Page 46 - Provincial Treasury Estimates.pdf

Overview of the Provincial Revenue and Expenditure (OPRE) Financial Year 2023/24
was due to Mercedes Benz SA launching new generation car model, W206. This new model enabled the
localization of some suppliers that were supplying the old model from outside the country.

FY 2021/22

The organization managed to attract 7 investors in the 2021/22 financial year, of which 3 of them were
expansion of the old investors that were already in the zone. The investors pledged private investment of
R968.9 million. The organization through DTiC managed to invest R436 million in top structures. The

investment in top structures created 1 488 construction jobs. In addition to creating construction jobs, the
investors pledged 756 jobs and the actual number of jobs that were created and sustained by this investment
is 864.

FY 2022/23

As at the end of the third quarter of 2022/23, the ELIDZ is adversely impacted by a sluggish global economy,
moderate inflows of Foreign Direct Investment and low levels of investment into global manufacturing value

chains.

Growth in the industrial sector is further stifled and destabilized by challenges in global supply chains.

These challenges have started to hit home for the ELIDZ and some of the statistics in this quarterly report
are starting to bear testament that the 2022/23 financial year is one of the toughest in the last 10 years for
the organization.

The ELIDZ has concluded one new investment agreement worth R70 million by end of quarter 3 of 2022/23.
With one new investment signed, there is a slowdown in the quantum of construction activity in the zone
and this will, in the long run impact on the operationalization of new facilities in the zone. Whilst there are

evident challenges in terms of new investments, one of the highlights of this reporting period is that the
ELIDZ has hit a record when it comes to the number of active manufacturing and services jobs with an
increase of 16 % on reported jobs compared to Q1 of the financial year.

The allocations over the 2023 MTEF for the Zone amounted to R164.706 million in 2023/24, R106.056

million in 2024/25 and R107.546 million in 2025/26. The 2023/24 allocation is inclusive of an additional
funding of R58.650 million for the refurbishment of the data center as well as the installation of ICT
infrastructure and equipment. The establishment of a Tier 3 rated data centre within the ELIDZ will service

ICT needs of the Province and broader region.

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