The Eastern Cape Development Corporation (ECDC) has received a clean audit report for the second consecutive year and it has also managed to fill all senior positions and regional office heads.

This, together with a fully-functional board has enabled the ECDC to implement proper internal control systems and best practice governance procedures.

ECDC chief executive officer Mxolisi Matshamba says the corporation made a net profit of R38 million for the 2007/2008 financial year compared to R15 million in 2006/07. Although it made an operating loss of about R42 million this year, the corporation is on track to break even at operating profit level by 2010.

Matshamba says the corporation disbursed micro loans worth about R7 million to rural businesses whilst registering 1 907 start-up businesses in the 2007/2008 financial year.  This is a 725% increase from the R800 000 given to rural businesses in micro loans in the 2006/2007 financial year.

ECDC also project managed the infrastructure roll out worth R151 million in the Ugie and Maclear area for the R1,3 billion chipboard plant for timber producer PG Bison. The roll out included the construction of roads, the upgrading of the power substation and water and sanitation. This plant is expected to create 3 000 jobs excluding temporary employment.

"These interventions indicate that we are beginning to realize our developmental impact through the provision of quality loans and assisting start-up businesses particularly in the eastern part of the province.

"We are actively assisting investors by facilitating access to quality infrastructure necessary to support their businesses. It is critical to drive infrastructure rollout in into our local economy, because private sector investors follow success" Matshamba says.

ECDC reduced matters of emphasis raised by the auditor general from six in 2006/2007 to one in the last financial year.

Matters of emphasis may lead to the auditor general giving a qualified report or issuing a disclaimer if they are not addressed.

He says they are also excited that its flagship Project, Integrated Emerging Contractors Development Model, which is the only one of its kind in South Africa, has been rated as best practice by the Construction Industry Development Board (CIDB).

He says R20 million has been allocated to the programme over three years which aims to provide emerging contractors with business management skills, effective tendering and Occupational Health and Safety guidance. Fifty - four emerging contractors graduated from the programme in the last financial year. Sixty more have registered this year.

The corporation has also increased its equity share from 20% to 50% in Bushman Sands Development at Alicedale saving ECDC R40 million in potential write-offs. The corporation restructured the non-performing loan into equity which led to ECDC saving R40 million.

The key projects for the 2008/2009 financial year across five business units include the assisting municipalities with infrastructure rollout, rebranding of the ECDC, E- platform for trade promotion, essential oils project and an analytical lab for investment promotion.

"The focus going forward will be to drive and facilitate projects that have major impact on development, job creation and sustainable growth in SMMEs that are the key engine of any economy that is serious about growth. We will do this work through the provision of key investment loans, partnerships with municipalities, the IDZs and co-funding with national DFIs and commercial banks," says Matshamba.