N Balindlela: IDC Eastern Cape Investment conference

10 August 2006

Programme Director
MEC for Economic Affairs, Environment and Tourism, Mr Sogoni
Members of the Executive Council
Members of Provincial Parliament
Executive Mayors
District Mayors
Members of the business fraternity
Distinguished guests
Ladies and gentlemen

I am grateful to have the time to address you today. This conference takes
place during the Women’s Month. Among the resolutions taken at the Women’s
Economic Summit held in Queenstown recently, women resolved to ensure that the
province develops a comprehensive strategy to empower women economically and,
collectively recommended the economic and social empowerment of women in the
province.

The Department of Economic Affairs, Environment and Tourism have established
and maintained good working relations with national and provincial financial
agencies established to facilitate access to funding for economic growth in the
Province and women must not be left out of the mainstream economy.

The Industrial Development Corporation (IDC) is one of the key financial
public institutions. As a member of the Economic Growth and Infrastructure
Cluster it discusses and facilitates the economic growth of the province. Land
tenure in the former Transkei and Ciskei areas remains a major challenge and
constraints in contributing towards the unlocking of economic opportunities for
the benefit of our people residing in this part of the province. A lack of
access to land ownership and land usage continues to inhibit the prevalence of
normalised market participation.

The Eastern Cape contribution to national Gross Domestic Product (GDP) is
approximately R80 billion, which is mere eight percent of South Africa’s
trillion GDP. Yet there is reason to remain optimistic. For instance the growth
of exports in the Eastern Cape in value terms has demonstrated an increase of
463% between 1996 and 2003. Much of this export growth however, is limited to
the western portion of our province and our two harbour cities, namely Nelson
Mandela Metro and Buffalo City. The provincial government remains committed to
the realisation of successful industrial development zones (IDZ) in East London
and Coega.

We have invested significant portions of or provincial budgets to these
projects over the last six years and we now have a high expectation of delivery
in the form of populating the zones with investors. I am encouraged by the
recent opportunity of harnessing the automotive importing and exporting
potential of the East London harbour and IDZ. This should provide a single port
of exit and entry for imported and exported vehicles.

This phenomenon could propel the East London IDZ into new value added
activities for the automotive sector in the fields of vehicle preparation and
consolidation/deconsolidation infrastructure and activities. The opportunity of
an auto supply park would further galvanise these efforts and differentiate the
East London IDZ from the rest. The Coega IDZ on the other hand, could quite
easily differentiate as a Train’s shipment hub and dockyard for the maritime
industry. Africa, Latin America and Australasia are in desperate need of
accommodating the emerging trends in the southern hemisphere of single call
post-panamax vessels which require deep-water facilities in close proximity
through the major shipping channels. In both IDZs we have witnessed the
realization of our investment announcements and physical location of
investors.

I am most encouraged to hear that the Eastern Cape Socio-Economic
Consultative Council (ECSECC) is conducting a ‘value chain’ research in order
to identify certain gaps and opportunities in the economy that could represent
quick wins for job creation in the province. The cabinet and the department are
concerned by the high level of under utilization of provincial assets which
could be harnessed or converted for a development dividend. The Eastern Cape
Development Corporation’s (ECDC) asset conversion policy has been approved by
cabinet.

This will unlock approximately R500 million worth of property for private
participation in the economy. We will ensure that broad based black economic
empowerment underpins this wealth creation process. I appreciate a coordinated
effort by the various financial institutions to complement their funding levels
and this must translate to the visible economic hive of activity in our
Province for the benefit of the women, the disabled and the poor.

I thank you

Issued by: Office of the Premier, Eastern Cape Provincial Government
10 August 2006
Source: Eastern Cape Provincial Government (http://www.ecprov.gov.za)