Environment
The environment is one of the strongest assets driving tourism and attracting skilled staff to the city's economy.
- Finding the balance between sustainable development and an improved quality of life remains a challenge.
- Key issues are the growth in consumption, waste, air and water pollution, and the protection of the city's biodiversity.
Spatial and regional planning
- Cape Town's current urban form is unsustainable, economically unproductive and prohibits spatial, racial and economic integration.
- A key challenge is to tackle the city's urban sprawl through densification
- Addressing the city's spatial and regional planning challenges will only be successful if the city is seen within its context of a city within a region, rather than as an entity separate from its region.
Human and social development
- Decades of distorted development, evident in the highly skewed distribution of income and wealth, have left Cape Town with immense social and economic challenges.
- This is reflected in growing poverty, in inadequate housing, in poor health (especially in the impact of HIV and Aids) and in social exclusion.
Economy
- The gross geographical product growth rate has remained below 4.5% for past four years and is likely to remain so for 2006/7.
- The main challenges are to create productive employment opportunities and to reduce poverty.
- Unemployment has grown from 13% in 1997 to almost 23% in 2004, with a drop in 2005 to 21%.
- The distribution of economic growth is highly skewed towards those with the greatest skills and access to resources, and is accompanied by a growth in joblessness.
Integrated human settlements
- As a result of migration to the city and population growth, most new households are poor.
- There is insufficient funding and capacity to meet the housing demand
- Infrastructural demands resulting from increased economic and population growth have to be managed.
- Insufficient funding and a lack of institutional capacity to tackle backlogs remain a key challenge.
Transport
- Transport challenges are evident in the increased reliance on private cars, ineffective public transport and the lack of coordination between stakeholders.
Crime
- Some crime statistics in past few years have demonstrated an improving situation: there has been a reduction in murder and business crime. However, things have not normalised. Drug-related crime has increased.
- The incidence of murder is still extremely high, with a total of 1 856 murders in 2005/6, representing an annual murder rate of 57 per 100 000 population and an average of five murders a day. Drug crime has almost tripled in four years.
Governance
- The challenges facing the City are inter-related; tackling these must cut across responsibilities of all spheres of government and civil society.
- It is critical to find innovative ways to deal with challenges in a more sustained and integrated way.
- Partnerships between spheres of government and with businesses, and a move from a top-down "government" approach by the public sector to a "governance" approach by all key stakeholders, will become increasingly important.



