Budget adjustments for KZN economic recovery

NEWLY appointed KZN MEC for Finance, Nomusa Dube-Ncube, says the provincial unemployment rate has increased significantly owing to the impact of Covid-19 on businesses.

The province’s unemployment rate is currently estimated at 47.5%, compared to 43.1% nationally.

‘This implies that five out of ten people in KwaZulu-Natal are unemployed,’ said Dube-Ncube.

According to Statistics South Africa, forced and voluntary liquidations increased by 54% in September compared to the same month last year.

‘The rapid increase in liquidations led to a distressing rise in unemployment rate,’ the MEC said.

She was speaking during a sitting of the KZN Legislature, where she presented the Second Adjustments Budget for the 2020/21 financial year.

In the budgetary adjustments, a number of projects have been prioritised to relieve provincial pressures and ensure economic recovery and job creation.

‘Economic Development, Tourism and

Environmental Affairs (EDTEA) receives R30-million for a number of projects that are catalytic in terms of the provincial economic recovery and job creation.

‘The projects include an agri-hub in Mtubatuba, an integrated development strategy at Pongola, Operation Vula projects and a women’s cooperative project at Inkosi Langalibalele, among others,’ said DubeNcube.

She said all departments and public entities were given an opportunity to present requests for funding from this recovery fund.

‘The criteria against which all requests were measured, included providing evidence that the proposal will have a substantial long-term impact on economic growth or social equity, job creation and equitable distribution of wealth,’ the MEC said.

For road infrastructure maintenance, Ezemvelo KZN Wildlife will receive R51-million over two years.

‘This project entails the maintenance of roads within three of the entity’s nature reserves in Midmar, uMlalazi and Ithala.

‘The economic benefits relate to the fact that further deterioration of the roads can be mitigated, but there would also be a benefit in terms of visitors to these reserves as many are currently deterred by the road conditions.

‘The project plans to create between 100 and 150 construction jobs among local communities,’ said Dube-Ncube.

The food security programme under the Department of Agriculture and Rural Development, will receive R59-million, allocated over two years.

‘This programme was adopted by the Provincial Executive Council as a priority. The ‘One Home One Garden’ programme was launched as a provincial initiative and subsequently through district events, aiming to contribute towards poverty eradication.’

• Informal economy infrastructure development - R14.5-million in 2020/21

• Operation Vula under EDTEA - R30-million over two years to support and promote local economic development and local small scale industries

• Small, medium and micro enterprises (SMMEs) Covid-19 support under the Ithala Development Finance Corporation

- R60-million in 2020/21. This proposal seeks to provide support to SMMEs to avoid closure of their businesses owing to the impact of the Covid-19 pandemic • Livestock (beef and goat) intervention under the Department of Agriculture and Rural Development - R66.5-million allocated over two years. The programme aims to transform and empower previously disadvantaged livestock farmers.