NEF could offer boost for EC, DAILY DISPATCH

DAILY DISPATCH, Business Page 8

Public spend in region is just 1% BOOSTING large state-owned enterprises’ (SOE s) low spend in the Eastern Cape by 1% could half unemployment in the province, provincial economic development MEC Mcebisi Jonas said. Jonas was speaking at the launch of the National Empowerment Fund (NEF), a Department of Trade and Industry (DTIC) development finance institution (DFI). NEF’s decision to set up shop in the province was expected to have significant developmental impact through development finance, Jonas said. A detailed analysis and assessment of government’s impact on the economy and on the social set up, according to Jonas, revealed a glaring picture of low investment by SOEs in the Eastern Cape, to the detriment of economic development and employment. He added that most national government agencies contributed less than 1% of their total spend in the Eastern Cape. “This is a very important step. When we analysed the balance sheets and performance of national state-owned enterprises, it was clear that for many the Eastern Cape accounted for less than 1% of their annual budgets and performance,” said Jonas.

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