The bulk of the Department of Economic Affairs, Environment and Tourism’s R849,5 million budget will go to development projects aimed at economic sustainability and job creation, MEC Andre de Wet said.

He said 84 per cent or R708,5 million of the 2004/5 budget, which represented a two percent increase over the 2003/4 budget, would go to transfer payments to public entities implementing the department’s policy responsibilities.

These transfers include R359 million to the Coega Development Corporation, R125 million to the East London IDZ, and R114 million to the Eastern Cape Development Corporation.

“These investments reflect the department’s commitment to developing sound world-class infrastructure which facilitates private sector investment and provides opportunities for promoting economic development opportunities for businesses in the province,” De Wet said.

Promoting tourism and regulating the gambling and liquor industries is to absorb a further R38 million of the department’s budget, while R47 million has been allocated to the newly-established Eastern Cape Parks Board.

“The two IDZs in the province is a commitment to building a sound base for private sector investment.

“It is imperative that the IDZs should also provide a basis for BEE (black economic empowerment) investment and small enterprise involvement.

“In the development of the Coega IDZ, rigorous BEE targets were exceeded. Nearly 60 per cent of the equity is held by black business interests.

“Participation by local enterprise in the Coega development also accounted for nearly 60 per cent of contracts awarded.

“In the case of the East London IDZ, infrastructure contracts worth nearly R200 million were awarded in the past year. A significant proportion of BEE participation was also evident.

“Both IDZs have contributed extensively to job creation during their construction phases. The Coega IDZ has employed over 9500 construction workers to date, while some 500 direct jobs were created in the East London IDZ.

“The difference in these numbers is a direct result of the differences in scale between the two projects.

“The fact that our money is well spent is reflected in the productivity and stability of labour in these major projects. At Coega, the total labour down-time was only 0,2 percent out of over 8,4 million hours worked.”

De Wet said it was imperative to sustain and grow the province’s automotive industry and to ensure opportunities were extended to BEE investors and SME suppliers.

In order to provide access to risk capital to finance BEE enterprises, the ECDC’s programme for loans between R100 000 and R3 million will be extended in 2004/5, together with prospects for establishing a R100m private equity fund.

The Eastern Cape Tourism Board (ECTB) has been restructured and transformed in line with the new Provincial Tourism Act and will be built into an organisation that can develop the tourism sector in the province through partnership programmes with the private sector, district municipalities and other tourism organisations.

The ECTB will also establish a registration service in order to build a database and directory of players so that gaps could be identified and to ensure opportunities are available to new entrants into the industry.

De Wet also announced that Baviaanskloof would be inscripted as a World Heritage Site next month.