ECDC's Mase pleased with Gordhan's cut for Eastern Cape priority sectors
The Eastern Cape Development Corporation (ECDC) is pleased that the Eastern Cape has received the third largest slice, R44 billion, of Minister Pravin Gordhan's budget allocation totaling some R889 billion, says ECDC chief executive Sitembele Mase.
This allocation is expected to grow to about R49 billion by the 2013/14 financial year.
Reacting to Gordhan's budget speech tabled at the National Assembly this afternoon, Mase says ECDC is pleased with Gordhan's focus on labour-absorbing sectors which already exist in the Eastern Cape.
Mase says labour-absorbing sectors such as manufacturing, agroprocessing, renewable energy, logistics and tourism are areas which the Eastern Cape should continue to exploit to meet economic growth and job creation targets.
"There are synergies between Premier Noxolo Kiviet's State of the Province Address last week and the Minister's priorities outlined in his budget today. Signals from both speeches prioritise economic and social infrastructure development, economic growth, creation of decent work and rural development. It is pleasing to note that the Minister has allocated some R10,4 billion for public transport, roads and rail infrastructure in the next three years.
"The Eastern Cape has significant backlogs in these areas, and to be competitive, the province needs to develop these areas to achieve accelerated economic growth and a wider skills pool," Mase says.
Rural development extends beyond agriculture
Mase adds that there is a great need to focus on improving rural and urban infrastructure such as road networks, telecommunications, provincial routes and other catalytic infrastructure to boost economic growth.
"It will come as good news for rural dwellers that the Minister has allocated R450 million towards broadband for rural areas," he says.
"In the Eastern Cape, we should also be careful of limiting rural development solely to agricultural farming. Rural development includes infrastructure development such as retail spaces and office parks over and above food production. These interventions provide benefits for potential commercialisation and industrialisation in rural areas," explains Mase.
Mase adds that linking the urban and rural economies is a priority and the manufacturing and agroprocessing sectors provide this opportunity in the Eastern Cape. The above sectors may contribute to a strong manufacturing skills base.
The area of local food production is important and requires a focus on agriculture and agroprocessing. The Minister's allocation of R2,8 billion towards rural development and emerging farmer support will play a crucial role in this regard.
"Agroprocessing and manufacturing also mean skills and technology transfer through value addition. In addition to the financial injection into emerging farmer support, it is also pleasing that R250 million has been allocated to support agroprocessing businesses," Mase says.
A need for a clear SMME policy
According to Mase, it is important that the Eastern Cape develops a clear SMME policy and strategy. He says there is a need for a dedicated SMME fund. He says Gordhan's R10 billion allocation for job creation, small enterprise development and youth employment over the next three years is a step in the right direction.
"SMMEs need particular interventions through funding, technical support, marketing and in accessing export opportunities," he says.
"If we can correctly harness the growth of small businesses we will be closer to achieving the Minister's focus on development rather than welfare and dependence," he says.
He says the ECDC is already making efforts to facilitate economic participation by the youth. In particular, efforts are made to develop strategic relationships with the National Youth Development Agency (NYDA) and others.
Another key issue from the Minister's speech is climate change which should be tackled more vigorously. The world is moving towards reduction of carbon emissions and special efforts should be made towards that goal.
