Economic Development and Tourism
Media Statement

Mbombela — The MEC for Economic Development and Tourism, Ms. Makhosazane Masilela convened a virtual MuniMEC on Tuesday, 22 April 2025, to foster collaboration between the provincial and local government spheres of government, and to strengthen support to local economic development initiatives. The MuniMEC is a structure comprising Municipalities and the MEC for Economic Development and Tourism which is aimed at providing a platform within the spirit of collaboration, to ensure mutual consultation, policy coordination and to achieve a coherent government for effective provision of support to rural and township businesses.

"In order for the seventh administration to realise its key priorities: that being, to drive inclusive economic growth and reduce poverty, as a Department and municipalities, we need a deliberate and coherent approach as we deal with economic development matters in the Province. Working together with our municipalities, we should be able to drive meaningful economic growth, which will in turn contribute towards the much-needed jobs and the eradication of poverty.

"Accordingly, this structure has been established to ensure that we strengthen the interaction and engagement between MMCs for Local Economic Development and the Department, in order to strengthen the functioning of local economic development and improve the manner in which we coordinate our support to small enterprises", explained MEC Masilela.

In its quest to drive inclusive economic growth and reduce poverty, the MuniMEC deliberated on the following areas of mutual interest, which are underpinned on the priorities of the Seventh Administration:

1. Township Revitalisation Programme

The Department has already developed a Red Tape Reduction Strategy to provide support to municipalities in easing the way of doing business by small enterprises, and the broader informal sector. The Department has committed to strengthen partnerships with municipalities, to ensure that the regulatory environment in the township and rural areas is conducive for businesses to thrive without experiencing cumbersome red tape. The meeting further agreed that more emphasis should be placed on economic transformation through continued support and nurturing of the informal sector, which is the backbone of the Province's economy.

2. Revitalization of Industrial Parks

The meeting highlighted the need for MEGA to accelerate its programme on the revitalisation of industrial parks found largely in the former homeland areas, in order to create space for small businesses that require factories to operate their business. The meeting further resolved that MEGA must ensure that the Ekandustria Industrial Park near Bronkhorstpruit benefits the people of Mpumalanga. It further agreed that the Mkhuhlu Industrial site just outside Hazyview, should be owned by the Province, and accordingly benefit its people. The establishment of the game changer projects, such as the envisaged Petro-Chemical Industrial Park in Secunda in the Govan Mbeki Local Municipality, must also be prioritised.

3. Local Economic Development Framework

The meeting was informed that the Local Economic Development (LED) Framework has been finalised. The framework aims to promote economic growth and improve the quality of life in specific local areas. The main objective of the LED Framework is to create jobs, reduce poverty and enhance the local economic base by encouraging investment and entrepreneurship.

4. Tourism in the Province and G20 activities

The meeting resolved that Regional and Local Tourism Organisations must be given the necessary support by the Mpumalanga Tourism and Parks Agency (MTPA). Furthermore, the MuniMEC made a call for all municipalities to support the G20 stakeholder engagement programme, which will take place in all the three District Municipalities.

MEC also urged municipalities to assist spaza shop owners, who are complaint with the regulations, to apply for financial support from the Spaza Shop R500 million fund, recently launched by the Department of Small Business Development.

"Let us take advantage of the R500 million fund meant to support spaza shops that are complaint with the regulations. We have a responsibility to assist them to register, because the R500 million fund is meant for the whole country, and Mpumalanga must as well benefit from the fund", concluded Masilela

In order to ensure proper coordination and synergy going forward, the MuniMEC agreed to meet regularly; that is, on a quarterly basis.

ENDS...

Issued by the Communication Directorate, Department of Economic Development and Tourism

Media Enquiries: Mr. Silence Mhlaba, Acting Head of Communication on 066 475 7963 or Ms. Nomthandazo Mpangane, MLO of the MEC on 073 510 0525

Notes to Editors:

The Department of Economic Development and Tourism. under the Mpumalanga Provincial Government, is mandated to stimulate economic growth and development in the Province, so as to create sustainable and decent employment, economic transformation and to alleviate poverty. The Department has three (3) Public Entities; namely, Mpumalanga Economic Growth Agency (MEGA), Mpumalanga Tourism and Parks Agency (MTPA), and Mpumalanga Economic Regulator (MER), to which it has delegated some of its constitutionally-mandated functions. These functions relate to: trade and investment promotion; funding of SMMEs; tourism growth and development; tourism marketing; regulation of the gambling and liquor industries, including collection of gambling levies and liquor license fees, amongst others.

2025