NCape Budget 2022: No hope for business, SMMEs

9 March 2022

The Democratic Alliance (DA) in the Northern Cape notes that the MEC for Finance, Economic Development & Tourism, Abraham Vosloo, missed an ideal opportunity to table a real plan for real economic growth and real service delivery as part of the Northern Cape’s budget plans.

As stage 4 loadshedding now adds to pressures created by increased fuel and food prices, the Northern Cape’s economy needs more than half-hearted promises repeated from previous years. With one out of every two people in the province unemployed and with 60% of SMMEs at risk of closing their doors permanently, the provincial budget should be used to create an environment conducive for the sustained creation of sustainable economic opportunities.

The MEC chose to repeat half-baked promises instead. The SMME sector as the backbone of the economy is being crippled by the persistent reluctance of organs of state to pay their bills on time, every time. Business needs an implementable plan now, not a vague promise of accountability to come.

The half-hearted promise that economic projects led by NCEDA and other agencies will be fast-tracked does not inspire much confidence. After all, NCEDA was expected to drive the designation of a special economic zone in Upington by 2014. It is now twelve years and millions of rands later, but all that happened is that the special economic zone is now intended for Namakwa.

The DA has shown what can be done to stimulate regional economies with a little innovation and a lot of implementation. The DA-led City of Cape Town, for example, is now able to cushion businesses and residents from the worst stages of loadshedding. This creates an environment for SMMEs to thrive and create jobs.

Unless the MEC is willing to learn from the DA, the Northern Cape will be doomed to economic failure.

Issued by Fawzia Rhoda, DA Northern Cape Provincial Spokesperson on Finance, 9 March 2022