Control of Corruption, Ease of Doing Business (World Bank),
City Population Growth (Canback Danglar),
National Urbanisation (World Bank, World Development Indicators) and
Middle Class Household Growth (Canback Danglar).

Additionally, the Index uses projected data for the five years 2012 to 2017 for:

* GDP Per Capita Growth (Canback Danglar)

* Household Consumption Expenditure Growth (Canback Danglar)

* Human Development Index Factors (UN) – included are Health and Education

* Infrastructure Development Factors (World Bank, World Development Indicators) – included are Gross Fixed Capital Formation as Percentage of GDP, Access to Water, Access to Electricity, Access to Sanitation
Mobile Telephone Subscriptions (ITU)

Inbound Travel Factors (MasterCard Global Cities Project) – included are International Non-Resident Arrivals and International Non-Resident Arrivals Expenditure.

With all this considered, Cape Town in the Western Cape (the second biggest economy in South Africa) only managed to crack a respectable eleventh place, 10 places below Accra of Ghana.

The slight disappointment in Cape Town’s current rating should be understood from the context of Helen Zille (now Western Cape Premier) being voted the World’s Best Mayor in 2008, and more recently, the Western Cape Government’s strategic objective 12: “Building the best regional government in the World”, something the provincial government has been attempting for the past 3 years (the same period as the index).

Cape Town is a beautiful, global destination, but so much more needs to be done to improve the lives of the great majority of Capetonians.

To view the Western Cape Government’s Strategic Objects, click here: http://www.westerncape.gov.za/news/three-years-meeting-objectives-our-strategic-plan

Posted from WordPress for BlackBerry.

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