An integrated plan to boost provincial economic performance
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Mcebisi Jonas, MEC: Economic Development and Environmental Affairs |
This plan was unveiled with the aspiration of addressing the challenges faced by the province (poverty with sharp spatial disparities, rural disposition and poor infrastructure), with some being exacerbated by the prevailing economic recession.
The department has resolved to respond with tailored responses to bring about solutions in a target-oriented fashion. The notable key dimensions of the solution-driven plan to be implemented by the department entail:
The realignment and streamlining of the department and related public entities to increase effectiveness and efficiencies
The department will actively take responsibility for formulating policy and strategic interventions while maintaining its regulatory, monitoring and evaluation function. In turn, public entities will be expected to act primarily as implementing agencies.
‘With 76% of our budget going to these entities we expect them to produce high returns on our investment in them. To this effect, we view public entities as our primary implementation mechanism,’ says MEC Jonas. ‘The logic behind utilising our public entities as our primary implementation mechanism is based on their high degree of flexibility and ability to respond faster and more efficiently to emerging implementation challenges.
‘In addition, our public entities are by design better geared towards attracting technical resources required to meet these challenges and ensuring the achievement of the mandate of the department.’
This effectively reduces the involvement of the department in the management and implementation of projects, and it will rather focus on the provision of strategic and policy direction, supported by regulatory, monitoring and evaluation functions.
To this effect, we envision a department that will constitute the centre of economic policy development and planning in the province, in cooperation with and in support of the Provincial Planning Commission and other key stakeholders.
Contribution within existing frameworks and interventions for the rapid advancement of rural development in order to address the spatial distortions and high levels of poverty brought about by economic and spatial planning
distortions as a result of apartheid
In this regard, the department has identified a need to work towards greater collaboration with the Department of Agriculture and Rural Development. ‘A critical dimension of such collaboration would be the promotion of the agro-industry to support sustainable economic development,’ says MEC Jonas.
To this effect the department has identified the following potential high-impact priority programmes:
- The first will relate to enhancing meat and food processing capacity. In this regard, 1 000 commercial livestock units will be purchased through the AsgiSA Eastern Cape programme in partnership with the Department of Agriculture and Rural Development, National Development Agency and Chris Hani District Municipality in support of 86 farms in Sakhisizwe Municipality. A second commercial livestock programme will be piloted in Nyandeni Municipality and linked to existing initiatives led by the Department of Agriculture and Rural Development.
- The second priority programme, which is closely related to the first, is the establishment of storage and packing facilities in support of highly effective logistics networks which will strengthen economic development in the rural areas. Enhancing the current primary production initiatives related to the AsgiSA Eastern Cape initiative will result in the development of 20 000 hectares under commercial production (grain and fruit) targeting mostly unused agricultural lands.
- Thirdly, the expansion of the forestry and timber industry will be advanced.
- Lastly, the development of the Umzimvubu catchment area remains a major priority for the province.
Protection, diversification and expansion of our manufacturing sector and expansion of the services sector, as a
means to fast-track economic development
Finalisation of the Provincial Industrial Development Strategy and the conclusion of consultation with stakeholders and social partners are of paramount importance. Its implementation will be supported by the development of relevant sector plans.
Initiatives will also be developed to diversify business development and investment portfolio activities aimed at agri-related sectors that offer more extensive labour-absorption potential, plus direct, stimulatory linkages to rural economic activity.
The establishment of manufacturing product research and development capacity to investigate additional and/or extending of existing product ranges is a key priority. The East London Industrial Development Zone (ELIDZ) plans to establish a science or techno-park, where a culture of innovation and competitiveness of its associated business and knowledge-based institutions will be enhanced. The science park will draw intellectual resources from all four universities in the region.
There is also a clear intention to support a number of key interventions to enhance the performance of Coega, including linkages with a number of logistic interventions in the Nelson Mandela area.
Focus on sustainable natural-resource and land-use management, to achieve a balance between economic growth and sustainable use of natural resources
The department will enhance land-use planning capacity and coordination, as well as marine and aquaculture development. Through linkages with the Expanded Public Works Programme, the department will be making use of labour-intensive methods to clear alien vegetation and resettle indigenous species, thus restoring the original biodiversity of the province and countering soil erosion.
‘We will as a matter of great urgency draft guidelines for the development and management of the Wild Coast, which supports and links into the existing spatial development and planning frameworks,’ says MEC Jonas.
Expanding the services sector
Amalgamation of the Parks and Tourism Boards will go a long way towards ensuring that the full potential of this sector will be realised. Closely associated to this is the need to explore alternatives for expanding the gaming and gambling industry in the Eastern Cape.
Currently the Eastern Cape Gambling and Betting Board (ECGBB) is making a substantial contribution towards the fiscus in a very effective and efficient manner.
‘We believe that the expansion and optimal regulation of a number of potential new gambling activities such as traditional horse racing and the development of the online gaming industry in the province, will lead to an increase in the revenue base of the province,’ says MEC Jonas.
