Page 515 - Provincial Treasury Estimates.pdf

Estimates of the Provincial Revenue and Expenditure (EPRE) – 2023/24 Financial Year
2.2 Key challenges

The key challenges for the DEDEAT group over the past 9 months are as follows:
x On the LRED front, the biggest challenge has been the poor quality of applications received and the
monitoring thereof. There is also a challenge of coordination since a number of departments and
municipalities are involved in LRED programme.
x On tourism, the Eastern Cape lacks the ability to retain its international tourists, hence the number of
international tourists into the province vary each and every period. The Eastern Cape remains in the
8th most visited province followed by the Northern Cape, while Gauteng, Limpopo, Western Cape,
Mpumalanga and Free State continue to capture the majority of international tourists and spending
due to established tourism products and brands.
x During this review period, no Atmospheric Emission Licenses were issued. However, one additional
application was received during this quarter. National also reported that there was a legal challenge
for the wood drying category in terms of subcategory 9.5 of the listed activity. The judgement in this
case was to the favour of the sawmilling industry. However, the Minister has appealed the case and
the matter has now been referred to the Constitutional Court.

3.. Outlook for the coming financial year (2023/24)

The department aims to attract 12 investors worth approximately R890 million in 2023/24. The department
intends to create 10 963 jobs while simultaneously contributing to skills and development by training
approximately 3 500 people. Work will continue support of 3 sustainable energy, 5 manufacturing, 3 Agro-
processing and 3 trade and investment promotion initiatives. There is a plan to monitor at least 9 projects
that were previously funded through the Provincial Stimulus Fund.

The department will support 200 SMMEs with non-financial support such as business training,
development of plans and marketing. A total of 10 Local and Regional Economic Development (LRED)
projects will be funded. Work on the Oceans economy will continue with various streams although no
additional resources have been allocated for this function. Due to deficiencies in data, the department will
partner Statistics South Africa in order to develop credible business intelligence. Thematic areas of 5 have
been identified for collaboration with Statistics South Africa, which will be implemented on a cost recovery
basis on behalf of the department.
The focus of the department will be on the economic recovery of the province post the COVID-19 pandemic
whereby it responded by creating the Economic Development Fund, which will be implemented by the
ECDC in 2023/24. This fund will provide resources for strategic economic development imperatives
including: industry value chain activation support, SMME access to funding for business finance as well
as specialist funds targeting growth and transformation in high potential sectors and industries.

The department will continue to focus on tourism development and transformation as well as heritage
tourism and aims to generate revenue. More efforts will be made to market the province through digital
platforms. Through the ECLB the department will process all (100 per cent) fully compliant liquor license
applications, as well as undertake social responsibility programmes and reach thousands of people
through liquor awareness interventions in the province.

The number of Gambling licences has reached current legislative thresholds and 4 gambling licenses is
targeted for 2023/24, to be issued through the ECGB. This will further enhance revenue collection going
forward. A target of R219 million has been set for revenue collection through the ECGB. The ECGB will
implement 5 Gambling Economic Opportunities Awareness sessions throughout the province. Through
the Consumer awareness programme, the department plans to do 6 consumer education programmes
and other consumer protection initiatives.

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