SA’s ocean economy expected to contribute R20bn to GDP

16 October 2014

Government will implement ocean economy projects which are expected to contribute more than R20 billion to the Gross Domestic Product (GDP) by 2019.

President Jacob Zuma speaking in Durban at the launch of Operation Phakisa, which promotes economic growth and job creation in line with the goals outlined in the National Development Plan.

Operation Phakisa, an adaptation of the Big Fast Results methodology successfully applied by the Malaysian Government, has four priority areas: marine transport and manufacturing, offshore oil and gas exploration, aquaculture as well as marine protection and ocean governance.

President Zuma said the oceans have the potential to contribute up to R177 billion to the GDP and create just over one million jobs by 2033.

Vast potential
“Over the next 20 years, the work stream on offshore oil and gas exploration could lead to production of 370 000 barrels of oil and gas per day, create 130,000 jobs and contribute US $2.2 billion to GDP,” said President Zuma.

South Africa’s coast and adjoining waters have possible resources of approximately nine billion barrels of oil.

He outlined work on the other priority areas and said Operation Phakisa represented a new spirit of moving faster in achieving a growth target of five percent by 2019.

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