Eastern Cape premier Phumulo Masualle delivered a humdrum state of the province address (Sopa) in Bhisho yesterday, offering no major announcements on new policies or projects and providing little detail on what the people of the province could expect over the next year.
But in briefings to the media, Masualle confirmed a contractor would be on the site of the massive R20-billion Umzimbvubu water scheme in October.
He also said provincial government was pushing hard for progress on upgrades to the East London harbour after delays in implementing the project by Transnet.
Despite evidence of cost-cutting – including a smaller version of the tented village adjacent to the legislature that plays host to Sopa – the event maintained its colourful aura.
Confirming that the massive Umzimvubu water scheme would get going in October with a contractor expected on site, he said the project had been delayed thus far due to financing issues. However, “a threshold of finance” had been reached which allowed the project to move forward.
Asked before his speech if the provincial economy was robust enough to ride out the national challenges, he said much more investment in manufacturing was needed, especially of goods needed in the province but imported from other provinces.
As an example, the premier cited the infrastructure rollout associated with the Umzimvubu scheme.
“Some of the pipes we use are brought from outside the province. They must be procured from here to guarantee employment, so that people have access to resources that spurs economic growth.”
Masualle said the economy was very turbulent, with “a number of variables outside our control”.
“Our growth has also been limited by electricity supply constraints, the drought which is crippling our agricultural sector, a skills shortage, as well as low levels of investment resulting from reduced business confidence and heightened levels of risk adversity towards emerging markets,” he said in his address.
The premier confirmed that R129-million had been reprioritised for drought relief programmes in the worst affected districts of the province which had been declared drought disaster areas – the Joe Gqabi, Alfred Nzo, Chris Hani, OR Tambo and Amathole districts.
Masualle said that through the Eastern Cape Development Corporation, development loans and risk capital totalling almost R31-million had been invested in the Ndlambe Natural Industrial Products facility for pineapple products. “This funding has created and saved a total of 1500 permanent jobs.
Almost 15000 jobs were created through investments in the province’s industrial development zones in East London and Coega, while almost 100000 jobs had been created through the expanded public works programme.
Some 300 additional financially needy students at universities in the province will benefit from the extra R16.3-million a year which the government will allocate.
A further R75-million has been sourced from the Setas to support students at colleges.
The premier called on all leaders in government to “aggressively champion the implementation of cost-cutting measures” over and above the austerity measures implemented. — rayh@dispatch.co.za