The Eastern Cape province is to receive R54-billion out of the R1.35-trillion national budget for the financial year starting in April.
The province has the third highest equitable share allocation after KwaZulu-Natal and Gauteng.
The announcement comes as Treasury tables proposals for parastatals and national departments to spend billions more on infrastructure projects in the province.
These include R200-billion on feasibility studies for Project Mthombo, an oil refinery project in the Coega Industrial Development Zone driven by state-owned company PetroSA over the next three years.
Also on the cards over the next three years is R1-billion to replace Zithulele Hospital by the provincial health department.
A proposal has also been tabled for the province to spend R5-billion on the Zalu Dam on Xura River near Lusikisiki. These projects are still in the feasibility stage.
In his budget speech, Finance Minister Nhlanhla Nene announced that the school backlogs programme would get more than R7-billion nationally.
The Eastern Cape has a history of being one of the worst provinces when it comes to school infrastructure with many pupils learning in mud schools and some under trees.
“The school infrastructure backlogs programme is allocated R7.4-billion for the replacement of over 500 unsafe or poorly constructed schools, as well as address water, sanitation and electricity needs.
“The education infrastructure grant of R29.6-billion over the medium term will enable all schools to meet the minimum norms and standards for school infrastructure by 2016,” said Nene.
Nene applauded the Eastern Cape for good planning with regards to its education infrastructure grant and health facility revitalisation grant.
“On top of their base allocations, provinces that meet the minimum planning standards have been rewarded with additional allocations.
“For instance, the Eastern Cape receives an additional R233-million due to the quality of its plans for health and education infrastructure investment,” said Nene.
Overall, Special Economic Zones will be allocated R3.5-billion over the medium term, mainly for infrastructure development. A further R2-billion is allocated for the construction of a biofuels plant in Cradock, a project driven by the Department of Energy which is now at the design phase.
Nene also tabled a proposal for a R7-billion allocation to boost agriculture in provinces.
This comes after Eastern Cape premier Phumulo Masualle announced the establishment of an Aquaculture Development Zone in the East London IDZ during his State of the Province Address in Bhisho last Friday.
Nene said agriculture was one of government’s nine strategic priorities for the coming financial year.
“Access of emerging farmers to finance will be expanded, in collaboration with the Land Bank,” said Nene.
Nene described unemployment as “our single greatest economic and social challenge”. In the Eastern Cape, the official unemployment rate stands at over 29% while the national average unemployment rate is just more than 24%, according to the latest count by Statistics South Africa.
According to the Eastern Cape Labour Market Review reported by Rhodes University recently, youth bear the brunt of Eastern Cape’s high unemployment rate with 69% of those aged between 19 and 24 jobless.
Nene said government continues to prioritise measures aimed at generating employment including tax incentives for employment and investment, support for enterprise development, skills development and employment programmes.
“Jobs Fund will spend R4-billion in partnership with the private sector on projects that create new employment, support work-seekers and address structural constraints to more inclusive growth,” said Nene.
“The Department of Environmental Affairs has an allocation of R11.8-billion to fund more than 107 000 full time jobs and 224 000 work opportunities through environmental EPWP.”
R54bn boost for province
The province has the third highest equitable share allocation after KwaZulu-Natal and Gauteng.
The announcement comes as Treasury tables proposals for parastatals and national departments to spend billions more on infrastructure projects in the province.
These include R200-billion on feasibility studies for Project Mthombo, an oil refinery project in the Coega Industrial Development Zone driven by state-owned company PetroSA over the next three years.
Also on the cards over the next three years is R1-billion to replace Zithulele Hospital by the provincial health department.
A proposal has also been tabled for the province to spend R5-billion on the Zalu Dam on Xura River near Lusikisiki. These projects are still in the feasibility stage.
In his budget speech, Finance Minister Nhlanhla Nene announced that the school backlogs programme would get more than R7-billion nationally.
The Eastern Cape has a history of being one of the worst provinces when it comes to school infrastructure with many pupils learning in mud schools and some under trees.
“The school infrastructure backlogs programme is allocated R7.4-billion for the replacement of over 500 unsafe or poorly constructed schools, as well as address water, sanitation and electricity needs.
“The education infrastructure grant of R29.6-billion over the medium term will enable all schools to meet the minimum norms and standards for school infrastructure by 2016,” said Nene.
Nene applauded the Eastern Cape for good planning with regards to its education infrastructure grant and health facility revitalisation grant.
“On top of their base allocations, provinces that meet the minimum planning standards have been rewarded with additional allocations.
“For instance, the Eastern Cape receives an additional R233-million due to the quality of its plans for health and education infrastructure investment,” said Nene.
Overall, Special Economic Zones will be allocated R3.5-billion over the medium term, mainly for infrastructure development. A further R2-billion is allocated for the construction of a biofuels plant in Cradock, a project driven by the Department of Energy which is now at the design phase.
Nene also tabled a proposal for a R7-billion allocation to boost agriculture in provinces.
This comes after Eastern Cape premier Phumulo Masualle announced the establishment of an Aquaculture Development Zone in the East London IDZ during his State of the Province Address in Bhisho last Friday.
Nene said agriculture was one of government’s nine strategic priorities for the coming financial year.
“Access of emerging farmers to finance will be expanded, in collaboration with the Land Bank,” said Nene.
Nene described unemployment as “our single greatest economic and social challenge”. In the Eastern Cape, the official unemployment rate stands at over 29% while the national average unemployment rate is just more than 24%, according to the latest count by Statistics South Africa.
According to the Eastern Cape Labour Market Review reported by Rhodes University recently, youth bear the brunt of Eastern Cape’s high unemployment rate with 69% of those aged between 19 and 24 jobless.
Nene said government continues to prioritise measures aimed at generating employment including tax incentives for employment and investment, support for enterprise development, skills development and employment programmes.
“Jobs Fund will spend R4-billion in partnership with the private sector on projects that create new employment, support work-seekers and address structural constraints to more inclusive growth,” said Nene.
“The Department of Environmental Affairs has an allocation of R11.8-billion to fund more than 107 000 full time jobs and 224 000 work opportunities through environmental EPWP.”
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos