This is according to the Small Business Development, Tourism and Environmental Affairs (DESTEA) MEC Makalo Mohale. Tabling the province’s 2020/21 adjustment budget, Mohale confirmed these are amongst the major challenges the province still grapples with. He noted how the Covid-19 pandemic has crippled the provincial economy, and revealed structural deficiencies in the province’s economy. Mohale announced that they will be investing much of their budget in SMMEs, revitalising township economy, the tourism sector and youth centred projects. He highlighted that economic growth and job creation remains a top priority.

Mohale’s R642.9 million budget has, however, been received with mixed emotions by opposition parties in the Free State Legislature with many leaders stating that this department needs to do more to ensure that the province generate revenue.

Whilst the DA’s Roy Jankielsohn lambasted that department over the lack of assistance towards the tourism industry amidst the Covid-19 pandemic, and lack of job creation the EFF’s Mahlomola Majake expressed disappointment at how the department continues to cough out millions at projects such as the Maluti-A-Phofung Special Economic Zone with not much to show for it.

Jankielsohn and Majeke reiterated the need for sustainable job opportunities in the province following a damning report by Statistics SA which indicated that the Free State has the second highest unemployment rate of over 38% in the country following the Eastern Cape.

“This department needs to relook the importance of the Free State Development Cooperation (FDC) as it no longer serves its purpose, it must also ask itself if it is justifiable to spend so much at the Maluti-A-Phofung Special Economic Zone with only a parameter fence to show for it, whilst so many projects needs funding” said Majake.

In support of Mohale’s budget, the MEC for Finance Gadija Brown, however, told members of the house that unemployment and lack of economic growth is a nationwide challenge at this stage and remains a great concern across all provinces.

“The Covid-19 pandemic has added to the woes of the South Africa economy which is projected by the South African Reserve Bank to contract by 7.3% in 2020”.

She told the house that budget tabled by Mohale is in consideration of the poor of the poorest, aimed at boosting the local economy and should rather be adopted by the house.

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