Honourable Speaker,
Honourable Premier,
Members of the Executive Council,
Honourable Members of the Provincial Legislature,
Heads of Departments,
Distinguished guests,
Ladies and gentlemen.
As always, the business of delivering our policy speech brings the focus of the House to bear on our current circumstances, the department’s delivery progress, our plans to meet our policy imperatives, and the resources allocated to support these efforts.
Honourable Speaker, this is the fifth time that this Cabinet, installed after the April 2009 provincial elections, will be responsible for shaping the delivery landscape of the Eastern Cape (EC). For the fifth time we stand before this house to ask for endorsement, support and resourcing of our policies, strategies and plans. This is an opportune time to retrace our progress over the intervening years.
If one were to turn to our previous four policy speeches, one would note a thematic progression over the years. In 2009/10, we identified the need to “Rethink” our approach to environmental management and economic development in light of the unprecedented global economic crisis and growing awareness of the implications of climate change.
By 2010/11, we were ready to “Refocus” our efforts to meet our priorities. 2011/12 brought a new emphasis on “Change” to more emphatically address poverty and underdevelopment. Our theme in 2012/13 was to “Unlock” the province’s local and regional capacity.
The evolution from “Rethink” to “Refocus” on to “Change” and through “Unlock” has yielded solid progress over the past years.
- We have entrenched the concept of the Green Economy as a sustainable alternative to highly consumptive, resource-depleting practices.
- We have diversified our manufacturing base, particularly with renewable energy, while simultaneously supporting the expansion of our strong automotive manufacturing sector.
- We have mitigated the impact of the global economic crisis on vulnerable enterprises through facilitating access to financial instruments and industry support.
- We have created impetus for the revival of our rural economy, anchored in the promising Wild Coast Special Economic Zone (SEZ).
- We have placed the Province firmly back on the National infrastructure agenda, gaining commitment to the “Gateway” concept through vital infrastructure linkages with regional and international trade partners.
- We have secured new investment in the form of plant expansions, factory establishments, and infrastructure and logistics networks
- We facilitated increased private sector investment into the industrial development zones, with East London growing to R4 billion in 2012/13, and Coega to R14 billion.
- We have increased the amount of land and ocean under protection, securing the existence of ecosystems and species for future generations.
- We have systematically tackled compliance challenges in the liquor and the gambling and betting sectors.
- We have re-established the Cooperatives Sector as a viable contributor to local economic development.
- We have launched the EC Jobs Strategy and EC Jobs Stimulus Fund, and are working with Rhodes University on jobs monitoring and labour market analysis.
In short, Mister Speaker, our trajectory since 2009/10 has been emphatically forward. We do not suggest, however, that there have not been setbacks, unforeseen challenges and enormous obstacles. We are clear that such impediments to progress have ensured that we remain pragmatic in our resolve to deliver on our mandate. In combination, our successes and challenges provide an optimal foundation from which to conserve our natural environment, grow the economy, and create jobs.
President Zuma has called, in his State of the Nation Address, for the immediate and effective implementation of the National Development Plan (NDP). We believe that our policy provides a blue print for the rollout of the NDP in the province.
Consequently, the theme of our fifth policy speech is “affirmation”. As the world bids farewell to Hugo Chavez, we affirm our commitment to contribute to replicating his remarkable achievements here in the Eastern Cape: to grow the economy and reduce poverty and unemployment. We thus affirm policy directions, strategies, partnerships, approaches and systems we have introduced previously. We affirm our conviction that we can achieve a greener, more prosperous future.
The context
Mister Speaker, as you are well aware, the context we described this time last year has not changed. If anything, things are worse; the fallout from the economic crisis continues to define global economic relations and realities.
The European Union is still working to avoid the collapse of a number of Eurozone economies, and the United States continues to do battle with debt ceilings and fiscal cliffs. Global growth estimates are pessimistic.
While the knock-on effects are evident in our own economy, it is noteworthy that, as a country and as a province, we have weathered the economic storm much more convincingly than many established economies.
In addition to this inherent strength, we are able to draw confidence from the growing significance of emerging economies such as India, Malaysia and Brazil, and from the potential for trade growth with Sub-Saharan Africa. We will shortly be taking this confidence to the BRICS summit to be hosted in Durban.
This brings us to the environmental front, where the world’s thought leaders continue their stop-start-deny-accept dance with climate change. Internationally we have witnessed a plethora of unmet climate-management commitments.
In the meantime, the consequences of climate change are evident in extreme weather events like hurricane Sandy in the Caribbean and Eastern United States during late October, the extraordinary flooding and hailstorms across South Africa that devastated parts of Ndlambe, and the recent floods that decimated parts of Limpopo province and Mozambique. These extreme weather events have exposed the vulnerability of our coastal communities, particularly the rural settlements along the Transkei coast.
More than other manifestations, these extreme weather events attest to the rising risks of climate change. In summary then, Mister Speaker, the challenges and realities we have outlined over the past four years remain relevant. Our responses remain urgent.
Policy implications
From a policy perspective, the directions identified since 2009/10 are affirmed, as are the focus areas put forward in 2012/13. In short, our policy direction for 2013/14 has five dimensions:
- Establishing trade and logistics Gateways: We intend to further exploit the inherent advantages of being a coastal province by strengthening linkages with the national, continental and global economies. We will continue to engage proactively with state owned entities such as Transnet, ESKOM, SANRAL, Broadband Infraco, and others, to leverage their infrastructure spend in support of our key strategic projects. We will also ensure that industry in the province is able to respond to new opportunities by effectively implementing our Jobs Strategy, providing industry support, attracting domestic and foreign investment, enhancing enterprise competitiveness, promoting regional and local economic activity, and supporting SMMEs and co-operatives.
- Building a greener economy: The strong growth of the renewable energy sector in the province will be supported, with attention paid to the establishment of complete sector-wide value chains. This will involve significant work with municipalities regarding enterprise development and renewable energy distribution.
- Addressing the spatial disparities in the economy: In partnership with a host of national and provincial departments and municipalities, we continue to structure interventions to address rampant poverty and underdevelopment. Our keystone intervention is the Integrated Wild Coast Development Programme, aimed at crowding-in public and private sector investment around transport and bulk infrastructure, addressing land administration bottlenecks, promoting urban nodal development, and creating jobs through agricultural and tourism development.
- Sustaining the environment: We continue to drive a sustainable development agenda which seeks to facilitate well-informed development decisions, while protecting and managing biodiversity, combatting environmental crime, and mitigating and managing the impact of climate change.
- Supporting innovation: In 2013/14, we will pursue three interconnected innovation channels that support improved public sector delivery. Interventions will be nurtured at our Science and Technology Park and underpinned by strengthened partnerships with the higher education sector and innovation entrepreneurs. We will build an innovation ecosystem by supporting the entire innovation value chain, from R+D, to technology development and access, through to commercialisation and production.
We are confident that these five dimensions will help to achieve the Premier’s goal that we “realise the developmental objectives necessary for the betterment of the lives of our people.”
Progress
Mister Speaker, in keeping with our theme of affirmation, we trust that this house will allow us to acknowledge a small sample of the remarkable people who have assisted in achieving progress towards our vision. We welcome some of them here today.
Business model
Right People
The organisational restructuring process embarked on in 2010/11 is nearing completion, with the matching of the new structure to the fiscal envelope underway. The fact that so much has been achieved in the meantime is a testament to the commitment and dedication of many departmental officials.
It is noteworthy that the department achieved its first unqualified audit in 2011/12, and is committed to ensuring that this is a stepping stone for further improvement. Such officials are the embodiment of the type of public servant we hope to attract and retain in the province.
A perfect example of a group of public servants who display a passion for their work, and achieve remarkable success, often with limited resources, is the “Green Scorpions”. This unit of dedicated men and women have successfully driven environmental criminals from the protected areas of the Eastern Cape.
The Special Investigation Unit was fully equipped during 2012 to facilitate professional investigations, thus enhancing our crime combatting efforts. Last year, while the country lost nearly two rhino a day, not a single rhino was lost on an Eastern Cape Provincial Reserve, and losses on private reserves were minimal. However, one rhino lost is one too many.
Right structure
A key objective of the streamlining and restructuring of the DEDEAT Group was to ensure that services are more accessible and better distributed. The foremost success in this regard is the 2010 promulgation of the Eastern Cape Parks and Tourism Act, which amalgamated the provincial Tourism and Parks Boards over a 2-year transitional process into the Eastern Cape Parks and Tourism Agency (ECPTA).
By July 2012, the herculean efforts of the team at ECPTA had produced a new organisational structure and improved audit outcomes to findings only. The successfully repositioned agency now has a permanent Board and Chief Executive.
Right partners
In real terms, the fiscal allocation has been declining. The department has thus been challenged to source off-budget solutions to delivering on our mandate. We are pleased to have established a strong network of national, international and regional partners including government departments, State Owned Enterprises, multi-national corporations, donors like GIZ, the UNDP, and municipalities.
Our partners offer a variety of support, ranging from technical advisory services to co-funding of projects. While these partnerships are always mutually beneficial, we would hereby like to formally acknowledge all our partners’ contribution to building the Eastern Cape of our vision.
Provincial (spatial) economy
Since 2009/10, Mister Speaker, we have been determined to diversify our economy and create jobs. Our continued efforts have begun to bear fruit.
Economic infrastructure
The province has worked tirelessly to unlock the investment potential of National State Owned Enterprises, Transnet and Eskom. We have secured commitments from both that will see the Province’s economic infrastructure literally change in front of our eyes, boosted by billions in investment over the next three decades.
The Presidential Infrastructure Co-ordinating Commission (PICC)’s second ‘Infrastructure Implementation Plan’ includes 18 strategic infrastructure projects (SIPs) across all three spheres of government. SIP-3 comprises projects designed to bolster the Eastern Cape’s industrial and agricultural development and export capacity.
Progress on the SIP-3 initiatives mentioned last year, including logistics linkages with the Northern Cape and KwaZulu-Natal, the construction of a dam on the Umzimvubu River, and a new manganese export channel through the Port of Ngqura,has been steady.
The premier handed over the Mthatha Airport last year for refurbishment as part of the Mthatha revitalisation project now underway.
Transnet confirmed plans to upgrade the East London port over the next five years. The first shipment of coal from eMalahleni mine left the East London harbour for Brazil in January 2013. Feasibility studies for the Ngqura manganese terminal are complete and expectations are that the terminal operator will be appointed by the end of 2013.
Provision of industry support
As indicated earlier, a key mechanism deployed by the department in supporting industry is the two Industrial Development Zones (IDZ). The East London Industrial Development Zone (ELIDZ) recently announced that a fifth component manufacturer has confirmed an investment of R180 million in support of the W205 expansion of Mercedes-Benz.
This brings the total investment by component manufacturers in the ELIDZ to just over R636 million, and the total value of automotive investment to just over R1.2 billion. Direct manufacturing and related services jobs in the ELIDZ grew from 856 at the end of 2009/10 to 2 042 direct jobs in 2012/13.
Despite the economic challenges of 2012/13, Coega Development Corporation (CDC) secured 8 investors worth R1.3 billion, and has recently requested bids for the construction of a R300 million wind tower factory. Automotive Manufacturing remains the dominant sector of the provincial economy. Although well established and relatively strong, this sector was unevenly supported by government, with second and third tier suppliers receiving scant attention.
In 2011/12, we established the Automotive Manufacturing Cluster, intended to address such issues as logistics, skills development and R+D. We would like to acknowledge the leadership of VWSA and MBSA. Our premier original equipment manufacturers (OEMs) consistently represent the province positively, and have provided much-needed guidance to the sector, particularly in establishing the Cluster.
Their leadership is further evident in developments at their respective plants. MBSA is in the process of investing R2.5-billion in building new facilities to accommodate their new technologies and newly skilled workforce to produce the W205 model. Both VWSA and MBSA are consciously supporting government’s drive for content localisation, with VW’s local content already in the region of 70%.
We further acknowledge the contribution of our other OEMs, GMSA and FMSA, and their supplier networks, to sustaining the automotive sector in the province. Last year we welcomed the investment of R600million by a Chinese OEM, FAW, and are pleased to report that factory construction is underway in Coega.
The non-automotive manufacturing sector remains weak. It has been contracting since 1994 following the discontinuation of incentives and the removal of protection against imports. Job losses in this sector have been dramatic. The department recently appointed a full team of specialists to combat the contraction of non-automotive manufacturing. This team is rolling out the plans and frameworks that have been under development over the past four years.
This contraction is most clearly evidenced in the collapse of the province’s textile industry. In this context then, we affirm the efforts of textile company Beck Trading, located in the empty Dimbaza Industrial Park. They have bucked the trend, securing around 1 000 jobs, producing hospital linen and health and safety gear.
As part of the Buy Eastern Cape Campaign, a Local Procurement Directive that stipulates Textiles, Clothing, Leather and Footwear as a designated sector for local production and content is to be submitted to Cabinet. The approval of the directive will boost the sector further.
Interestingly, the strong automotive sector is starting to diversify into non-automotive manufacture. Here we salute the innovative Lumotech, a Uitenhage-based manufacturer of car lights that has diversified into eco-friendly streetlights. Under the Provincial Industrial Development Strategy (PIDS) and Provincial Industrial Jobs Stimulus programme, the provincial economy is diversifying.
Ensuring that we have skilled workers to power our economy has been an important aspect of our interventions to date. Unfortunately, the non-availability of funding caused the suspension of the Strategic Skills Development Project, implemented by the IDZs on behalf of the Office of the Premier.
CDC was, however, able to access alternate grant funding through the DBSA Jobs Fund. R68 million was secured to ensure that over 11 000 candidates received technical training in bricklaying, plumbing, electrical, painting and carpentry.
The Science and Technology Park (STP) located at the ELIDZ fast-tracked the implementation of a number of projects towards the end of 2012. Key among these is the establishment of a CSIR analytics laboratory, scheduled for completion by the end of this month.
A renewable energy Training and R+D laboratory is also under construction in partnership with the National Tooling Initiative and the Master Artisan Academy. The CDC currently has 139 interns. Almost 750 interns have benefited from this programme since it commenced in 2005. This number excludes interns placed with consultants and contractors outside the IDZ.
The CDC’s driver training programme produced about 340 (youth) candidates for this year and 500 in the past 3 years.
Local and regional economic development
Last year the department consolidated the “Buy-EC Campaign” as a mechanism to catalyse economic activity in support of localised production, manufacturing, procurement and consumption.
In 2012/13, ECDC fully committed R36 million in support of 18 Local and Regional Economic Development projects. Of this amount, R19 million was disbursed to 13 companies, creating 311 permanent and 202 short term jobs.
The Provincial response to the jobs crisis includes the Jobs Strategy and the Jobs Stimulus Fund. ECDC has been responsible for administering the Jobs Stimulus Fund since its launch in October 2011. Through three funding windows, 64 local companies have since been incentivised to create or protect 4 619 jobs across all sectors of the economy. R46 milion has been committed to date.
ECDC is working with seda (national) to establish a manufacturing incubator and also expand the operations of the FENTECH incubator in Mthatha. Through the Imvaba Fund, a vehicle of the Provincial Cooperative Strategy, ECDC has committed R39 million to 63 cooperatives, creating 3 556 jobs. R25 million of the committed amount has been drawn down.
The Imvaba Fund also provides an array of non-financial support, ranging from business planning, to technical and general training, to farm management. The Fort Cox Agricultural College and SABS are key partners in delivering this non-financial support.
One cooperative that has benefited from the full service range is XCM Dry Cleaners. They area youth-led services co-operative based in King Williamstown, currently expanding across the province. Their R829 000 Imvaba grant was used to purchase industrial laundry machines. With additional assistance from ECDC, XCM has secured a 2-year contract with SAPS worth R3.5 million.
Greening the economy
We are pleased to report that the department has enhanced its economic planning and research capacity, and has successfully used this to promote the Eastern Cape as a hub for innovation and renewable energy, a rapidly growing green economy.
New industries have recently made their home in the province, notably catalytic converters and alternate energy. In response to the challenge of greening the ELIDZ, for example, a tenant has invested R120 million in manufacturing photovoltaic panels, which will create about 150 green jobs.
The Department of Energy requires that 26% of our energy mix should consist of renewable energy by 2030. In response, we are confidently building the province as the renewable energy capital of South Africa. 36% (or 876 Megawatts) of the national allocation under the National Integrated Resources Plan has been made to the Eastern Cape for 11 wind farms and a solar photovoltaic farm. This constitutes 67% of the national allocation for wind energy.
With the collaboration of the DBSA Jobs Fund, our fruit industry is expanding with excellent development potential in terms of natural resources and global markets.
Regulation of commerce and consumer protection
Mister Speaker, we expected to establish the Consumer Tribunal by the end of 2012-13. Unfortunately, these plans have been delayed, and will be implemented in early 2013-14. During 2012-13, the Eastern Cape Liquor Board (ECLB) commissioned research on the social and economic impact of alcohol abuse in the Eastern Cape. The findings emphasise the need for interventions to address issues such as underage drinking, road accidents and drunken driving, and foetal alcohol syndrome.
The Gambling and Betting Board (ECGBB) embarked on a series of Responsible Gambling Campaigns during 2012/13. This included a Gambling Consumer Protection Strategy and the provision of public education on legal and illegal gambling. Major investments in the Hemmingway’s and Boardwalk hotels and casinos have flowed from renewed gambling licences awarded to these operators.
Environmental sustainability
Protect and manage biodiversity
The ECPTA continues to successfully secure and manage the province’s protected areas. This success is borne out by an internationally benchmarked METT-SA index of 51. The improvement in our METT-SA score from 34 in 2010 provides an indication of the extent of the improvements effected in this regard.
The ECPTA continues to facilitate protected area expansion on private land through the stewardship programme. In 2012, the 42 000ha “Compassberg Protected Environment” was added to the Provincial Protected Area Estate.
The ECPTA and the Wild Coast Project have actively supported the commendable efforts of DEDEAT to develop an integrated spatial plan for the Coastal Conservation Corridor. All the areas important for conservation and development identified in the Wild Coast Project are highlighted.
Combat environmental crime
The appointment of Honorary Nature and Environmental Conservators (Green Reservists) has strengthened the provincial efforts in dealing with the environmental organised crime syndicates within and outside the province. Because of the combined efforts of the enforcement agencies, the province had only two rhino poaching incidents, both on private reserves, in 2012. The successful bust of illegal cycad smuggling resulted in the confiscation of equipment, jail sentence and payment of a fine.
Manage the impact of climate change
Payments for Ecosystem Services remain high on the agenda of the ECPTA. The agency is actively engaging with national, provincial and local government and private sector stakeholders in order to realise this potential.
The ECPTA has initiated the process of reducing their Carbon footprint by conducting a Carbon-footprint baseline assessment with an initial focus on Head Office activities. This will enable the agency to track Carbon emissions from energy, paper and transport usein subsequent years. Once they have tested the system, they will gradually roll it out to the protected areas.
Plans
Honourable Speaker, we now elaborate our plans for the coming year. As stated earlier, we are satisfied that the policy direction adopted in prior years is correct. Our plans thus affirm our policy stance, and consolidate our priorities.
We have previously laid a comprehensive set of policy frameworks and implementation plans before this house. These are in various stages of roll-out. It is our contention that we should use the coming year to embed these frameworks and plans in the operational DNA of the department and her entities.
Specifics of projects and interventions are contained in the Annual Performance Plans of the department and the Public Entities submitted today. Only an indicative selection of catalytic projects are mentioned here:
Establishing trade and logistics gateways
Economic infrastructure
In 2013/14, the PICC work streams will focus on bringing new projects on stream, scaling up projects and engineering capacity, funding mechanisms and cost issues and industrialisation and skills management.
The province will work to refine the alignment between our own Strategic Projects and the SIP-3 projects of the PICC. This will ensure rationalisation of effort and resources, and maximise impact.
The upgrading of the manganese export corridor rail line between the Northern Cape and Ngqura will take place over two phases. Construction of the first phase between Kimberley and De Aar will be under way by the end of the year. The consequent rail export capacity of manganese ore will increase from 5.5mtpa1 to 8mtpa by 2016, providing a basis for major investments in minerals processing in the Coega IDZ. Planning of two Ferro-manganese Smelters has begun.
Other transformational projects underway or planned for the Coega IDZ include the oil refinery (Project Mthombo), the ship repair yard, the transshipment hub, the gas terminal, the Combined Cycle Gas Turbine (CCGT) plant, the Seawater Intake plant, and the return effluent plant (pre-feasibility study funded by DEDEAT). The Investment pipeline for 2013/14 is 8 investors with a value of R2.9 billion.
The PIDS Implementation Plan published in 2012/13 will continue to gain momentum, and will be supported by the roll-out of Transnet’s revised Branch Line Operations concessioning model. The Sterkstroom–Maclear Branch Line needed to move 2 million tons of coal from Indwe is currently closed. The line will be restored by Elitheni Coal once appointed as a Transnet concessionaire. Transnet expect the line to reopen by March 2014.
Industry Support
To ensure the sustainability of our IDZs, we will prepare for the passage of the Special Economic Zones Bill. Following on the successful launch of the EC auto industry cluster last year, DEDEAT has begun development of an Agro-Industry Manufacturing (AIM) Cluster and a Non-Automotive Manufacturing (NAM) Cluster as mechanisms to support distressed 1 Mega Tonnes per annum.
Baseline studies will combine with lessons from the successful intervention with Foodcorp in Molteno to inform the content of the cluster platforms which we will launch towards mid-year year.
2013/14 will see significant advances in strengthening the automotive manufacturing sector with the launch of a multi-model OEM at the ELIDZ. In partnership with the industry and with funding from the DBSA, ELIDZ will also establish an “Auto Academy”. These initiatives will promote the utilisation of SMMEs within the sector and create economies of scale which in turn will produce additional manufacturing capacity.
ECDC will continue to facilitate drawdown of the balance of the committed Imvaba Fund, to provide non-financial support services, and escalate the development of co-operatives to the point where they meet the criteria for Imvaba Fund approval.
The department plans to intensify work on the Buy Eastern Cape Campaign, undertaking research to assess, understand and influence the geographical spread of the overall provincial government spend.
The industry market research undertaken by ECLB will inform efforts to develop Liquor Traders. Likely focus areas will be business skills, access to finance, institutional capacity building, business linkages, market opportunities and co-operative business development.
The ECLB will utilise partnerships to embark on 112 targeted awareness and social accountability interventions combating alcohol abuse, drunken driving, foetal alcohol syndrome, and under-age drinking.
The ECGBB will enhance its social responsibility programmes and ensure that the communities within which we operategain access to the socio-economic benefits emanating from controlled activities.
The continued roll-out of the Gambling Consumer Protection Strategy will create awareness of the negative social impact of gambling in general and excessive gambling in particular, and assist gamblers to mitigate these.
To facilitate a strong regulatory environment that is simultaneously supportive of industry expansion, the following pieces of legislation are under review:
- Eastern Cape Gabling and Betting Act (No. 8 of 2002) in order to incorporate provisions for interactive gambling Act and related development
- Eastern Cape Liquor Act (No. 10 of 2003) in line with the Provincial Policy of Liquor Industry Regulation
- Review and amend the Unfair Business Practices Act (No. 5 of 1998) to align it with the National Consumer Protection Act (No 68 of 2008)
- Regulations, Ordinances and Decrees that were enacted by the Homeland Administrations with the aim of providing for a uniform application of National Norms and Standards across the province
- Special Economic Zones Bill and review the Business Act (No. 71 of 1991). This process is led by the Department of Trade and Industry and the department is an important stakeholder
- Eastern Cape Parks and Tourism Agency Act (No 2 of 2010)
- Eastern Cape Development Corporation Act (No 2 of 1997)
Building a greener economy
Unemployed youth will have access to Solarteur-accredited training at the renewable energy laboratory in the STP. Training will include solar, wind and photovoltaic energy applications to support the emerging green economy.
Green Jobs will be created by renewable energy entrepreneurs through projects such as Global Research Alliance Rural Energy Project, Melani Waste to Energy Project, Sustainability Commons Project (in Lady Frere), Retrofitting of Government Buildings and Innowind Renewable Energy Facilities to the East, Bio Fuels coordination and support, and Emonti Green Hub.
ELIDZ's proposals to establish 75 and 50 megawatt renewable energy capabilities in Berlin are expected to be successfully concluded in the next couple of months. As mentioned earlier, 36% of the national renewable energy allocation has been made to the Eastern Cape. With an estimated investment value of around R18 billion and a compulsory local content spend of around R5.5 billion, this is a significant intervention.
We will assist new and existing local enterprises to respond with the establishment of supply chains for the production of turbine components, among others. We will also collaborate with municipalities to better understand and exploit opportunities for enterprise development on one hand and renewable energy distribution for citizens’ benefit on the other.
Addressing the spatial disparities in the economy
In order to address the anomaly of rampant poverty and high latent development potential, and to facilitate the channelling resources into the rural economy, DEDEAT, dti, and ECSECC will commence with the feasibility study for the Special Economic Zone (SEZ) on the Wild Coast.
Ideally, all other initiatives currently underway in the region will amalgamate under the SEZ to maximise the potential development impact. The Integrated Wild Coast Development programme will investigate development of new urban nodes on the Wild Coast in line with DEDEAT’s Environmental Management Framework for the Wild Coast, and facilitate supportive inter-governmental linkages and private sector investment.
Other key projects include the Wild Coast N2 Highway; the Wild Coast Meander linking Port St Johns, Coffee Bay and Kei Mouth; bulk infrastructure provisioning for new urban nodes and existing towns; and agricultural and tourism initiatives.
Linkages and synergies will be facilitated with other interventions in the region, such as the Umzimvubu River Catchment Development driven by the PICC. Institutional support to relevant local municipalities to enable their participation in this programme, coupled with effective social facilitation and mobilisation are critical success factors for the programme.
Our focus on agro-processing will gain momentum in 2013/14. Through strong links with established local and international agro-industrial firms, we will facilitate increased investment in processing facilities, and create secure market opportunities for small-scale primary producers across the grain, livestock, fruit, biofuel, and timber value chains.
Our partnership with the Department of Rural Development and Agrarian Reform and the newly established Rural Development Agency will assist us to package projects and leverage investment. We further intend to scale up already successful projects such as the Trading Posts project (supported by the DBSA Jobs Fund),and the community-based forestry initiative.
The department will strengthen efforts to integrate rural enterprise with anti-poverty interventions throughout the province. For example, in the Chris Hani District, we will investigate the viability of establishing an agro-industrial zone taking advantage of the existing primary production capacity through refurbished agricultural schemes.
Environmental sustainability
Biodiversity Management
The UNDP-administered funding from the Global Environment Facility for the Wild Coast Project which matures in 2013. ECPTA, DEDEAT and other government partners are actively seeking mechanisms to replace the funding, to ensure on-going support for the community managed protected areas and sustainable natural resource use and management. The Management and Zonation Plans for the Kwelera National Botanical Garden will be complete in the 2013/14 financial year.
In a clear demonstration of biodiversity management with economic benefits, the dti has identified the ELIDZ as a lead agency in implementing of the Aqua-culture Development and Enhancement Programme (AEDP). In 2013/14, the AEDP will continue as the mainstay of the aquaculture cluster at the ELIDZ, which will contribute to the protection of endangered fish species in the wild by farming them for commercial use instead.
Combatting environmental crime
The SIU and Green Reservists will continue their vital work, and will strengthen coordination and cooperation with private game owners. The Eastern Cape Environmental Crime Working Group, which has received National recognition, remains an important vehicle for strategic partnerships with other law enforcement agencies and the private sector. In 2013/14, it will continue to ensure coordinated investigations and joint operations.
Climate change impact management
DEDEAT will continue to oversee implementation of our provincial Climate Change Strategy. The department is in partnership with DAFF, dti and Water Affairs to expedite Environmental Impact Assessment applications in relation to community affore station projects.
We plan to complete the Provincial Air Quality Management Plan currently under development to guide industrial activity towards improving air quality and reducing the carbon footprint of the province.
In partnership with SALGA, DLGTA and DEA, the department will support the establishment and improvement of municipal waste management infrastructure and training of municipal councillors to address waste management challenges in municipalities.
The ECPTA will support the Umzimvubu Catchment Partnership Programme, which is leading the country in piloting catchment management for sustainable livelihoods in the upper Umzimvubu catchment.
Supporting innovation
Performance management
Having recognised the positive impact of the ECPTA’s web-based corporate performance management system (implemented in 2011/12, and refined in early 2012/13), the department will establish a Group-wide planning, monitoring and reporting system in 2013/14.
The system will overcome the repeatedly raised risk of unreliable management, validation and reporting of performance information across the Group resulting from our inability to synchronise performance information. It will utilise existing software platforms, and build off existing applications at DEDEAT and ECPTA. Planning assistance modules will be added from the middle of next year.
Professionalise the Public Service
A significant Business Process Re-engineering exercise is underway in the department. It aims to improve process flow, shorten timeframes and improve document management. In the short term, the project will yield improved audit outcomes. Over the medium to long term, it will establish the systems necessary to professionalise the department and meet our key Strategic Objective: To improve the department’s image by addressing all four performance elements, namely Performance, Efficiency, Effectiveness and Accountability.
Innovative Solutions
Oliver Wendell Holmes, one of the best regarded American poets of the 19th century, once said “Man's mind, once stretched by a new idea, never regains its original dimensions.” Mister Speaker, over the next year we intend to establish this province as a place where the dimensions of many minds are changed by new ideas on a regular basis.
To this end, we will expand and enhance our current collaboration with research and tertiary institutions to establish an Innovation Ecology in the Province. The STP will be completing its collaborative workspace soon. The design and layout should advance cooperation and collaboration in the development of innovations, as will the soon-to-be established Open Innovation Solutions platform with a particular focus on developing solutions to public sector delivery challenges.
Plans are in place to produce 2 new prototypes in 2013. With the Department of Science and Technology and the World Bank, we will host an international conference on Global Innovation and Entrepreneurship. The conference will bring together 600 delegates with a strong African presence.
Budget allocations
Honourable Speaker, we now briefly summarise our departmental budget proposals. When compared to the original 2012/13 appropriation of R936 million, the total departmental budgeted expenditure in 2013/14 increases by 14%.
The budget distribution across the department’s three programmes is influenced by the relative location of the six public entities. Accordingly, 54% is directed towards Economic Development and Tourism, and 27% to Environmental Affairs.
The majority of the departmental budget (62%) is transferred to the six public entities making up the DEDEAT Group. The allocations in 2013/14 to the entities are:
- Eastern Cape Liquor Board: R41.131 million, up 28% from 2012/13
- Eastern Cape Gambling and Betting Board: R42.687 million, up 48.8%
- Eastern Cape Development Corporation: R188.404 million, up 2.8%
- East London Industrial Development Zone: Down 15.2% to R112.407 million
- Eastern Cape Parks and Tourism Agency: Up 3.9% to R191.543 million
- Coega Development Corporation: Once-off allocation of R82.750 million
Honourable Speaker, the department expects to collect tax receipts of around R126 million in 2013/14, nearly 77% of which will come from casino taxes. The Estimates of Provincial Revenue and Expenditure contain detailed budgets.
Conclusion
American Philosopher, Logician and Mathematician, Charles Sanders Peirce, remarked that “All the evolution we know of proceeds from the vague to the definite.”
Mister Speaker, we are aware that the development of our policy direction since 2009 follows just such a progression; we believe that we have arrived at the “definite”. This means that we are now in a strong position to engage with the desirability of emerging opportunities such as hydraulic fracturing and nuclear energy, and support industrial developments that are consistent with our overall policy direction.
It further means that we have paved the way to a smooth transition to the 5-year budgeting framework mooted by the President. To this end, we affirm our commitment to leading the province to a sustainable, low-carbon economy that can create more and better jobs, particularly for young people who have, as the Premier pointed out in her State of the Province Address, endured the worst of the global economic crisis.
We are confident that this House and her related oversight bodies will support us in this endeavour. We would like to thank our portfolio committee for their continued support and vigorous engagement.
Honourable Speaker, we herewith table the Annual Performance Plans for the department and the six public entities for which we are responsible, and the Service Delivery Improvement Plan for the department.
Thank you!
