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Business support programmes and special economic zones (SEZs) that encourage industrialisation and improve local competitiveness would support South Africa’s transition to faster economic growth over the medium term, Finance Minister Pravin Gordhan said in the 2013 Medium-Term Budget Policy Statement (MTBPS) on Wednesday.
Funding for small enterprise development, the promotion of SEZs and support for broad-based black economic empowerment was included in government’s economic services expenditure, for which R47.3-billion was budgeted in 2013/14.
The baseline of this function was expected to grow by an average yearly rate of 4.2% to R53.4-billion in 2016/17.
Gordhan stated that the medium-term expenditure framework provided significant budgetary support for research and development in the industrial sector, and for development finance institutions.
Substantial funding was also made available for rural development, which included land reform and restitution.
Further, funds were also reprioritised from land acquisition to investment in emerging commercial farms and those acquired through the land reform programme.
Agricultural research would continue to be prioritised and the Department of Agriculture, Forestry and Fisheries would receive funding over the next two years to repair infrastructure damaged by floods.