Bus location - employment disparity

Posted On Wednesday, 05 September 2001 03:01 Published by
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EMPLOYMENT data obtained from the RSC levy database of over 40 000 formal businesses illustrate an

EMPLOYMENT data obtained from the RSC levy database of over 40 000 formal businesses illustrate an
interesting picture in the relative distribution of economic activity and Cape Town's population.
Past political ideologies and city planning practices have resulted in an inefficient distribution
of economic activities relative to population distribution. This spatial pattern imposes long
travelling distances and proportionately high costs on the city's poor, and promotes income
leakages from poor to richer areas.
Past patterns of industrial and commercial location in Cape Town have been partially determined by
relative input costs (e.g. land and basic services), with the availability of industrial
infrastructure and proximity to existing transport routes being a major importance.
This means that job opportunities are not being sufficiently provided where the needs are greatest,
namely in areas of excess labour supply. In these areas non-labour related costs and business risk
factors such as crime are considered too high by investors and the business community.
Levy figures indicate the following:
* Formal economic activity occurs mostly in Cape Town's three established central business
districts and two historical corridors (Cape Town CBD, Bellville, Maitland, Paarden Eiland and
Claremont/Mowbray), which together account for about 34% of total population, 76.2% of total
employment, and 81.2% of total formal business turnover.
Cape Town's Metro South East (Guguletu/Airport Industria/Mitchells Plain and Khayelitsha) together
contributed 66% of total population and only 16.1% of total employment and 10.8% of total formal
business turnover.
Relatively more labour intensive industries are primarily located in the Metro South East and on
Cape Town's periphery, together with the majority of the urban
poor.


Publisher: Cape Business News
Source: Cape Business News

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