DEDAT: R55.5 million to provide energy support to SMMEs; R60 million for green hydrogen development at Freeport Saldanha

5 April 2023

A parliamentary reply received from Western Cape Minister of Finance and Economic Opportunities, Mireille Wenger, has revealed how the R1.1 billion allocated by the Western Cape Government to mitigate the effects of loadshedding over the 2023 Medium Term Expenditure Framework (MTEF) will be spent.

The Provincial Department of Economic Development and Tourism has been allocated R55.5 million to support SMMEs with alternative energy solutions, ensuring our small businesses have the tools they need to survive relentless rolling blackouts.

In addition, R60 million has been allocated, through Wesgro and Freeport Saldanha, to aid in the development of a green hydrogen hub in Saldanha that could hold massive economic benefits for the province.

The remaining funds will be spread throughout different Provincial Government Departments as part of the Western Cape Energy Resilience Plan, supporting interventions to both mitigate the current effects of loadshedding, while putting plans and interventions in place to reduce the Western Cape’s reliance on Eskom.

Some of the other notable allocations over the MTEF include:

- Department of the Premier: R60 million for emergency power packs to households, including lights and powerbanks to charge devices

- Department of Infrastructure: R120 million for groundwork preparation for energy projects and R25.4 million to assist in the implementation of projects.

- Department of Local Government: R30 million to pilot renewable energy solutions in municipalities and R17.25 million to mitigate loadshedding impacts on water treatment and supply.

- Western Cape Education Department: R114 million to install energy efficient LED lighting in schools.

In all, R598 million has already been allocated to projects, while R502 million will be set aside to fund future projects in the energy pipeline. This will allow the DA-led Western Cape Government to respond with flexibility to new challenges arising from the energy crisis, ensuring that our residents are not solely at the mercy of Eskom.

Every cent spent in this initiative will be published in a quarterly procurement report, as transparency in government is a core DA and democratic value.

The DA difference is on show here, as we do not see this crisis as an opportunity to line our pockets, but rather something that must be addressed with urgency, as only the DA-led Western Cape Government is currently doing.

Issued by Cayla Murray, DA Western Cape Spokesperson on Finance, Economic Opportunities and Tourism, 5 April 2023