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Minister of Finance outlines his Medium Term Budget Policy Statement - published 26 Oct 2018

Minister of Finance outlines his Medium Term Budget Policy Statement – Tito Mboweni highlights key growth-enhancing economic reforms.

 

Newly appointed Finance Minister, Tito Mboweni, delivered his Medium Term Budget Policy Statement on Wednesday, 24 October 2018. The policy statement focused heavily on measures that will stimulate the economy in relation to the targets set out by President Cyril Ramaphosa in his stimulus package, earlier this year.

 

In his speech, Minister Mboweni reinforced the need for growth-enhancing economic reforms across all sectors. The Minister put much needed emphasis on energy, more specifically renewable energy.  “Recently concluded power-purchase agreements will create an estimated 61 000 jobs and enable investment of R56 billion. Through the renewable energy IPPs, we have secured equity for local communities, who will receive about R29.3 billion in net dividend income over the life of the projects.” Mboweni continued to say: “For recently signed projects, 53 per cent is owned by South African shareholders, while black shareholders own 34 per cent of the equity.” The Minister’s sentiments are especially welcomed by the Coega SEZ, as they had a strong emphasis on the importance of Renewable Energy as an integrated cog in the economic package. Mboweni’s comments come at critical point whereby the approval of the IPP’s play an important role in revitalizing Coega’s wind energy project, DCD Wind Towers, which was temporarily derailed because of the halted signing of new power purchase agreements.  

 

“South Africa offers a strong investment value proposition”, said Minister Mboweni. The CDC fully agrees with sentiments shared by Minister on the offering of a “strong investment value proposition.” As the preferred investment destination, the CDC is fully committed in ensuring the continued diversification of the EC economy through the attraction of various sectors. The SEZ is already home to 43 investors across priority sectors such as energy (Dedisa Power Peaking Plant), metals (Agni-Steel SA, which has just been recently expanded) as well as agro-processing (Coega Diary and PE Cold Storage, which expanded its storage facility).

 

Minister Mboweni also spoke on the Job Summit held recently, saying,”The recent Jobs Summit brought together business, labour, community and government to leverage our collective strength towards the urgent need to protect and create jobs”. Marketing and Communications Unit Head Dr Ayanda Vilakazi echoed the sentiments made the Finance Minister saying: “As the CDC, we happily welcome the Minister’s comments on the recently concluded Jobs Summit, especially the importance of using our collective strength to our advantage and towards the urgent need to protect and create jobs”. Which is why the CDC is an exemplary when it comes to the continued creation of jobs; having earlier this year reached the 1120 000-job mark”, concluded Dr Vilakazi.

The CDC  is continuously embarking on improving the socio-economic standing of not only the Eastern Cape, but of the country as a whole, through the creation of job opportunities and we appreciate that more still needs to be done to combat the “unacceptably high unemployment rate in the country”.

 

Ends

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