BUDGET SUMMARY
The Department of Economic Development and Tourism budget Vote 6 has been appropriated R327,998 million for the 2019/2020 financial year. Below we outline how this appropriation has being invested to reflect our commitment to create a people-centred society to restore human dignity in our communities by achieving the vision of a Modern, Growing and successful Northern Cape.
PLANS FOR 2019/2020 With total Budget allocation of R 327, 997 million.
PROGRAMME 1: ADMINISTRATION: R70, 053 million
Provides strategic economic direction to the province and municipalities and facilitates the implementation of the department’s mandate.
PROGRAMME 2: INTERGRATED ECONOMIC DEVELOPMENT SERVICES: R66,389 million out of this amount a total of R29, 900 million will be allocated to the Economic Growth and Development Fund (EGDF).
- This allocation will be utilised for support to enterprises, development of local economies and the empowerment of historically disadvantage individuals (HDIs).
- A portion of the money will be allocated to the youth entrepreneurship and development fund.
- The Khai Ma// Kai Garib and Siyathemba local municipalities will be assisted with the development of the LED strategies.
- Emthanjeni and Hantam Local and Frances Baard District Municipalities will be assisted with the development of LED components for their IDPs.
- The Department received R 2,089 million from the Expanded Public Works Programme (EPWP) funding in the Environment and Tourism Sector, this will create a minimum of 225 work opportunities.
- The Economic Empowerment unit will focus on the facilitation of the implementation of the Youth Employment Service (YES) and vocational skills development programmes for the youth to get them ready for the job market and empowering them to participate in the Fourth Industrial Revolution (4IR).
PROGRAMME 3: TRADE AND SECTOR DEVELOPMENT: R50, 218 million out of this amount a total of R18 ,304 million will be allocated to the Northern Cape Economic Development and Investment Promotion Agency (NCEDA).
- For the Metal Industrial Cluster located in Kuruman, the department will focus on ensuring the completion of the sub-division and demarcation of plots for the phase 1 and the finalisation of the technical assessment report on bulk infrastructure.
- A three- year implementation plan for the Clothing and Textile Cluster has been developed and will be implemented over the 2019/2020 to 2021/2022 MTEF period.
- The provincial government will establish a provincial mining company.
- The MEC highlighted that “NCEDA will continue investment attraction in order to assist the establishment of all SEZ initiatives in the province, As a result of the presence of the anchor investor in the form of Vendata Zinc International (VIZ) and the Gamsberg Mine development at Aggeneys, the development and designation of the SEZ in Namakwa will be prioritized jointly with the Upington SEZ application”.
- The department has collaborated with Investment South Africa (Invest SA) to facilitate the establishment of a Northern Cape One Stop Shop which will provide investors with services to fast track investment into country and reduce government red-tape, 30 temporary jobs could result from this and eight permanent staff members could be employed.
PROGRAMME 4: BUSINESS REGULATION AND GOVERNANCE: R43, 720 million
- Northern Cape Liquor Board is allocated R13, 309 million
- Gambling Board R15, 531 million
- This allocation will enable the programme to ensure an equitable, socially responsible business environment that allows for predictability, investment and economic growth.
- The Northern Cape Liqour Board (NCLB) will look at possibilities off developing an electronic liquor licensing system for the online digitalization of liquor applications and also working closely with the South African Police Services (SAPS) to eradicate illegal liquor trading and related.
PROGRAMME 5: POLICY, RESEARCH AND INNOVATION: 24, 050 million
- The Department in partnership with Provincial Treasury, will host the 11th annual Congress of the Public Sector Economist Forum (PSEF) on 27-29 November 2019 in Upington.
- In this era of digitalization, the department will expand the Cell Phone Repair Technician to the other four districts this financial year.
- Broadband telecommunications under the SA Connect Policy, continues in Pixley Ka Seme District with 16 SITA Next Generation Network (NGN) sites upgraded to 19 Broadband Infranco (BBI) Sites access links installed and tested.
- For this financial year the department is looking at availing WIFI connectivity to three more sites namely Frances Baard Incubation Centre in Collville, the Northern Cape SMME Trust and the Kimberley Skate Plaza.
- The Department in partnership with Sol Plaatjie University will launch the Northern Cape Innovation Forum (NCIF) that will comprise of government, business, academia and civil society to prepare an innovation baseline for the province.
PROGRAMME 6: TOURISM: R74, 017 million
- The Northern Cape Tourism Authority is allocated R24, 036 million to promote the Northern Cape as a competitive tourist destination.
- 125 tourism enterprises will be assisted with financial non-financial support, 50 will be youth-owned.
- The department will continue to play a role in improving products and experiences in historically disadvantaged communities to unlock the Township Tourism Economy and fast track transformation in the tourism sector through projects like the Galeshewe activity and Upington 26 routes amongst others.
- The Kimberley Diamond Cup has been recognised as one of the sporting codes by the International Olympic Committee (IOC).
- From the 5-8 December 2019 the Northern Cape will be hosting the Kimberley Diamond Cup a festival of extreme sports like skateboarding, mountain biking, BMX freestyle and BMX ramp challenge.
- The economic impact of the KDC is estimated at 53 million year-on-year over a three-year period at a cost of R27 million per annum.
- The Bloodhound Land Speed Record attempt at Hakskeenpan in Mier will take place from 21 October until 30 November 2019.
- The project has the potential to create 25 permanent employment opportunities within the five years, 100 EPWP work opportunities during all other future events.
- Astro and Science tourism will receive a significant boost through the establishment of the SKA Science Exploratorium.
- The Exploratorium will include a tourism visitor centres, digital planetarium, multi-purpose training centre, exhibition and a radio telescope dish.
- NCTA will support 65 events inclusive of flagship, strategic and provincial events with 3000 temporary jobs to be created through these events
The following partnerships and MOUs will be facilitated and implemented in the current financial year:
- Partnership with the Industrial Development Corporation (IDC) and mining houses to develop the Kathu Industrial Park. The project is structured in phases and Phase 1 could potentially secure R450 million. This can boost small business creation and a great number of jobs as a result.
- MOU with the Companies and Intellectual Property Commission (CIPC) in hosting self-service terminals for business registration in at least District Municipalities. This will allow for access to CIPC services at very affordable rates.
- Establishing the Upington Blou Dakkies and Eiland Public Private Partnership to attract private investment in order to develop the properties to increase value and income generation for the local municipality.
- Partnership with the Rural TVET to train 25 qualified chefs in the Namakwa and ZF Mcgawu districts to support the tourism and hospitality industry
- MOU with Productivity South Africa that allows for non-financial support to be provided to enterprises with a view to improve productivity, 20 enterprises will undergo training.
- NCEDA will be partnering with DSBD on the Black Business Supplier Development Program (BBSDP) and Start-Up Enterprise Development Program (SEDP)
- Partner with Department of Labour to drive the UIF Labour Activation Programme that will ensure that the youth of the province get training on critical skills.
The programme will create 3000 temporary job opportunities for youth, worth R209m investment.
- Collaborate with the DMRE to assist artisanal miners in the Namakwa district to gain access to the diamond mineral resources in their area.
- Collaborate with the dti to train companies on export awareness and exporter development.
- Partnership with the industry association Raisins SA, to expand market share for their product and sharing marketing collateral.
- Continue to vigorously pursue the implementation of the MOUs between parties from the Northern Cape and the Peoples Republic of China
- As part of the inter-governmental agreement between the Northern Cape Province with the //Karas Region of the Republic of Namibia twinning agreement, KIDJA will train diamond and jewellery design students from Namibia.
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