THE EASTERN CAPE government is focusing on the upgrading of roads and other infrastructure in order to support business growth in the province. Finance, economic affairs, environment and tourism MEC Enoch Godongwana predicts that a “construction boom” will be accompanying “huge increases” in public infrastructure spending over the next few years. Godongwana was presenting his R28-billion provincial budget in Bisho earlier this week. He announced that spending on infrastructure would be increased to nine per cent of the budget, compared to two per cent of total spending in 1999/2000. Over the last three years the administration has spent R2.5 billion on roads (upgrading and maintenance etc). Of this, R1.3 billion (or 52 per cent) was spent in the 2002/03 financial year, according to Godongwana. The South African National Roads Agency (SANRA), has been assisting the Provincial Government with the fast-tracking of roads upgrading over the last two years. SANRA has done work to the value of R217 million on behalf of the province. Some 73 per cent of this work was done in the year under review, “which once again indicates an increased pace of delivery,” he said. Construction is just one of the industries showing good growth in the province, according to Godongwana. “Over the last few years our formal private sector has shown a capacity to sustain rates of economic growth much faster than South Africa as a whole. Official statistics (from StatsSA) show real rates of provincial GDP growth at 6.2 per cent in 2000 and 5.3 per cent in 2001 (compared to 3.5 per cent and 2.8 per cent respectively for SA as a whole). “This impressive economic momentum was likely to have continued during 2002,” he says. Eastern Cape business was boosted by growth in exports of automotive components and vehicles, as well as raw and processed agricultural products like foodstuffs, fibre and wood products. Godongwana confirmed the government’s commitment to the Coega and East London Industrial Development zones. “Our manufacturing sector is displaying considerable growth potential. The Provincial Government is determined to support this dynamism and exploit our coastal advantage, through infrastructure provision, attraction of Foreign Direct Investment, support for industrial skilling and so on,” he said. Economic Affairs has been given R532 million for industrial development at Coega and East London IDZ. “The increase to the Department of Economic Affairs reflects our further financial support for the Coega and East London IDZ programs. Collectively we allocate R474,2 million to these IDZs. This will enable these IDZs to build critical infrastructure within these zones,” he said.