CAPE TOWN, South African Finance Minister Pravin Gordhan has presented a 2017 Budget containing a number of spending areas which are aimed at boosting economic activity and growth across different sectors of the economy.
Tabling the Budget in the National Assembly here Wednesday, he said several hurdles which hampered growth, including drought conditions, production stoppages associated with industrial disputes and energy constraints, had been mitigated in most parts of the country.
“Effective implementation of these and other programmes and initiatives will set us on a higher growth trajectory than currently projected. Progress in engagements between government, the business sector and social stakeholders is imperative,” he added.
The National Treasury says in its Budget Review that spending in these sectors is aimed at stimulating rural development and food production, and assist emerging farmers.
Expenditure on the agricultural sector is expected to grow to 29.8 billion Rand (about 2.27 billion US dollars) by 2019/20 at an average annual rate of 4.7 per cent, accounting for 1.9 per cent of total government spending over the next three years.
Over the next three years, the government will spend more than R5.5 billion on Comprehensive Agricultural Support Programme conditional grants to provide about 435,000 subsistence and smallholder farmers with equipment, fencing, fertilizer and seedlings, improved extension services and repairs to flood-damaged infrastructure.
The Department of Rural Development and Land Reform will intensify the One Household One Hectare initiative to provide land to the landless and fast-track the establishment of agri-parks in district municipalities.
More than R3.9 billion will be provided for small, medium and micro enterprises and cooperatives.
The National Informal Business Upliftment Scheme aims to develop more than 5,000 informal businesses and co-operatives through financial and other support. This will help improve competitiveness, promote entrepreneurship, advance local content programmes and facilitate market access.
The Black Business Supplier Development Programme will provide about 2,000 small, medium and micro enterprises (SMMEs) with financial support to help them become competitive sustainable, job-creating firms.
In order to promote industrialisation, economic transformation and inclusive growth, government continues to provide incentives for Special Economic Zones (SEZs), critical infrastructure and manufacturing. Over the next three years, R4.2 billion will be allocated for industrial infrastructure projects, with 32 strategic projects expected to be approved for SEZs and industrial parks.
About 1,450 companies are expected to benefit from the Manufacturing Incentive Programme, which is allocated R9.6 billion over the medium term, including R1.3 billion to bolster competitiveness.
Government will allocate R95 million to the Industrial Development Corporation to support the establishment of the Steel Development Fund, intended to improve the competitiveness of foundries and steel fabricators.
Source: NAM NEWS NETWORK