KZN State of the Province 2008
Premier Sibusiso Ndebele

Premier Sibusiso Ndebele highlighted key areas affecting the people of KwaZulu-Natal and the role that government is playing to bring about change where it is most needed. This month we feature selected extracts from the Premier's address, specficially regarding Growth and Development, Economic Growth, Black Economic Empowerment and Local Economic Development.

Growth and development
The KwaZulu-Natal government has embarked on a strategy to draw investors to the province. Talks and MOUs have been organised with developers from the UAE and Dubai, and several large projects are currently underway in the province. Projects such as these provide a unique opportunity to implement policies to encourage the development of integrated resort communities and tourism attractions that will create an economic and social multiplier effect on the investments made. The social and economic benefits to our people include skills training, employment, improvements to infrastructure, educational, health, vocational and commercial opportunities, as well as specific economic benefits to the local community and the province from the revenues generated.

Economic growth
The GDP per region of the province of KwaZulu-Natal is now the second largest in the country, after Gauteng, and the provincial government has managed to reduce the unemployment rate from 33% in 2004 to 29.2% in 2007, according to a 2007 Labour Force Survey.

The province’s economic development strategy aims to:

• Transform the structure of the provincial economy and narrow, and eventually eliminate, the gap between the first and second economies
• Increase investment in the province
• Build skills and capacity
• Broaden participation in the economy
• Increase competitiveness

The KZN Growth Fund provides medium- to long-term funding in the form of senior and mezzanine debt for sustainable infrastructure and related projects within KZN. The Fund’s Investment Committee has approved projects with an estimated value of R414-million spread across key economic sectors such as manufacturing, transportation and logistics and agri-processing, creating 836 direct jobs, approximately 40% of which are in outlying areas of the province.

Black Economic Empowerment
Our Government has correctly identified Black Economic Empowerment (BEE) as a means to redress historical economic imbalances. The essence of BEE is that it must benefit the majority of black South Africans, and do this by addressing all seven pillars of the generic BEE score card. These are ownership, control, skills development, employment equity, preferential procurement, enterprise development.

Local economic development
It is essential that self-sustained financial development is fostered in government-facilitated local economic development (LED), as well as in the private sector. Our government is passionate about LED as a conduit to improve the quality of life of our people.

To date just over R95-million in grants have been committed to 182 LED projects across the province. At least R41-million has been leveraged from the private and public sector in the form of co-funding, giving a total project value of R136-million. In the last five months 14 projects have been completed. In the pipeline, awaiting European Union approval, are 23 projects valued at R70-million.

[Next month in TradeInvestSA we will feature extracts from the State of the Province address relating to Co-operatives, Support for Agricultural Activities, HIV/Aids and TB, and Education. In September we will conclude with the Premier's thoughts on the National Youth Service, Community Safety, Basic Services and the 2010 World Cup.]

Contact details:

KZN Office of the Premier
Tel: +27 33 341 3342
Fax: +27 33 345 8490
Email: damanezp@premier.kzntl.gov.za