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On 30 July 2019, MEC for Economic development, Agriculture and Environment delivered the budget vote for the Gauteng Department of Economic Development and the Gauteng Department of Agriculture and Rural Development.

Delivering his 2019/20 Budget Vote at the Gauteng Legislature this afternoon, Dr Ramokgopa has pledged to set up community financing instrument to fund black-owned small medium and micro enterprises (SMMEs) and township-based manufacturers before the end of September. This initiative would “assist us to ensure that we capture the value chain of the products that are supplied to the government and create a very real probability of increasing manufacturing opportunities for township-based industries” he explained. The scheme will be financed primarily by household savings schemes (mokgodisano), while the Gauteng Department of Economic Development explores other funding sources.

MEC Ramakgopa said this would go in tandem with moves to re-model and reposition the Gauteng Enterprise Propeller (GEP) to play a greater role as a vehicle to deliver financial and non-financial support emerging enterprises. In addition to appointing a permanent Chief Executive Officer and a Chief Operations Officer by the end of October for the state-owned enterprise, a review of the GEP’s governance framework will be undertaken to ensure that the entity is brought in line with the redefined Gauteng economic dispensation.

“Parallel to this will be the deployment of appropriately competent business mentors who will be embedded in the companies that receive funding to ensure their business model is appropriate for their respective trading environments,” said Dr Ramokgopa. “This approach will not only ensure a higher propensity for repayment for loans that we invest these companies, but will also ensure a higher degree of success of the business, the sum total of which will mean stronger economic performance of the economy in general.”

Furthermore, the MEC committed to a remaking of the township economy, which will see township being transformed into “integrated economic nodes and manufacturing or clean industrial hubs”.  Several plans are in the pipeline to support township SMMEs, including:

• Standardisation and accreditation programmes to support localisation and product accreditation;
• Promotion of competitiveness and market readiness for township enterprises through training and incubation programmes;
• Auditing existing industrial parks, in partnership with Department of Trade and Industries, to capitalise them to provide SMMEs with infrastructure and bulk services support; and
• Signing off-take agreements with sister departments such as Education, Roads, Transport, Human Settlements and Health.

Other highlights of the Budget Speech include the R2 billion township fibre roll-out, which is in partnership with Vumatel, which will connect 1,2 billion households in Alexandra, Vosloorus, Tembisa, Kwa-Thema and Daveyton.  This will help to bridge the growing digital divide and boost the township economy.
 
And tourism, which is central to the province job creation and economic development goals, will receive enough resources to set it on a new trajectory. Plans to boost the sector will include the following interventions:

• The design and construction of The Museum and Archive of the Constitution (MARCH) project, which become a major tourist attraction in the province;
• The development of a new tourism route focusing on the Struggle and Democracy, Mining Towns, Origins of Humankind, Gandhi and Mandela, etc; and
• Positioning Gauteng as a preferred destination for competitive sports, cultural and creative industries and business events to attract new and sustain existing demand.

In Terms of Agriculture and Agro-processing, MEC Ramokgopa stated four high-impact agricultural development focus areas over the next five years including the commercialization of the agri-food value chain, Agro-processing, environmental sustainability and the development of the solidarity economy. He announced several budget lines to support five different agricultural value chains at a total cost of R869 million to help commercialize emerging farmers.
 
During the current Medium-Term Strategic Framework period the GDARD will establish 12 Agri-parks (R595 million), on the purchase of 10 mobile abattoirs (R46 million), to develop five Agro-processing facilities in Township Hubs (R125 million), West Rand Fresh Produce Market Depot (R150 million), commercialization of 20 black farmers in the grain, horticulture, poultry, piggery and red meat sectors (R88million). The 150 smallholder farmers involved with Agro-processing are also set to benefit from training to ensure the success of their farm businesses. GDARD will also launch an Agro-logistics (Cold Chain Programme) in 2019/2020 to ensure that fresh produce and meat products have longer shelf lives and get delivered to the markets fresh.
 
In describing the crisis in the environment, MEC Ramokgopa said that climate change “is the most significant environmental and socioeconomic risk facing humanity today. This is evidenced by extreme droughts, floods, heat waves and cold spells that we are repeatedly experiencing.” To address this challenge GDARD will in this calendar year announce a Gauteng Climate Change and Food Security Strategy.
 
The MEC further committed on behalf of the department action to transition to low carbon emission in the use and management of energy, transport, waste, industry, land, water, biodiversity and human settlement, including the need for disaster risk management. Dr. Ramokgopa affirmed once again that waste is the new gold as it generates R15 billion annually in South Africa. To ensure that township residents benefit from the waste management economy and that separation at source is implemented Province-wide by 2020, GDARD would in 2019/2020 support waste management cooperatives, recycling facilities and buy-back centres with waste recycling equipment.
 
The last highlight was on veterinary services. These services have played an important role to facilitate the exports of animals and animal products. “During the past year we will stimulate international trade through the facilitation of exports to the value of R2.3 billion,” MEC Ramokgopa expounded. The department continues to provide technical support to meat processing facilities which have expressed interest in exporting products to markets such as China and Singapore. Despite the recent foot and mouth disease outbreaks, highly pathogenic avian influenza and most recently swine fever, GDARD’s swift action to address these challenges helped to contribute towards the zoo sanitary status of the Province. The safeguarding of safe and hygienic food of animal origin will continue to receive increased attention going forward.
 
Issued by the Gauteng Department of Economic Development