Page 60 - Estimates of Public Entities Revenue & Expenditure 2023

PROVINCE OF THE EASTERN CAPE ESTIMATES OF PUBLIC ENTITIES REVENUE AND EXPENDITURE 2023/24

R348.799 million and R357.932 million, respectively. The main projects funded over the 2023 MTEF
are as follows:

• Blended Finance – R325 million;
• Magwa Tea Easte – R92.190 million;

• Cannabis – R32.790 million;
• Citrus Farmers intervention – R27.883 million; and

• RED Hub – R11.200 million.

Compensation of employees has increased from R98.023 million in 2019/20 to a revised estimate
of R113.367 million in 2022/23 financial year. This is aligned to the growth of personnel numbers over
the period. Over the 2023 MTEF period, the compensation of employees is projected to increase to

R116.162 million, R116.417 million and R120.224 million, respectively.

Goods and Services have decreased from R81.483 million in 2019/20 to a revised estimate of

R54.742 million in 2023 financial year. This is aligned to a change in the implementation strategy of
DRDAR which has resulted in the decrease in the transfers and subsidies provided to ECRDA. Over
the 2023 MTEF period, goods and services are projected to increase to R61.572 million,

R54.540 million and R58.582 million, respectively, mainly due to Cannabis and RED hub projects.

Transfers and subsidies have decreased from R108.936 million in 2019/20 to a revised estimate of
R56.346 million in 2021/22 financial year. This is mainly due to a decrease in the transfers and
subsidies provided to Magwa and Majola Tea Estates as the entity should be operating as a business

entity. Over the 2023 MTEF period, the transfers and subsidies increases to R62.876 million,
R190.180 million and R192.017 million, respectively, due to the following projects:

• Blended finance: incentive portion to the Eastern Cape Development Corporation
• Magwa Tea Estate
• Citrus Farmers intervention: Citrus Grower Association

Payments for capital assets have decreased from R5.234 million in 2019/20 to a revised estimate

of R3.685 million in 2022/23 financial year. This is aligned to a decrease in the transfers and subsides
from DRDAR. Over the 2023 MTEF period, the payments for capital assets are projected to increase
to R5.500 million, R6 million and R6.269 million, respectively, due to planned renovations at the King

Williams Town, Umtata and Cradock offices.

Payments for financial assets have decreased from R5.130 million in 2019/20 financial year to a
revised estimate of R2 million in 2022/23 financial year. This is mainly due to poor collection of debtors
as a result of significant impairments. Over the 2023 MTEF period, the payments for financial assets
are projected to increase to R3 million, R4 million and R4.179 million, respectively, as the entity is

projecting improved recoveries on current year loans disbursed as well as reclassifying historical non-
performing loans.

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