DTI, NMISA and ECI on their 2017/18 Annual Performance Plan

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Trade and Industry

28 March 2017
Chairperson: Ms J Fubbs (ANC)
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Meeting Summary

The DTI stated that mining, manufacturing and agriculture had contracted in the fourth quarter of 2016. Employment had generally increased, but there had been a decline in mining and construction. A one-stop shop had been established for investment promotion. Key interventions had included the implementation of the Africa regional development programme. 784 companies were supported for value added exports. There was increased investment through Special Economic Zones (SEZs) and industrial parks. The Black Industrialist (BI) development programme supported 70 new BIs. Bills had been developed for gambling, liquor and copyright protection. The ITUKISE programme provided for 12-month internships at host enterprises across the economy.

In discussion, there were comments about state-owned enterprises (SOEs) abdicating their  responsibility for industrial growth; the need for black advancement through incentive programmes; low quality imports from China; SEZs and beneficiation; exports beyond the Southern African Development Community (SADC); the redirection of incentives; competitive pricing; comparative and competitive advantage; concern about the 10% budget cuts; the one-stop shop and the changing of performance indicators.

The Export Credit Insurance Company (ECIC) said its mandate was to facilitate SA export trade and cross-border investment with the rest of the world. Its mission was to provide export credit and investment insurance solutions in support of SA capital goods and services through best practice risk management principles. Challenges included downward growth prospects in developed economies, and fiscal vulnerabilities and the high current account deficits for sub-Saharan economies. Falling capital inflows put pressure on currencies and reserves. The shareholder had considered conversion of the ECIC into a fully-fledged SA export and import bank. The DTI and the NT supported the taking of equity in the African Export-Import Bank, to promote diversification of African trade.

In discussion there were remarks and questions about performance targets removed; whether the ECIC was volatile to currency; the capitalisation of the export/import bank; re-insurance for the ECIC; and reliance on the National Treasury.

The National Metrology Institute of South Africa (NMISA) maintained measurement equivalence with the global measurement system as a foundation for all measurements in SA. The South African industrial, environmental, health and safety sectors were provided with fit-for-purpose measurement standards. Strategic goals included the modernisation of NMISA infrastructure and equipment through recapitalisation. There had been increases to baseline funding to undertake expanded projects. NMISA needed new buildings, as the current facilities at the Council for Scientific and Industrial Research (CSIR) campus had reached their technical limit of modification. The NT had raised affordability as a barrier.

In discussion, NMISA was asked to provide a business plan for the planned new premises. It was asked how the Committee could assist NMISA, apart from the new premises. There was a question about possible private sector funding for the new premises.

Meeting report

Chairperson’s tribute to Ahmed Kathrada

The Chairperson referred to the passing away of Mr Ahmed Kathrada. She wished to honour his contribution to transformation. He had been committed to the struggle as a young man, and made a responsible contribution. He had sacrificed a lifetime to uphold the finest values of the the ANC, which had been kept alive by the ANC as the governing party. The ANC was the oldest party committed to a nonracial national and social democracy, and was still in office. She did not intend that as a political input, but rather as a tribute to Ahmed Kathrada, who had inspired the ANC at times when it seemed to be derailed. At such times, he kept the values alive. She encouraged staff and officials, and the civil sector, to look at his life and to re-invigorate the heart and soul of principles like equity, non-racialism and racial equality. It was necessary to have an inclusive economy that did not ignore social challenges.

She extended condolences to Ms P Mantashe (ANC), who was in bereavement.

Department of Trade and Industry (DTI): 2017-2020 Annual Performance Plan
Mr Lionel October, Director-General: DTI, presented the briefing and said that mining, manufacturing and agriculture had contracted in the fourth quarter of 2016. Employment had increased by 235 000 in that quarter, but had declined in mining and construction. The Southern African Development Community (SADC) remained the biggest market for South African manufactured goods in Africa, accounting for 88%. The DTI would submit the annual rolling Industrial Policy Action Plan (IPAP) to Cabinet and produce quarterly implementation reports. The DTI would provide a one-stop shop for investment promotion.

Key interventions included implementation of the Africa Regional Development Programme and assisting 784 companies in supporting value added exports. Increased investment was enabled through Special Economic Zones SEZs and industrial parks. Black industrialist (BI) development programmes had been implemented, with 70 new BIs supported in Industrial Policy Action Plan (IPAP) sectors. Six bills on companies, gambling, liquor, credit, copyright and performers’ protection had been developed for the Minister’s approval.

The DTI had attracted and developed professional and official skills. The ITUKISE programme had provided 12-month graduate internships at host enterprises across sectors of the economy, and 18-month in-service training for undergraduates as practical experience. 75% of graduates had found employment within six months after the close of the programme, and 93% felt that they were more employable after the programme.


Mr B Radebe (ANC), who is also a Member of the International Relations Portfolio Committee, welcomed the DTI input. The country had lost a stalwart in Mr Kathrada. He had not only worked for political emancipation, but also for economic emancipation. With a projected growth rate of 1%, the NDP goals could not be met. Key levers to expedite economic growth were being held back. Industry had to grow. Nothing would be achieved if entities like the Passenger Rail Association of South Africa (PRASA) and Transnet abdicated responsibility. He asked what assurances could be given that huge infrastructure investments would benefit the economy. There had to be a movement towards the creation of an inclusive economy.

He asked about the African Growth and Opportunity Act (AGOA). SA had made concessions to stay in. Would the concessions be sustained under the new United States administration? He referred to funding for development. The Department could benefit from approaching the Chinese development bank. It had the best interest rate in the world. The Chinese were allies, and this had to be exploited. With regard to the Black Industrialist programme, he noted that Eskom had a made a profit of R4 billion in the previous year, yet it had awarded only two-month contracts. The question was how government could succeed if it did not support those who took risks.

Mr A Williams (ANC) asked what percentage of enterprises approved for financial support were black-owned and controlled. He asked about black advancement through incentives programmes.

Mr J Esterhuizen (IFP) agreed that there were challenges on the demand side. The focus had been too much on supply. Business was embracing the NDP, but the question was if it was ever being implemented. There were no regulations regarding local content. Cheap rubbish, mostly electrical goods, was being imported from China. The packaging stated that it was approved by the South African Bureau of Standards (SABS). He said that a percentage of the DTI’s budget went to foreign and multinational enterprises, which represented monopoly capital, and asked how that increased jobs. With regard to skills development, he said that original equipment manufacturers were under pressure to meet Broad-based Black Economic Empowerment (B-BBEE) requirements. There were historical disadvantages, like lack of finance and managerial and business skills. Without enough training, work could not be created. He asked who benefited from SEZs. Tax incentives were granted to overseas companies who brought their own workers.

Mr N Koornhof (ANC) referred to the 88% of exports which were to the SADC countries, and asked which other countries in Africa were emerging in terms of exports. Exports had to go beyond the SADC. Where were SA’s biggest imports from? He asked if it was possible to redirect incentives, if they were not to be taken by an industry in the following year. Incentives were committed to the BI programme. He asked if there was still room for new entrants in 2017/18.

The Chairperson opined that the 10% cut in the budget was more than a haircut. One would have expected that the State of the Nation Address (SONA) and government priorities would have been taken into account. Critical aspects of the budget had been cut. The President and the National Treasury (NT) had both agreed that incentives had produced positive results. The incentives did not affect the budget on the expenditure side, but there had been positive results on the revenue side. The launch of the one-stop shop could generate investment. When one looked at the export marketing investment assistance, it was clear that more companies were being assisted, but no detail had been given. There were more companies, but the question was what the value of that assistance was. If only 30 companies were previously helped, and there currently were 100, it had to be asked what the value generated was. It could come down to replacing quality with quantity. She asked why performance indicators had changed. There seemed to be a shifting mechanism. There was secondary legislation that had been on the cards for three years. She asked when it was going to be dealt with further. She suggested that it be tabled in the budget. The Portfolio Committee (PC) had never requested that before. It would be helpful if it could be addressed.

DTI’s Response

Mr October responded to Mr Radebe that state-owned enterprises (SOEs) in other economies were national champions that drove their industries. Renault, BMW and Mercedes Benz were half government owned. The SA mindset had to change. Eskom provided electricity and Transnet built locomotives. However, the SOEs had stopped their development programmes after apartheid ended. The SOEs had to become champions of industry.

The situation with regard to AGOA was fluid, as it was difficult to read the trade policy of the Trump administration. It had not been declared at the G20 meeting. There was a 10-year AGOA agreement, with strategies to maintain access, and to ensure that Africa was not adversely affected. The China Bank had emerged due to the crisis in the USA, and was one of the biggest global investors. There had been a meeting with the Chinese the previous day with a view to building a strong partnership.

He agreed that Eskom had to grant longer contracts to suppliers. Five to ten-year contracts were needed. Companies like Toyota did so. People spent money to become suppliers, and needed longer contracts. Toyata did not drop suppliers, but Transnet did.

He responded to Mr Williams regarding black-controlled enterprises, saying that B-BBEE score levels achieved were a prerequisite for incentives granted. Black suppliers were making inroads in automotive supplies and steel. There were 20 black-owned steel suppliers at Vanderbijl Park. Black enterprises were being incorporated into the supply chain. The DTI wanted a minimum level 4 B-BBEE score.

He answered Mr Esterhuizen about the cheap technical and electrical imports from China, saying there was a turnaround strategy to stop such imports. Mr Esterhuizen had asked who benefited from SEZs. There had been clashes in Mozambique, where Chinese companies had brought their own workers, but this was not allowed in SA. The Beijing automobile plant at Coega had to use local suppliers. The role of the State was to set clear terms for foreign investors, to attract companies to SEZs.

He explained to the Chairperson that the changing of indicators was an integrated process. There had been engagement with the Ministers’ Committee (MinCom) and the National Treasury (NT). There had to be collaboration across departments with regard to the budget. SA could not just carry on borrowing. People were saying that SA was over-borrowing, and hence could not repay its loans. If it went beyond a certain limit, as in Greece, no-one would be prepared to lend any longer, as it would be considered too risky.  

Allocations to education were highly important. South Korea, China and Russia had made education a priority. Money had been put into it, and it had resulted in large skilled workforces. Russia had the largest number of educated people. There were more university graduates than in the USA. SA had to invest in internship programmes. The aim was to produce half a million graduates per year through the youth internship programme. ITUKISE had a big internship programme.

The DTI managed budgets, and gave allocations over three years -- at the time of buying, when machinery was installed, and when the enterprise became operative. The BMW investment programme had gone very quickly when it had switched to sport utility vehicles (SUVs), and the incentive was currently needed. The same applied to Mercedes Benz.

Money was shifted to where the demand was. The aim was to simplify and reduce indicators. There had been clashes with the Auditor-General (AG). The DTI received R60 million from the Skills Fund. When the DTI reported that it had trained 1 000 people, the AG had said that it could not be done, as it was not from the DTI budget. The DTI lived in the real economy. The investment target was R45 billion.  

The Chairperson remarked that it was not only financial resources that were needed to implement ITUKISE. People and buildings were also utilised. She was impressed with ITUKISE. The Committee researcher, who was an economist, felt that “prepare yourself” was a good description.

Ms M Mabitje-Thompson, DDG: Incentives, DTI, added that there had to be compliance with B-BBEE principles for incentives to be granted. Some incentives stated the levels of compliance required. Companies which were helped with supplier development had to be black-owned or controlled to a certain percentage. Strategic partnership programmes contained a 60% black-owned supplier cohort. The BI target was for seventy 51% black-owned and managed enterprises. It was different to the target set for B-BBEE compliance. There would be new entries in the current year. More would be added to meet targets. The DTI dealt with the financial issues of those supported. The issue of demand was important for their growth, as it was a binding factor. The DTI had met with the SOEs to assist the process. There were a number of incentives that had different rules. If there was slow take-up of an incentive, funds could be redirected. The DTI would not overcommit on any incentive programme, in line with NT rules. Cash flow was monitored. Incentives were reviewed and improved for more impact.

The strategic partnership programme had replaced the incubation programme. Supplier development had to be supported. It had to be made sure that there was a demand for small suppliers. The 12 I programme would end in the current year. The DTI would meet with the NT, as it was an important programme for new major investments.  Increased tax collection created work for more people, and provided the potential for new investment. With regard to incentives, there were big foreign-owned companies that supported local companies. VW and BMW were supported. Such companies had to meet economic imperatives.

Mr Riaan le Roux, Chief Operating Officer (COO), replied about exports to countries outside of the SADC. Strategies were being diversified to become more nimble and agile. Markets elsewhere in Africa were serviced regularly, and manufactured goods were sold there. Examples were Nigeria and Ghana. It was important to lay the foundations while the Nigerian economy was still in a depressed state. The DTI had established new offices in South Sudan. There was a need to be well positioned when that country would receive US $200 million. The office in Nigeria was monitored every day. Service markets were currently in decline.

The Chairperson referred the slide which dealt with jobs created, and some challenges. A decline in demand for SA products was a problem for the country. It could mean that there was a global downturn, and that nobody could afford to buy someone else’s product. It could also be because products were not competitively priced.

Ms S Shope-Sithole (ANC), visiting from the Appropriations Standing Committee, referred to comparative advantage. She asked if SA was sticking to that as a country. It could be helpful to look at how South Korea had developed, for example.

Mr Williams remarked that it seemed as if the DTI was creating 800 white millionaires and 6 000 black workers. The DTI had to prove that this was not the case. He had asked before to what extent economic transformation was being prioritised with regard to that money, and had never received an answer. The 800 companies had to be placed in order of the highest and lowest receiver of incentives. The names of the companies and the level of B-BBEE compliance had to be stated. It could be that 60% went to less compliant companies, and 40% to the more compliant companies. The programme had to ensure that all companies were eventually black-owned. Currently it was creating jobs, and was important to the economy, but there had to be radical economic transformation.

Mr Esterhuizen remarked that there were positive signs. He had sat in meetings in Erekuleni, in Gauteng. Mostly they were positive. What had started as a hostel steering committee had grown through the efforts of Mr Khumalo, the Speaker, and was currently attended by MECs and councillors, and all parties. The BI programme was not to create a new black elite who would get the luxury cars, and move on. The President’s economic advisor employed 20 000 people in Sweden, and claimed that there was no feedback from the DTI.

The Chairperson referred to the development of legislation. Although there were valid reasons, it kept being shifted from one year’s budget to another. She asked what kind of risks were being looked at. There had been a decision about gambling in 2009, but legislation was only now coming to the fore. It had to be accommodated in budgets. She asked about responsibility for the delay in secondary legislation.

Mr October answered on the issue of lack of demand. The steel industry supplied to the automotive industry, the mines and construction. Highveld Steel had had to close down because there had been problems at the mines, with a consequent lack of demand for steel. There had been a lack of buying from construction. When the Medupi power station was built, all steel was imported cheaply by Eskom. Demand had fallen, and the little that was left had been imported. The world had slowed down. Europe and the USA had stopped demanding steel. China was the largest steel producer, and could sell cheaply within the context of a global steel glut. It was not that SA was not competitive, it was simply impossible to compete with China as a steel supplier. However, demand was picking up slowly in the rest of the world. Europe, the USA, Nigeria and Angola were coming back.

He answered Ms Shope-Sithole about comparative or competitive advantage. A country which was a gold exporter and a raw material producer, with lots of land for agriculture, was expected to stick to its place in the value chain. SA was expected to stick to gold, while cars were made in Europe. Asia, Africa and Latin America were kept in their places at the bottom of the value chain. Economies had to be diversified and industrialised. Saudi Arabia used natural resources to benefit its economy. Money made from iron ore in Australia did not leave the country. SA gave resources to Anglo American, and had allowed it to become a British company. It was unheard of. SA’s resources must be used to its benefit. Such companies had to come back. However, that was not sufficient. SA also had to industrialise.

He answered Mr Esterhuizen that the DTI currently demanded a level of B-BBEE scores. Capitalism did not have a colour. Value had to be produced in the economy. Overseas companies had to produce in SA, not just sell. South Korea had worked with China on Hyundai. It was not possible to create a major steel producer in SA. White could not simply be converted to black. The criterion for an incentive was that an enterprise had to invest before it was granted. If taxpayer’s money was paid out, an enterprise had to be in production. It was not enough to say that machines were bought and there were 100 workers. The DTI dealt with industrialisation, not project management. There was no political interference in granting incentives. Incentives were not to lead to white elephants or ghost factories.

He answered the Chairperson about legislation. The DTI had been inundated in previous years. There also had to be implementation, for example, of the Companies Act. Companies could currently be registered in two hours. The three areas involved were copyright, gambling and liquor. It was controversial to move the legal drinking age to 21, but if this was not adapted as in the USA, there could be trouble. Drinking too early affected the brain. The DTI would suggest letting the debate happen. It had taken a long time, but currently there was movement. Intellectual property was a complex legal area. A hybrid approach was needed. There was a global debate, and it was a groundbreaking area. The Gambling and Liquor Council would meet in the following week. There would be public submissions. It was bound to be a contentious debate. When Intellectual property (IP) applications included indigenous knowledge of the KhoiSan, Ndebele or Previously it had been possible for an American company to come in and register a patent, but it was no longer possible. To establish a community trust as IP holders had been considered, but that would be difficult to implement. An indigenous knowledge council was proposed by the Department of Science and Technology (DST), to hold IP on behalf of SA people. A hybrid had been developed with the DST. When indigenous knowledge was patented, it fell within the DTI area. The Companies and Intellectual Property Commission (CIPC) would register and protect it. The DTI wanted to work with the Congress of Traditional Leaders of South Africa (CONTRALESA) to identify a community council, but communities differed about whether the Zulu reed dance ceremony had to fall under the protection of the Zulu King.

The Chairperson remarked that it was important that there was a joint team to deal with the legislation. Legislation had to become fully operational, not in five years, but in two years or less.

Mr Radebe remarked that he was happy about the new focus. He asked how far projects on the ground had progressed. He asked what difference the one-stop shop would make.

Mr October replied that the Chinese Bank had been engaged about investment and debt finance. The DTI would inform the Committee about commitments made.

He replied to Mr Radebe about the difference the one-stop shop would make. For instance, in the case of water licences, directors seconded from the Department of Environmental Affairs sat in the DTI offices in Pretoria. There would be clear turnaround times for water licences and environmental impact assessments. The launch was not just a ribbon-cutting ceremony. The DTI had wanted people seconded already. It had been a real launch, and people were in office. MOUs were signed. There were Eskom staff in the office for electrical connections. There would no longer be delays, as when Nestle had had power cut off at Maluti. The Minister had had to meet with Minister Lynne Brown to tell Eskom not to switch off the power at Maluti. Henceforth issues like that could be dealt with at the one-stop shop. A report would be furnished after the first quarter.

The Chairperson commented that she had attended the launch. Usually, the establishment of an entity merely meant that funds were allocated to it. It had indeed been an operational launch. People had operational offices. As it was fully operational, it had been an exiting launch. She congratulated the DTI. She recognised two young interns who had developed a website. It was up and running and working. She asked for the name of the website.

Mr October replied that it was WW Invest SA. He noted that for new department divisions, interns were taken in for 12 months. Companies did not want to take people on at high pay. 90% were employed, also by government.

The Chairperson remarked that the object was to create and to skill labour.

Export Credit Insurance Company (ECIC): Corporate Strategic plan 2017/18-2019/20
Mr Kutoane Kutoane, Chief Executive Officer (CEO) said the ECIC mandate was to facilitate SA’s export trade and cross-border investments with the rest of the world. The ECIC was subject to regulation by the Financial Services Board (FSB). The ECIC mission was to provide export credit and investment insurance solutions in support of SA capital goods and services through best practice risk management principles. Strategic goals included increasing strategic partnerships; improvement of business development; increasing revenue, and increasing the capital base.

The ECIC was committed to the facilitation of export trade and cross-border investments. Challenges included downward growth prospects in developed economies, fiscal vulnerabilities and high current account deficits for commodity-dependent sub-Saharan economies. Falling capital inflows put pressure on currencies and reserves. The shareholder was considering the conversion of ECIC into an SA Export Import Bank. The DTI supported ECIC taking equity in the African Export Import Bank to promote diversification of African trade.

The ECIC was run on a financially self-sustainable basis by generating its revenue stream from premiums and investment income. The ECIC might opt to purchase an office building during the 2018/19 financial year.

The Chairperson noted that the ECIC was seldom invited. Its role was important, as trade and investment in Africa was increasing.

Mr Williams said that some performance targets had been removed since the previous year, and some hadbeen revised. He asked about the budget implications.

Mr Koornhof asked if the ECIC business was volatile to currency. Could an unexpected surge or decline affect the budget?

The Chairperson remarked that the SA currency was volatile.

Mr Radebe asked if the money for the new bank would come from insurance. Eskom had invested in a dam in the DRC. It was postponed every year. He asked how that would be coped with.

Mr Mandise Nkuhlu, COO, replied that there was interactive target setting. There was auditing and streamlining. The aim was to employ smart principles and to set focused targets. Streamlining was done at the corporate level. Some measures were more revenue based. Customer satisfaction was composite. Some targets were not lost, but had been merely lowered from the corporate to the divisional level.

Mr Kutoane agreed that exchange rates were volatile. The ECIC covered in dollars. According to the asset liability management plan, the US dollar market was invested in. When the Rand was used as the reporting currency, it would reflect fluctuations.

Mr Nkuhlu added that the SA Reserve Bank (SARB) allowed a special dispensation. The ECIC was allowed to play the dollar market, but for reports it was converted to Rands.

Mr Kutoane said that the ECIC did not look to the NT for capitalisation of the new bank. The ECIC would look at Chinese banks to learn how to build capital for the bank. The ECIC had been functioning for 16 years. It supported a big power project in Ghana.

The Chairperson asked about re-insurance for the ECIC itself. Most insurers would re-insure themselves in case of untoward global events. SA exported fresh produce to the EU. Containers with citrus and bananas had apparently been sent back. She asked if exporting agents took insurance. The ECIC had to work with the trading division in the DTI. The trend was toward greater protectionism.

Mr Nkuhlu replied that export agencies were underpinned by the NT, to ensure competitiveness. The NT was the re-insurer of the ECIC. The ECIC looked at the market for options on the table. The mandate was to focus on capital goods linked to manufacturing, which excluded consumable exports, which remained beyond the ECIC reach. There was engagement with the Department about that. There was a need for a shift to certain industries and agricultural producers that were labour intensive. Currently there were mandate constraints. Companies with credit guarantees could offer that kind of insurance. The ECIC wanted an increased role in the economy, but did not want to crowd out other players. It would work in partnership with them through re-insurance to increase capacity.

The Chairperson remarked that the ECIC had been going for 15 years, and had built up a formidable chest. Other means had to be looked at to maintain its solidity and viability, without sole reliance on the NT. She thanked the ECIC for sharing its progress and challenges with the Committee.

National Metrology Institute of South Africa (NMISA): Strategic Plan 2017-2022 and Annual Performance Plan 2017/18

The Chairperson commented that whenever she heard of NMISA, she thought of the French Revolution. Peasants were not getting proper payment for their wheat and other produce. The seigneur, as feudal lord, would put his weight on, and demand another bushel. There had to be strict standards to deal with poverty, fairness and equity.

Mr Ndwakhulu Mukhufhi, CEO, said NMISA maintained measurement equivalence with the global measurements system as a foundation of all measurements performed in SA. The SA industrial, environmental, health and safety sectors were provided with fit-for-purpose measurement standards. Strategic goals included the maintenance and development of national measurement standards; ensuring that the SA measurement system was internationally comparable; modernising the NMISA infrastructure and equipment through recapitalisation; providing an integrated human capital development programme for metrology, and providing support to SA public and private enterprises.

There had been significant increases to baseline funding to undertake expanded projects. NMISA buildings at the CSIR campus had reached the technical limit of modification. A feasibility study for new buildings had been submitted to the NT, but affordability had been raised as a barrier.

The Chairperson remarked that equipment was linked to premises. She asked that the CFO return with a business plan. It could be discussed with the DTI and developed so that the Committee could have a look at it. There had to be a holistic approach.

Mr Williams remarked that NMISA was his favourite entity. It was doing well. Aside from budget constraints, he asked how else the PC could assist NMISA.  He asked if there was anything besides new space that the Committee could help with.

Mr Mukhufhi replied that the question was what would be done once there was a new space. There had to be a complete integration with other government entities. Some went overseas for services that could be provided more cheaply locally. Work was done with the Department of Health for the procurement of equipment and reference materials.

Quality considerations around metrological standards afforded protection for the community. The PC could assist by alerting all government departments that required NMISA services to acknowledge its services.

Mr Williams asked if the private sector had been approached for funding for the building, since it used NMISA measures. Without NMISA, they would have problems of recognition. He asked if the private sector would assist with the new building, and if it understood the need for a new building and would therefore be part of recapitalisation.

Mr Mukhufhi replied that the entity had been run as a Public-Private Partnership (PPP) project from the beginning. NMISA would cooperate with the private sector. Only NMISA had the measurement standards. The NT could guarantee for a unitary payment over a period. There could be upfront investments by the private sector, with the government providing repayment. The private sector could not invest directly, only through the PPP arrangement.

He said that NMISA had celebrated 70 years, as it started in 1947 as the National Metrology Laboratory. It combined with the DTI celebration of the African Year of Equality. Two Nobel laureates in metrology would speak at the event. The PC was cordially invited.

The Chairperson remarked that NMISA had been going for a long time, and that had to be recognised.

Ms Shope-Sithole thanked NMISA for the invitation. The view of the DTI in the Appropriations Committee would change.

Mr Mukhufhi thanked the Committee, and said he hoped that it would assist with the challenges. NMISA was committed to doing what it was known for. Its slogan was “measure to manage.”

The Chairperson concluded that the DTI faced many constraints. However, the DTI and its entities never whined about not having all they wanted. There had to be continuing concern for creating jobs, and to create an enabling environment for internships.

The Chairperson adjourned the meeting.



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