VOTE 6: Policy and Budget Speech (2015-2016) for the Department of Economic Development and Tourism presented by the MEC for Treasury, Economic Development and Tourism, Mr SE Kholwane, MPL, to the Mpumalanga Provincial Legislature at Riverside, Mbombela Local Municipality
Madame Speaker, Honourable Thandi Shongwe;
The Premier of Mpumalanga Province, Honourable David Mabuza;
Deputy Speaker, Honourable David Dube;
Colleagues in the Executive Council;
Chief Whip of the Majority Party, Honourable Johanne Mkhatshwa;
Honourable Members of the Provincial Legislature;
Councillors in our Midst;
The Director General of the Mpumalanga Provincial Government, Dr Nonhlanhla Mkhize;
The Acting Head of the Department of Economic Development and Tourism, Mr Thulani Mdakane;
Other Heads of Departments in our midst;
Chairpersons of Boards and CEOs of our Public Entities;
Our social partners;
Provincial Secretary of the ANC, Cde Lucky Ndinisa; and the entire Leadership of the Alliance in our Midst;
Members of the media;
Distinguished guests;
Ladies and gentlemen;
Good Morning
Madame Speaker,
Allow me with your indulgence to premise the budget of Vote 6 by drawing wisdom from our late President Nelson Mandela in his final speech as the President of the Republic of South Africa in June 1999:
“I am a product of Africa and her long cherished view of rebirth that can be realised so that her children may play in the sun.”
These words of wisdom have a very special and profound meaning to the Province of the rising sun. Firstly the people of Mpumalanga have demonstrated just like Nelson Mandela that they are a true product of Africa by emphatically rejecting counter-revolutionary xenophobic attacks.
I am certain that Nelson Mandela himself, Oliver Tambo, Samora Machel, Thomas Sankara, Patrice Lumumba, Kwamme Nkruma, Jomo Kenyatta, Augustino Neto wherever they are should be waving and smiling at the people of Mpumalanga Province.
Let’s give the people of Mpumalanga a round of applause. We know these perpetrators of crimes against humanity do not represent the majority of South Africans and therefore should not be allowed to betray the course of building one African continent, one people and one nation.
I am also a product of Africa and therefore my loyalty and revolutionary responsibility confirms that Africa is my beginning and Africa shall be my ending…
Let us therefore start from the beginning…
Our forefathers and mothers who fought bravely to defend our land were not defeated by the mighty weapons of the coloniser but it was the division of the African people which led to the colonisation of many countries in Africa and South Africa inflicted by a “colonisation of a special type” was no exception.
It was not only the land that was colonised, our belief systems, knowledge and economy was also colonised. Acknowledging this national crisis, the historical Real Congress of the People in June 1955 sought to reverse the frontiers of colonisation by their freedom demands which are now the pillars of the Constitution of the Republic of South Africa.
The extract of the preamble of our Constitution reads:
“We the people of South Africa, recognise the injustices of our past. Honour those who suffered for justice and freedom in our land. Respect those who have worked to build and develop our country. Improve the quality of life of all citizens and free the potential of each citizen.”
Madame Speaker,
The ruling party has sustained this constitutional call through its 2014 election manifesto which has found expression in government public policies, programmes and performance plans as evidenced by my colleagues who have already tabled their policy and budget votes before this respectable house.
Our collective objective statement seeks to improve the quality of life of all citizens and free the potential of each person socially and economically through:
- Quality education and skills development;
- Creating sustainable jobs and business opportunities;
- Improved healthcare;
- Strengthening access to shelter and basic services such as water and sanitation.
The major thrust of our 2015-16 priorities as the provincial government gives practical expression to the ANC-led government’s economic policy position to protect the poor and vulnerable communities as a matter of priority.
Madame Speaker, there is no doubt that the past 21 years of democracy have laid a solid foundation towards building an inclusive National Democratic Society. Over these years, we have seen major economic policy interventions to address the triple challenges of unemployment, poverty and inequality.
Notwithstanding challenges that remain, we recognise major strides that the ANC-led government has made in advancing economic and social transformation. In the main:
We have broadened access to economic opportunities to ensure that there is broad-based participation in the economy;
We have seen declining poverty levels as a result of targeted interventions to build a solid social security net to protect the poor and the vulnerable.
The Mpumalanga share of population living below the Lower Bound Poverty Line has shown a declining trend and was 36.2% in 2013, ranking us 6th out of nine provinces.
In terms of income inequality, in 2013 the poorest 40% of households, earned 7.5% of total income. This is better than the national average of 6.7%;
Our rural development programmes continue to provide a necessary platform for enterprise development that drives the economic revitalization of rural areas;
More and more youth and women-owned business are accessing economic development opportunities than pre-1994;
Despite these positive developments, poverty, unemployment and inequality continue to rise to unacceptable levels.
The reality is that we cannot successfully defend the social and economic gains accrued over the last 21 years of democracy unless we create and grow step by step, block by block a resilient, competitive and inclusive economy that provides more job opportunities and allows a critical mass of SMME’s and co-operatives to participate productively in the mainstream economy.
As we move forward, we are cognisant of the global economic outlook that will continue to constrain economic growth and prospects for massive employment creation. In the face of a tight fiscal environment, we need to find innovative ways to attract much needed private sector investment and partnerships to stimulate economic growth and job creation.
Economic Outlook Economic Growth
Madame Speaker; global economic growth is subdued, and it is projected to be 3.5% in 2015, rising to 3.7% in 2016. This is indeed a forecast which suggests a long and challenging road towards recovery to levels seen pre-2008.
Growth in the sub-Saharan Africa region is expected to average 4.5% in 2015 and increase to 5.1% in 2016. This is in the face of weaker global demand for commodities.
As a country, we are not immune to the difficult global economic conditions. South Africa’s forecasted growth rate up to 2016 is expected to remain roughly in line with average world growth prospects, yet lagging behind that of emerging and developing economies.
The rate of GDP growth slowed down from a rate of 4.1% in the fourth quarter of 2014 to a rate of 1.3% in the first quarter of 2015.
This was lower than the expected 1.6% forecast by most economists. The chances of achieving an average growth rate of 2% this year, as initially forecast, will therefore be a slightly more demanding goal.
As a Province, our nominal GDP figures indicate that our overall share contribution towards the South African economy has risen the last couple of years to 7.6% in 2013. Our average rate of growth in the ten year period from 2003 to 2013 was relatively low at 2.9%.
This was the joint fifth highest growth rate of the nine provinces and was well below the national average of 3.7% over the same period.
Relative to the South African economy, Mpumalanga contributes strongly in the areas of mining (21%) and utilities (15%), which includes electricity generation. It also contributes a fair share in the areas of agriculture and forestry (9%) as well as trade and manufacturing (both 7%).
Mining still dominates Mpumalanga’s economy in terms of its share (measured in constant prices) of the provincial GDP as it accounts for 25% of the provincial economy, community services (including government services) (16%), trade (15%), manufacturing (13%) and finance (12%).These sectors account for more than 80% of the provincial economy.
Employment
The first quarter national employment figures for 2015 show that whilst employment rose by 405 thousand or 2.7% on an annual basis, the unemployment rate rose to 26.4% in the first quarter of 2015 as compared to 25.2% in the same period of 2014.
This emphasises the need to not only accelerate the pace at which we are creating jobs, but to also drastically improve the levels of preparedness of the working age population to access work opportunities.
The official unemployment rate in Mpumalanga stands at 28.4% as at the end of the first quarter of 2015. This is down by 2% from 30.4% during the same period in 2014. It is however, 1.8% higher than the fourth quarter of 2014.
Madame Speaker, what is of concern however is the high level of discouraged work seekers in the Province. This is reflected in the relatively high expanded unemployment rate of 40.7% at the end of the first quarter of 2015.
An increase in labour absorption for the youth will require a number of deliberate interventions.
Key amongst them will be the acquisition of skills relevant to industry as well as the promotion of entrepreneurial development.
In line with the National Development Plan, Mpumalanga Vision 2030 and Mpumalanga Economic Growth and Development Path, our plan continues to prioritise key sectors of the economy with the potential to contribute to economic growth and job creation.
Our major areas of focus include:
Greater focus on attracting investment in agriculture and agro-processing. As a province, this remains an area of growth given our competitive advantage. We cannot afford the shedding of jobs in this sector as it accounts for high employment at lower skills levels.
More importantly, we will continue to invest in tourism, mining, manufacturing, and ICT to drive the development and empowerment of small businesses and cooperatives in these sectors;
Under the leadership of the Hon. Premier, our trade and investment promotion programme will be geared towards more innovative models to attract investments in the delivery of our strategic socio-economic infrastructure projects;
Towards Industrialization
Within the context of the NDP, the Industrial Policy Action Plan, and our Provincial Growth and Development Path, we want to ensure that we implement measures that foster research, innovation and the growth of local industries.
We have to build local centres of competence in the manufacture of goods and products intended for markets locally and internationally.
For us to grow the economy and create jobs in the Province, technology innovation in competitive sectors of our economy is essential to drive the expansion of our industrial development capabilities.
More essentially, our strategy should seek to attract investment in strategic growth sectors to enhance our export competitiveness.
In short, we need more products to be manufactured in Mpumalanga so that we create jobs locally.
Honourable Speaker, I am pleased to report that we have concluded work on the development of the Industrial Development Plan after consultation with key industry players in the Province.
This plan identifies specific areas of intervention to promote technological innovation and growth of industries across a number of competitive sectors including, petrochemicals, steel, wood, mining and agriculture.
This year, we will engage further with industry players to conclude partnerships on the development of priority industrial clusters and technology innovation hubs to support rapid industrialization.
Alongside this, we will develop the Provincial Trade and Investment Plan to guide our work towards attracting investment that drives our industrial capabilities and creates possibilities for Mpumalanga industries to expand to African and world markets.
Madame Speaker, the establishment of the Special Economic Zone (SEZ) in Nkomazi is a strategic platform to attract new investments that promote industrial development in the Province.
In this regard, the strategy and comprehensive feasibility studies which have been concluded indicate that the proposed SEZ is a viable proposition. In support of this development, the Nkomazi Local Municipality has made available 300 hectares of land for the implementation of the project.
Our major focus this year is to ensure that we attract anchor investments in a number of opportunities identified in the SEZ. MEGA is currently engaging with a number of potential investors in this regard.
40. In order to ensure that the required designation of the SEZ by the Minister of Trade and Industry is obtained during the year, we have already commenced with the implementation of the project and the required Environmental Impact Assessment. The township establishment processes are already underway.
Green Energy
Honourable Speaker and Members,
As we grapple with the constraints of energy supply in the country, we must appreciate the opportunities that are emerging in the green and renewable energy sector.
As a Province, we must take advantage of industrial development opportunities in the renewable energy space.
In this financial year, we will conduct a detailed study and develop the Green Energy Plan for the Province, including developing a business case for a Gas Hub.
In partnership with Chief Albert Luthuli municipality, MEGA is currently engaging with potential investors for the construction of the Wind Energy Farm that will supply power to Eskom. This year, all due diligence and planning processes should be finalized.
As part of promoting energy efficiency, we will facilitate the establishment of the youth-owned bulb manufacturing plant to supply government’s retrofitting programme as well as the future development of green energy compliant buildings both in government and the private sector.
This year, we will also finalise the designs and statutory compliance requirements for the establishment of the Bio-Diesel Technology Incubator in Dr J.S Moroka Local Municipality.
We will also conduct the feasibility study for the possible establishment of the Biomass Plant that would utilise waste from production processes to generate energy or biogas in order to explore alternative energy sources within the Province.
Investing in Agriculture and Agro-processing
Madame Speaker, we are working in collaboration with DARDLEA to stimulate the growth of the agriculture sector in the Province. Our primary responsibility is to ensure that we attract strategic investments along the agricultural value chain, including agro-processing and other downstream industries.
The International Fresh Produce Market remains one of the flagship projects that present opportunities for investment by local and international investors.
From an enterprise development perspective, the International Fresh Produce Market is an important platform for entrepreneurs, small holder farmers and land reform beneficiaries to participate and access local and international markets for their produce.
Madame Speaker, our major drive to support agricultural production is to ensure that emerging farmers produce for markets.
The Lekwa Oilseed Crushing Plant situated within Standerton which is now fully operational presents further opportunities for our smallholder and land reform farmers within the Gert Sibande and Nkangala Districts to benefit from the market offered by this plant.
We are working in partnership with the national Department of Economic Department to ensure that they participate within the soya-bean and sunflower value chains within these regions.
In 2015/16 financial year, we will, in partnership with DARDLEA and the Department of Rural Development prioritise the establishment a broiler value chain that will incorporate the re- commissioning of the poultry abattoir at the Bushbuckridge Agro-processing Hub situated at Champagne.
This will benefit existing agricultural co-operatives Bushbuckridge Municipality to produce poultry products for the local, regional and other markets.
Tourism Development
Honourable Speaker,
One of the critical policy pronouncements that the Honourable Premier made in his State of the Province Address earlier this year speaks to the acknowledgement that in order for the tourism sector to grow, the collaboration with industry players and the community at large is critical.
Through partnerships with the tourism industry and communities, we should enhance and diversify our tourism product offering to ensure that Mpumalanga becomes a destination of choice for domestic and international tourists.
As a Province, we have begun engaging the industry on developing a shared plan that will drive the tourism sector growth.
In 2015/16 financial year, we will review the provincial tourism growth strategy to ensure that we respond to a number of weaknesses and transformation challenges constraining the growth of tourism in Mpumalanga.
Through MEGA, we are exploring investment models that will attract private sector participation in the delivery of strategic tourism infrastructure projects such as the Sky Walk and the Cable Car in Blyde River Canyon.
In the next three months, we will appoint transaction advisers to package specific recommendations on the structure of the proposed investment transactions.
Honourable Speaker,
We will continue to leverage tourism as a platform to enhance regional integration. In collaboration with our counterparts in Swaziland and Mozambique, we have resolved to resuscitate the TRILAND Brand Memorandum of Understanding, and have assembled a team to review the initial agreement and to take stock of various gains accumulated over time to date.
Among other things, this Tourism, Trade and Investment Brand Initiative, seeks to:
- develop and position TRILAND as a world-class tourism destination;
- contribute to the integration of the region and its common goals;
- contribute to employment creation and economic growth, and
- develop sustainable and responsible tourism,
Honourable Speaker,
Part of our strategy now and into the future involves the rejuvenation of tourism towns, and we have in this regard prioritized the rejuvenation of Pilgrim’s Rest, Waterval boven and Machadodorp cluster.
We are working with tourism industry players and all other key stakeholders to find a long- term sustainability plan and a lasting solution for Pilgrim’s Rest. There is no doubt that this asset has great value for tourism in the Province.
Honourable Speaker and Members,
In diversifying our tourism product offerings, we can report that the liberation route linking Mahatma Ghandi and Pixley Ka Isaka Seme in the Gert Sibande District has been developed. Plans are in place to expand this route into the Broader Liberation and Heritage Route stretching from the Battle Fields in KwaZulu-Natal through to the Moholoholo Mountains in the Blyde River Canyon, and through to Barberton in the Umjindi Municipality.
Supporting Small Businesses and Cooperatives
Madame Speaker, small and medium enterprises are the engine of economic growth and job creation.
Honourable Members, radical economic transformation is not just a political buzz word but it seeks to demand deliberate and urgent strategic interventions with tangible results in dealing with the structural constraints of the economy ranging from under-performance of key sectors, and insufficient practical measures to address the question of equity ownership.
To revitalize township and rural economies, there should be concerted and deliberate interventions targeted to support SMMEs and co-operatives ensuring access to financial and infrastructure provision in order to grow their businesses.
We also need to put enough measures in place to deal with the root causes leading to the high failure rate of SMME’s and co-operatives including access to funding, to markets and requisite business management skills.
In the 2015/16 financial year, we will continue to prioritise the following measures:
o Improve support to SMMEs and cooperatives in terms of registration and compliance requirements. Last year, a total of 1 thousand 192 SMMEs and 282 co-operatives were assisted to register with the Companies and Intellectual Property Commission (CIPC).
o A further 1 thousand 208 SMMEs were assisted to lodge annual returns and others referred to relevant agencies for other services they required. This focused support is necessary to ease the burden of red tape associated with business registration and compliance requirements.
o More essentially, linking SMMEs and cooperatives with existing opportunities in various sectors of the economy. We are also pleased that during the period under review a total of 684 Mpumalanga-based companies were assisted to access economic opportunities in the Kusile Power Station project.
Honourable Members, through our partnership with the South African Bureau of Standards (SABS), 11 SMMEs and 19 cooperatives were provided with technical training which is aimed at improving the quality of their products in order to improve their competitiveness in the market.
We will continue to partner with the SABS in the current financial year to further assist SMMEs and co-operatives to reach the certification level which will result in them receiving the SABS approval for their products.
Furthermore, 30 youth were trained in tool making and 10 completed On-Job Training Programme. In terms of the Stainless steel sector, 18 youth were incubated through the Mpumalanga Stainless Steel Initiative utilising different companies.
Five (5) successfully completed the post incubation plan and were absorbed by the industry. In the current financial year, 50 trainees will be capacitated through the incubation programmes.
To support SMMEs and cooperatives, MEGA has also embarked on a process to revitalize unused industrial parks so that this infrastructure becomes available to promote township commercial industrial development sites.
As part of implementing Broad-Based Black Economic Empowerment initiatives, we have prioritised the development of tyre service businesses in townships to stimulate entrepreneurship and employment.
In this regard, we have entered into a Service Level Agreement with Sumitomo Rubber South Africa to enable the development and support of township tyre businesses. This is meant to improve their services offerings and to provide them access to the market of new tyres.
In the current financial year, we will continue to implement the Mpumalanga BBBEE Strategy initiatives in order to ensure that previously disadvantaged individuals access more economic opportunities and participate in the mainstream of the economy.
These initiatives relate to tyre making, stainless steel manufacturing, printing, supply of vegetables, textiles, building material and various inputs, especially where government can use its procurement leverage as the main consumer of goods and services.
Madame Speaker, we will also prioritise the beneficiation of abundant fly ash to manufacture products and materials for use in the construction sector.
In Govan Mbeki, land has been secured for the establishment of the youth-owned Fly-ash Brick Manufacturing Plant that will supply bricks to government’s human settlement and infrastructure projects.
The Fly-ash Incubation Centre situated at Majuba power station within Dr. Pixley Ka Isaka Seme Local Municipality is already at an advanced stage and will commence with production soon. The work on the Fly Ash Brick manufacturing project in Emalahleni will commence during the 2015/16 financial year.
Business Regulation and Governance
Consumer Protection and awareness
Madame Speaker, Honourable Members,
Part of our core mandate is business regulation and protection of consumer rights against unscrupulous (dishonest) business conduct.
In this regard, we have to empower consumers to understand, and fight for their rights.
Our consumer education and awareness programmes have proven to be successful. This is evidenced by the high number of complaints we have received regarding unfair business practices.
In this regard, we managed to resolve 1 277 reported consumer cases, and subsequently recovered just over R7.6 million on behalf of consumers during the period under review.
This was made possible through the establishment of the second consumer court which is servicing both the Nkangala and Gert Sibande Districts.
We will thus in the current financial year, continue to strengthen our consumer education and awareness programmes; empower consumers on financial literacy; and promote the culture of saving.
Regarding the alignment of the Mpumalanga Consumer Affairs Act No. 6 of 1998 with the New National Consumer Protection Act of 2008, we have and continue to consult both the national and provincial stakeholders in this regard. It is thus our intention to table the Consumer Protection Draft Bill to this August House during the current financial year.
Furthermore, we are currently strengthening the Compliance and Enforcement Unit within the Department to enforce compliance to the Mpumalanga Business Act. The Unit will continue to support the municipalities to develop their own business by-laws.
In this regard, we can report that six (6) local municipalities have finalised their street trading by-laws, and are now operational or enforceable. The business by-laws for the remaining twelve (12) local municipalities will be finalised in the current financial year.
Re-configuration of the Department
Madame Speaker, Honourable Members,
In order to deliver on our core mandate and the ambitious targets we have set ourselves we need to ask these difficult questions.
Do we have the right machinery and strategic capabilities to drive our core mandate?
Is the organisational structure, strategy and business operating procedures including inter- governmental relations framework responding to the economic transformation targets we have set ourselves?
In answering these questions Madame Speaker, we have therefore in-line with the Provincial economic blue-print and five (5) year strategic targets reviewed the organisational structure, macro design and business operating procedures of the department and its entities in order to ensure that we are fit for purpose going forward.
A comprehensive organisational turn-around programme was also developed successfully in- line with the findings of the organisational diagnostic report.
In 2015-16 we will prioritise the implementation of this programme and its change management plan in a phase in approach due to the intensity of consultation required.
The proposed organisational design seeks to re-position the department as the strategic centre of economic development and that of co-ordinating and rallying all government institutions and the private sector in the province around a common economic vision.
Secondly to define and clarify roles of all stakeholders in the different components of the economic value chain with requisite specialisation and more importantly shift programme implementation to the relevant entities so that this department can focus on economic planning, policy, strategy, governance oversight, monitoring and evaluation.
Thirdly re-engineer public entities to improve their strategic and functional capabilities in-line with their core mandate in the implementation of our provincial economic and development growth path leading to the vision 2030.
However it must further be noted that the developmental role of public entities and their ability to meet the goals they have set for improvement and their capacity to deliver is under intense scrutiny as a subject of focus in the current Organisational Design processes.
Public Entities
State of Governance
Honourable Speaker, Honourable Members,
Recognising the need to exercise stronger oversight of public entities a dedicated unit has already been established to focus on governance, oversight, monitoring and evaluation of public entity’s performance.
Secondly we are finalising the Public Entities Performance oversight policy framework which seeks to enhance greater standardisation in areas such as:
- Reporting, Responsibility and Compliance Matrix;
- Managing appointments of the Executives and Board Members including the remuneration processes in line with the applicable legislative provisions;
- Funding model so that re-capitalisation is not seen as a reward for under performance;
- Managing performance and agency governance remain the shareholder’s primary responsibility;
Madame Speaker, we will leave no stone unturned in ensuring that our public entities deliver what they were intended for.
Appointments
We also wish to report that the appointment of board members is work in progress. Noting that the appointment of Mpumalanga Liquor Authority Board Members was finalised in the last financial year.
We have now appointed Mega Board members for the full term of office with effect from yesterday the 1st of June 2015. Mega has also appointed a new CEO in January 2015.
We have further published through a government gazette as legislatively required the names of candidates we intend appointing as Mpumalanga Gambling Board (MGB) board members.
The appointment of the MTPA board members for a full term remains our priority for the next few weeks.
Leadership and Governance is a critical success factor in our turnaround strategy to take our public entities to the next level.
We are confident that the men and women we have appointed constitute the right mix of expertise and experience to enhance the delivery of their core mandates.
We believe that working together they will facilitate the strategic shift which will see the public entities moving from internally focused, reactive and financially unsustainable institutions to capable, credible and resilient agencies.
Audit Outcomes
We take pride in the MGB’s sustained record of a clean audit outcome, followed by MTPA with unqualified audit opinion regrettably MEGA has been qualified once again.
We will continue to work tirelessly around the clock until all our public entities attain clean administration status.
2015/16 Priorities
MGB
The Mpumalanga Gambling Board (MGB) continues to effectively regulate the gambling industry in strict compliance with the gambling legislation.
In terms of revenue collection, the MGB has managed to collect just over R80 million on gambling taxes, which is a significant contribution to the province’s own revenue base.
In addition to the roll-out of new licenses, we further granted an application for the expansion of the Emnotweni casino, here in Mbombela, for an estimated investment of R200 million, which saw 453 temporary jobs created during the construction phase, and a further 21 permanent jobs after completion.
Madame Speaker,
Gambling by its very nature comes with its own challenges.
Our efforts on the education and awareness campaigns on responsible gambling have been strengthened by our continuous partnership with Mzimari Productions, in the crowning of Miss Mpumalanga, which has provided us with remarkable Ambassadors to drive the Responsible Gambling messages.
To this end, allow me to introduce the newly crowned Miss Mpumalanga 2015, who comes from the small town of Lekwa, in the Gert Sibande District, Miss Zamanene Nene who is our guest today. May I request her to please take a bow.
Miss Nene is taking over from the outgoing Miss Mpumalanga 2014, Natasha dos Santos, whom I also wish to thank in absentia for the diligent manner in which she carried out the responsibilities, entrusted to her during her reign.
Madame Speaker,
Well regulated “Sin industries” gambling and liquor industries should enhance positive economic spin-offs and minimise related social ills.
Mpumalanga Liquor Authority (MLA)
Madame Speaker, we can announce the Mpumalanga Liquor Authority (MLA) has been listed by the Minister of Finance.
Though the Mpumalanga Liquor Licencing Act, 2006 (Act 5 of 2006) was fully operationalised in August 2014, we have since noticed that there are gaps in the Act.
Consequently, we have thus started the process of amending the Act and the accompanying regulations in order to close the gaps and discrepancies that were identified. We are currently consulting stakeholders in this regard.
Madame Speaker, Honourable Members,
I started by underlining the words of wisdom from Nelson Mandela’s final speech as the President of the Republic of South Africa in 1999, and I found it befitting to once again draw from his World Class, Visionary Leadership and pragmatic approach in his opening speech at the Euro Money Conference in November 1994, the first year of the democratic South Africa:
“Our primary objective is to address the basic needs of communities especially the poor, we have to reconcile this with South Africa’s resource constraints. We must consequently shift our priorities, accept financial discipline and create a climate conducive for sustained economic growth.”
Very true indeed, as a department we have taken a conscious decision to take a cue from the late President Mandela to shift from consumption to investment in a productive social and economic value chain.
Madame Speaker,
In pursuit of our concrete action plan to facilitate and co-ordinate implementation of the response strategy to challenges facing the provincial economy in the 2015-16 financial year the department received a proposed total budget of R743 million and 31 thousand.
Of this amount a total of R541 million and 297 thousand will be transferred to our three (3) Public Entities and the Zithabiseni Resort and Conference Centre.
These transfers represent almost 73% of the proposed total budget allocation of the Department.
129. The budget allocation for Departmental programmes and agencies is configured as follows:
Budget Allocation (Per Programme): 2015-2016
Programme 1, which is Administration is proposed to get R86 689 000 (R86 million, 689 thousand) to strengthen operational support and institutional capacity to carry out the core mandate.
Integrated Economic Services which is Programme 2 will receive R211 413 000 to fast track together with all key stakeholders migration of SMME’s from the second to the first economy.
It be noted that included in the allocation of Programme 2 is an amount of R158 656 000 required by MEGA as a provincial government business enterprise. The bulk of the strategic MEGDP implementation is located within this agency.
Programme 3, which deals with Trade and Sector Development receives R15 386 000 to focus on facilitating and attracting foreign direct investment and creating an enabling environment for productive sectors of our provincial economy.
Business Regulation and Governance being Programme 4 will get R81 801 000 to create a conducive regulatory environment, facilitating the reduction of red tape and more importantly protecting our consumers from unfair business transactions.
Included in the allocation of Programme 4, is an amount of R52 205 000 for the Mpumalanga Gambling Board to ensure that the gambling industry is properly regulated.
Programme 5 which is Economic Planning underpinned by the timeous gathering of economic intelligence is the nerve centre of our department and accordingly it will receive R13 007 000.
Tourism a vital industry for the provincial economy will get R334 735 000 under programme 6.
The allocation for Programme 6 includes an amount of R309 436 000 to fund the MTPA, and a further R21 million to fund the Zithabiseni Resort and Conference Centre.
Conclusion
As I close, I would to like to pay homage to the caring oldest liberation movement of the people, the African National Congress, under the capable leadership of the Honourable Premier, Mr D.D Mabuza, for entrusting me with the purse of the Province, including leading economic development and tourism initiatives.
To my colleagues in the Executive Council and the Legislature, thank you very much for continuing to support us. We also appreciate the guidance we continue to receive from the Portfolio Committee on Office of the Premier; Finance; Economic Development and Tourism, under the chairpersonship of Honourable Pat Ngomane.
My gratitude also goes to the Acting Head of Department, Mr Thulani Mdakane; Chairpersons of the Boards and CEOs of our Public Entities; our partners in the private sector; and staff members of the Department and its Public Entities for their valuable contribution.
To my family, thank you very much for being my pillar of strength.
To the people of Mpumalanga the ‘Province of the Rising Sun’, thank you very much for allowing the ANC-led government to continue to better your lives.
Indeed as the sun rises the people of Mpumalanga must find comfort in its warmth.
As the sun rises the ordinary SMMEs and co-operatives must rise too.
As the sun rises our provincial economy must rise too.
As the sun rises it must rise with the township and rural economies.
As the sun rises it must rise with wealth and job opportunities.
As the sun rises it must rise with the growth of key productive sectors of our provincial economy.
I therefore table the proposed budget Vote 6 for the Department of Economic Development and Tourism for consideration by this respectable House.
Together we move Mpumalanga forward.
I thank you!
