Madam Speaker and Honourable Members

As I rise to address this house, I wish to salute the Premier for the strong leadership he has displayed since we started this term of office.

A day before yesterday, Stats SA announced that the country had slipped into recession. We fully acknowledge that this will have devastating effects on the lives of ordinary members of society.

In his State of the Province Address, Premier Sihle Zikalala presented a pro poor speech. He understands that this government is the only hope for millions of people who remained trapped in abject poverty.

The theme “Together Creating a Common Future,” explains why all efforts must be focused on how the economy of this province must be turned around for the better.

Honourable Members, KwaZulu-Natal needs focused leadership. So far the ANC as led by Zikalala is well positioned to provide such leadership.

The ANC has worked hard to earn his position of respect, which is neither automatic nor can be taken for granted.

Job Creation 

Job creation remains central to achieving government’s objectives of inclusive growth. We remain committed towards broadening economic participation in the economy reduce dependency on the welfare system.

Yesterday, the Premier spoke at length about the importance of SMMEs and co-operatives. He identified these as instruments aimed at fast-tracking the entry of previously disadvantaged communities into the mainstream economic. 

Our Premier also spoke about measures of sustaining the small players such as paying on time and skills development.

All government departments are involved in the creation of job opportunities with the Department of Economic Development, Tourism and Environmental Affairs being responsible for the economic planning for the province.

In support of the vision of the Premier of ensuring job creation, over the past financial year, Edtea created 3850 jobs through the Enterprise Development Fund with a budget of R226 million.

In addition, 1163 jobs were created by youth owned enterprises with R57.1 million being spent. About 1382 jobs were created by women owned enterprises with a total of R63.4 million.

These are tangible achievements that cannot be ignored nor underscored.

Madam Speaker, we are encouraged by the progress we are making with regards to women empowerment. We are informed by the World Bank that female entrepreneurs make significant contributions to economic growth and to poverty reduction around the world. 

Over the years we have attempted to use Ithala as an instrument for transformation the province’s economy in favor of women. The Ithala Imbokodo Iyazenzela Women in SMME Awards is an annual event in which we showcased women entrepreneurs around the province. 

It is comforting when ordinary women from deep rural areas and township testify that through the support from the ANC-led government they have been able to create jobs.

Funding Instruments to drive job creation

Operation Vula Fund

Madam Speaker, as the Premier indicated, our major focus has been to ensure access to finance, creating an enabling regulatory environment and further expanding market opportunities for SMMEs and co-operatives even those in rural areas. 

Funding mechanisms for the small players have been strengthened with Operation Vula Fund. In his SOPA, the Premier revealed that the process of adjudicating more than 2, 841 applications was almost complete.  

We can further confirm that the fund has approved 131 applications to the value of R28 million.

This is a clear indication that we will definitely disburse the R150 million which the Premier announced that it has been allocated to stimulate entrepreneurship.

KZN Growth Fund 

Another important entity that honourable Premier is the KZN Growth Fund which has made an equity investments in some strategic projects.

More than R400 million has been provided to black industrialist-led projects.

We are encouraging more entrepreneurs to come forward following a call made by the Premier yesterday.

Ithala 

In addition to what the Premier reported yesterday, we wish to announce that over the years Ithala has approved SMME loans totalling more than R478 million for more than 465 enterprises in agricultural, manufacturing, services, construction, energy, tourism and other sectors. 

And through the finance provided to SMME`s Ithala facilitated the creation of more than 3,552 job opportunities to which we are available to share the names of where individuals have benefited.

Ithala set aside R59.8-million through to deliver affordable and accessible banking services to the under-banked in the province.

Furthermore, the development finance institution has approved a housing loan budget of R319 million through Ithala to enable ordinary members of society to own their own homes. The intention is also to stimulate the peripheral housing industries, such as builders and artisans.

High Unemployment and Radical Economic Transformation

Honourable Members, in previous records of provincial government performance, all reports of progress in service delivery were punctuated by the remark that inequality is rising in the country.

High unemployment inherited from the apartheid past has not be significantly dented in the past years of ANC in government. It is of concern that in some cases youth unemployment reaches up to 70% in our country where 70% of the population is youth below 35 years. 

The Radical Economic Transformation programmes as outlined by the Premier are aimed at addressing these inequalities.

The Premier clearly singled out the agricultural sector as one of the catalysts for economic growth and food security. Government resources are being allocated to strengthen the provincial government’s Radical Agrarian Socio-Economic Transformation Programme (RASET).  

In addition to the progress articulated by the Premier, we can report today that this government has distributed:-

15 Isuzu trucks

A total of 10 Toyota 4x4 bakkies

A total of 10 – 2ton trailers 

These have been distributed as part of efforts to ensure that previously disadvantaged communities fully participate in RASET. Agricultural produced from SMMEs and Co-operatives are transported to the markets.

The issue of economic empowerment of the wider majority of South African people has always been fundamental in the struggle for freedom, tied as it was with the issue of land dispossession and racial and gender oppression.

We have ensured that we create market opportunities and guarantee food security for young people and women especially those that are involved in agriculture.

KZN – an investment haven 

Honourable Members, the pattern and pace of economic growth needs to be adjusted and accelerated in the face of economic challenges we are facing.

We are excited that there is continued commitment from the captains of industry to join hands with KZN government to stimulate the generation of employment opportunities and ensure inclusive economic growth.

In this regard, we wish to applaud our President His excellency - Cyril Ramaphosa and our Premier Sihle Zikalala for working tirelessly in promoting investments into our province.

The Premier highlighted specific investments in our special economic zones of Dube Trade Port and Richards Bay IDZ totaling more than R15 billion. These are practical investments that will absorb millions of unemployed people.

In addition to the investments that he highlighted, we wish to add Conlog – a smart electricity meter manufacturing plant.

Conlog invested more than R110 million at the Dube Trade Port and company is already boosting our export and manufacturing potential. Conlog has its footprint across over 4 continents and 20 countries.

Honourable Members, we need to remember that manufacturing remained one of the sectors that was greatly affected by recession years ago.

This resulted in job losses. We are intensifying efforts aimed at attracting investments into this sector as part of absorbing millions of unemployed people.

About 315,000 people are employed in manufacturing, representing just of 12% of total formal and informal employment.

Madam Speaker, we are excited that more investors are coming forward to invest in this province.

We can name Hulamin – a company involved in steel manufacturing. The company is relocating its operation from Gauteng to KZN.

A leading appliance manufacturer Defy is also consolidating its presence by relocated to KZN.

Toyota will start assembling new Hino 500 series truck in the Isipingo, South of Durban. What is interesting is that South Africa is Hino’s ninth largest global market outside Japan.

After Toyota’s Board meeting, we were informed that a decision had been made by Hino, to grow the Japanese company’s footprint in Africa.

We are humbled by the fact that Durban is to become a base as Hino embarks on a campaign to penetrate the Southern African and entire Africa market.

Madam Speaker, the KZN Economic Council has offered to work with KZN Government to unlock economic opportunities in this province. We are all singing from the same hymn book regarding job creation.

Yesterday, the Premier reflected on the investment in our strategic asset - the Richards Bay Industrial Development Zone.

Indeed an investment of R4, 5 billion by Nyanza Light Metals is a welcome relief. The construction of the top structure of the plant is expected to start in April this year.

In terms of raw materials, the plant will use 320 000 tpa of sulphuric acid, 36 000 tpa of ammonium sulphate, 380 000 tpa of lime and 250 000 tpa of feed material.

Most of the raw material would require railway infrastructure closer to the site and sulphuric acid supplied preferable through pipeline. The plant will produce 50 000 tons per annum of which 60% will be exported to African and international markets.

On the other side, Wilmar Palm Oil is also investing R1, 3 billion and clearing of the site will take place on the 15 March next week. Emerging entrepreneurs have been given opportunities to tender and be involved in construction of this plant.

Within these investments highlighted, we have agreed that co-operatives and other small players and communities must be involved in construction and be the suppliers of raw material.

Our Black Industrialists Programme will assist in ensuring that we add meaning to our programme of radical economic transformation.

This province is blessed with natural resources too many to mention. 

As we debate SOPA, we wish reiterate government’s commitment to work with industry players and communities to convert such resources into wealth that builds rural economies for the benefit of all the people of this province.

Cannabis – A Game Changer

Honourable Members, the Premier and the entire executive have been actively leading all efforts aimed at unblocking opportunities presented by Cannabis.

In his delivery yesterday, the Premier announced that a Cannabis Investment Protocol has been developed.

We wish to further state that the department’s entities - Moses Kotane Institute, Trade Investment KwaZulu-Natal, Dube Trade Port, KZN Growth Fund and Ithala are on standby to assist communities to access funding.

We don’t want our communities who have been involved in the cultivation of marijuana for years to be sidelined.

We will assist them in setting up of infrastructure. They will also be assisted to obtain licenses through the South African Health Products Regulatory Authority. Extensive will also be provided free of charge by this government.

Moses Kotane Institute has signed a MoU with Council for Scientific and Industrial Research (CSIR). The research institute will assist in conducting of financial and due diligence on facilities that require commercialisation of Hemp.

This agreement is specifically crafted to deal with matters of agro-processing, pharmaceuticals/neutraceuticals and laboratory facilities. MKI is currently testing the market and establishing 3 pilot sites for commercialisation. 

Conclusion 

Madam Speaker, as I conclude, we wish to commend our Premier for his decisive leadership.

Digital Economy 

We noted his focus on the digital economy. Indeed, as government we are therefore establishing municipal fibre optic networks in order to provide the backbone for broadband access, particularly in underserviced areas of our province.  

More than 5000 people will be having access to the Free WiFi daily. Emerging entrepreneurs will be fast-tracked into the entire value chain of the digital economy.

Rural Development 

On rural development: as announced by the Premier, the deployment of MEC’s as champions of rural development and service delivery in their own districts will improve the level of intergovernmental cooperation.

It is always important to state that rural development has to be comprehensive and is all-encompassing. It is not just about agriculture and communal gardens and women’s sewing and small poultry projects. 

Rural development is about creating sustainable economies that will absorb labour and reduce migration to urban centres in search of a better life. We salute the Premier for his vision around this important matter. 

Job Creation War Room and Skills Development

We note the positive reaction to the establishment of the Job Creation War Room which meets monthly. Using this approach, specific industrial sectors will also be identified and support be given for them to be accommodated in a selected location and productivity actively enhanced through various incentives and packages.

Clusters of industries will be attracted and supported by the tertiary institutions in the form of TVET colleges and academic institutions.

The aim is to produce the variety of skills needed in those industries and promote innovation, research and development. The arrangement offers an opportunity for small business development through various packages including incubation, mentorship, access to micro finance and markets, as supply and demand sides offer opportunities. 

Once again I wish to pay tribute to the honourable members. We thank you for responding to a call made by our Premier Sihle Zikalala.

We must work together to create a better province with an equal society - with children living in harmony and knowing that tomorrow will be far better than yesterday.

I thank you