Eastern Cape Finance MEC, Mlungisi Mvoko, said a cluster system would be introduced to tackle the province’s key priorities amid rising social ill and low economic growth.
Tabling his medium-term budget policy statement in the Provincial Legislature on Tuesday, he said the “moment for the people of the Eastern Cape to work together has never been so urgent”.
“The foundation has been laid by the national government to fight these social ills, through national priorities focusing on inclusive economic growth and job creation, reducing poverty and tackling the high cost of living, and a capable, ethical, and developmental state.
“For the coming medium term, a cluster approach has been prioritised by the Eastern Cape government to ensure the alignment to those priorities,” the MEC said.
Mvoko also emphasised that the provincial medium-term budget strategy focuses on delivering an inclusive economy, reducing poverty, and building a capable, ethical state.
Over the medium term, the provincial consolidated expenditure is set to grow from R95.6 billion in 2024/25 to R103.8 billion in 2027/28, with a consolidated budget of R302.3 billion for the 2025 MTEF.
"The Department of Transport will receive R142.1 million for road maintenance, while the Provincial Legislature is allocated R58.7 million to support ICT projects, staff for additional members, and committee work," Mvoko said.
A key priority will be the social services sector, which will receive R246.9 billion (81.7%) of the budget. This includes investments in Education, Health, and Social Development. Education initiatives will focus on expanding early childhood development, implementing STEM approaches, enhancing e-learning, improving infrastructure, and expanding scholar transport services, including for ECD learners.
In-year budget adjustments have allocated R713.6 million to address immediate departmental pressures, with no changes to transfers from the National Treasury.
The MEC also highlighted the importance of private sector investment for economic growth and job creation.
"Our Special Economic Zones (SEZs), Coega and East London, continue to be key assets for industrial development. Notable investments include a R11.4 billion pledge from Zero Carbon Charge for green electric vehicle charging stations, R200 million from FAW SA in Coega, and plans for an electric bus assembly plant in East London."
He also welcomed investments in cold chain infrastructure.
Mvoko stressed the need to invest in key sectors such as agriculture, the auto sector, tourism, and film.
Despite the Eastern Cape's agricultural potential, much of the province's output comes from a small group of commercial farmers.
To address this, the provincial government will accelerate the Agriculture and Agro-processing Master Plan (AAMP) and partner with Infrastructure South Africa to revitalize irrigation schemes in Amathole and Chris Hani Districts. A new procurement model will also help local farmers access government markets for school nutrition, patient food, and food relief programs.
The automotive sector, a backbone of provincial manufacturing, will continue to receive support, particularly through the Provincial Electric Vehicle Strategy.
This includes 13 new EV charging stations funded by an R18 million allocation and an R11.4 billion investment from Zero Carbon Charge for 29 more off-grid charging sites. Additionally, the R3 billion Stellantis plant in Coega SEZ will begin assembling Peugeot Landtrek in 2026.
Tourism was also highlighted for its investment potential, with R65 million from the World Bank to boost conservation tourism at Addo Elephant Park and Great Fish Nature Reserve. Investments in infrastructure projects, such as Baviaanskloof World Heritage Site and the Kowie River, aim to grow the tourism industry and create jobs.
Mvoko said the province’s film and creative industries have flourished since the establishment of the Eastern Cape Film Investment Fund in 2018/19, with R72.7 million allocated and R506.4 million in external investments, creating over 8,000 jobs and supporting 758 SMMEs.
The province plans to further develop this sector by investing in film studios, aiming to attract 15 productions a year, generate over R200 million annually, and create 2,283 jobs.
In economic infrastructure, significant investments have been made in roads, ports, rail, and utilities.
Notable achievements include SANRAL’s completion of the R438 million N2 Belstone and Breidbach Interchange and upgrades to the N2 road from Qonce to Green River. Additionally, Transnet’s high-capacity rail project between Gauteng and the Eastern Cape is set to create 11,000 jobs and improve automotive logistics.
The Mzimvubu Water Project, a key priority, will see the construction of the Ntabelanga Dam, an R8 billion investment that will support domestic use and irrigation. The project is set to move forward with the appointment of a contractor for the dam wall in November 2024.
Mvoko promised the expansion of the School Nutrition Programme to include all grades and an additional meal, with a focus on food quality and safety through centralized procurement and technology. In health, the government will improve access to quality care, particularly for maternal and child health, and invest in infrastructure aligned with National Health Insurance (NHI) standards.
Funds will also be allocated to fight poverty and malnutrition, especially for children under five years, through the Integrated Mother & Child Development and Support Programme.
In response to crime, the province will strengthen crime prevention strategies and improve oversight of police, focusing on securing critical infrastructure.
For infrastructure delivery, the province will prioritize high-return projects and ensure effective monitoring for quality, on-time projects through a coordinated approach involving the Provincial Treasury, Public Works, and the Office of the Premier.
The province is also advancing its broadband project, enhancing e-government, and upgrading digital services in healthcare, education, and transport, focusing on improving public trust and accountability. This project includes an investment of R173.2 million for the Office of the Premier, mainly for broadband and ICT infrastructure.
Mvoko concluded by stating that the province is committed to reducing unauthorized, irregular, fruitless, and wasteful expenditures to negligible levels within two years.
He believes these objectives are achievable with strong collaboration with the Legislature, particularly the Standing Committee on Public Accounts.
