East London - The Eastern Cape Development Corporation (ECDC) says its increased facilitation efforts have yield results, with the province's trade doubling in the 2010/11 financial year.
ECDC board of directors' deputy chairperson, Dr Somadoda Fikeni, on Wednesday said foreign and local direct investment in the province in the 2010/11 period increased by R71 million to R661 million, while the value of exports from the Eastern Cape increased from R502 million to over R1 billion.
The corporation's CEO, Sitembele Mase, said the increase in trade indicated an economic recovery in the review period, following the recession of the previous financial year that saw investors shy away from emerging markets, owing to perceived high risk.
"The economy and development of SMMEs in the province is influenced by domestic and foreign direct investment and trade. These investments are often catalytic and act as anchors for growth of small businesses.
"It further consolidates the ECDC's role as an effective and energised developmental financial institution," said Mase.
Fikeni noted that the corporation's trade promotion and investment facilitation was part of a plan to reposition the body as a developmental financial institution, with a strong focus on investment attraction.
The corporation is currently facilitating further investment into the R2 billion De la Vlei Wildlife Estate west of Port Elizabeth. The ECDC has already contributed R415 million to developing the estate, which includes a private game reserve, 400 hectares of forest and the "biggest natural fresh water lake in Port Elizabeth."
It has formed a partnership with the East London Industrial Development Zone to produce the first electrical car designed in South Africa.
The corporation disbursed R109 million in loans to 451 enterprises, 45 percent of which are based in the predominantly rural OR Tambo District Municipality, creating 1 797 jobs in the process.
Mase said impairments on loans increased in the review period, partly due to the continued negative impact of the economic downturn and the corporation repositioning itself as a developmental financial institution.
Among the notable achievements, Mase highlighted the corporation's support of the empowerment of enterprises in the creative and Information Communication Technology (ICT) sectors through its subsidiary, the Eastern Cape Information Technology Initiative (ECITI) incubator programme.
