The Deputy Minister of Trade, Industry and Competition, Mr Zuko Godlimpi says there is a need for the development of industrial parks to reverse population migration to urban areas, and to support economic growth of marginalised and rural communities in the Eastern Cape. Godlimpi was addressing businesspeople in Mthatha and Gcuwa on his three-day oversight visit to the province.
Godlimpi outlined the importance of building an ecosystem to which small businesses can add value and decrease the rate at which the informal sector is growing. He further emphasised the need for the creation of a self-sustaining economic development model that includes industrial parks, agricultural hubs initiatives, and renewal energy projects.
“A secure and reliable infrastructure is critical for supporting manufacturing and other value added services through alternative sustainable energy provision to reduce costs for businesses. The importance of creating employment through refurbishment of these factories for sustainable management and operation of the Industrial estates will be key in unlocking new projects to demonstrate the entrepreneurial spirit of the province,” he said.
He highlighted the importance of formal businesses, secure property rentals, and equity partnerships to attract investment and foster local entrepreneurship. He added that the goal was to revitalise the Eastern Cape economy, improve political stability and eliminate the rampant extortion practices that have resulted in adverse impact on businesses.
“The potential for agricultural output highlights the need for proper business plans to be prioritised especially in support of agro-processing and provision of seed capital to farmers. Regional spatial development plans should include considerations of value chain support for agricultural produce storage facilities, warehouses and transport infrastructure logistics,” he stressed.
Both meetings discussed and addressed security, safety, and infrastructure challenges in industrial parks. The meeting further elaborated on developing a comprehensive security plan that will involve the security cluster and the Eastern Cape provincial government. The discussions also highlighted different funding models, a combination of grants, debts, equality and loans based on business viability.
The Mthatha and Gcuwa engagements marked the first of several stakeholder sessions planned across the province, with the programme continuing today as part of Godlimpi’s three-day oversight and business engagement visit.
The Deputy Minister of Trade, Industry and Competition, Mr Zuko Godlimpi and MEC for Economic Development, Environmental Affairs and Tourism in the Eastern Cape, Ms Nonkqubela Pieters visiting an industrial park in Gcuwa, Eastern Cape.
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