The Eastern Cape hopes to create 116 958 jobs in the coming financial year, Premier Noxolo Kiviet said on Friday.
Delivering the State of the Province Address, the premier said although the country’s unemployment rate had decreased, the provincial unemployment rate of 27.1% was still high.
“However, we are pleased to report that out of a target of 94 504 job opportunities announced for Phase 2 of the Expanded Public Works Programme, a total of 110 472 work opportunities have to date been created in the province… In the coming financial year, our target is to create 116 958 work opportunities,” she explained.
Despite the uncertainty in the global economy, the province’s two Industrial Development Zones (IDZs) were delivering much needed investment, with the East London IDZ securing private investors to the tune of R4.063 billion in the automotive, aquaculture, agro-processing, renewable energy and business process outsourcing sectors.
Of the R4.063 billion, R3.3 billion is for two renewable energy projects – the Langa Renewable Energy Project in Berlin, and the Ikhwezi Photovoltaic Project.
“It is clear that our focus on the green economy is starting to pay dividends,” said Kiviet.
The other zone, the Coega IDZ, now has 21 operating investors, which represents R1.24 billion in private sector investments. To date, this has created 3 645 construction jobs, and 2 985 direct jobs.
Additionally, the Coega IDZ has a R7.6 billion pipeline of projects being implemented.
In the State of the Nation Address earlier this month, President Jacob Zuma announced that a dam was to be built in the former Transkei part of the province – using the Umzimvubu River as the source – in order to expand agricultural production. The province had already conducted feasibility studies.
“Other water infrastructure development projects include seawater desalination in Port Elizabeth and Port Alfred, which is at feasibility stage,” she explained.
The province has concluded talks with power parastatal Eskom to invest over R10 billion in energy infrastructure over the next six years, including the increasing transfer of power to the Nelson Mandela Bay and Buffalo City Metropolitan Municipalities. It will also strengthen the integration of the KwaZulu-Natal – East London line, which will also improve energy supply to Mthatha and the rest of the province.
“We are pleased to announce that the Alfred Nzo region will be serviced by Eskom in the Eastern Cape, and no longer KZN as it has been the case,” said Kiviet.
With respect to road infrastructure, construction on the N2 Wild Coast, which will cost approximately R9 billion, will commence as soon as all preparatory processes have been finalised.
“It is estimated that this project will create well in excess of 6 800 direct jobs and open up the Wild Coast and key towns such as Port St. Johns for investment and economic development.” – BuaNews
Leader of the opposition, Bobby Stevenson commented:
The Premier’s speech correctly mentioned the areas of job creation, infrastructure and rural development as well as education and crime. But she did not pronounce a bold, brave and decisive leadership vision necessary to create rising opportunity in the province.
The twin pillars of rising opportunity are heavily dependent on economic growth and a decent education system.
The education department needs to be totally re-engineered. A big stick simply does not work. The national intervention has proved to be a failure. One needs to go into the department with a butcher’s knife and cut out all the rot. Until this happens nothing will change.
The Premier declared this the year of action, which we will hold her to. We need decisive action to get rid of corruption, cadre deployment and red tape which is strangling the climate for economic growth. A job is the best passport out of poverty.
We welcome the Premier’s commitment to introducing a framework to deal with civil servants doing business with the province. This is an issue the DA has been calling for, for some time but feel this matter is dragging on. In the Western Cape where the DA is in government, this practice was outlawed two years ago.
Each year the expectations of people in the province are raised by statements contained in the State of the Province Address which fail to be implemented during the course of the year. An example of which was the Premier’s commitment last year to deal with the 5 500 surplus teachers in the province within six months. The failure to deal with this is going to result in over expenditure in education. That, together with the over expenditure in health, has the potential to financially cripple this province.
Kevin Hustler, NMBBC CEO, said:
The Premier’s confirmation in her State of the Province address today, that construction starts on Chinese auto-maker FAW’s R1-billion assembly plant at the end of this month, is great news for Nelson Mandela Bay. The project is set to create 2 000 direct jobs and will no doubt be a catalyst for further investment and industrial growth. This investment cements the position of the Coega IDZ as a key investment destination supported by the Port of Ngqura, also due for expansion and positioning as the trans-shipment for sub-Saharan Africa.
We were also encouraged to hear of the “imminent” announcement about PetroSA’s Project Mthombo oil refinery, which holds significant potential to act as a catalyst for socio-economic transformation and industrial diversification of the Eastern Cape.
The Premier’s strong focus on economic growth and job creation is welcome, and she and her Cabinet must be applauded for their strong lobbying efforts at national level to secure improved investment in infrastructure in the Eastern Cape. The success of these efforts is borne out by a number of positive announcements for the Eastern Cape in President Jacob Zuma’s State of the Nation address last week and the evidence in the Premier’s speech today of significant investments in the province by government and State-owned enterprises.
Investments in infrastructure are a positive contributor towards job creation in both the short- and longer-term, ie in the construction phase, as well as longer-term in maintenance and operation, and they act as catalysts to attract further private sector investment and job creation. However, it would be good to see firm plans for ensuring that the infrastructure development is going to be sustainable, and ensuring that the necessary skills are available in the province, as well as funds for the operation and maintenance of infrastructure.
Areas that urgently need to be addressed in more detail include the state of our provincial roads, and it was encouraging to note that provincial government has partnered with the national Department of Transport and SANRAL to ensure that key strategic roads are maintained and improved with a lesser burden on the provincial budget. In our immediate area, the Addo Road is in urgent need of repair and upgrading, as it is a key tourist and freight route, and its current state impacts very negatively on the citrus industry in particular.
Education and Health remain crisis areas in the province. While it was encouraging to hear that certain areas in both departments had stabilised, there is still much more that needs to be done to ensure a culture of teaching and learning, efficient school management and a much more equitable spread of decent school facilities; as well as improving the accessibility and quality of health services for all people in the Eastern Cape.
