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Vice President David Mabuza answering questions at the NCOP. (Jan Gerber, News24)
- Vice President David Mabuza said the government was prioritizing the municipality’s economy.
- Mabuza said that special economic zones and industrial parks near informal areas were critical to the government.‘s economic reconstruction plan.
- He was answering questions at the National Council of Provinces on Wednesday.
The reuse of deteriorated industrial parks will be at the center of the growing economies of the municipalities.
This according to Vice President David Mabuza, who said that deteriorated industrial areas, many of which were owned by former homelands, were in the process of improvement.
He answered questions during a session of the National Council of Provinces (NCOP) on Wednesday.
Mabuza said the special economic zones and industrial parks were central to the government’s economic reconstruction plan.
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The recovery plan comes amid the country’s economic decline, in which 2.2 million people lost their jobs in the second quarter, as quarterly GDP contracted by a record 16.4% while business confidence and manufacturing production plummeted.
“These projects are geared toward attracting private sector investment and the plan involves the development of new special economic zones and the revitalization of existing parks, as well as sites that link small businesses to global economic value chains.
“To date, our special economic zones have attracted just over 230 private investors of which 127 are already operational.”
Mabuza said that the combined value of these investments was approximately R17.2 billion.
“In the process, more than 15,000 direct jobs have been created. There are 12 industrial parks that are being revitalized in Eastern Cape, KwaZulu-Natal, Free State, North West, Limpopo and Mpumalanga. Some of these industrial parks are strategically located nearby of municipalities and rural development nodes and are an integral part of the local economies of these areas “.
He added that one of the key barriers to entry and participation in municipalities and rural areas was the lack of infrastructure.
“The government has prioritized the provision of infrastructure support that includes access to office space, connectivity, and technology platforms that enhance innovation.
“Our agrarian reform program has also prioritized strategically located land to support municipalities and rural areas. Underutilized properties and industrial sites will be reused and revitalized to serve businesses,” Mabuza said.
READ ALSO | Provinces spend a lot to revive ailing economy
Gauteng, KwaZulu-Natal and the Western Cape are spending money on special economic zones, green technology, and infrastructure projects to jumpstart the economy.
In Gauteng, plans are being implemented to boost economic growth for the benefit of businesses in the municipality and small, medium, and micro-enterprises (SMEs).
The provincial government has developed a policy that allows all departments in Gauteng to purchase products from SMEs.
There are also plans to rezone taxi ranks in shopping malls and retailers.
In KwaZulu-Natal, the provincial government approved R97.9 million for SMEs that saved more than 4,000 jobs.
A further R 18 million was disbursed to bakeries, paper manufacturers and companies in the textile and clothing sector.
The Western Cape government launched a tourism product development fund that committed R5 million to support new or existing tourism products.
