The Eastern Cape Government is to lead "efforts to unlock the economic potential" of the province and unblock constraints said MEC for Economic Affairs, Environmental Affairs and Tourism Sakhumzi Somyo who delivered the Department's policy speech today.
Appointed in May 2014, Somyo's third policy speech referred, in particular, to playing an "even greater role in localisation, export-led manufacturing, human capital and SMME development.
"We need to move ahead with the implementation of the National Development and the Eastern Cape's Provincial Development plans," he said.
In the coming year, the department's three priorities would be job creation, protecting the natural environment and strengthening the developmental state and good governance.
The pillars of economic transformation have been identified as energy production including renewable energy, agro-processing, small business development, support for the informal economy, the Buy EC campaign, support for companies in distress, tourism, skills development and the overhaul of IDZs to SEZs.
He said that the IDZs were performing ahead of its counterparts in attracting investments, creating jobs and providing skills including to the youth. In the 2016/17 alone, the two IDZs would create close to 18,000 jobs.
The ocean economy was also key to economic transformation of the province with the three ports successfully positioning the province as a strategic gateway to Africa.
He added that there were opportunities for the province in aquaculture, oil and gas, ship and boatbuilding, oil rig repair and bunkering.
Both IDZs had taken the development of their aquaculture development zones seriously and had made significant headway in their establishment. In total, 470 hectares had been earmarked for the ADZs at the local IDZs.
Another industry earmarked for investment and development was agro-processing.
Amongst the initiatives planned to leverage agriculture which was "one of the most valuable resources", was the establishment of an agro-industrial park in Berlin.
Small businesses are a big area of focus too.
A major announcement in the speech was the finalisation of the local and regional economic development policy, mandate, funding criteria and guidelines which now focus on a supply delivery model.
This funding had proven its success with local companies such as Pro-Gloves and Kusasa Green now being able to compete at a national level and becoming trusted suppliers to retail giants such as Massmart.
He also said that R43 million had been allocated to SMME development, particularly youth enterprises, through the Eastern Cape Development Corporation.
Somyo said that the provincial SMME strategy had been reviewed and implementation was underway. The department is also to develop a strategy to develop the township economic sector.
One initiative to come out of this programme was the development of the provincial incubation fund. Fifty SMMEs from the province would take part in the Gazelle programme, run by the Department of the Small Business Development and Small Enterprise Development Agency.
Policy speech highlights:
Jobs
- Independent Power Producers Programme 18,132
- Renewable energy job potential in IDZs 3,117
- Other IDZ programmes 5 700
- Aquaculture development zones 2 000 potential jobs
- Coega investors to create 8 000 jobs
Investments
- Independent Power Producers Programme R33.7 billion
- Renewable energy investments in IDZs R5.6 billion
- Other IDZ investments R585 million
- Industrial parks infrastructure investments R44 million
- Port of Port Elizabeth upgrades
- LRED investments into black business R21.9 million
- R456 million for rural roads
- Upgrades to industrial parks R50 million
- Mercedes-Benz, DBSA, VWSA skills programmes R10 million
Small business
- DEDEAT renewable energy programme
- 330 prospective SMMEs engaged in programme
- Follow-up support to 16 selected SMMEs; these secured R17 million in contracts
- IDZ black economic empowerment programmes to be maximised
- 50 SMMEs to take part in the Gazelle project, driven by the Department of Small Business Development and Small Enterprise Development Agency
- Red tape project aimed to reduce administrative, legislative laws to managing a business
- Develop a strategy for informal economy
- Local and regional economic development policy reviewed
- R43 million for SMMEs through the Eastern Cape Development Corporation; targeting youth enterprises
- 16 cooperatives to be supported financially through the Imvaba Fund
- Provincial incubation fund to be established
For more information, contact:
Tobile Gowa
Cell: 078 184 7153
E-mail: tobileg@yahoo.com
