Eastern Cape Treasury MEC Sakhumzi Somyo has committed the province to ramping up infrastructure development and maintenance and improving transport logistics, noting at the announcement of the latest provincial budget that this would improve the province’s regional competitiveness and reduce the cost of doing business in the Eastern Cape.

“This [strategy] will assist with investment and the reindustrialisation of the province, reaffirming the Eastern Cape Development Corporation’s role to drive and secure critical investments as a contribution to transforming the provincial economy,” he told the provincial legislature in Bhisho.

Somyo outlined that the maintenance of provincial roads would be boosted by a R1.28-billion investment for the year, growing almost threefold to R4.01-billion over the medium-term expenditure framework period.

Roads leading to key agricultural production and tourism sites would be prioritised under this programme.

Small, medium-sized and microenterprises (SMMEs) and cooperatives had also been singled out for increased support, with R40.7-million allocated to support their development over the next 12 months.

“Provincial government also [aims to spend] up to 50% of its R14-billion public sector spend on local businesses, [which will allow] public procurement to be used as a transformation tool and a catalyst for enterprise development,” he commented.

Somyo noted that the country’s current power supply challenge was an opportunity for more public and private sector investment, adding that the Eastern Cape government was making resources available to “support research in [the] shale gas [exploration] sector, which we aim to exploit for our people.”

Indicative of the investment in energy infrastructure was national oil company PetroSA’s proposed Project Mthombo crude oil refinery, at Coega, in the Eastern Cape, which was expected to produce 300 000 bbl/d of oil, he said.

Somyo further outlined the province’s prioritisation, in line with the first phase of Operation Phakisa, of the ocean economy, as well as its plans to increase the level of manufactured exports, particularly from labour-intensive industries.

“The province is well positioned to drive export-oriented growth owing to its industrial development zones. The transition of Coega and East London to special economic zones (SEZs) will help to further drive growth and employment in the regional economy.

“A third SEZ in the Wild Coast is already in its prefeasibility stage, which will facilitate development in the east of the province,” he noted.