Pakati pins BCM hopes on infrastructure
Hunger and poverty levels in Buffalo City Metro are expected to shoot up as businesses close shop, with 23,000 jobs lost because of the Covid-19 pandemic.
The regional economy will continue taking a pounding — which will put a strain on the municipality as the number of indigent people will increase.
This was the bleak picture painted by mayor Xola Pakati while delivering a virtual state of the city address on Thursday.
The predicted jobs carnage comes on the heals of last month’s news that the Eastern Cape’s unemployment rate has reached 40%, against the national rate of 30.1%. In BCM, the rate is 29.8%.
“We are projected to lose between 8,500 and 23,000 jobs depending on a quick, slow or long Covid-19 trajectory. This will add to the 118,000 jobless people we already have in the city. Construction, manufacturing, financial services, real estate, tourism and trade are the most affected.
“Low-skill segments will be most affected. Consequently, hunger and extreme poverty are expected to increase in our city by between 14% and 21%.
“Many small enterprises and family-owned businesses will be forced to close shop. This will mean less ratepayers for the city, and more indigents to support,” he said.
Pakati said the city’s agroindustry was doing well; Sundale and Nestle had increased their production levels before the coronavirus outbreak. Growing the township economy was also key in growing the stagnant economy.
The city has partnered with Harambee, an NGO, to equip youth with job-hunting and self-employment skills.
Like finance minister Tito Mboweni, Pakati has pinned his hope on the infrastructure sector to create jobs.
“We have started implementing the Settlers Way road expansion project, with a projected expenditure of R400m.
“We are busy planning and designing the harbour arterial road, which will provide a direct link between the port and East London’s IDZ. This is the minimum infrastructure that any city requires to compete in export manufacturing.”
A total of R395m has been set aside for road construction and R68m to upgrade taxi and bus ranks. Catalyst projects like upgrading the Qumza Highway in Mdantsane and the Beacon BayGonubie road project are well under way.
Turning to the positives, Pakati said R548m was spent on electrifying 5,200 formal households and 1,288 informal settlements between 2016 and 2020. A further R121m would be spent in the next financial year on maintaining, upgrading and refurbishing the metro’s electricity infrastructure — with R18m set aside to connect another 133 homes and 700 shacks to the grid.
With 33,800 homes still without basic sanitation services, Pakati said they would continue delivering such services to villages. Since he assumed office in 2016, R210m has been spent to built 16,088 VIP toilets, he said. “We are continuing to improve water provision, with 98% of our population having access to a basic water supply. We are working to provide water in areas with challenges.”
Since 2016, 8,338 RDP houses have been built and handed over to beneficiaries with a further 1,100 expected to be handed over this financial year.
The issue of RDP houses has been a thorny one in BCM, with residents sometimes illegally invading unoccupied houses and SMMEs disrupting projects to demand a slice of the construction pie. In Duncan Village SMMEs have disrupted construction of 5,000 houses.
Pakati warned: “We will not tolerate lawlessness, and any attempt to invade land will be met with the necessary response.”