With one in five jobs in the Northern Cape at risk and while 60% of SMMEs may close, the Democratic Alliance (DA) in the province is concerned that the budget presented by the Northern Cape Department of Economic Development & Tourism does not create an environment conducive for the sustained creation of sustainable jobs.

We are still waiting for the implementation of the provincial economic recovery plan, which was announced and funded to the tune of R112 million rand eleven months ago.

This lack of progress does not bode well for the success of a blended financing model as a replacement of the Economic Growth & Development Fund. Without proper oversight and monitoring, the new blended financing model will become yet another piggy bank for the politically connected elite – and at the cost of true economic development in the province.

Economic development will also be undermined by budget shortfalls projected by the entities. In just three years, the Northern Cape Economic Development, Trade & Investment Promotion Agency projects a shortfall of more than R113 million. This kind of debt creates significant uncertainty about plans to expand this entity’s operations to include agricultural projects.

The department’s financial planning is outdated and not aligned to the true economic reality in the province. It does not appear as though the department has what it takes to get the Northern Cape back to work again.

Issued by DA