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) Department of Economic Development & Tourism (Vote number 6) Financial Statements for the year ended March 31, 2024 Notes to the Financial Statements

Financial Statements for the year ended March 31, 2024 Notes to the Financial Statements Figures in Rand thousand 22. Related party transactions (continued) Private enterprises Mpumalanga Green Cluster Agency Figures in Rand thousand 22. Related party transactions (continued) Private enterprises Mpumalanga Green Cluster Agency

Note(s) 2023/2024

2022/2023

Note(s) 2023/2024

2022/2023

The Department managed to conclude a Memorandum of Understanding with the newly established Mpumalanga Green Economy Cluster Agency w hich would promote, coordinate the rollout of the Green Economy Development Plan. The Green Economy Cluster Agency would gr eatly contribute to initiatives in the “Just Transition Programme” enabling moving to a cleaner energy producing environment within Mpumalanga. The Green Economy Cluster Agency would also ensure that deserving projects in the green economy space be executed in partnership with industry to promote the participation of local SMMEs in the green economy. No amount was transferred to the Green economy cluster for the 2023/24 financial year. Mpumalanga Stainless Initiative - MSI The MSI was established to promo te youth and other SMME’s to participate in steel fabrication. The Department has a Memorandum of Understanding with MSI. Various young people were trained and supported on stainless steel in order to obtain contracts from industry to take advantage of opportunities presented by the stainless steel industry. An amount of R 2 020 000 was transferred to the MSI for the 2023/24 financial year. Furniture Technology Incubator - FURNTECH The Department has a Memorandum of Agreement with Furntech. Young people were trained in small scale furniture manufacturing and upholstery at Ehlanzeni District Municipality to increase the skills in this sector to support the planned Forestry Industrial Technology Park. An amount of R700 000 was transferred to Furntech during the 2023/24 financial year. 3. Year end balances The receivable amount of R 86 447 000 is for revenue from Mpumalanga Economic Regulator collected up to 31 March 2024 which gets transferred to the Department in April 2024 after the end of financial year. Also included is a receivable amount of R33 783 000 from MEGA which relates to the Mpumalanga International Fresh Produce Market (MIFPM). The total receivable amount from related parties amounts to R120 230 000 as indicated above. 4. In kind goods and services received Information Technology (ICT) services provided by Provincial Treasury. The Department has entered into a memorandum of understanding for the rendering of ICT services with Mpumalanga Provincial Treasury. These services are provided by the Mpumalanga Provincial Treasury free of charge. 5. Other services received Occupation and utilization of Government Buildings The Department of Economic Development and Tourism occupies premises in building no. 4 (Nokuthula Simelane Building) and KwaMhlanga Government building as provided by the Department for Public Works, Roads and Transport free of charge. The Department is only liable for Municipal Services. The Department of Community Safety , Security and Liaison provides securty services for Building no. 4 which is occupied by our department also free of charge. The Department managed to conclude a Memorandum of Understanding with the newly established Mpumalanga Green Economy Cluster Agency w hich would promote, coordinate the rollout of the Green Economy Development Plan. The Green Economy Cluster Agency would gr eatly contribute to initiatives in the “Just Transition Programme” enabling moving to a cleaner energy producing environment within Mpumalanga. The Green Economy Cluster Agency would also ensure that deserving projects in the green economy space be executed in partnership with industry to promote the participation of local SMMEs in the green economy. No amount was transferred to the Green economy cluster for the 2023/24 financial year. Mpumalanga Stainless Initiative - MSI The MSI was established to promo te youth and other SMME’s to participate in steel fabrication. The Department has a Memorandum of Understanding with MSI. Various young people were trained and supported on stainless steel in order to obtain contracts from industry to take advantage of opportunities presented by the stainless steel industry. An amount of R 2 020 000 was transferred to the MSI for the 2023/24 financial year. Furniture Technology Incubator - FURNTECH The Department has a Memorandum of Agreement with Furntech. Young people were trained in small scale furniture manufacturing and upholstery at Ehlanzeni District Municipality to increase the skills in this sector to support the planned Forestry Industrial Technology Park. An amount of R700 000 was transferred to Furntech during the 2023/24 financial year. 3. Year end balances The receivable amount of R 86 447 000 is for revenue from Mpumalanga Economic Regulator collected up to 31 March 2024 which gets transferred to the Department in April 2024 after the end of financial year. Also included is a receivable amount of R33 783 000 from MEGA which relates to the Mpumalanga International Fresh Produce Market (MIFPM). The total receivable amount from related parties amounts to R120 230 000 as indicated above. 4. In kind goods and services received Information Technology (ICT) services provided by Provincial Treasury. The Department has entered into a memorandum of understanding for the rendering of ICT services with Mpumalanga Provincial Treasury. These services are provided by the Mpumalanga Provincial Treasury free of charge. 5. Other services received Occupation and utilization of Government Buildings The Department of Economic Development and Tourism occupies premises in building no. 4 (Nokuthula Simelane Building) and KwaMhlanga Government building as provided by the Department for Public Works, Roads and Transport free of charge. The Department is only liable for Municipal Services. The Department of Community Safety , Security and Liaison provides securty services for Building no. 4 which is occupied by our department also free of charge. 3. Year end balances 5. Other services received

75

75

277