Delivering the 2022/23 Budget Vote for the Department of Economic Development, Environment, Conservation and Tourism, MEC Kenetswe Mosenogi is optimistic that the relief measures implemented by the government and a phased re-opening of the economy will help to kick start the province's economy which has been crippled by the coronavirus pandemic.
She said the intervention of an employment stimulus to create jobs and support livelihoods is one government's priority interventions.
She said over the past year, the province has experienced a sharp decline in growth and a significant increase in unemployment and it is time for government and other development partners to reflect on finding permanent solutions to social challenges such as hunger, under-development, hopelessness, poverty, and unemployment. “Our province has been experiencing a subdued performance due to the recent droughts that affected many parts of our districts and load shedding has hampered the productive capacity of our economy”, said the MEC.
MEC Mosenogi pointed out with concern that the economic decline also had an impact on the provinces’ unemployment rate which increased from 28.4% during the 2018/19 financial year to 33.8% registered in the last quarter of 2021/22.
Despite an increase in the unemployment rate, job creation in the province during the same period grew by 9.4%. What made the 2019/2020 and the 2020/2021 financial years unique, is the global economy contracted during that period due to the scourge of Covid 19.
During the budget vote, MEC Mosenogi announced that a total budget of R958.258 million has been put aside for the implementation of the Provincial Economic Recovery Plan in response to the devastating effects that Covid-19 has had on SMMEs. To support this work, the MEC announced that the department has developed an SMME Relief Fund worth about R40 million administered by the North West Development Corporation (NWDC).
She indicated that R22.8 million is already been paid to 4353 beneficiaries through the fund, and all the outstanding payments will soon be finalized.
MEC Mosenogi said the budget supports the efforts announced in the State of the Province Address to unleash the potential of small, micro, and informal businesses. About R12 million has been set aside for the establishment and support of the Incubation Centre Program in Orkney, Taung, Vryburg, Mogwase, and Mafikeng.
In addition, an interactive Marketing Online Platform will be set up in Mafikeng to the tune of R 1.1 million. She said there is far progress on the establishment of an Informal Traders Market to support municipalities to integrate informal trading businesses into beneficial buyer groups and distribution networks. The project will be implemented in partnership with Mamusa Local Municipality and Dr. Ruth District Municipality.
In support of business incubators, the department in partnership with Small Enterprise Development Agency (SEDA) will roll out the Digital and Township Hubs in the province, to provide start-up business development support services in manufacturing and digital solutions. To date 30 SMMEs have been incubated by the Mahikeng Digital Innovation Hub, 18 incubated SMMEs registered significant progress in their prototype development process, and 6 companies are market-ready.
In ensuring that the local economy remains in the hands of local entrepreneurs, MEC Mosenogi highlighted that the department in collaboration with its entities North West Development Corporation and North West Parks Board, Ngaka Modiri Molema, and Mahikeng Municipalities, in partnership with the Department of Small Business Development and SEDA is in the process of establishing the Trade and Flea Market Project.
The NWDC small industries have been identified to establish a Manufacturing Hub, whilst the Cookes Lake Information Centre has been identified as a Flea Market Hub that will cater to 23 units that will accommodate SMMEs.
To support business incubators, the department has partnered with Services SETA to implement a business advisory program for young people. The intervention focuses on developing a cohort of competent Business Advisors by enrolling 100 unemployed graduates into a 12 months of Practical Business Advisory Candidacy Programme accredited by the Institute of Business Advisors of Southern Africa (IBASA) and SAIPA (Southern African Institute for Professional Accountants).
The graduates will either establish their own businesses or enter the business advisory job market after completion of the training program.
For media enquiries please contact:
Departmental Spokesperson Mr Jerry Matebesi
Cell: 072 333 0325
E-mail: JeremiahMatebesi@nwpg.gov.za
