ANNUAL PERFORMANCE PLAN - Dedea

ANNUAL PERFORMANCE PLAN for the years 2010/11 - 2012/13 | Department of Economic Development and Environmental Affairs
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The economic outlook in the province is dampened by the province-wide skills shortage and low
labour absorption capacity of existing industries and sectors. This shortfall in skills is partly due
to the unexpectedly rapid economic growth South Africa experienced in the early to mid 2000s,
accompanied as this was by substantial demand for skills sets in key market segments. Even at the
height of the growth phase in 2006, the Eastern Cape had a labour absorption rate of only 0.7%,
compared with 3.6% in the Western Cape and 3.8% in KwaZulu-Natal.
In addition to the economic crisis, many parts of the province are experiencing a devastating
drought, with livestock dying and crops failing. Many dams have run dry. These conditions are ideal
for the spread of invasive alien plants, which exacerbate the detrimental impact on catchment
management and biodiversity. However, the relative health of environmental systems, such as river
eco-systems, can mitigate these detrimental impacts if healthy natural systems are well protected
and managed.
Endemic poverty and a ravaged natural environment will be among the most compelling factors
influencing the work of DEDEA over the next five years: The socio-economic challenges being
experienced the world over have manifested themselves in the Eastern Cape Province. Investments
and resources are increasingly scarce.
Endemic poverty and a ravaged natural environment will be among the most compelling factors
influencing the work of DEDEA over the next five years:
High levels of poverty and deprivation in a stunted economy
• Vulnerable groups are in ever-increasing need of government intervention to mitigate the
impact of the current economic recession and deepening poverty. Historical service delivery
backlogs and persistent obstacles to development must be removed in order for the rural
population of the province to participate in and benefit from economic growth.
• To this end it is necessary for DEDEA to participate in and contribute to programmes that
address service delivery backlogs. Working in collaboration with the Departments of Roads
and Public Works, attention will be paid to identifying mechanisms and opportunities to
connect rural villages to towns and cities through a functional road network so as to increase
access to economic activities and opportunities.
• The department’s existing co-operatives programme will be intensified to assist in organising
communities to co-operatively identify, create and exploit local economic opportunities. It
is hoped that this will assist in mitigating the ravaging effects of poverty. Similarly, DEDEA
will, with its public entities and sister departments, endeavour to assist rural entrepreneurs
to participate in the mainstream economy through the provision of skills, opportunities and
logistics.