Pietermaritzburg - The KwaZulu-Natal provincial economy is healthy and has shown strong growth for about 18 months, says Premier Zweli Mkhize.
Delivering his State of the Province Address on Tuesday morning in the provincial capital, Mkhize said: "The provincial finances are sound. We ended the last financial year with substantial saving as a result of our fiscus austerity measures. We were fully able to repay our overdraft, clear unauthorised expenditure and received on positive cash balances. At the end of December 2011, KwaZulu-Natal had R3.6 billion cash in the bank account," said Mkhize.
Reaffirming the commitment to clean governance, Mkhize announced that the number of vacant funded posts have been reduced from 20 percent in 2009 to 11 percent in 2012.
Employment growth in KwaZulu-Natal has had a positive effect on economic stress levels. More than 150 000 jobs were created in both the informal and formal sectors last year.
The KwaZulu-Natal Barometer - complied by Mike Schussler of Economists.co.za - reported that the jobs created resulted in 2.1 percent reduction in unemployment.
Mkhize said a continued growth of the economy would stem from a combined investment of national departments, parastatals, provincial and local government and the private sector.
The majority of the job opportunities were expected to be created by the private sector, particularly the small business sector.
KZN will invest between R3 billion to R8 billion for each district but R20 million is expected to be poured into Uthukela, Uthungulu and eThekwini for special projects in these areas.
A portion of the R15 billion made available from provincial capital budget for service delivery will go to health infrastructure, where construction and extensions of health facilities in Escourt, Madadeni Psychiatric and Empangeni group of hospitals will take place.
At least 2 000 classrooms are expected to be built. Funds will also be made available to provide laboratories, water and electricity.
Mkhize expects the Expanded Public Works Programme (EPWP) to help with the major pothole problem. Last year, 32 000 work opportunities were created through the Expanded Public Works Programme (EPWP).
"KwaZulu-Natal achieved 55 036 in 2011, which is 18 percent of the national EPWP. We were the first to exceed the target and receive the EPWP rebate," said Mkhize.
Capital spending in some departments improved after a crack team was put into place.
"Capital spending was slow, in some departments below 50 percent. We took action and put in a crack team. The result is over 50 percent improvement in expenditure. That is a success story, and all departments had spent more than 70 percent by the end of the third quarter, which is good," said the premier.
Transnet will invest around R80 billion in the refurbishment of ports in the next seven years, with the Richards Bay Port receiving much attention.
"Work in this area will involve the development of new berths and increase the capacity of Africa's largest coal terminal in preparation for coal mines expected to open in Limpopo," said Mkhize.
The provincial government and the Passenger Rail Agency of South Africa (PRASA) want to improve rail services so that it can serve as the backbone of public transport without neglecting huge challenges faced by commuter rail services.
Recognising the potential held by the multibillion rand maritime industry, KZN intends to launch a Provincial Maritime Cluster. The cluster will play a critical role in harnessing the full potential of the sector.
A Maritime Industry Conference will also be held this year and an inclusive Integrated Maritime sector Development Strategy will be formulated.
The formation of the Climate Council, to address the issues which came under the spotlight at the recent climate change summit, COP17, is being finalised.
"We will join the Climate Change Group, an international platform utilised by both the public and private sector to exchange knowledge and innovations in green technology," said Mkhize.
He added that more effort was needed to mobilise communities to prevent soil erosion as well as the protection of indigenous forests as part of conversing resources.
Meanwhile, there were signs that the province was making gains in the battle against HIV and AIDS.
"The achievements are as results of added value created by the multiple stakeholder participation in the Provincial Councils on AIDs that directs all sectors," said Mkhize.
The HIV prevalence based on women's ante-natal survey hovers around 40 percent but has shown signs of stability. Medical circumcision has rapidly grown to exceed 105 500, while more than two million people have been for voluntary counselling and testing.
