Question NW3685 to the Minister in the Presidency

Reply:

The second NPC has established three work-streams focusing on measures to inter alia:

• Ensure an expanded and fairer economy;
• Enhance the quality of life; and
• Promote active citizenry and to enhance state capacity and leadership.

Within the economy work-stream several task teams have been created to focus on various initiatives in order to transform and grow the economy, as well as address unemployment, poverty and inequality. Some of the priority areas within the economy work stream are as follows:

• Infrastructure - The objective of the NPC work is to offer high level strategic guidance on priority actions required to address binding infrastructure constraints. Discussion documents are being developed on water and energy.
• Exports competitiveness and dynamism - This NPC task team is finalising a discussion document to provide advice on South Africa’s export competiveness.
• Stimulation of SMME sector - The NPC seeks to gain deeper insights into the context of and challenges faced by township and rural economies, then formulate new and/or refine existing strategies aimed at addressing these challenges identified as envisioned in the NDP.

On job creation and SMME development the NPC has conducted research on the limited success of entrepreneurial activity by locals in townships and rural areas. The research was undertaken as part of the NPC’s economy work-stream’s task of prioritising township and rural economies as vehicles for achieving nationwide objectives of transforming and growing the economy, as well as addressing youth unemployment.

The key findings of the research indicate the need to improve the survival of small businesses in South Africa and especially those in the townships and rural areas as of paramount importance to realise the NDP vision 2030. South Africa has a number of well-developed policy imperatives and strategies; the missing gap is the ability to translate existing policies and strategies into effective implementation for the growth and development of small businesses in South Africa. Enterprise development is affected by numerous factors both within (internal) i.e. at micro level of an enterprise (e.g. managerial competencies); and outside (external) to the enterprise.

The research outcomes, as a way forward, indicate that there is an urgent need of discussion with the following Departments: Cooperative Governance and Traditional Affairs; Rural Development and Land Affairs, Small Business Development and Trade and Industry to work together to unblock and then harvest what is essentially low hanging fruit in local economic development.