Macroeconomic impact assessment and analysis of SAs CCI and creative economy

Overview

In this study, the macroeconomic impact of the CCI sector in South Africa was determined by making use of the CSA that is embedded in the CCI SAM and the Macroeconomic Impact Assessment Model (MIAM). The main advantage of this study is that it has been performed on a very detail basis. Clearly, data can only be enhanced when it can be broken down to such an extent that it can be referenced to practical examples in the economy. From the reports analysis, it is clear that South Africa’s CCI sector has a sizeable impact on the economy. The essence of the total macroeconomic impact results can be summarized as follows (all figures for 2016):

• The impact of the creative economy (which incorporates the CCIs and the ACH sectors) on the GDP of South Africa was approximately R232 977 billion;
• The usage of capital (directly, indirectly and induced) was estimated to be R74 billion;
• The CCIs sustained 685 886 job opportunities (direct, indirect, and induced);
• The total impact on household income amounted to R145.6 billion, of which 15% was earmarked for lower-income households. Thus, of the total income generated directly and indirectly through the CCIs, a significant percentage reached the poor communities in South Africa;
• The annual fiscal impact of the CCIs amounted to approximately R61.5 billion per annum through direct and indirect taxes. The sector financed the following socioeconomic services:
  • 18 395 educators;
  • 4 020 hospital beds;
  • 877 doctors; and
  • 6 06 low-cost houses (i.e.RDP houses); and
• In terms of the effectiveness of the use of capital for job creation within the South African economy, the CCIs performed above the national average. This specifically relates to the average of the economy and the sector where the CCIs are mostly located, namely the community, social and personal services.