EASTERN CAPE NEWS - The Eastern Cape Provincial Government (ECPG) has set aside an additional R75-million to boost efforts in support of distressed companies in the province.
"This will augment the R17,4-million that was initially allocated to the Job Stimulus Fund, one of the key provincial relief instruments for distressed companies," said Ncedo Lisani, Communications and Marketing Manager for the EC Department of Economic Development, Environmental Affairs and Tourism.
Acknowledging that the tourism and hospitality sector has been hit hard by the Covid-19 pandemic, the department welcomed the announcements made by the national minister of tourism on 30 July. These include moving the curfew from 21:00 to 22:00, easing the restrictions around leisure travel and allowing tour operators to conduct guided tours in open safari vehicles subject to adhering to regulations.
"The department also welcomed the allocation of the Tourism Relief Fund (TRF) to 457 Eastern Cape businesses in the sector," said Lisani.
Whilst the fund was initially set up to support the retention of jobs, the onset of the pandemic necessitated that additional funding is made available to mitigate the impact of Covid-19 on the economy.
Furthermore, the jobs stimulus fund policy has been reviewed to allow participation of distressed companies in all the provincial priority sectors.
Already, applications for distressed businesses have been approved to a value of R5,81-million, saving 581 jobs with a further 44 applications in the pipeline for consideration.
The Jobs Stimulus Fund is administered by the Eastern Cape Development Corporation, an entity of the Department of Economic Development, Environmental Affairs and Tourism (DEDEAT).
Applications can also be channelled via the Manufacturers Support Centre portal: www.mscec.co.za.
Meanwhile, the Eastern Cape Premier, Lubabalo Oscar Mabuyane, has also announced that DEDEAT has been allocated R114-million to support industries and SMMEs in efforts to save and create jobs.
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