Remarks by the Premier of Kwazulu-Natal, Hon. Mr Sihle Zikalala during the media briefing on recent developments in the province held in Durban
Introduction and welcome
Ladies and Gentlemen of the media, we wish to extend a warm welcome to all of you to this media briefing. We also wish to greet all the citizens of our beautiful province who are watching these proceedings from home. Once again, it is our sincere belief that we should always speak with transparency and open-ness on all matters of provincial importance. Today’s briefing is intended to give an update on the emerging developments since the delivery of SOPA on 24February 2022.
Tribute to his majesty King Zwelithini Kabhekuzulu
We gather today in the month of March, which is one the most painful in the history of the Zulu Nation as it marks exactly a year since the demise of His Majesty Zwelithini kaBhekuzulu on 12 March 2021.
This is a week that reminds us that we are still a nation in pain. Because of the role the late His Majesty had occupied as the father and unifier of the nation, we had not imagined life without him.
It is because of this reason that the demise of His Majesty plunged the province and the whole of the country and beyond into a sea of untold grief.
However, as fate would have it, we had to learn to live with the sobering reality that he is no more, after he was called to higher service.
Despite his demise, he still lives in our collective hearts.
As we approach the first year since His Majesty’s passing, we have a responsibility to pick up the spear, and to march on as we build a better KwaZulu-Natal.
In this regard, led and guided by the Royal Family, as the Government and the people of KwaZulu-Natal, we stand ready to play our supportive role where appropriate or required, in order to ensure that the activities to commemorate the legacy of the late His Majesty the King is a success.
As we indicated during the State of the Province Address,ours is to draw on the collective goodwill of all the people of the province and to turn the corner towards a KwaZulu-Natal that is truly united and at peace with itself. Our programme this year is to intensify the work of healing our communities from the scars of both the Covid-19, the July unrest and indeed the passing of His Majesty Zwelithini ka Bhekuzulu and Her Majesty Regent Queen Mantfombi.
We ask that everyone put our Royal Family and the nation in prayer as we remember His Majesty King Goodwill Zwelithini kaBhekuZulu.
The path to economic recovery for Kwazulu-Natal
Ladies and Gentlemen this administration wants to be more performance-driven, measurable and impactful in changing the lives of the people of KwaZulu-Natal. Indeed, we want to exercise more agility and precision in driving the agenda of economic transformation and in attracting investment to the province, within the context of a global economy that is still recovering after being battered by the COVID-19 pandemic.
It is against this background that our focal areas for 2022 will be working better and faster to prioritize:
- Economic Recovery and Creating Jobs;
- Improving Access to Water and Sanitation;
- Fighting Crime and Building Safer Communities;
- Social Protection and Human Development;
- Building the Capacity of the State;
- Building a Better Africa and a Better World.
State of the economy
Ladies and Gentlemen, the path to economic recovery will be long and hard, but we have no doubt that in the end, we will turn the corner and triumph against all the odds.
Our government continues to engage local investors and businesses, and next week we will host a summit of the KZN Growth Coalition on the South Coast. This activity will bring together more than 100 CEOs of companies. Our target is to address our unemployment rate, which has now risen to 28.7%, from about 23% before the Covid-19 pandemic.
It is also to undo creeping corporate corruption, failure of companies to invest in skills-development, lack of sustainable energy generation, and the instability created by criminal activities of some business forums. Our economic recovery programme seeks to address and introduce economic reforms anchored on radical economic transformation, and greater participation in the mainstream economy by the majority.
Some investments recorded as the year begins
The green shoots of our economic recovery are beginning to surface. As the year 2022 begins the following investments have been recorded:
- Capita BPO is investing R120m and will create 500jobs,
- Coastal Blythdale Resort is investing R800m will create 2000 jobs,
- Nqanawe Holding for manufacturing of tractors is investing R800m will create 200 jobs at the RBIDZ site.
This week during its sitting, the EXECUTIVE COUNCIL took a decision to submit key strategic projects for consideration and funding by the African Export-Import Bank (AFREXIM). AFREXIM is a pan-African multi-lateral trade finance institution. In the initial phase, the province is submitting its portfolio of Agri-Hub projects.
Agri-Hubs are key catalytic projects with a huge potential for job creation and economic growth. The Agri-Hubs portfolio includes the Red Meat Hub (cattle abattoir, pig, goat sheep abattoir, deboning facility, distribution centre), Grain Handling Hub (white, yellow maize, beans, soybean), Fresh Produce Hub (Bulk vegetable, distribution, vegetable processing, banana handling), The Dairy Hub, which incorporates raw milk tanks, a UHT facility, a distribution centre, an Amasi factory, and a yoghurt factory.
These are based in various districts of the province. We believe that agriculture presents enormous potential and opportunities for investments, and will go a long way in stimulating economic growth and attracting direct investments to the province.
Cannabis/Hemp industry for Kwazulu-Natal
Following announcements in the State of the Nation Address by His Excellency the President Cyril Ramaphosa, we are pleased to announce that KwaZulu-Natal has taken a major step in establishing the Cannabis/Hemp industry in the Province. We have since formed a multi-disciplinary committee to develop the KZN CANNABIS/HEMP Industry.
The potential for the cannabis/hemp industry is estimated at over R28 billion in South Africa, with a potential to create between 10 000 and 20 000 job opportunities across the entire value-chain.
Therefore, the establishment of the Cannabis industry will lead to the diversification of the economy, create jobs, increase economic growth, and contribute to poverty alleviation. The Provincial Cannabis Committee will be responsible for growing the cannabis/hemp industry through ensuring adherence to regulatory systems, seed supply systems, research and technology development.
It will also drive the sustainable producer systems, market andsupplier development systems, manufacturing and product development, education and training, communication and awareness.
R10 million grant relief for rural and township shops
Ladies and Gentlemen, following the KZN July 2021 unrest and a survey done by the Department of Economic Development Tourism and Environmental Affairs (EDTEA), the KZN provincial government has approved an intervention aimed at providing a Relief Grant for Rural and Township shops that were affected by the looting and unrest.
The Grant is an amount of up to R20 000 per shop, and will assist more than 500 shops across the province with trading stock, excluding alcohol and related products. The funding intervention addresses the challenges faced by rural and township businesses which were affected, but were left out due to under-reporting during the July mayhem. The provincial government has since reprioritised R10 million which will be a grant funding targeting these businesses. The application forms will be available at all EDTEA offices, and will be subjected to rigorous verification processes to ensure that deserving and qualifying shops receive support.
R100 million youth empowerment fundupdate
As we announced that we are increasing the fund to support young people from R50million to R100 million this financial year. The process to invite applications is being processed and will be announced in due course. We will announce the beneficiaries of the 2021 support in the comings months. Youth entrepreneurs and their creative ideas to grow our economy and reduce unemployment is the priority for this government.
Establishment of the Zimele Traders Fund for rural and township shops
Ladies and Gentlemen, in a major boost for townships and rural areas, the Provincial Executive Council approved the Zimele Traders Fund - a KZN government-led programme to uplift community-based Rural and Township shops through the provision of working capital loan funding and payment automation facilities. This Fund will provide shops and general dealers with support to transform their businesses into viable shopping outlets offering a one-stop shopping experience.
The loan amounts will be anything up to R100 000 per qualifying shop, and the shops will be supported with pay-point machines at no cost to the shop owner. This form of support is a first-of-its-kind towards rural and township shops. This funding initiative will be implemented under EDTEA. It will give an opportunity to Rural and Township shops to contribute to the local economy, and assist in the post-Covid-19 economic recovery programme. The conditions for support under this fund are, among others, that the shop must be located in a Rural or Township area and must be owned by South Africans, which must be proven.
Resumption of saa flights – Durban and Johannesburg
We wish to welcome the resumption of flights between Durban and Johannesburg. This is crucial in growing our economy and domestic capacity on the essential Gauteng and KwaZulu-Natal route. The past 22 months since SAA terminated the Durban route have been particularly difficult. However, as government we never stopped engaging SAA even as the airline was repackaging its business model. This is a fresh start, and a timely boost to our economic recovery efforts. It strengthens our argument that the Durban route is a significant cog in the revival of the aviation industry in South Africa
Constitutional Court judgement on tenders
Ladies and Gentlemen, we have noted the latest concerns regarding a circular from National Treasury instructing departments to hold procurement in abeyance. This follows the recent Constitutional Court judgement, which declared the 2017 Preferential Procurement Regulations invalid. In response, National Treasury issued a communique to all organs of state to stop issuing tenders, until it has received clarification from the Court as to whether the Regulations will still be valid until February 2023 or not. On behalf of theProvincial government, we wish to state that we are concerned with the paralysis and backlog in the supply chain that this will create. It is our view that this decision amounts to a possible liquidation of government. The Executive Council is therefore supporting every effort by the National Government to speedily resolve this matter.
We will be engaging with the national government in this regard. Our view has always been that the transformation of the economy thorough legal instruments such as the Preferential Procurement Regulations is a pre-condition for the creation of an inclusive economy that will serve the interests of all South Africans. It, therefore, stands to reason that we need to do everything necessary to ensure that we support the National Treasury from those who are launching a deliberate onslaught on our collective efforts to drive the agenda of re-modelling our economic architecture so that it benefits all South Africans.
We hear the call for return to stadiums
Ladies and Gentlemen of the media, it has become clear that through our collective efforts to stem the tide of the damage caused by the COVID-19 pandemic, we have made enormous strides to learn to co-exist with this deadly virus through all the necessary interventions that have adopted. We want to say the fact that Covid-19 is no longer dominating headlines it is no indication that it is still not a deadly threat. There are people in hospital, new infections and deaths being recorded. We urge citizens to remain vigilant and follow all safety protocols.
In this regard, we want to indicate that we have heard the growing concerns from the sporting fraternity, the fans, and other related industry players about the need to open up stadiums for fans to attend sporting events. One of the world’s most popular derbies was played yesterday between Orlando Pirates and Kaizer Chiefs to an empty stadium. Later this evening (at 18h30) the Manchester derby between Manchester City and Manchester United will be played to a capacity Etihad Stadium which has seating for 55,000 spectators.
Sports has an impact beyond what happens in the field of play. Sporting activities have a cascading effect in the whole economy, including the informal economy. In this regard, we have heard the call from the informal traders that the closure of stadiums owing to a situation beyond our control has negatively affected their businesses. We are following with interest the medical and scientific advice about the COVID-19 curve flattening, as numbers in all provinces are going down. We will further discuss the concerns of those whose economic livelihoods revolve around the sports economy with the national government.
SAPREF update
We have through the Department of Economic Development, Tourism and Environmental Affairs approached the Department of Minerals and Energy expressing our concerns at the imminent closure of the SAPREF refinery in Durban.
The closure SAPREF, which has been part of KwaZulu-Natal since 1963, will have devastating economic consequences on employment in the province. This is our primary concern as we are currently in the process of attracting investments and rejuvenating business activity as part of our Economic Recovery Plan.
For this reason, government has to closely engage with the process with the view that we would want to save and protect jobs and save what is an important investment in the province.
At the same time as you will be well aware, the world is now moving towards greener energy, a carbon free world and planning for the cost of conversion to adapt to this new reality.
As CoChair for Africa of the Under-2 Coalition on Climate Change, we are charged with the responsibility to drive the creation of a better world in which renewable and cleaner energy is the engine of economic growth.
As we engage with SAPREF led by the Department of Minerals and Energy, we will take all these factors into consideration and make sure that whatever decision emerges, it must be in the best interests of the people of KwaZulu-Natal and South Africa and aid efforts of creating a greener world.
ENDS
