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State of the Province Address SOPA 2013 SOPA 2013 State of the Province Address Speech of the Honourable Premier Noxolo Kiviet Delivered on the occasion of the Eastern Cape State of the Province Address 22 February 2013 Honourable Speaker and Deputy Speaker Members of the Executive Council IiKumkani zethu nooNdlunkulu bethu Leadership of the ANC and its Alliance partners as led by the Secretary General, Cde Gwede Mantashe Members of the Provincial Legislature Delegates of the National Council of Provinces Ministers and Deputy Ministers Members of the National Assembly Judge President of the Eastern Cape Division and Members of the Judiciary Heads of the security services Speakers from our sister Legislatures USihlalo Wendlu Yeenkosi eMpuma Kapa, neeNkosi ezikhoyo phakathi kwethu Chairperson of SALGA, Executive Mayors, Mayors and Councillors Vice Chancellors and leaders of our tertiary institutions Premier Noxolo Kiviet Page | 1 SOPA 2013 State of the Province Address Religious, business, labour and civil society leaders Members of the diplomatic and consular corps Director-General and senior members of our administration Members of the Media Ladies and Gentlemen 2 | Page Premier Noxolo Kiviet SOPA 2013 State of the Province Address Honourable Speaker, fellow citizens of our beautiful Province, today we have the pleasure of delivering to this august House, the 5th State of the Province Address since this term began in May 2009. As I therefore begin, allow me first to greet and welcome the masses of our people who are gathered at various venues throughout the Province to listen to this address. I know that some are listening through Umhlobo Wenene, SAFM, Tru FM, and community radio stations across the Province, while others are watching us on the Parliamentary Channel on Dstv. On behalf of our Government, I salute all of you who are gathered at Seymour Community Hall, Ntabankulu Town Hall, Tsholomnqa Community Hall, Cookhouse Community Hall, Dodrecht Community Hall, Sterkstroom Community Hall, Steynsburg Community Hall, Jeff Masemola Hall in Uitenhage, and at Tsilitwa Access Point in Qumbu. Honourable Speaker, may we also take a moment and bow in honour and memory of all our departed fellow compatriots. Premier Noxolo Kiviet Page | 3 SOPA 2013 State of the Province Address They include Stanley Mzimba; Queen NoMoscow Dalindyebo; Sitsheketshe Morris Mandela, Victor Ntoni, Amina Cachalia, Jakes Gerwel, Roy Padayachee, Arthur Chaskalson, Moses Twebe, Naledi Nkula, Nieburg Magwa, Mntwekhaya Nkwinti, Leo Rubusana Kantolo, and Zingisile Mathiso. May I also, on behalf of the people of the Eastern Cape, take this opportunity to wish our national icon, former President Nelson Mandela Godspeed as he continues to recuperate. The news of his full recovery is indeed heartening. We are grateful, and we thank the Almighty that as we celebrate Mandela Day on the 18th of July this year, and as Madiba celebrates his 94th birthday, he may be with us at his beloved Qunu. Long live Madiba long live! Similarly, let me also take this opportunity to wish the African National Congress well as it begins its second centenary. I am certain that as we continue in our transition to a National Democratic Society, this gallant movement of our people, which led the liberation of our nation from the yoke of colonialism and apartheid, will lead us to the realization of all the developmental objectives necessary for the betterment of the lives of our people. With the adoption of the National Development Plan by the ANC at the 53rd National Conference, we are even 4 | Page Premier Noxolo Kiviet SOPA 2013 State of the Province Address more certain that this lofty goal of a better life for all in our lifetime is within our reach! Indeed as the Eastern Cape, we will heed the call our President has made in his State of the Nation Address last week for the immediate and effective implementation of the NDP. As Honourable Members would be aware, this NDP, in whose evolution we proudly participated as the Eastern Cape, calls for the country to “write a different story in the years ahead. In this new story, every citizen is concerned about the wellbeing of all other citizens, and the development of South Africa means the development of everyone who lives here. We must build on our social solidarity, which, through history and heritage, has demonstrated our aspiration to create a caring South African society.” Our own Eastern Cape Provincial Planning Commission, which we established in April 2012, is on course to extrapolate the provincial implications of the NDP. They have already started with conceptualization and consultations with various stakeholders. Accordingly, by early next year, this Commission will table a Provincial Development Plan which cascades to the Province the long range development perspective outlined in the NDP. Premier Noxolo Kiviet Page | 5 SOPA 2013 State of the Province Address All citizens of our Province are encouraged to participate in all the consultative processes which will unfold as the Eastern Cape Planning Commission facilitates the development of this plan. Honourable Speaker, the NDP’s observation that one of the central challenges we face as a country is that “too few people work”, accords with our own strategic priority on the creation of decent work and growing the economy. Of course as our President has noted in the State of the Nation Address, all our efforts in building and managing our economy have had to contend with an unfavourable global economic environment. The World Bank predicts that the global economy will grow by just 2,4% this year, a level very similar to last year. The Eurozone will most likely remain in recession, and the US economy will grow at under 2%. The only real good news is that China’s growth is expected to rise, from 7,9% to 8,4%, and the emerging economies will continue to grow at above 5%. The ongoing global slowdown and uncertainty has also limited growth prospects for South Africa. While National Gross Domestic Product growth regained ground, climbing to 3,5% in 2011, it has dropped below 3% in 2012, and is expected to remain at a similar level for 2013. 6 | Page Premier Noxolo Kiviet SOPA 2013 State of the Province Address Similarly, at provincial level, GDP growth has again dropped from the recovery figure of 3,4% in 2011, and is expected to remain at below 3% for this year. We expect that by 2015, as our key strategic infrastructure projects and pipeline of private investments solidify, growth will return to its pre- crisis level of above 4 percent. Furthermore, the Census 2011 results, which were released in October 2012 showed a decline in the population of the Province as a result of outward migration to other provinces. Consequently, this has had a negative impact on the budget allocation of the Province, which has declined by R5.1 billion over the Medium Term Expenditure Framework. Honourable Speaker, notwithstanding the picture we have just drawn, we are very pleased to report that both of our Industrial Development Zones are working well. The Coega IDZ has operational investors on site with private investment of more than R1,2 billion. In addition, secured private investments of R5,4 billion are currently being implemented, with investments of more than R8 billion in the project pipeline. These investments are aligned to sectors prioritized in our Provincial Industrial Strategy, including metals beneficiation, energy, automotive, chemicals and agro- industry. Premier Noxolo Kiviet Page | 7 SOPA 2013 State of the Province Address The East London IDZ is also working well, and has to date secured R2,2 billion of current investment, with a project pipeline of R12,7 billion. Of this pipeline, more than R4 billion are at an advanced or final stage of facilitation. Last year we launched the Eastern Cape Automotive Cluster. The automotive sector continues to be an important sector of the provincial economy, and we are working with the Original Equipment Manufacturers to increase local content and provide opportunities for component suppliers. Our Nelson Mandela Bay Logistics Park has secured component supplier private investments of R647 million, and the East London IDZ is at an advanced stage of establishing the Metals Surface Treatment Plant, which will provide new supplier opportunities in partnership with Mercedes Benz South Africa. We are also partnering with MBSA in establishing a training centre, and have leveraged more than R100 million from the Jobs Fund for this project. Furthermore, the investment of R600 million from our new Chinese OEM, FAW, is on track, with factory construction underway in Coega. We continue to prioritize the green economy in sectors such as solar, wind, biofuel and biomass, as we remain committed to making the Eastern Cape the green energy Province of the country. 8 | Page Premier Noxolo Kiviet SOPA 2013 State of the Province Address Of the 18 wind energy projects awarded as Independent Power Producers by the Department of Energy, 11 are from the Eastern Cape with a total investment value of R18 billion. Our Cradock Biofuels Project has been given a new lease of life through its inclusion as a Presidential Infrastructure Coordinating Commission priority project, as well as through the recently promulgated legislation which prescribes minimum biofuel content in blended fuel. We look forward to the R1,1 billion biofuel factory investment in Cradock, and, working with the national Department of Rural Development and Land Reform, we will use the feedstock market to develop commercial black farmers. To this end, 25 farms in the Fish River Valley have been bought for land redistribution. We have also, over the past year, secured Jobs Fund investments in the agro-processing and forestry sectors. Our Trading Posts initiative will link rural producers with agro-processing facilities, with targeted sites being Ncora and Mqanduli.
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