By Nangamso Mabindla
29 April 2005

IN A BID to strengthen the City's partnerships with business, Buffalo City Mayor Sindisile Maclean hosted a breakfast at the East London City Hall on Friday, 29 April.

Guests were given a presentation on the municipality's Integrated Development Plan and budget by Councillor Luvuyo Mosana and Brian Shepherd, the City's chief financial officer. In his presentation on the proposed R1,8-billion budget, Shepherd said the municipality was looking at another "pro-poor" budget to benefit its indigent residents. "We want to improve on public expenditure better to serve the needs of the poor. We also want to increase the acceptance that the primary function of state should be to protect the vulnerable."

However, for the City to be able to be pro-poor it needed to overcome historical challenges and put in place a strong political will, accurate statements and sound policy. Despite its good intentions and strong policies, the municipality needed the support of the private sector to ensure results. "For us to be able to tackle the challenges and be successful in looking after our people, we need to have strong partnerships with other stakeholders in the city," Shepherd said.

Mosana emphasised the need to tackle the challenge of ever-increasing poverty. The 2001 census showed that 70 percent of the City's households had an income of less than R1 500 a month, while the percentage of households reporting no income had doubled from 14 percent to 28 percent.

Buffalo City presents its budget to the business community

"These are issues to which we need to give priority and we need to have a good working relationship with business to create jobs and alleviate poverty," Mosana said. The City, through the allocation of budgetary funds, needed to find ways to help develop the poor.

Andre Olivier, a consultant who was involved in drawing up the City's development strategy, said, "We cannot talk about a pro-poor budget if we do not put in places structures to develop these households. For the City to halve unemployment, it needs to create 7 000 [jobs] a year."

To meet such a target, the City would have to continue building strong partnerships with companies, like it had with vehicle manufacturer Daimler Chrysler and pharmaceuticals company Johnson & Johnson.

Maclean said Daimler Chrysler was investing R2-billion in the city; production would also double now that the West Bank plant had won the bid to manufacture the new generation Mercedes Benz C-Class. "Production is set to double to 80 000 units creating 2 000 direct and indirect permanent jobs."

The mayor added that with businesses and education institutions on board, the City's future looked bright, taking the opportunity to invite these stakeholders to his State of the City address on Friday, 27 May 2005. It will be delivered at the East London City Hall.