Sunday Times E-Edition

MEGA’S COMMITMENT TO STIMULATE ECONOMIC ACTIVITY IN MPUMALANGA

The Mpumalanga Economic Growth Agency is focused on fostering sustainable growth and development of the Mpumalanga province’s economy,

writes ISAAC MAHLANGU, CEO

In 2022, the Mpumalanga Economic Growth Agency (MEGA) identified alignment with the government’s Nine-Point Plan as one of the catalysts for accelerating growth in investment and business activities in the province. This is in line with MEGA’s mandate to stimulate growth across various sectors of the provincial economy, providing opportunities to residents through the funding of projects and promotion of small, medium, and micro enterprises (SMMEs) and co-operatives.

VISION AND PRIORITIES

Government’s Nine-Point Plan aligns with MEGA’s priorities, which are informed by our vision to be a capable, credible, and resilient institution, making a meaningful and measurable impact on the growth and development of the Mpumalanga economy.

Founded in terms of MEGA Act 1 of 2010, our institution’s primary purpose is to foster sustainable economic growth and development in the province. So, we strive to fund economic activities that will primarily benefit previously disadvantaged individuals. These include, property development, the granting of housing loans and the development of small enterprise and agricultural businesses.

We also focus on project management, development and management of immovable properties. Another key area of focus is the promotion of foreign trade and investment to enable businesses to grow and contribute to the province’s economic growth.

While this mandate may seem huge, it is made easier by the fact that our agency implements the policy mandate of the provincial government. To this end, government’s Nine-Point Plan is a logical point of departure for MEGA to attain some of its objectives.

ALIGNMENT WITH THE NINE-POINT PLAN

I AM CONVINCED THAT MEGA HAS A PIVOTAL ROLE TO PLAY IN ADVANCING SOCIOECONOMIC DEVELOPMENTS FOR THE MARGINALISED COMMUNITIES IN OUR PROVINCE.

The Nine-Point Plan includes:

• the revitalisation of agriculture and the agro-processing value chain

• advancing beneficiation, adding value to our mineral wealth

• effective implementation of the Industrial Policy Action Plan

WE HAVE DEVELOPED SPECIFIC PACKAGES OF INITIATIVES DESIGNED TO STIMULATE ECONOMIC ACTIVITY AND ACHIEVE QUANTIFIABLE DEVELOPMENT IMPACT GOALS.

• unlocking the potential of SMMEs, co-operatives, township and rural enterprises

• resolving the energy challenge

• stabilising the labour market

• upscaling private sector investment

• growing the ocean economy

• cross-cutting reform to boost and diversify the economy through investment in science and technology, water and sanitation, transport infrastructure, broadband connectivity and state-owned companies.

So how exactly do we plan to use these to achieve MEGA’s objectives? Responding to the above priorities, we have developed specific packages of initiatives designed to stimulate economic activity and achieve quantifiable development impact goals.

One of the exciting initiatives we have undertaken has been the increased investment through “crowding in” private sector capital and expertise. Through this programme, MEGA has been able to access investment opportunities for SMMEs through partnerships such as the Standard Bank Partnership and the Strategic Development Partners.

We have also collaborated with the Department of Human Settlements to access funds from the Finance Linked Individual Subsidy Programme to augment the provision of home loans in the gap market. Through our property portfolio, we have packaged strategic development projects

(industrial, commercial, and residential) with the view to also attracting private sector partners. We plan to follow a targeted investment promotion approach where a few high-impact strategic projects will be presented to a carefully selected group of investors and financiers.

Another initiative, to reduce unemployment, poverty and inequality, is our direct response to the Nine-Point Plan. Through this programme, MEGA seeks to substantially grow loan advances, disbursing loans across all customer segments to stimulate job opportunities. This programme enables us to customise a financing approach to finance-specific target groups such as the youth, women and people with disabilities. Furthermore, we can now implement strategic investment projects such as the Mpumalanga International Fresh Produce Market and the Nkomazi Special Economic Zone to stimulate economic growth and create job opportunities.

Making use of the government resources programme, MEGA can restructure, secure and maintain private sector investment on its equity investments. These include Tekwane Lemon Farm, Loopspruit Winery, Afrimat, Kangwane Anthracite and Highveld Fruit Packers. This initiative will also afford us the opportunity to continue with our efforts to build internal capacity to deliver on our economic growth and developmental mandate.

THE IMPORTANT ROLE OF LOCAL ECONOMIC DEVELOPMENT AGENCIES

While the South African economy is beginning to show signs of recovery following the devastating effects of the COVID-19 pandemic, it still has to contend with many inherited historical issues. This makes the role of agencies such as ours important. I am convinced that MEGA has a pivotal role to play in advancing socioeconomic developments for the marginalised communities in our province.

It is through such locally led economic development initiatives that we can collectively address the socioeconomic challenges of unemployment, poverty and inequality that besiege our communities.

Mpumalanga Economic Growth Agency

en-za

2022-06-26T07:00:00.0000000Z

2022-06-26T07:00:00.0000000Z

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