About R40m has been set aside to support informal businesses in the clothing, textile, services and retail sector in the Eastern Cape.
This good news was shared by finance MEC Mlungisi Mvoko while presenting the 2021/2022 financial year budget and policy speech.
With a budget of R1.6bn, Mvoko said the majority would go to priority sectors as a means of economic rehabilitation.
The Department of Economic Development, Environmental Affairs and Tourism aims to target 1 000 informal businesses in 2021 and lend its support in all the six district municipalities as well as the Nelson Mandela Bay and Buffalo City metros.
Reflecting on the past year, Mvoko said that economic growth in the province recorded a decline of -7% in 2020.
“Though still low, the economic growth prospects are estimated to range between 2-3 % for 2021,” Mvoko said.
Looking forward to the year ahead, the department will continue with the implementation of approved stimulus fund projects to the value of R365.5m.
These projects are intended to boost the economy.
He said economic recovery would be reinforced through tourism development and that R42.9m through the provincial economic stimulus fund is available for infrastructure for conservation reserves.
The ECPTA is hopeful that with this support from the regional government, along with a proactive and motivated mindset from local businesses, the Eastern Cape will experience great economic growth.
https://www.grocotts.co.za/2021/03/31/local-is-better/
