1. Reduced fiscal transfers
As the province, we have also received reduced fiscal transfers from National Treasury as a consequence of our slow population growth. This will require us to do more with less, and manage our resources more efficiently.
2. Develop agriculture and agri-base industry
Through its agriculture and agri-based industry, has great potential to be the country's food basket. During this term we are going to devise measures and strategies to tap on this potential to ensure the contribution of agriculture in improving the province's economy particularly the rural economy.
Not far from here at the Coega Industrial Development Zone (IDZ), an R86 million agro-processing multi-user facility is booming. This facility will enable small, micro and medium enterprises to expand their value addition activities in the Eastern Cape. Prospective investors involved in the processing of coffee, cereals, protein and energy supplements have shown a keen interest in the facility.
We should ensure that that there is enhanced integration in the value chain and linkages to the deep water container Port of Ngqurha for handling of global exports such as the frozen pineapples from places like Ngqushwa destined for the Japanese market.
We are implementing our Rural Development Strategy, and to this end, our target to cultivate 300 000 hectares by 2019 is on track.. We are also going to improve investment in agriculture by developing more rural infrastructure in order to support the expansion of production and employment; small-scale farming and rural development.
Key in this regard will be the building of infrastructure for processing agricultural products, including abattoirs, dairy infrastructure, aquaculture incubation schemes and rural tourism infrastructure.
We will also support the initiatives announced by the President in his State of the Nation Address regarding the establishment of agri-parks, cooperatives and clusters in the poorest district municipalities to transform rural economies.
Since the establishment of the Eastern Cape Rural Development Agency, the province has launched two rural enterprise development hubs at Mqanduli and Ncorha to the tune R45 million each. The hubs already have 1 500 and 900 tons of mealies in storage respectively. In the 2015/16 financial year two additional hubs will be established at Ludeke in Mbizana and at Mt. Arthur in Lady Frere.
3. Tourism development
During the term we will also focus on diversifying the economic value add of the Majola and Magwa Tea Estates through tourism promotion initiatives. This is in line with our determination to promote the Eastern Cape as a tourism destination. To this end, we are providing training to tourism SMMEs on areas such as financial management, digital marketing and product quality.
Furthermore, as part of rural roads infrastructure development programme, we are also going to target the improvement of roads to tourism establishments in the province prioritising the roads to Baviaanskloof, Hole-in-the-Wall, Dwesa-Cwebe and Coffee Bay.
The province is currently working with the National Heritage Council to ensure that the Mandela National Liberation Heritage Route is declared as the world heritage site by UNESCO. We have also signed a MoU with the National Heritage Council (NHC) to research the heritage potential and unique features of the province including its legends.
This research will inform government approach to interventions required to promote heritage and tourism infrastructure in the province. It will also assist in reinforcing the Home of Legends campaign that is meant to brand and market the province.
We will also strengthen our support to signature events like Isingqi Cultural Festival, Grahamstown National Arts Festival, Buyelekhaya Music Festival as well as hosting mega international events.
4. Creating jobs
Amongst other things, an economy that records one of the highest unemployment rates in the country, which currently stands at 30.8 per cent, while youth unemployment stands at 50 per cent. We are rising to the task of creating sustainable jobs for our people. A total of 24 737 jobs, against a target of 13 234, have been created through economic agencies such as the Eastern Cape Development Corporation, the East London IDZ, and the Coega Development Corporation. We are targeting 14 investments with the value of R2,237 billion in the two IDZs.
As part of promoting the province as an investment destination of choice, we are developing an Investment Promotion Strategy aimed at creating an enabling environment for a vibrant economic growth in the province.
The following job creation targets have been set for the 2015/16 financial year: Eastern Cape Development Corporation (ECDC) 7 000, Coega 8 797 and East London IDZ 5 500. In the coming year, jobs will be created in manufacturing, logistics, alternative energy, agro processing and services. We will also offer export support to businesses through ECDC.
5. New infrastructure
The upgrades of the Mthatha Airport runway and apron are complete. We are now working to finalise work on the Mthatha Airport terminal building. The completion date for this project is May 2015.
The Mzimvubu Multipurpose Development Project is also progressing well. This project entails development of a multi- purpose dam to supply water for new irrigation development, hydropower generation and domestic water requirements in the Mzimvubu River Catchment.
6. SEZs
This will help to increase the project's momentum. The proclamation of the Wild Coast Special Economic Zone (SEZ) has also been identified as a key focus area in the coming financial year and a pre-feasibility study for the Wild Coast SEZ has been approved.
7. Operation Phakisa
As part of unleashing the potential of the ocean economy, the President launched Operation Phakisa in 2014. This initiative is aimed at tapping on the potential of the 800km coastline of the Eastern Cape.
The East London Port has been identified for boat building and ship repair. Coega was also identified for over flows from Saldanha Bay with respect to oil rig repairs. Five Aquaculture Development Zones (ADZs) were also identified in the province, namely Qolorha, EL IDZ, Hamburg, Coega IDZ, and Port Elizabeth Port.
Through the Department of Rural Development and Agrarian Reform, the province will also expand these ADZs to cover freshwater aquaculture in our rivers and dams to benefit our rural communities.
Furthermore, the province will be opening the first Maritime High Schools at George Randall and Ngwenyathi in East London in 2016. In preparation for this initiative, the departments of Transport and Education will be sending 10 educators and one official to Belgium for a refresher course from 23 March to 3 April 2015.
The HRD Council will also convene a maritime skills summit in March 2015 to adopt a Provincial Maritime Skills Plan in order to support the initiatives in the ocean economy.
8. Renewable energy
The province intends to install 4 355 solar connections in Mbhashe, 1 180 in Ngcobo and 4 000 in Matatiele. We are aware that electricity supply constraints and price increases comes on the back of existing cost pressures and market demand challenges facing industry in the province.
Accordingly, we are going to establish a rapid response team to engage with the industry on the mitigation of the negative impact of outages. The team will further facilitate exploration of alternative energy options.
We have made significant progress in positioning the province to become one of South Africa's energy hubs.
The Jeffrey's Bay Wind Farm, which is the biggest in Sub-Saharan Africa, started generating electricity in mid-2014, and is expected to supply enough clean, renewable energy to meet the needs of over 100 000 households in the province.
Furthermore, well over 45% of the total project value of the Renewable Energy Facilities in the Eastern Cape has been allocated for local procurement, and the intention in this regard is to stimulate the development of localised industries and the green economy.
The discovery of shale gas reserves in the Karoo Basin, offers us an opportunity to further grow our economy, and to create much needed jobs for our people. The ground-breaking scientific research currently underway in partnership with the Nelson Mandela Metropolitan University, will be finalised by December 2015.
This research will map out a detailed technical understanding of the potential shale gas resource and possible environmental risks associated with its extraction. It will further enable the provincial government to plan for optimal socio-economic and environmentally responsible outcomes.
9. Sustaining our provincial competitiveness
We will continue to work with the Department of Trade and Industry to provide a more comprehensive package of incentives and support to local industry to ensure its sustained competitiveness.
Already the support that is now being provided to the clothing and textiles sector has slowed down the spate of retrenchments in the sector.
