Page 50 - Provincial Treasury Estimates.pdf

Overview of the Provincial Revenue and Expenditure (OPRE) Financial Year 2023/24

Auto Sector Development

The automotive sector is a key subsector of manufacturing activity export growth in the province. The

Automotive Industry Development Corporation Eastern Cape (AIDC EC), a subsidiary of ECDC has been
mandated to assist in ensuring that the provincial automotive industry remains viable, globally competitive
and inclusive of local emerging component suppliers.

The provincial government has allocated to the AIDC an additional funding amounting to R31.079 million in
2023/24 for the development of 300 aftermarket SMMEs in the Province to enable them to acquire

accreditation, equipment, technical skills training as well as working premises for accessing insurance. The
ECDC together with the AIDC EC will over the medium-term support the automotive sector by enhancing

economic infrastructure that supports the transition towards Electric Vehicle Consumption, Production and
Export. Furthermore, an additional amount of R31.638 million is allocated for the improvement of the
operations of the AIDC EC in 2023/24.

Agriculture Value Chains Development

The Agriculture and Agro Processing Master plan seeks to industrialize and transform the agriculture sector
in the province. The prioritized list of target commodities include livestock, grain, citrus, poultry, vegetable
and piggery.

Citrus

The Eastern Cape Province is the second largest producer of citrus in the country after Limpopo.
Approximately 2% of citrus output produced in the country is from black emerging farmers. Since 2020
black citrus producers in the province have managed to substantially increase, by more than 40%, their

production and exporting capacity.

However, the unexpected increases in input prices, particularly prices for fertilizers, ,fuel and freight charges
driven mainly by Covid 19 supply chain disruptions and Russia-Ukraine war have threatened the financial
viability and sustainability of some operations . Towards ensuring their survival and continuity these
operations are set to receive short-term relief from the provincial government to the tune of R12.2 million to

assist them survive the current input price shocks.

Grain and Livestock Production Support

This entails various programmes which cater for household food security and small holder farmer
commercialization support initiatives in the province. The targeted commodities include grain farming and
livestock, with a budget amount of R102 million in 2023/24. The household food security element of the

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