the dti moves swiftly to avert ELIDZ Funding Shortfall

the dti moves swiftly to avert ELIDZ Funding Shortfall

The Department of Trade and Industry (the dti) has moved swiftly to respond to the East London Industrial Development Zone’s (ELIDZ) current funding shortfall.

Following a meeting between the ELIDZ and the national department this week and a review of some of the underlying challenges that have led to the ELIDZ’s situation , the dti has pledged to bridge the shortfall in the ELIDZ’s budget for the current financial year.

Speaking after the meeting between the two entities, Director-General at the dti , Lionel October, said that the department would make the injection with immediate effect.  “The allocation will be for the remainder of the current financial year and is in line with our objective of strategic industrial development,” he said.

ELIDZ Chief Executive Officer, Simphiwe Kondlo, welcomed the funding from the dti adding that it would assist in responding to the funding shortfall.  “We are very happy with the move from the dti to increase its support to the East London Industrial Development Zone (ELIDZ) for the current financial year.  To us it is also a sign of confidence by the department on our ability to significantly contribute to the industrialisation of our province,” he said.

Both October and Kondlo called for calm from all parties and investors concerned stating that the ELIDZ would continue to operate.

Kondlo added that the ELIDZ remained committed to delivering on its mandate from the dti.  “Even the funding shortfall we are now talking about is as a result of the ELIDZ wanting to ensure maximum industrial development of the Eastern Cape,” he said.

ABOUT THE ELIDZ

The ELIDZ is part of the Industrial Development Zone programme, which was initiated by the dti to drive economic development and increase industrialisation in 2002. There , has since, been the enactment of the Special Economic Zones (SEZ) Act 16 of 2014 which provides a clear framework for the development, operations and management of SEZs, including addressing challenges of the current IDZ Programme.  The ELIDZ will continue being an integral part of the industrialisation of the Eastern Cape programme through the new Special Economic Zone dispensation.

Key to the East London IDZ’s mandate is the attraction and retention of strategic investments that will not only diversify the local economy, but also create meaningful employment opportunities.  Since its designation in September 2002, the ELIDZ has achieved he following milestones

·         Transformation of a Greenfields site to a world class industrial location.

·         Attraction of 38 private sector investors worth R4.4 billion in the automotive, agro-processing, renewable energy, aqua-culture and general manufacturing sectors

·         Activation of over 3000 direct manufacturing and related jobs