Economic Development Annual Report

Annual Report 2023/2024 Mpumalanga: Department of Economic Development and Tourism - Vote 6

Department of Economic Development & Tourism (Vote number 6)

Financial Statements for the year ended March 31, 2024 Notes to the Financial Statements

Figures in Rand thousand

Note(s) 2023/2024

2022/2023

22. Related party transactions Revenue received Tax revenue

850,420

577,883

Sales of capital assets

56

-

Total

850,476

577,883

Payments made Transfers

903,411

815,724

Year end balances arising from revenue/payments Receivables from related parties

120,230

61,054

1. Tax Revenue The Tax Revenue of R850 420 000 is revenue collected by the Mpumalanga Economic Regulator (MER) through it’s regulation of the Gambling and Liquor industries. This include Casino taxes, Gambling in the Province that is related to horse racing and other sports betting, liquor licence application and annual renewal fees collected during the 2023/24 financial year.

2. Transfers Departmental Agencies Mpumalanga Economic Regulator - MER

The abovementioned is an entity of the Department established in terms of Mpumalanga Economic Regulator Act, 2017 (Act 2 of 2017) to regulate the Gambling and Liquor Industries in the Province in terms of The Gambling and Liquor Licensing Act respectively. An amount of R 107 045 000 has been transferred to the entity as at the end of 2023/24 financial year in order to fulfill its legislative mandate on behalf of the Department. Mpumalanga Economic Growth Agency - MEGA MEGA is an entity of the Department established in terms of the MEGA Act 1 of 2010, mandated to drive growth in various sectors of the economy and to promote SMMEs, Cooperatives and foreign trade and investment in the Province. An amount of R 257 884 000 has been transferred to the entity as at the end of 2023/24 financial year in order to fulfill its legislative mandate on behalf of the Department. Mpumalanga Tourism and Parks Agency - MTPA MTPA is an entity of the Department established in terms of the Mpumalanga Tourism and Parks Agency Act No. 5 of 2005, to provide for the sustainable management and promotion of tourism and nature conservation in the Province. An amount of R 530 006 000 was transferred to MTPA as at the end of 2023/24 financial year to enable the entity to fulfill its Legislative mandate on behalf of the Department. Nkomazi SEZ SOC The Nkomazi SEZ entity is a registered state owned company designated as a multi – sectoral SEZ anchored by strong and viable agro – processing and logistical industrial sectors. It is located south of the N4 approximately 5km from the Lebombo Border post. The SEZ was established to facilitate economic growth and attract long-term investment into Mpumalanga Province. For the financial year 2023/24 an amount of R 5 756 000 was transferred to MEGA for the implementation of the interim phase for the Nkomazi SEZ.

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