Jonas launches ‘local is lekker’ campaign in EC

EASTERN Cape Economic Development and Environmental Affairs MEC Mcebisi Jonas yesterday announced the launch of a "Buy Eastern Cape Campaign" which will have as one of its goals promoting primary production of inputs for manufacturing.

Delivering his policy speech in the Bhisho Legislature, Jonas said the campaign would also aim to promote increased local content in production and give preference to products emanating from the "Green Economy".

The drive will be popularised by using concerted marketing and influencing government procurement strategies, as well as measuring, validating, accrediting and rewarding participation in the campaign.

Turning to the motor industry, Jonas said particular attention had been paid to the diversification of automotive manufacturing in the Eastern Cape and "securing the province's position as the automotive centre of South Africa".

To achieve this, he said, the East London IDZ had launched an innovative multi-OEM model that aimed "to attract and accommodate automotive original equipment manufacturers (OEMs) who do not currently have a manufacturing presence in South Africa and do not have the volumes to justify an independent manufacturing facility".

"This project is the first of its kind in South Africa and 39% of the investors currently in the EL IDZ's investment pipeline are OEMs who would like to locate their operations at this facility."

In addition, he said the zone had been identified "as the leading contender for the location of the manufacturing of South Africa's first electric vehicle and negotiations were at an advanced stage".

In a wide-ranging speech, the MEC also noted while more than 60% of the province was rural, the primary sector - consisting of extraction such as mining, agriculture, forestry and fishing - currently contributed less than 3% to the provincial economy.

"This suggests we are not leveraging our rural resources optimally. This could be due in part to our classification and understanding of what is termed rural development.

"The antiquated distinction between rural and urban development is inappropriate. In essence we do not consider rural or urban development, but rather sustained economic development throughout the province," he said.

Jonas said there were "some positive indications" the provincial economy had begun to recover from the declines experienced in 2008 and 2009, and added it was anticipated the provincial economy would grow by 1.6% in 2010, as global recovery and consumption levels improved.

"This growth rate is far from adequate when we consider the backlogs that need to be overcome. It is also insufficient to cushion the province from the effects of a possible second economic dip," Jonas said.

His priorities included:

• Ensuring funds meant to assist companies in distress went to deserving enterprises, with the department guiding the development of industrial action plans;
• Concluding current negotiations with textile investors to establish a textile plan in Fort Jackson by September. It was projected this investment would create 1 200 permanent jobs in the first year of operations, with a projected 1 000 additional jobs every year for the next five years;
• Continuing discussions with Transnet pertaining to the upgrading of the East London port;
• Developing and implementing a plan to manage excess capacity in the manufacturing sector, including scaling up apprenticeship programmes at the EL IDZ and Coega IDZ, and;
• Researching mechanisms which could be implemented at a provincial level to improve "our attractiveness as an investment destination and facilitate a positive trade profile". A collaborative Provincial Trade and Investment Forum would be established to co-ordinate efforts for maximum effect.