Azra Hoosen | ah@radioislam.co.za
29 November 2024 | 11:00 CAT
2 min read

KwaZulu-Natal’s economy is struggling to hit its stride, with growth projections falling short of their potential. Speaking during his mid-term budget adjustment speech, KwaZulu-Natal Finance MEC Francois Rodgers has raised concerns about the hurdles facing the province—stagnant economic growth, unspent funds, and a looming R12 billion budget cut—amid an unemployment crisis gripping over a million residents.

In an interview with Radio Islam, Rodgers acknowledged that the challenges facing the country, including the impact of COVID-19 and political instability, were anticipated. “We have been in a situation like this before but we’ve come out of it. It is going to take some strong leadership, some serious discipline when it comes to fiscal spending, and we must focus on what needs to be done on frontline services, Education, Health And Social Development,” he said.

He shared some positive news for KwaZulu-Natal, noting that, for the first time, the province is seeing growth in its equitable share allocation. Despite budget cuts, there are signs of progress, with half a million allocated in the first year, one and a half million in the second year, and just over three million in the outer years. He emphasised the need for a careful balancing act to manage these funds effectively.

“The most important thing, to show we are sincere about cutting on the ‘nice to haves’, is the instruction note I issued to cabinet,” he explained.

In line with the Public Finance Management Act (PFMA), a cost-cutting directive has been issued, and all departments are required to comply with the significant budget reductions that have been implemented. “That deals with Ministerial vehicles, travel, advertising, events, all of those areas where there is no real service delivery, we need to focus on our key priorities to build our economy, create jobs and deal with poverty and inequality,” he added.

He stated that with this instruction note, which he believes is the first time in the history of KZN that an MEC of Finance has implemented it, he can now legally hold officials accountable. There are already areas under investigation where wasteful expenditure is occurring. “Now you need to watch this space for accountability when there is contravention of the instructions,” he said.

Regarding the unemployment rate in KwaZulu-Natal, Rodgers expressed hope that the billions being invested in capital projects along the N3 and N2 highways would help create job opportunities and stimulate economic growth in the province.

“Our new MEC of Public Works is hitting the ground with revitalising capital programmes and our MEC on transport and human settlements. We have allocated in our limited adjustments budget, the premier gets 100 million rand towards a youth development fund, taking those factors into account, it will show some improvement in the unemployment rate,” he said.

According to Rodgers, the new Government of National Unity is attracting investors, as they perceive a sense of political stability. He emphasized that this is an opportunity to harness private capital and foster public-private partnerships, which in turn can serve as significant job creators.

He assured the people of KZN that his top priorities are poverty and inequality, job creation, and building a sustainable economy. “These are the areas where I will focus our spending, nothing else,” he stated.

LISTEN to the full interview with Ml Habib Bobat and Francois Rodgers, KwaZulu-Natal Finance MEC, here.