A deeply gloomy look at threats to Cape Town's future prosperity and sustainability has come from the Paris-based Organisation for Economic Cooperation and Development (OECD).

The report identifies serious concerns about the Mother City's development, in particular the low-density sprawl which undermines its economic competitiveness, worsens poverty and inequality and imposes major environmental costs.

According to a statement circulated on Wednesday: "Education and skills are deficient, businesses are not sufficiently innovative and investment in transport and housing has been neglected," according to the report.

"In addition, government structures and policies are poorly aligned and unpredictable, creating confusion and contradiction that compromise Cape Town's economic position. There are serious ambiguities and inconsistencies in transport, the environment, basic infrastructure and housing programmes."

A high-level seminar has been called for next Tuesday to discuss the lessons from the OECD report. It will include senior officials from the Western Cape premier's office and the city, the deputy vice-chancellor of the University of Cape Town and two other UCT experts.

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