The immediate priority for the Eastern Cape economic development department is the need to save jobs in the face of the Covid-19 pandemic, finance MEC Mlungisi Mvoko said on Tuesday.
In the longer term, the department’s focus would be on economic recovery post-lockdown and environmental sustainability, Mvoko said.
The MEC outlined the three points in his departmental policy speech, saying though long-term economic growth and sustainability were essential, the immediate aim was to save as many jobs as possible.
Measures employed to achieve this included the provision of funds for environmental expanded public works programme projects, a jobs-retention scheme through which companies are incentivised to keep posts, beefing up the SMME support programme and providing emergency aid for businesses owned by youths.
“About R20m has been provided for the implementation of environmental expanded public works programme projects which will focus on waste management and the eradication of alien and invasive species,” Mvoko said.
“It is estimated that these projects will create 570 jobs targeting women, youth and people with disabilities.”
The funding would be divided among the following municipalities:
- Raymond Mhlaba: R5m
- King Sabata Dalindyebo: R2.5m
- Sakhisizwe: R2.5m
- Amahlathi: R6.6m
- Koukamma: R3.5m
Mvoko said small medium and micro enterprises were particularly vulnerable at present and his department was consequently implementing various support processes, including linking SMMEs to Covid-19 national relief funds.
“We are collaborating with the national department of small business development on the training of department of economic development, Eastern Cape Development Corporation and municipal officials, facilitating the flow of factual information as it relates to SMMEs and ensuring that all national relief funds find expression locally in the province,” Mvoko said.
He said the provincial government was collaborating with uBank on setting up a provincial SMME fund in response to the pandemic and beyond.
“We are finalising a memorandum of agreement, with both parties committing with an initial contribution of R200m each for a period [of] three years.”
He said informal traders would not be left out of support efforts.
“We are strengthening our collaboration with municipalities and Sassa, alongside the development of a consolidated database of informal traders for us to be able to facilitate more responsive support processes.”
Focus now on saving jobs — EC finance MEC Mlungisi Mvoko
Image: Eugene Coetzee
The immediate priority for the Eastern Cape economic development department is the need to save jobs in the face of the Covid-19 pandemic, finance MEC Mlungisi Mvoko said on Tuesday.
In the longer term, the department’s focus would be on economic recovery post-lockdown and environmental sustainability, Mvoko said.
The MEC outlined the three points in his departmental policy speech, saying though long-term economic growth and sustainability were essential, the immediate aim was to save as many jobs as possible.
Measures employed to achieve this included the provision of funds for environmental expanded public works programme projects, a jobs-retention scheme through which companies are incentivised to keep posts, beefing up the SMME support programme and providing emergency aid for businesses owned by youths.
“About R20m has been provided for the implementation of environmental expanded public works programme projects which will focus on waste management and the eradication of alien and invasive species,” Mvoko said.
“It is estimated that these projects will create 570 jobs targeting women, youth and people with disabilities.”
The funding would be divided among the following municipalities:
Mvoko said small medium and micro enterprises were particularly vulnerable at present and his department was consequently implementing various support processes, including linking SMMEs to Covid-19 national relief funds.
“We are collaborating with the national department of small business development on the training of department of economic development, Eastern Cape Development Corporation and municipal officials, facilitating the flow of factual information as it relates to SMMEs and ensuring that all national relief funds find expression locally in the province,” Mvoko said.
He said the provincial government was collaborating with uBank on setting up a provincial SMME fund in response to the pandemic and beyond.
“We are finalising a memorandum of agreement, with both parties committing with an initial contribution of R200m each for a period [of] three years.”
He said informal traders would not be left out of support efforts.
“We are strengthening our collaboration with municipalities and Sassa, alongside the development of a consolidated database of informal traders for us to be able to facilitate more responsive support processes.”
Mvoko said the jobs stimulus fund intended to incentivise companies to retain jobs in priority sectors.
“We have R17m available within our current budget to support the retention of jobs to lessen the effect of Covid-19 on the economy of the Eastern Cape.
“It is anticipated that the jobs fund policy will be reviewed shortly to allow for a more responsive process for disbursement to Covid-19 distressed companies, including SMMEs.”
He said R25m would be set aside through the Isiqalo Youth Fund to provide emergency funding support to qualifying youth owned-enterprises.
A further R19m from the local and regional economic development fund would be used to promote and administer sustainable economic development and employment creation interventions.
“In the 2019/2020 financial year, a total of 15 initiatives, with a total value of about R250m were allocated funding.
“These initiatives cover industrialisation support, ICT, agriculture and agro-processing, manufacturing, oceans economy, tourism, township and rural economies and the film sector.”
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.
Latest Videos
Most Read
News
News
News
News
News