CHAMBER NEWS

ECDC facilitates - Edited by Lorna Schofield

The Eastern Cape Development Corporation (ECDC) has chalked up some significant achievements in the last financial year, notably Rl,4 billion worth of investments in the province which has resulted in 3 467 jobs being created or retained. Notably this Annual Report demonstrates that stability is a key ingredient for organisational success and ECDC acknowledges that organisationally it has been a challenging year which has fortunately seen a marked shift towards stability, newly appointed CEO Mxolisi Matshamba said. Along with Aneel Radhakhrishna's earlier appointment as chief operating officer (COO) and with the highly respected Professor Wiseman Nkhulu as chairperson of the board, the necessary steps towards an environment conducive to ECDC positively contributing to government's developmental objectives have taken place. Already ECDC is addressing shortcomings that resulted in a qualified audit and it posting a loss, says Matshamba. It has been through a committed team which pressed on with delivering on ECDC's mandate to overcome the constraints of poverty, unemployment, inequality and underdevelopment that the following has been achieved: • A total of R88.3 million worth of loans and grants were allocated to contractors and SMMEs. In respect of contractors this is a 14% increase, while for SMMEs this is a 41 % increase on the previous year's allocations. • Investments of Rl ,4bn in the Eastern Cape's target sectors of automotive, general manufacturing, agriculture, mariculture and acquaculture, ICT and tourism have been secured. In the last three years ECDC has secured R3bn worth of investment and has created and saved a total of 7 293 jobs. • A number of exciting greenfield projects are under negotiation which can potentially translate into a further 14 562 jobs. • A mirco finance pilot project is awaiting approval from the Department of Economic Affairs, Environment and Tourism and Provincial Treasury which will enable the ECDC to intensify its role in making the Eastern Cape a compelling place to work, live and invest in. The projects that ECDC has worked on in the last year have showed levels of growth that point to sustainable profits. Magwa Tea Estate has gone from a zero production to 60% of optimum production through investment from Ferrostaal and short term financing from ECDC. A long term investment plan is on the table. In breathing life into the province's information and communication technology (ICT) industry, two operational ICT hubs or ICITIs are gaining momentum in East London and Port Elizabeth. Efforts to support exporters have met with positive results and a trade mission to US saw the development of a local tooling operation for the export of Hummer parts. ECDC has also helped exporters secure contracts to export glass to Angola and clothes to Turkey. The Steinhoff/PG Bison investment in Ugie in which ECDC was a keen catalyst, demonstrates the multiplier effect of investment. This has resulted in an upgraded road, increased employment, properly price increases and a pulse in the town, not previously perceived possible, Matshamba said.