GOOD Press Statement by Sarah Mabotsa,
GOOD City of Tshwane Councillor
10 January 2024
The GOOD party is concerned over reports that the Tshwane Economic Development Agency (TEDA) has attracted R0 in foreign investment, despite R500 million in funding over 10 years by the City of Tshwane.
This development shows that the agency is unfit for purpose. The City must shut the money tap to TEDA, and fulfill its role by realigning the Department of Economic Development to work with third-party entities instead.
TEDA was established in 2006 as a means of facilitating economic development in the capital city, especially through foreign direct investment.
However, recent reports on a memo from July 2023 indicate that despite the massive investment, the agency has yielded no investment from abroad.
Details around the spending at TEDA also paint a worrying picture. The agency receives a R61m grant from the City. R10m alone was spent on travel, specifically to host and participate in webinars. Three board members earned close to R650 000 in just 3 months last year.
The City of Tshwane has rushed to defend itself on this matter, but the fortification it has placed around the agency shows clear cracks.
The Rosslyn Auto Hub, for example, has been put forward as a TEDA success story. Yet, this “good” story fails to mention that i) foreign direct investment has been non-existent, ii) that TEDA lacks the skills to manage this auto hub and iii) that work that is done by the agency can be taken over by the Department of Economic Development at no additional cost.
Meanwhile, cuts to other departments are being made to continue funding an agency that is more trouble than it is worth.
As GOOD we implore the City of Tshwane to make a common sense decision, and rather integrate the TEDA functions.
The DA has presided over financial anarchy and instability for the better part of its time in office.
Shutting the TEDA tap presents an opportunity for the City to finally display the financial responsibility it has sorely been lacking.
Media Enquiries:
Sarah Mabotsa, GOOD City of Tshwane Councillor
Cell: 064 684 8640
Email: smabotsamuthivhi@gmail.com
Janke Tolmay, GOOD Media Manager
Cell: 073 367 1223
Email: janke@forgood.org.za