Current Edition >> Archives Section >> Bua le Batho >> July 2004
Executive summary
In her speech, the critical issues concerning development were dealt as follows by the Premier:
An efficient and caring local government
As a first step, the provincial government, will create an enabling environment for people to create and expand economic opportunities for our people.
In September 2004 we will launch the Expanded Public Works Programme across the province, with particular focus on the nodal points as identified by the National Cabinet.
The Public Works Programme will be labour intensive, thus creating more sustainable jobs for our people, especially women and the unemployed. We will in partnership with Local Government, utilise the Public Works Programme to stimulate local economies through the Municipal Infrastructure Grant by integrating outputs to IDP's and LED Strategies of municipalities, and thereby provide basic quality services.
Within the next three months we will:
1. Launch the Rural Housing Plan, which will provide one thousand rural houses in the nodal point of Thabo Mofutsanyana, and Thaba Nchu.
2. Implement the Urban Renewal Plan in Mangaung and Sasolburg.
3. Mobilise social movements, non-governmental and community based organisations, to participate in Ward Communities.
4. Identify and train community development workers.
5. Revise our indigent policies, billing and credit control system to ensure those who cannot afford are exempted accordingly.
6. Measure, and accelerate, the reach and effectiveness of the provision of quality, free basic services in the province.
A caring provincial government
In building a caring provincial government of the Free State we will advance within the next three months:
Introduce an expanded School Nutrition Programme to ensure that school children will at least have a meal a day,
Introduce a subsidy on school uniforms and shoes for children who cannot afford. This will have a spin-off for Small and Medium Entrepreneurs as part of our Black Economic Empowerment programme.
Review all school fees for those who cannot afford. We must afford an opportunity for children to stay at school even when their parents are unemployed and cannot afford.
Skills development for a better performing economy
The established four Further Education and Training (FET) colleges in their second year of operation play a critical role in the creation of opportunities to address the desperate need to provide skills needed by the labour market. These are made possible through the provision of skills development and Learnerships programmes.
The challenge facing the Adult Basic Education and Training (ABET) sector is to attract more learners, reduce the dropout rate, and to improve the pass rate.
All learnership initiatives, together with the Expanded Public Works Program, will provide the necessary human resources to expand economic opportunities for the youth, women and unemployed.
Growing the economy
There is a definite change in the structure of the Free State economy, essentially from a primary dependent economy to a manufacturing, export-orientated economy.
In 2002, the largest industries in the economy in terms of their contribution to GDP at market prices, were the finance, real estate and business services industry (14.4%), the mining and quarrying industry (12.6%) and the general government services sector (12.4%) followed by the manufacturing industry (11.7%). The construction industry had the lowest contribution (1.5%) to GDP at market prices of Free State. From the above it is clear that the provincial economy is reasonably diversified than a few years ago. It is less dependent on agriculture and mining - instead the manufacturing and service sectors are beginning to play a far greater role in the provincial economy.
The average real economic growth rate of Free State over the period 1996 to 2002 was 2.0%, whilst that of the country was at 2.8%.
Free State economy in 2014
The sectoral thrusts, which will be taken forward in the next decade, are:
Tourism;
Petro-chemicals down streaming;
Agro-industry; and
Gold jewellery manufacturing.
Looking into the future there are a number of factors, which need to be considered if PPP's are to take roots in the Free State. It is evident that government and the private sector have a variety of critical roles in the development of the provincial economy. The successful partnership between both sectors will depend on the observance of the distinctive role of one against the other, and building on it.
The vision that we have for the Province is developing it as South Africa's Agro-industry Hub. There is value in the production of commodities, but the real economic incentive lies in adding value to products. The agro-food complex (inputs, primary production, processing) contributes approximately R124bn to South Africa's GDP and employs 451 000 people in the formal sector. Exports of processed agricultural products amounted to R17.2bn in 2001. The Free State Province presents substantial opportunities for the beneficiation of agricultural products, hence the efforts of establishing an agro-industry hub in the province.
Infrastructure development
Government will need to ensure that many people gain access to economic opportunities as government encourages public funds investments in labour intensive projects. We will accelerate investment in projects that are labour intensive as part of the expanded public works programme. This should contribute to job creation, opening up local economic initiatives for the poor and the unemployed. The key challenge always remains how people are brought on board to benefit from investments by government. The department of Public Works, Roads and Transport and Local Government and Housing will provide further details on infrastructure investment and development and the Expanded Public Works Programme.
Development of tourism
The Premier has appointed the MEC for the Department of Tourism, Environmental and Economic Affairs, to head a Provincial Executive Council Economic Development and Job Creation Cluster to investigate:
1. Economic opportunities to tourism product owners.
2. Undertake an impact assessment to evaluate investment opportunities for tourism as an economic driver.
3. Advise labour intensive infrastructure investment and development by government and the private sector, in particular road infrastructure development, reliable and safe road network in the province.
A report needs to be submitted by the end of August 2004.
The provincial government, in partnership with local government and the private sector, will ensure that we maximise the benefits of the 2010 Soccer World Cup as well as ensuring that broad-based Black Economic Empowerment is the major beneficiary of the World Cup in the Free State.
In order to enhance our capacity in terms of harnessing the potential of this sector, the Premier also announced that the Free State Government intends establishing a Free State Tourism Authority during this financial year so as to ensure effective marketing of the province as a tourist destination.
Agriculture
Increased agriculture production is key to this economy. Increased export of processed agricultural products is equally important, as well as the security of farmers across the province. Very little has been done to improve on the living conditions of farm workers. We will prioritise engagements with our social partners, employers and labour leaders to attend to this very urgent issue.
The Department of Agriculture will in due course unveil a programme of ensuring that all benefit and gain access to the Agricultural Credit System aimed at assisting small and emerging farmers, rapid release of land for commercial use and other interventions necessary in partnership with the Land Bank.
Other developmental measures
Not only is the provincial government investing in infrastructure development and tourism, but they have also embarked on the following:
1. The review of Access to Credit by Small and Medium Enterprises.
2. Restructuring and repositioning the Free State Development Co-operation. They will re-define the roles and responsibilities of all provincial parastatals to ensure that they play a key role in investment and opening local economic opportunities.
3. They will review the provincial procurement system to ensure that government procurement encourages opening economic opportunities for Black Economic Empowerment.
4. They will launch two new cooperatives to stimulate local economic development by focusing especially on unemployed youth and women within the next three months.
The FDC Board will provide the Provincial Executive Council with a report on the restructuring and repositioning of the institution by the end of August 2004.
Free State Development Plan
The provincial Executive Council resolved that there should be a comprehensive review of the Free State Development Plan and growth strategies for the province.
A healthy Free State
As part of expanding basic health care to all our people, we will implement the following initiatives within the next three months, namely:
1. Unveil the Provincial Health Promotion Plan. This is a plan that will ensure that we fight against the preventable lifestyle diseases of TB, malaria, diabetes, hypertension and asthma.
2. Roll out the ARV programme to each district of the province. We are pleased and by the end of this calendar year there will be a roll-out at each site in every district. We remain committed to the implementation of the Plan of Management, Care and Treatment of HIV and AIDS, which was approved by Cabinet last year.
3. Launch the new Integrated Emergency Control Centre with a toll free number 10177. This Integrated Emergency Centre will be the first of its kind and it will be a rapid response emergency centre. The centre will provide assistance for all road accidents, health emergency services and any disasters around the clock.
4. Unveil new Emergencies Services with a new and better-equipped fleet with highly trained personnel.
5. Launch a comprehensive Road Safety Programme with schools in partnership with the Department of Education.
Good governance and administration
To achieve the objectives of eradicating poverty and unemployment, a dedicated cadreship of public servants, capable of delivering a quality service to the people of the province is needed. There is no place for lazy, absentee public servants, aswell as those who are corrupt and greedy.
They will uproot fraud and corruption wherever it rears its ugly head in the public service and are determined to pursue legal action against all those in the private sector who entice public servants to be corrupt.
Dept. of the Premier
Again, to achieve all of the objectives of creating a better life for our people, we will need to put in place an effective, efficient co-ordination mechanism at the nerve centre of government in the Department of the Premier.
To this end the Department of the Premier will be strengthened to ensure that:
a) It provides effective co-ordination, evaluation and monitoring of progress on the implementation of policy and government programmes.
(b) It provides constant feedback from communities and stakeholders on government service delivery
(c) Effective implementation of government and Executive Council decisions.
Building partnerships
The Free State is a better place than it was more than a decade ago. We have made good and extensive progress as the provincial government in the past decade of freedom and democracy. Government cannot carry out alone the responsibility to create work and fight poverty. In partnership with all social partners, labour, the private sector, institutions of civil social society, we can build effective partnerships to create work and fight poverty in the Free State. To this effect, they will, within the next three months, engage extensively with all stakeholders to share in the development a programme of action with the provincial government. The Free State Provincial Government shall give effect to the issues raised by the people during the campaign.
We commit ourselves, as a provincial government, to play our part, working with communities and other partners, to play our part in forging a People's Contract for a Better South Africa in the next decade.
While, it is time to harvest the fruits of our democracy, it is also opportune that we sow the seeds for sustainable development.
On behalf of the Free State government, I wish to thank the people of our province for believing in our democracy by exercising your right to vote. Now that we have completed the Budget process, we can safely say that we are on our path towards the realization of our strategic objectives. These are to fight poverty and to create jobs for a better life for all as is stated in the People's Contract. Government cannot fulfill these objectives on its own. It is the responsibility of each and every citizen of this province to ensure that we realize these objectives. We have the resources, the talent, the passion and the commitment.
We acknowledge with pride the strides that we have taken in the transformation of our society. However, we also note that we need to accelerate the rate at which development in its entirety reaches even the poor and the marginalized. In this regard, women will have to be counted among those who are actively participating in economic development endeavours.
As a province, in order to strengthen our economy we need focused strategies. Government therefore has to continue to provide an enabling environment for businesses, in particular small businesses, so that they are able to flourish. This we will do by supporting the growth of enterprises, addressing the barriers to their development and facilitating access to finance, to business support services and to infrastructure.
I therefore invite the businessmen and women, as well as entrepreneurs to take this opportunity to invest in our Province and to partner with government in ensuring that we support this common vision. We need to look inward and take charge of our economic development and advancement. While it is time to harvest the fruits of our democracy, it is also opportune that we sow the seeds for sustainable development. This we can only achieve through a purposeful, pro-active and on-going program that seeks to strengthen our economy and especially our SMME sector.
We all know that Black Economic Empowerment is and should be the driver of corporate activity. Thus, the importance of working together as a team (small and big business; public and private partnerships), whilst transferring critical skills and maximizing transformation, can never be overemphasized. We know too that this is possible and that we have only one option and that is to succeed.
Let us therefore maximize our competitive advantage. We are not only the food basket of South Africa, we have a geographic advantage of being central, we also have the cleanest environment, diverse cultures and an uniqueness unmatched by any other province. Henceforth and with each day that goes by let us make sure that the lives of the people of the Free State will improve for the better.
We dare not fail !
FB Marshoff
Highlights
South Africa's economy, including the Free State, still bears the marks of a bygone era, and faces a dual challenge. Firstly, we have to modernise, attract foreign investors and increase productivity - all this at a time when we are faced with mammoth socio-economic challenges. Secondly, inequalities have to be reduced and performance levels increased.
HOW WILL WE ADDRESS THE CHALLENGES?
1. GROWING AND EXPANDING THE PROVINCIAL ECONOMIC BASE
We would like to see a situation where more people enter the formal economy, rather than a high risk and stagnant informal economy. The following growth sectors have been identified, namely:
Agro-industry
We need to grow (add value to existing products) and expand (enter into new products) the agro-industry base of the Free State, expand the agro-industry base into new segments, namely: organic produce, natural medicine, herbs & spices, essential oils, cosmetics and cut flowers.
Petro-chemicals up- and downstreaming - focus will be on specialty chemicals, in particular the manufacturing of food chemicals i.e. food additives and antioxidants. The plastic industry also offers great opportunities for growth, ranging from plastics recycling to plastics conversion.
Tourism promotion and development - the tourism industry should be expanded to allow for the development of new tourism products, with the specific aim of addressing Black Economic Empowerment, to get PDI's in the broad spectrum of tourism products, ranging from tour operators, tour guides, accommodation, conference, etc.
The department will within this financial year assist entrepreneurs with specific focus on unemployed women and youth with the establishment of 3 B&B's as well as a tour operator company. We want to make sure that the Free State maximizes on the 2010 Soccer World Cup. In this regard, the department will be putting programmes in place to encourage partnerships between Tour Guides and product owners to ensure that the knowledge that they have attained is translated into experience and ultimately a sustainable business for them. An action plan will also be developed.
The department will establish a Provincial Tourism Authority by the end of September 2004. This authority's primary responsibility will be the marketing of the Free State as a tourism destination.
Mineral beneficiation
A detailed strategy for the development of this industry will be formulated focusing on the attraction of foreign direct investment as well as the expansion of current activities.
2. FOSTERING A CARING ENVIRONMENT
We will continue to promote sound management of our bio-diversity and natural heritage, whilst implementing world class conservation practices. Key to our activities will be the creation of environmental awareness and general conservation management awareness, with specific focus on primary and secondary learners as well as the youth.
As part of the department's contribution in respect of the expanded public works programme, we will spent R2 million by the end of this financial year through programmes of maintenance, fencing, carpentry and building at the provincial resorts and reserves.
3. LEGISLATIVE REFORM
We aim with our legislative reform in respect of various disciplines such as tourism, environment, conservation, consumer and business practices to create opportunities for our people in entering sectors, which were restricted in terms of entry and participation.
4. VISION 2014
The challenge for us is to make sure that poverty eradication, economic restructuring and the improved participation by previously disadvantaged individuals in the economy are linked in such a way that economic status and race did not continue to coincide. In doing so , we are committed to:
Intensively market the Free State province both locally and international as an investment destination
Increase FDI in the four sector identified during the Provincial Growth and Development Summit
Improve the level of export readiness of our exporters as this will ensure that they are able to access the Incentives
To minimize retrenchments, and come up with a strategy to retain some of the skills and technology acquired
To accelerate job creation initiatives in partnership with both other departments and the private sector
To create awareness on the International trade agreements such as the AGOA, WTO, Mercusol, and India-South Africa partnerships
To communicate effectively the BEE policies to both the private sector as well as public sector
We will continue to assist our companies to increase exports as well as growing the base
For the 2010 bid, we intend to make sure that for FDI we attract sectors that are relevant to ensure that our Province benefit immensely
We are committed to an economically vibrant Free State Province.
According to a media statement by the Free State Provincial Government, the procurement of services and goods by the Provincial Government will be revolutionalised with effect from 1 August 2004. At a meeting in June 2004, the Provincial Exco gave the green light for the Supply Chain Management (SCM) Framework - an integral part of the Public Finance Management Act. This system seeks to merge the acquisition of goods, services and logistics and the disposal and letting of state assets. The Exco expressedly indicated that the SCM will and should transform procurement in the Free State Provincial Government and benefit previously disadvantaged individuals (PDI's), thus contributing directly to job creation in the Free State.
Through this process, the Free State Provincial Government will be able to be more vigilant towards any financial misconduct and ensure that SME's are directly assisted in doing business with the Free State Government by, among others, ensuring that they are paid within 30 days for services rendered to the Free State Provincial Government, according to the media statement.
The statement further runs: The endorsement and adoption of the SCM lends impetus to the Premier's undertaking during her State of the Province Address that the Free State Provincial Government will review the Provincial procurement system to ensure that government procurement encourages opening economic opportunities for Black Economic Empowerment. This also requires government departments and public entities to understand industries and the supply chain and all its elements.
Judging by a media statement issued by the Office of the Premier, the Executive Committee of the Free State Provincial Government is taking firm steps to set the ball rolling on the following crucial developmental issues in the province :
Extended Public Works Programme : The Exco has instructed the Dept. of Public Works, Roads and Transport to submit an implementation plan for the roll-out of the Extended Public Works Programme to be launched by September 2004.
Budget Votes : With all Budget Votes now presented and approved by the Legislature, all departments are to submit to the Premier's Office their implementation plans for the purpose of oversight and monitoring so that progress can be tracked at all times.
Anti-corruption campaign: The Exco has undertaken to step up the fight against fraud and corruption in the Free State by introducing a corruption toll-free line, details of which are to be made available in due course.
Approval of Bills : The Exco approved the publication of the following Bills in the Government Gazette for consultation :
Free State Traditional Leadership And Institutions Bill : This Bill seeks to update the Traditional Leadership and Governance Framework Act, 41 of 2003 with a view to establishing a Local House of Traditional Leaders.
Free State Tourism Authority Bill : This Bill seeks to establish the Free State Tourism Authority for the marketing, promotion and development of sustainable tourism within the province.
Provincial Preliminary Budget Outcome 2003/04: All Departments have shown a significant increase in spending capacity in the previous financial year, having spent R11,565 billion (97,8%) of the adjusted budget - an increase of R1,7 billion or 17,5% compared to the previous year.
The MEC for Agriculture, Mr. Ace Magashule, has evidently been instrumental in getting the two factions of the National African Farmers Union (NAFU) in the Free State to amalgamate into one interim body, with a fully representative body to be elected at congress in August this year. NAFU represents in total some 3 500 small farmers.
The unifying steps were announced at a media briefing on 21 June 2004 in Bloemfontein. On the photo to the right, are some of those present at the meeting - from left Messrs Noks Nonkonyana (NAFU), Hendrik Pietersen (SALGA FS), Ace Magashule (MEC for Agriculture), Maseli Letuka and Andrew Mantshiyane (NAFU). Regional follow-up meetings are to be held in the course of July 2004.
At the media briefing, the CEO of SALGA Free State, Mr. Hendrik Pietersen, who is to chair the interim Free State NAFU body, said that SALGA got involved because the managing of commonages at Free State towns forms an integral part of assistance to emerging farmers.
Also at the briefing, MEC Magashule indicated that Municipalities in the Free State are now to budget for the first time for assistance to farmers in their areas.
Mr Magashule also mentioned that henceforth Municipalities would be expected to channel all issues of land tax on farms, through SALGA Free State, where the matter will be duly discussed and resolved by all stakeholders. Individual municipal actions as regards tax on farm land would thus not be on anymore.
The Free State will again be represented at the 12th annual South African International Trade Exhibition (SAITEX), the only multi-sector trade fair of its size and kind on the African continent, to be held at Gallagher Estate in Midrand from 5 - 8 October 2004.
Saitex plays a leading role in promoting international trade between companies from South Africa and other African countries and a range of international companies and organizations from around the world. As such it is a platform for exporters, importers, buyers, traders, manufacturers and distributors seeking to source international opportunities, joint ventures, technology transfers, products and know-how.
This year's new-look SAITEX sector portfolio is divided into two groups. Firstly, Manufacturing and Merchandise, which includes Food and Beverage / Textiles and Clothing / Healthcare / Homeware / Cultural Industries / and Manufacturing Machinery and Equipment. Secondly, Services grouping, where the spotlight is on Development, Investment and Government / Trade Management / Finance / and Business.
The Free State Dept. of Tourism, Environmental and Economic Affairs in collaboration with stakeholders such as the Free State Development Corporation (FDC) and the Free State Goldfields Development Centre, will again this year showcase selected products from companies within the five regions of the province.
In the past the Free State's participation at SAITEX was very successful, taking into account the range of products from up to 56 companies that was exhibited. In 2003 a gold award has been awarded to the Free State for the best Local Pavilion and Stand Excellence .
For more information, please contact Abram Jansen or Dineo Posholi at Tel: 051-403 3575/6, fax: 051-403 3601 or email: jansena@dteea.fs.gov.za / posholid@dteea.fs.gov.za.
Some exciting projects are lined up for SMME's in the Free State in the short term. According to Mr. Mare Tsiki, Director of SMME Promotion in the Dept. of Tourism, Environmental and Economical Affairs, the following is on the cards :
His Directorate is co-operating with the National Productivity Institute (NPI) in a capacity building project for SMME's in the Free State whereby 20 coaches, of which 10 are women, are to be trained for six months in order to capacitate them to provide consultative assistance to SMME's. Each coach will work with 10 entrepreneurs for a period of six months. The project, which is also being done in conjunction with SAWEN, is to commence in August 2004, with completion end of January 2005.
The Directorate is doing a project in conjunction with the CSIR in compiling a comprehensive database of all SMME's in the Free State. The purpose is to utilize the database for performance evaluation and comparative analyses of SMME's. This is to be an ongoing process of collecting data on the status of SMME's.
Some five workshops on co-operatives are to be conducted by the Directorate in the Free State with a view to encouraging this business format as a viable option when sharing resources, skills, etc.
A number of workshops on BEE is also to be arranged by the Directorate, leading up to a provincial BEE conference before the end of this financial year.
For more information, Mare Tsiki can be contacted at cell 082 856 3463.
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