According to the Finance MEC, Motlalepula Rosho, the Covid-19 pandemic had devastating effects on the provincial economy, leading to a decline in revenue collection. 

Tabling the province’s 2021/22 budget earlier on Tuesday, Rosho said it is extremely concerning that unemployment figures now also stand at 33.3%, which constitute an increase of 5%. She told Members of the Provincial Legislature (MPLs) that more needs to be done to address the scourge of unemployment. 

In efforts to do so, Rosho announced that the Department of Economic Development, Environment, Conservation and Tourism has been allocated over R938 million to stimulate economic growth in the province and to ensure that there is an increase in job opportunities.

The latest Quarterly Labour Force Survey released by Statistics South Africa, indicates the country's unemployment rate increased by 7,5 percentage points to 30,8% in 2020 while the expanded unofficial employment rate is 43.1%. These figures show that South Africa’s unemployment rate has hit its highest point since the Quarterly Labour Force Survey (QLFS) was started.

“The Economic and Infrastructure Development Cluster is positioned to implement the Economic Reconstruction and Recovery Plan to address unemployment, poverty and inequality. The allocation for this cluster will increase from R5.4 billion in 2021/22 to over R5.5 billion in 2023/24,” added Rosho.

She highlighted that the budget allocation towards the Economic Development Department is also expected to support Small, Medium and Micro Enterprises (SMMEs), mainly in rural impoverished communities.

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