Hansard: NA: Mini-plenary 1

House: National Assembly

Date of Meeting: 20 May 2022

Summary

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Minutes

MINI PLENARY - NATIONAL ASSEMBLY
FRIDAY, 20 MAY 2022
VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION
Watch: Mini-Plenary 

PROCEEDINGS OF MINI-PLENARY SESSION - NATIONAL ASSEMBLY
____
Members of the mini-plenary session met on the virtual platform at 10:00.

House Chairperson Mr C T Frolick took the Chair and requested members to observe a moment of silence for prayer or meditation.

The Chairperson announced that the virtual mini-plenary sitting constituted a meeting of the National Assembly.

APPROPRIATION BILL
Debate on Budget Vote No 39 – Trade, Industry and Competition:

The MINISTER OF TRADE, INDUSTRY AND COMPETITION: House Chairperson, hon members, fellow South Africans, good morning, last year, I addressed this House and set out five areas of focus, namely, the pursuit of a more inclusive model of growth, greater local production, an increase in trade,
stronger investments and green industrialisation. We have made progress on these fronts despite the strong global headwinds that are afflicting economies everywhere. What I have seen is the practical embodiment of the resilience that I spoke of in my 2020 Budget Vote speech. Over the last 12 months, South Africans have set about quietly and with purpose, rolling up their sleeves and getting the job done. I have seen displays of this determination and resilience across the country – firms and entrepreneurs bouncing back in the wake of adversity: The South African economy began to recover from the first wave of Covid-19, growing at 4,9% last year; manufacturing exports were the highest in at least a decade; the agriculture and auto-value chains had their best export performance yet; Africa opened its first anaesthetic production facility in the same year that pharmaceutical exports reached record levels. But despite our collective efforts and our progress, the economy and ordinary South Africans still face many great challenges, some of which are persistent and enduring, some of which are new. Our response to these challenges must grow the number of jobs more, expand the industrial base and confront poverty and inequality.

Today I want to speak about the risks that we face and my department’s strategic intent to contribute to de-risking our economy so as to protect the livelihoods of all South Africans, to build forward better. Since the last Budget Vote a year ago, we faced three new shocks or headwinds that impacts on the economy and our well- being: Firstly, the July 2021 unrest in KwaZulu-Natal and parts of Gauteng that led to loss of life and the destruction of infrastructure, dented business confidence and disrupted supply chains. Secondly, the war in Ukraine that has already resulted in fuel price increases and rising costs of fertilizer, wheat, edible oils and other foodstuffs. Thirdly, the recent floods on our eastern seaboard that have led to loss of life and washed away homes, shops, factory assets and railway lines and reminded us of the cost of climate change.

Hon members, shocks – however hard they hit us - are often the prelude to new insights in societies. Disruption can inspire innovation. The damage caused by the July unrest last year in some districts required a more agile and responsive state, as firms saw their factories, machinery and even their financial records go up in smoke. The Department of Trade, Industry and Competition entities changed their way of working and within three days of the
onset of the unrest, the Department of Trade, Industry and Competition had established a 24-hour hotline to support companies threatened by the unrest. Within a week engagements had begun to help companies rebuild, and within two weeks’ officials were on the ground to survey the damage and help firms get back on their feet. We must all learn from the misfortunes that we encounter and adapt and find ways to de-risk for the future. There are three standout lessons from the new shocks of the past year, hon members, which reinforce what we have learnt from the systemic shocks of climate change and the Covid-19 pandemic: One lesson is that economies and supply chains are vulnerable and that building greater industrial resilience needs even greater prominence in policy-making. The other lesson is that societies need a capable and a responsive state that is agile, and equipped to quickly marshal what is needed when risks materialise.

Above all, we have to grasp the lesson that the absence of
economic justice places the burdens of climate, social or
geopolitical disruptions on those in society that can least
afford to shoulder these burdens. These shocks are disturbing
permanently the old ways of doing things. Business as usual is
no longer an option – for the private sector, for government,
for development agencies, for all of us.
We must innovate and adapt to this new normal – an often
volatile, uncertain, complex, ambiguous and fractious world.
De-risking and diversifying supply chains is becoming a
business imperative for domestic and multinational
corporations.
Policy-makers are talking more about regionalisation of supply
chains to address geopolitical risk and the new fault lines
developing in the global economy. I have heard from more
global chief executive officers and business leaders raising
with me the matter of risk-proofing their own sourcing
locations.

There is both danger and opportunity in the new landscape. The
question is how will we as South Africans respond? Can we de
risk so that we reduce our exposure to the downside, and
increase our exposure to the upside of a world that is rapidly
changing?
At home, we can remain trapped by our petty fights, focused
only on the short-term, wrapped in gotcha-politics and
fighting selfishly over a small cake – a zero sum race to the
bottom. Or we can look up and beyond and see how the world is
changing, which will allow us to shift drastically and build a
real consensus on the hard choices, and with discipline and
focus grow the economy inclusively so that it can create jobs
and opportunities for young people, and in a way that shares,
rather than concentrates wealth.
We remain over-dependent on offshore sourcing for our own
economy, and on a few products - mainly commodities - to drive
our growth, leaving us as price-takers and with our economic
performance over-dependent on what happens in global commodity
markets.
This means that we risk losing out on the greater opportunity
that this new wave of diversification and regionalisation can

 
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bring. South Africa can play a more prominent role in this
world of regionalised production hubs. But we can do so only
if we step up our focus on improving the dynamism and capacity
of our industrial base and create opportunities for firms in
our market to grow by: Intensifying industrialisation; by
spearheading transformation to build an inclusive economy, and
by building a capable state to execute our strategy. We set
out in the Annual Plan of the department about 150 specific
actions and indicators, and is published in the Department of
Trade, Industry and Competition website*.
Our pursuit of industrialisation seeks to expand the level of
local output, both to secure part of the local market lost to
imports and to boost value-added exports. Our efforts in this
regard, have focused on strategic industries, as defined by
their capacity to be labour absorbing many jobs or providers
of critical public goods when it helps care or significant
earners of foreign exchange.
The initiatives, be it in the area of encouraging localisation
of production, social compacts in the form of masterplans,
strong industrial supply chains to underpin our response to
Covid-19 and create an African medical productive hub, or our
work on the Africa Continental Free Trade Area, have all

 
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sought to provide local industry with the space and the
opportunity to acquire the know-how and the capabilities to
develop dynamic firms.
Our work on spearheading transformation seeks to create
opportunities for all South Africans. This involves ‘de-
concentrating’ our economy, opening up exclusive product and
service markets to participation by all. It is also about our
enduring commitment to support the black industrialists and
workers who were previously denied access to the opportunities
for economic ownership and participation.
Furthermore, hon members, it is also about ensuring that the
spatial strategy that informs how we build and support a new
model of special economic zones and industrial parks in
secondary towns and core hubs, is informed by the principle of
trying to expand industrial activity beyond its concentration
in the urban metropolitan areas.
Transformation is about building an economy that works where
our people are, bringing development to rural provinces and
districts. Our revised approach to spatial industrial policy,
informed by the District Development Model, will see the
Department of Trade, Industry and Competition supporting

 
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projects that create jobs, infrastructure and innovation in
districts across the country.
The capable state is about administrative capability and
efficiency but its more than that. It’s about working in
partnership with business and labour, aligning our work with
other parts of the state, such as with our counterparts
overseeing the energy, logistics and security-related areas of
focus; and building a social compact brick by brick,
partnership by partnership, within and across the state, and
even more importantly, across our society.
This integrated vision of industrialisation and transformation
is only as strong as our capability to turn them into reality.
So, to execute this strategy, we will address our weaknesses
but we will also build on our successes. There has been
progress in a number of areas, from new production lines in
our auto, food sector and healthcare sectors; progress with
beneficiation, the sugar and clothing masterplans, new
investment projects and jobs created, small businesses
supported and action against corruption.
A new focus on inclusive growth saw about 100 000 additional
workers securing shares in their firms in the past year

 
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through competition settlements with Shoprite, Burger King and
Imperial Logistics, bringing the recorded worker shareholding
in the economy to over 400 000 to date.
I will not detail the many other positive stories this
morning, Deputy Minister Gina, will do some of them but we
will also release a short summary of some of the key
achievements in the past year.
I want to highlight instead the details of our plans for the
year ahead, which turn the de-risking strategy that I have
outlined to this House today into reality.
To fuel the economic recovery and deepen industrialisation,
the Department of Trade, Industry and Competition entities
together will offer R22 billion in customised support packages
to companies over the next twelve months. This will be
complemented by strategic support to deepen implementation of
our masterplans, including the launch of a new R400 million
Furniture Growth Fund in partnership with manufacturers and
retailers.
To support our localisation efforts, we will aim to achieve a
R40 billion increase in the production of targeted local

 
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industrial output, which brings us closer to our five-year
target of R200 billion.
Our investment facilitation and promotion activities will aim
to unlock at least R120 billion in investment from the private
sector in the next twelve months.
Last year, I outlined the first steps we will take to embrace
the opportunities in green industrialisation through the green
hydrogen and electric vehicle roadmaps. We have made
considerable progress in researching practical options,
costing them, identifying possible funding, publishing a draft
green paper and receiving feedback from stakeholders.
We will now table our draft Green Hydrogen Commercialisation
Strategy in Cabinet for consideration and guidance by the end
of August and our Electric Vehicles Roadmap by the end of
October.
In a rapidly evolving and disrupted global trade environment,
hon members, the department’s officials from entities will
work hard to secure at least R600 billion in manufacturing
exports with a package of support to grow and diversify South
African exports, and to secure our trading future on the

 
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African continent. We hope we can do more but let’s aim for no
less than that.
The Competition Commission is conducting a market inquiry into
online services like eCommerce, tourism, accommodation, food
and other online deliver platforms, to be completed during
this year and it will also launch a new inquiry into fresh
produce markets, which I hope will bring insights and relief
to consumers faced with high and rising food bills.
Hon members, we will commence the next phase of the African
Continental Free Trade Area, AfCFTA, negotiations by
developing draft protocols on competition, intellectual
property and investment. Our work in these important areas
will enable firms to manage their expansion into the rest of
Africa, and we will also make available a multi-billion-rand
facility in risk coverage to strategic exports, through the
Export Credit Insurance Corporation.
This facility will complement our efforts to launch more
export networks with entrepreneurs to share knowledge and co-
ordinate government support among exporters. By the end of the
year, we will have introduced a revised approach to spatial
industrial policy, with a cross-cutting framework for Special

 
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Economic Zones, Industrial Parks and the interventions to
enable and support the township economy; and focus on
industrial development in at least 25 districts across South
Africa.
Fellow South Africans, building an enabling environment for
industrialisation requires securing our key network
infrastructure, such as energy and logistics, and protecting
our electrical grid and rail network from the continued threat
of scrap metal syndicates. By the end of July, we will have
developed and tabled a draft policy on scrap metal, which will
introduce a blend of domestic and export measures to address
illegal trade in copper cable and scrap metal.
Energy and logistics is vital to the success of our
industrialisation efforts. Minister Pravin Gordhan and I have
agreed to launch a forum to bring together Eskom, Transnet and
other entities together with industrialists in key sectors to
enhance collaboration, advance planning, and problem solving.
This will enable a better climate for investment and job
creation. This is being jointly-announced by my colleague who
is also giving his Budget Vote right now.

 
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We must make it easier to do business. The Deputy Ministers
and I have requested the Department of Trade, Industry and
Competition entities by December to have concrete measures to
cut red tape, streamline their processes, and make them
accessible and less onerous, for entrepreneurs and citizens.
This will align with the commitment that the President made on
cutting red tape in the state of the nation address in
February this year.
Hon members, we will shift from red tape to smart regulation
that helps those who want to build and protect the system
against those who seek to abuse it at the expense of the poor
and the vulnerable.
This work will also include a process to consolidate the
sprawl of entities within our ambit, creating a leaner and
more responsive and relevant set of institutions. The point is
that we must all learn from the past and adapt for the future.
We must continue to show resilience as we build and de-risk
our economy, which is essential to our vision of a truly non-
racial, democratic society.
Over the next 12 months, we can expect a number of concrete
actions: This month has already started solidly with the VW

 
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plant in Kariega, Eastern Cape producing the one millionth
Polo for export, we launched a new food factory Kerry
Ingredients in KwaZulu-Natal, Corobrick opened its production
facility and a new Black Industrialist Export Network was
launched; and by the end of the month the Industrial
Development Corporation, IDC, will have launched the pilot
Township Economy Programme to improve access to finance and
de-risk SMMEs through business support measures.
By June, Consol will open its new glass container production
plant in Ekurhuleni with an investment value of R1,5 billion.
A new steel manufacturing facility plans to open in Thaba Nchu
in the Free State. The Japan-South Africa Business Forum will
be launched. The first disbursements will take place from the
IDC’s new Social Employment Fund. And Trade Ministers will
meet at the World Trade Organisation, WTO, to address key
trade policy matters.
By July, a new call centre, Sigma International will open its
doors and offer jobs to young people from Mitchells Plain and
Khayelitsha. The Saudi Arabia - South Africa Business Council
will be finalised and Cabinet will consider the nomination of
South Africa to host the next African Growth Opportunity Act,
Agoa, Forum.

 
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By August, the new Photo Voltaic production plant of Seraphim
will open in East London, supported by IDC facilities. The
Google new fibre-optic submarine cable to improve South
Africa’s link with other African and European
telecommunication hubs will have been launched. At least 55
deals would have been finalised under the JP Morgan small
business partnership with the Department of Trade, Industry
and Competition.
The first new capacity will come online for six black-owned
poultry farms supported by the IDC, which will produce about
2 million birds per month, creating jobs in North West,
Mpumalanga, Limpopo and the Free State. And the Companies
Amendment Bill will be submitted to Cabinet for consideration.
By September, production of industrial helium will start in
the Free State - one of only eight countries globally
producing this gas. A company Rayal Industrial will complete
its tile manufacturing facility. A new South African food
exporter network will be launched.
We aim to conclude the Southern African Customs Union’s formal
tariff offer to the AfCFTA covering 90% of all tariff lines,
and the Department of Trade, Industry and Competition

 
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supported film. The Woman King, will release worldwide. Filmed
in Cape Town it tells an African story, of an all-female
military unit in the 18th Century West African kingdom of
Dahomey.
By October, the Tshwane SEZ aims to complete eleven Automotive
component plants in support of Ford’s R16 billon investment,
employing about 2 000 workers in the new zone. The SA Steel
Mills aims to complete its production plant announced at the
Investment Conference and a draft Patent Bill will be
submitted to Cabinet for consideration.
By November, a bio-pharmaceutical company, Biovac, will begin
producing Pfizer vaccines in South Africa. The expansion of
SAPPI Saiccor dissolving Paper Mill will be ready for an
official opening. We will have commenced the next phase of
AfCFTA negotiations with the draft protocols; and we will host
an award ceremony for local production innovation, showcasing
the successes we are starting to achieve.
By December, the PF Nonwovens new textile production line will
have been opened in Atlantis and we will host a Conference of
black exporters to help identify new markets and new
opportunities.

 
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By January next year, we expect the completion of a new
clothing manufacturing facility and dye house in KwaZulu-
Natal, with 1 500 new workers; a review of the sugar master
plan will have been done and the new anti-corruption unit at
the Department of Trade, Industry and Competition will be
operational.
By February, Orion Carbon Engineering aims to complete a
pipeline and tank storage facility at the Port of Ngqura to
supply black carbon to the auto industry. The First African-
developed mRNA vaccine will start clinical trials and our
efforts to cut red tape will be boosted by new draft
regulations to deal with trade tariff investigations and
safeguard measures.
By March, Defy will have completed its white goods
manufacturing investment facility in Ezakheni, valued at more
than R300 million. The Department of Trade, Industry and
Competition will have an industrial profile report for all 52
districts in South Africa and a report on women and industrial
funding will be completed; and we will also complete a draft
anti-alcohol abuse policy based on discussion with different
departments of government.

 
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By April, 200 black, women and youth businesses and persons
will have been assisted with export training and support and
the IDC-funded local technology will be used in a platinum
mine in North West to make its smelting process greener and
more efficient.
And by May next year, which is just after the 5th Anniversary
of President Ramaphosa’s announcement of the investment
target, we intend to have met or exceeded the R1,2 trillion
commitments that the President sought for us to secure and
Formex will complete their automotive stamping press plant in
the Eastern Cape.
Hon members, many wise words have been spoken about that quiet
persistence in getting on with the job, such as Madiba’s
advice ‘Don’t judge me, he said, by my successes, judge me by
how many times I fell down and got back up again. Or that
beautiful poetess Maya Angelou, who reminds us that, and I
quote: ‘I can be changed by what happens to me. But I refuse
to be reduced by it’. In this context, hon members, hard work
matters. Kindness and decency matters. Optimising about the
future matters.

 
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And so, to rephrase the advice of the ages, it is our
responses to the shocks we face not the shocks themselves that
defines us and determines how our nation will develop.
I want in conclusion, hon members, to thank Deputy Ministers
Majola and Deputy Minister Gina for the sterling work that
they have undertaken; and the team of staff led by Acting
Director-Generals, Malebo Mabitje-Thompson and Shabeer Khan,
for their invaluable contributions to the board and the
leadership of the Department of Trade, Industry and
Competition agencies. Thank you. And to our social partners
for the work done this past year. It is my pleasure therefore,
to table the Budget of the Department of Trade, Industry and
Competition today before the National Assembly. Thank you,
House Chairperson.
Ms J HERMANS: Hon House Chairperson, hon Ministers and Deputy
Ministers, hon members, and fellow South Africans, the ANC
supports this Budget Vote No 39. The Portfolio Committee on
Trade, Industry and Competition, engaged the Department of
Trade, Industry and Competition, DTIC, and its entities on its
allocated financial resources and how it will be utilised in
the 2022-23 financial year. This budget allocation of

 
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R10,9 million allows the DTIC and its entities to carry out
their mandate.
The allocated budget is in support of operations of the
department’s incentives and transfers to its entities. The
DTIC sets out to focus on three outcomes namely;
industrialisation to promote jobs and rising incomes,
transformation to build an inclusive economy and a capable
state to ensure the improved impact for public policies.
The committee welcomes the government strengthened three
pronged approach about to address the challenges facing the
economy. However, the committee recognise that greater co-
operation amongst all spheres of government is essential to
achieve these desired outcomes.
In its oversight over the DTIC and its entities allocated
budget and performance plans, the committee will continue to
oversee their mandate of promoting structural economic
transformation that will ensure economic growth and increase
employment, implement economic programmes that broader
participation of previously disadvantaged particularly
facilitating the creation of opportunities for black people,
women and youth in economic activities and developing and

 
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implementing legislation to facilitate a predictable,
competitive, equitable and socially responsible environment
conducive to investment trade and enterprise development.
In its engagement with the DTIC, the committee noted the
reduction in the budget due to fiscal constraints along with
the reduction in funding that had been prioritised for COVID-
19 Relieve Interventions in the previous financial year.
However, the committee was encouraged by increased co-
ordination of work in the department and of its entities which
assist in maximising the available resources.
In line with the current fiscal constraints, the committee
noted the DTIC’s decision to review its current industrial
financing interventions for all sectors to maximise impact. It
will oversee this during the financial year. The Industrial
Financing Programme was of particular interest to the
committee as it allocated the largest share of the
department’s budget approximately 46% of the total budget.
As the ANC we welcome this as we believe that infrastructure
spending remains a lever through which industrial development
in which economic growth can be sustained.

 
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Furthermore, through this programme the DTIC provide support
to companies and leverages investments that facilitates the
growth of the South African economy and create jobs. The
revival of the South African economy is critical for the
creation of jobs and reducing inequality. Hence the committee
welcomes the various measures that the DTIC will finance
through this budget such as the Sectoral Masterplans,
Localisation and Beneficiation. Regional integration and
facilitating both global trade which it continues to use in
aiding the implementation of the Economic Reconstruction and
Recovery Plan.
To date, six industry masterplans which include automotive,
poultry, sugar, furniture, steel and textile and clothing have
been completed and implementation is at different phases.
These masterplans are critical in growing in growing our
industrial base and building the necessary resilience needed
for our economy in the face of global uncertainty.
In the state of the nation address delivered by President
Ramaphosa in February this year, he emphasized the need to
strengthen the facilitating of localisation. The committee is
encouraged that the DTIC’s second largest programme industrial
policy programme which supports the development and

 
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implementation of policies that facilitate diversifying the
manufacturing sector and promoting local production has been
allocated R1,7 billion in this financial year.
Public procurement is one of the key policy instruments
identified by the government for industrial development.
Through public procurement, the government is able to utilise
its significant purchasing power to stimulate economic
development and transform the economy.
In addition, the Industrial Development Corporation, which is
an entity of the DTIC, through its funding vehicles will
continue to support businesses that produce locally. In the
2022-23 financial year, the DTIC aims to facilitate
localisation worth R7,5 billion.
The President also highlighted the creation of dedicated
capacity in the Presidency to focus on reducing the red tape
across government and improve doing business. In line with
this priority in this financial year, the DTIC introduce
measures to reduce the red tape in all its programmes.

 
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The committee acknowledge the importance of this, in improving
the ease of doing business, consequently attracting
investment.
One of the areas that the DTIC and the Companies Intellectual
Property Commission have done well in and contributed in the
ease of doing business has been the reduction of company
registration in just one day. The mechanism has already been
put in place and now anyone can register a business in a day.
To contribute to broad and inclusive economic development, the
DTIC continues to revitalise old industrial parks in rural and
township areas, by building infrastructure that will make
those areas more attractive for investment. Investment into
these areas will consequently lead to the creation of job
opportunities. This is an important area of oversight for the
committee.
Recently, the committee visited the Ekandustria an industrial
park in Mpumalanga where it engaged with different companies
operating in that park. Practical work is underway to
revitalise industrial parks across the country.

 
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In Seshego Industrial Park R21,09 million was invested to
revitalise the industrial park. Consequently, attracted an
investment of a value worth R58,28 million. The scope of the
project comprises the renovation of 11 factories, the
development of digital harps and the rehabilitation of store
water channel.
In conclusion, the committee supports this Budget Vote, for
the Department of Trade, Industry and Competition as it will
be an abler to inclusive economic growth and job creation
which is envisaged in the Economic, Reconstruction and
Recovery Plan. The role of the state has become ever more
relevant as we seek to put our economy on a sustainable growth
through trajectory that is inclusive of all South Africans. We
seek to build a developmental state and the development of the
state cannot be left to the wins of the market. The
responsibility of government is to strategically think about
how state-led investments can help to shape citizen’s long-
term prospect. We encourage the department to build forward
better. I thank you.
Mr D W MACPHERSON: House Chairperson, at every engagement or
budget debate we have, Minister Patel’s standard, and somewhat

 
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predictable response to the DA, is that we are grandstanding
and being personal.
He believes that pointing out the economic failures of the
government he serves in and economic policies that he
champions, is somehow an attack on his dignity or character. I
want to assure him from the outset of this debate that today,
we will be no different. Because the truth of the matter is,
that what he does or doesn’t do is deeply personal for
60 million people in South Africa.
The choices he makes, the battles he chooses, or the sides he
takes, is the difference between putting food on the table or
entrenching poverty, and at that time, it’s the difference
between life and death. It is the choice between entrenching
state-sponsored anti competitiveness and lowering costs for
consumers.
Sadly, Minister Patel, given the choice, will almost always
pick the side which most harms our country and the people who
live in it. Because being a trade unionist, his natural
instinct is always to gravitate towards and align himself with
the “insiders” and to do everything possible to shut out those
on the “outside”.

 
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Take for example the debate about poultry prices and the
effects that tariffs have on it. Millions of South Africans
rely on poultry as the cheapest form of protein. However, over
the last few years, prices have steadily increased because
multi billion rand, Johannesburg Stock Exchange, JSE, listed
businesses have been given state sponsored protection from
imports.
This was in reaction to the very same companies who were
selling seawater for the price of chicken by brining products
with up to 80% seawater. So they needed a miracle to save
their businesses and found it in the form of tariffs
championed by the Department of Trade and Industry, DTI. While
they have swelled their profits on the back of South Africans,
ordinary people are required to pay more.
The DA has warned the Minister and the department this day was
coming, yet they have not listened. The have hidden behind all
sorts of excuses about protecting industry, but in truth they
don’t care about working class South Africans.
If the Minister and his department really cared, they would
immediately heed our call and drop all duties on imported

 
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chicken for at least six months to allow consumers to source
the cheapest source of protein in these most trying of times.
Minister, are you prepared to work with the DA to achieve
this, and if not, you should tell us today why you don’t
believe South Africans should have access to cheap poultry to
feed their families? Being the internationalist that you are,
I am sure that you will know that Mexico has done this, with
immediately effect.
Minister, for far too long, ordinary South Africans have been
locked out of being a part of the R1 trillion in government
procurement each year because of Broad Based Economic
Empowerment, BBBEE. It has become the ultimate system of ANC
political patronage where value for money and social
responsibly is not the main driver for delivery. BBBEE is the
enabler of the grand rip off and I think that government is
finally waking up to this reality. And I know this to be true
because the tender documents for the port operator of Durban
harbour and Coega exclude BBBEE as a requirement, for the
first time. This is a major step and one which the DA fully
supports.

 
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This “new dawn” in thinking by government has encouraged the
DA to finalise our Social Impact Bill which will leverage
state procurement to benefit communities through Sustainable
Development Goals, and not through patronage and corruption.
Ordinary South African’s, particularly low income black South
Africans, will finally have the opportunity to benefit from
government procurement, which will drive economic growth and
create jobs. That’s why the DA is encouraged by a letter from
The Congress of South African Trade Union, COSATU, that
supports the DA’s inclusion of Sustainable Development Goals,
SDGs, as a form of redress through government procurement in
our Bill. COSATU are half way down the road to supporting this
historic piece of legislation, we thank them for that.
Minister, the DA is personal with you about issues of the
economy and your record in government because it is so
personal for millions of people. In KwaZulu-Natal, KZN,
children are eating sand to keep hunger at bay. This is no
accident either. It’s the result of three decades of failed
economic policy.
You have been involved in this for 10 years, or nearly a third
of it. This is why we cannot be nice about these issues. There

 
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are no pleasantries to be passed around when nearly 200
children under the age of five have died of hunger in January
and February alone. There are no handshakes and backslapping
to be had when 40% of our country is unemployed.
You and your ANC colleagues must account for these failures.
Stop blaming everyone else and take the bold decisions now. If
you want the so called grandstanding and personal attacks to
stop, then put something on the table for us to support. You
can start by halting tariffs on chicken and food imports for
six months and support out Bill to end BBBEE. Let me finish
off with quote my own by the progressive poet and author,
Marco Betsy Johnson when he said:
You can believe in whatever you like, when whatsoever you
like, but the truth remains the truth no matter how sweet
the lie may taste.
I thank you.
Mr M TSHWAKU: House Chairperson, the EFF rejects the budget
vote because the department’s primary function is to create
jobs. And, the annual plans are not the concrete plans to

 
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create jobs and grow the economy. And even their so called the
master plans, are no plans at all.
The department is confused about its core function. It starts
by saying that the Department of International Trade, DIT,
strategic plan and annual performance plan is informed by
country’s imperatives, to address high levels of unemployment,
poverty and inequality, improve the economy, ensure that every
citizen of this country participate in the economy.
Later in their own document it changes the tune and it says,
job creation is not their core mandate. The South Africans
must forget that there will ever be anything tangible coming
out from this department.
Everything is in a planning phase, they have a series of task
teams that continue to research the reports that they
compiled. A department that still talks about a job
opportunity that are created, must be taken you know
seriously. The economic policy zigzag has led the economy that
is not growing, not creating jobs.
White population continuing to own the economy. Poor quality
of life, increase the gap between the rich and the poor. It

 
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must clear that no jobs will be created under the department
of Trade and Industry as they contradict themselves by saying
that it is outside their scope.
It must be put on record that their key performance indicators
are reports conferences, appearances on television, tv. And,
nowhere it says that this year, so many jobs will be created.
The department has adopted neo liberal policy that can create
jobs and still make economic growth.
The department is anti-state led development, even though its
President agreed with EFF, that the needs be a state-led
development to stimulate economic growth.
The delay in the finalising of the special economic zone is
another indication that the department is not interested in
the creation of jobs. The department has allowed South Africa
to be a dumping ground of low grade manufactured goods. The
international trade policies still allow goods that could be
manufactured locally, to be imported, for an example,
chickens.
Mr Ramaphosa had series of investment conferences and called
the so called big businesses to pledge amongst that they

 
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indicated that they will invest and they never did. The ...
[Inaudible.] ... a job’s bloodbath.
The is no clear understanding on the department that the
private sector cares about making profits. And, will do
everything to ensure that profits are maximize. Even through
exploitation of workers. We are still waiting for the report
from the department, as to how many jobs are created by the
wasteful expenditure of the investment conference by
Ramaphosa. And of those who pledged how many have invested in
the economy of this country.
South Africa is the most unequal society where, the rich are
getting richer and the poor is getting poor. And, there’s no
plan for the department to address this issue.
Twenty-eight years down the line, the social architecture of
white rule formed over three centuries has created the most
unequal society in the world. The ANC has not wiped away the
apartheid legacy; it has maintained the status quo. With the
white people only 10% of the population owning 85% economy of
this country.

 
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The department has failed to supply the portfolio committee
with the list of industries that have been financed and
operational and the number of jobs that are created. The
financing entity such as the Institutional Deposits
Corporation, IDC, and National United Front, NUF, are delaying
approving application of potential black industrialists,
because they are not politically correct or the IDC officials
are not able to benefit from the deals.
The department fails to support small scales sugarcane farmers
by acquiring a simple mealy machine. This could have been a
massive assistance to them, as would stop to relying on some
white farmer’s mealy machines, of which its usage favours the
white sugarcane farmers.
This indicates that the department lacks the understanding
that true small scale farming massive jobs can be created. The
entities such as the South African Bureau of Standard, SABS,
are under administration. At the same time, there’s an alleged
corruption and maladministration at the state lotteries.
Slow acting by the department leaves much to be desired. It
can be viewed as a serious attempt to privatise SABS and other

 
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entities. If it succeeds, it could be used to prevent black
majority from owning industries.
It must be put on record now, as long as government does not
own means of production, such as land and minerals,
nationalise the bank to be able to finance projects for
general masses of our people. The economy of this country will
remain in the hands of the whites and it will never grow.
And, again if this government does not increase import
tariffs, to stimulate local manufacturing, goods will still be
imported and no jobs will be created in South Africa, it will
be created internationally.
And, again if it does not support the small scale farmers, no
massive jobs will be created at all. And also if it does not
finalise – because it’s playing hide and seek in terms of
finalisation of the spatialized economic zones, with special
tax incentives. These zones will not be attracting to build
industries, where people can start to actually create jobs.
Now, the EFF vehemently rejects the budget vote because, it
lacks substance. It doesn’t show whether this department is
serious in terms of you know the creation of these jobs, they

 
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keep on having what is called, master plans after master
plans. When I joined this committee, there are master plans
after master plans, and these master plans they’ve never been
concluded.
So with their researchers, with the so called brilliant
economist, it is not even easy for them to say; this economy
is not growing, so let us look at a different economic policy,
such as an economy that will be state-led. Thank you very much
my House Chairperson.
Mr S L NGCOBO: Hon Chairperson, the mandate of the Department
of Trade, Industry and Competition and its ability to give
effect to its key priorities must be measured against the
stark reality of South Africa’s economy. With a staggering
unemployment of 35,3% coupled with the devastating economic
damage following the July 2021 riots which cost South Africa
an estimated R50 billion, little faith remains in government’s
ability to rebuild and rebrand South Africa.
In the President’s state of the nation address, much emphasis
was placed on ... “unblock specific obstacles to investment
and business growth” and to simplify processes, and to attract
investment and trade. These words were greatly welcomed at the

 
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time of the speech, but again, these lofty promises mean
little if we do not see clear government commitments and
enforcement to this effect.
On consideration of the department’s latest annual performance
plan, APP, and budget, it is concerning that although the
department set out to reduce red tape across all its
programmes as per the President’s state of the nation address,
no specific measures and practices were identified in the APP
requiring action. This failure is critical and leaves little
faith that the department has fully interrogated these
commitments and identified obstacles in the programmes, which
complicates, and hence, stifles investment opportunities.
Furthermore, this failure hinders the portfolio committee from
interrogating the performance of the department and demanding
accountability on behalf of the people.
The failure to set out clear achievable outcomes in the APP is
an aspect seen throughout the department’s programmes. The IFP
shares the portfolio committee’s concern that the lack of
qualification of outcomes is critical. Failure cannot and
should not be tolerated. It is vital that the public is
provided with clear targets to measure the department’s
performance.

 
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The IFP furthermore agrees with the portfolio committee that
the budgetary cuts of R1,79 billion to the industrial
financing programme of the department raises much concern and
is in stark contrast to government’s commitment to attract and
retain investment. This programme serves a vital function to
stimulate economic activities by offering incentives in the
form of grants, loans and tax allowances to qualifying
enterprises.
The department of ... special economic zones, SEZs, and
industrial parks by the department is a good initiative to
develop local, regional and rural economies. However, for this
initiative to stand any chance, we need local government to be
strong and functioning.
These initiatives may be completely derailed by failing
municipalities that are unable to guarantee consistent service
delivery. We need to closely monitor this initiative, as
proper co-ordination and strong oversight is vital.
The people of South Africa deserve a committed and accountable
government that will steer economic policy with clear targets,
direction and transparency. The department, as the custodian
of the government’s economic policy development, has a mammoth

 
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task ahead and the IFP will closely interrogate each
performance in the coming financial year. The IFP accepts the
Budget Vote. Thank you, Chairperson.
Mr F J MULDER: Hon House Chair, the Department of Trade,
Industry and Competition has 16 entities. Of these, only three
are self-funded. These are the Companies and Intellectual
Property Commission, the National Empowerment Fund, NEF, and
the National Lotteries Commission that has been stuttering
under a scandal after the term of its former chairperson
Alfred Nevhutanda ended in November 2020.
Afrikaans:
Die Spesiale Ondersoekeenheid het gedurende Maart 2022 na ’n
ondersoek van die komitee meegedeel dat die Nasionale
Loterykommissie se raad sowat R300 miljoen verduister het;
geld wat bedoel was vir dwelm rehabilitasiesentrums,
ouetehuise asook die bemagtiging van vroue en die jeug. Meer
as 50 afsonderlike sake van korrupsie en wanbesteding word
ondersoek en slegs 12 van die 50 sake is tot dusver
afgehandel. Intussen vorder die proses om ’n nuwe raad en
voorsitter aan te wys maar stadig in die komitee.
English:

 
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The SA Bureau of Standards, SABS, was placed under
administration by the department in October 2018 and a three-
year turnaround strategy was implemented, but the financial
state of the once proud institution deteriorated, to the
disadvantage of quality control in South Africa.
The Department of Trade, Industry and Competition could be
seen as the broad-based black economic empowerment, BBBEE,
flagship of the government, with race an issue driven by the
Black Industrialist Forum, the BBBEE Commission and the
Competition Tribunal, amongst others.
In August 2021, the Competition Commission prohibited a
proposed takeover of Burger King in South Africa by an
international private equity fund over the lack of
historically disadvantaged persons amongst the new owners. The
Competition Commission has therefore become yet another
enforcement agency for black economic empowerment that is not
mandated.
The hon Minister Ebrahim Patel will remember that we debate
quite often in the committee on the ANC government’s economic
development policies. The Department of Trade, Industry and
Competition is probably the key driver to contribute towards

 
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economic growth, and specifically economic recovery, during
the aftermath of state capture, corruption and the devastating
effects that COVID-19 regulations had on the South African
economy.
However, the way that BBBEE has manifested in South Africa
resulted in the widening of the gap between rich and poor
since 1994; in fact, amongst the highest in the world. Despite
the ruling party’s mandate to redress inequality, the number
of black business owners has decreased, with the result that
BBBEE only benefitted a few. Broad-based black economic
empowerment has already failed. The ANC’s policies have
created new inequalities, and simply enforcing the very same
policies will most certainly result in the same enhancing
legacy of poverty and destruction, which of course will be
remembered in the future as a legacy of the ANC government. I
will repeat this. The destruction and poverty will be talked
about or thought of in the future as a legacy of the ANC
government.
The report before the House states that over the strategic
five-year period from 2020 to 2025, and for the 2021-22
financial year, the department’s budget is focussed on the
implementation of policies, strategies, programmes and

 
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incentives aimed at promoting industrial development and
broadening participation in the economy. Unfortunately, ...
just more of the already failed policies.
The purpose of the development of SEZs as a way to promote
inclusive economic transformation and to industrialise the
economy through the development of SEZs, industrial parks and
the black industrialist programme is already under threat
because of the fact that Eskom is in no position to provide
electricity to support these initiatives. And, as with the
district municipality model, local government is failing South
Africa and cannot supply the support as far as electricity,
water, roads, etc is concerned.
South Africa needs a total new relook and even a new
dispensation as far as economic development and growth is
concerned. Therefore, the FF Plus will not support this Budget
Vote. Thank you, Chair.
Mr W M THRING: Hon House Chairperson, the ACDP acknowledges
that this department’s budget has to be applied but in a
constrained international and domestic environment. The ACDP
also notes that despite the mandate of moving South Africa
towards a dynamic industrial and globally competitive economy,

 
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South Africa has one of the highest unemployment rates in the
world, sitting at 35,3% and the expanded definition at 46,2%.
Additionally, our gini coefficient places us as one of the
unequal nations in the world. Simply stated, after 28 years of
democracy under the ruling party, unemployment and poverty has
increased to some of the highest levels ever. The ACDP notes
the potential of the master plan as an intervention for
industrialisation and economic recovery. This however, are not
without their challenges. For example, regarding the sugar
industry, cane production here is increasing ... [Inaudible.]
... are closing down. This is a recipe for disaster,
particularly for our small cane growers. The ACDP calls for
the scraping of the health promotion levy or sugar tax as it
is counterproductive in that the affected industries purchase
less sugar and then use sugar alternatives which are more
harmful than the sugar itself.
The ACDP has at times been the loan champion of beneficiation
as a policy tool for economic and employment growth. South
Africa has some of the richest mineral deposits in the world,
and we cannot in perpetuity export the majority of our raw
materials only to import the finished product. By doing so, we
create jobs outside of South Africa rather than internally,

 
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and we perpetuate the colonial dogma that Africans will remain
consumers of goods, rather than being producers and
innovators.
With that said, it would be remiss of me not to warn political
parties and the people of South Africa about the World Health
Organisation governing body and the World Health Assembly
meeting to be held in Geneva, Switzerland this weekend, where
provisional agenda 16.2 will be discussed. If these amendments
are agreed to by countries like South Africa included, it will
grant the World Health Organisation universal powers to
dictate their own policies on health care, obligating
signatory nations to seek their national health care
sovereignty to the World Health Organisation.
This body will then have decision-making authority to
intervene in government policies of any nation in the world
without our permission. This is not about health, but a daring
attempt, a totalitarianism and global dominance under the
great reset where you will own nothing and be happy. All
freedom loving South Africans and citizens of the world must
... [Time expired.] ... and failure to do so will make our
Davis Tax Committee’s, DTC, economic growth interventions
obsolete. I thank you.

 
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Ms R M MOATSHE: Hon House Chair, hon Minister and Deputy
Minister, hon members, fellow South Africans, the ANC supports
the Vote. The budget takes place in the midst of the continued
threat of COVID-19 to the livelihoods of many people across
the globe, global uncertainty brought about by conflict
between economic powers and essential threat of climate change
to the planet.
The ANC-led government has shown resilience and determination
in its gesture to transform the lives of South Africans under
the difficult circumstances. The Budget Vote for the
Department of Trade, Industry and Competition gives practical
expression to the economic reconstruction and recovery plan
will put our economy back on a growth trajectory. The budget
allocates R5 billion to the industrial financing programme.
Through this programme, the Department of Trade, Industry and
Competition support the implementation of the Economic
Reconstruction and Recovery Plan and the reimagined industrial
strategy by providing incentives through the Automotive
Investment Scheme, Black Industrialists Programme, Agro-
Processing Support Scheme, Strategic Partnership Programme,
Aquaculture Development and Enhancement Programme, and
Clothing and Textiles Competitiveness Programme.

 
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Approximately R3,6 billion is allocated for transfer to the
Department of Trade, Industry and Competition entities which
support small and medium-sized businesses. The spatial
development programme promotes inclusive economic
transformation through industrialisation of the economy by
developing and funding special economic zones, SEZs,
industrial parks and the Black Industrialists Programme. This
will be driven through the District Development Model. The
focus will be on governance and strong commitment from all
spheres of government, the development of strong and credible
investment promotion and facilitation plans, community
involvement and facilitation hybrid ownership and feasible
financial models.
Special economic zones are essential areas of economic growth,
localisation and structural transformation. We have seen the
rapid growth of special economic zones such as Coega, Dube
TradePort, East London, the Tshwane Automotive Sector which
demonstrates the significant role played by SEZs programmes in
the country. This and other SEZs are showing great potential
and are attracting domestic and foreign investments to date.
There were 10 special economic zones with an investment of
R22 billion to date. Nineteen thousand jobs have been created

 
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from SEZs. As part of the economic reconstruction and recovery
plan, the SEZs will be an important element of reigniting
manufacture-led industrialisation in an isolated manner. The
revival of industrial parks is essential in promoting the
centralisation of industrialisation to the less economic
activities, and areas such as township and semi-rural areas.
The revitalisation programme is meant to improve industrial
infrastructure which has aged because of the exit of investors
in the last few decades. Working with provincial government
investors is being sourced to settle in these parks and create
jobs. Hon Tshwaku ...
Sepedi:
Mmu?o woo o etelet?wego pele ke ANC o ema nokeng dikgwebo t?a
bathobaso. O hlohlelet?a gore go be le me?omo ya go hlabolla
ekonomi ya naga ya rena. Profenseng ya ge?o ya Limpopo,
Koporasetlhabollo ya Diintasteri e hlatlo?it?e dipeelet?o t?e
R40 billione t?eo di tlilego ka me?omo ye 22 000 . Re lebogi?a
batho ba go swana le Rolland Rakhuduwe wa go t?wa Phalaborwa,
Limpopo. O hlot?e me?omo ye 71.
English:

 
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He also runs the only black industrial gas company which
supplies gases oxygen to Phalaborwa Copper.
Sepedi:
Re lebogi?a gape Zoe Ragana wa go t?wa Polokwane, yoo a nago
le kgwebo ya go dira dithaele t?a konkoriti. O hlot?e me?omo
ye 67.
English:
The South African township economy is estimated to be about
R100 billion and it is therefore essential industrial parks
must also be catalyst for the township and rural economy. This
means that the parks must respond to how it plays a
facilitation role to promote any emerging township and rural
enterprises. A lot needs to be done to identify used
innovations, and be nurtured into sound business promotions.
This places an obligation on government through the District
Development Model. To ... [Inaudible.] ... to roll out the
programmes in our community, our economy is therefore founded
on our SEZs and industrial parks whose success is critical for
sustained inclusive economic growth.
In conclusion, I wish to quote the former General-Secretary of
the United ... [Interjections.]

 
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The HOUSE CHAIRPERSON (Mr C T Frolick): Hon member, there
seems to be difficulty with your connection and you are no
longer audible.
Ms R M MOATSHE: ... when he said: “Saving our planet,
advancing growth ... [Inaudible.] ... between climate change
... [Inaudible.] ... to grow our economy for the betterment of
South Africans, we must equally ensure that we build
resistance and policies of the ANC-led government are working
towards this. We therefore believe that this Budget Vote
entails exactly what our economy needs. The ANC supports the
Budget Vote. I thank you.
The DEPUTY MINISTER OF TRADE, INDUSTRY AND COMPETITION (Ms N
Gina): Thank you very much House Chair. Greetings to you House
Char, Minister and Deputy Ministers that are here, chairperson
and the portfolio committee, hon members and fellow South
Africans.
When we presented the budget vote last year, that is 2021, our
key running theme was our economy resilience. At the time, we
were on the second year of Covid-19 adjusted lockdowns, having
survived the 2020 hard lockdown that saw our economy shutting

 
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down, whilst globally, confronted with massive supply chain
disruptions.
But the robustness of our economic base, our sophisticated
financial institutions and other advanced sectors of our
economy, demonstrated resilience in the face of shocks and
tailspins. The strength and stubbornness of our economy has
been further demonstrated, notwithstanding the massive
joblessness it has brought and the weakening of corporate
balance sheets, by the survival and solid response to last
year’s July unrest, the current East European War and the
recent coastal floods.
House Chairperson, in underlining the above resilience, we are
not oversimplifying the negative economic blows that we are
receiving nor our covering ourselves in glory. As a result of
all the above challenges to the economy, we are confronted
with a sustained weak growth, extreme fiscal pressures,
deepening poverty and a real threat of food shortages and the
advent of rising food prices because of the Russian/Ukrainian
conflict.
This has prompted a new thinking in us, including what
Minister Patel alluded on, with regard to the positioning of

 
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South Africa for multinationals regional hubs, which is going
to be a new response to global supply chains risk proofing.
Hon members, if there is one thing that is urgent and mostly
required in manifold from our side, as government, it is to
shoulder up this small yet sophisticated economy to grow
stronger, it is building a capable state. A capable state
plans extensively, coordinates and also build its institutions
to outlive every political leadership elected in public
offices.
Such a state drives decisive developmental projects even in
risk areas that the private sector cannot dare going. Such a
state, where it mobilizes businesses in risk areas, it
develops a mechanism to de-risk the private investments for
the greater good of business and developmental objectives.
But a capable state must enjoy partnership with business, and
drive trade and industrialization policy for growth. Such a
state should be incorruptible, with its institutions staffed
with sound technical know-how and patriotism. Minister Patel
has spoken extensively about our path on capable state
anchored on the District Development Model.

 
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House Chairperson, for some time the DTIC, Department of
Trade, Industry and Competition has been implementing the
Spatial Industrial Development, SID. This has been driven by
the designation and the establishments of the special economic
zones and industrial parks in various cities and regions
across the country to build regional economies has been
unfolding. But this approach has been limited to those metros
and districts with industrial parks legacy infrastructure,
only for us to revitalize and attract investors.
For SEZs, few regions had a capacity to apply for
designations; and this meant the rest of other districts in
the 44 of them had no spatial industrial plan and development.
The new approach seeks to bog down all 44 Districts and 8
metros, with provincial government anchored by the DTIC to
plan and coordinate industrial hubs of different shapes.
However, we have since realized that for this amount of work
to succeed all three spheres of government must get involved.
In that context, we seek to impose mechanisms of a capable
state in the building of economy in all three spheres of
government through this new approach to play a role.

 
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District Development Model approach in the spatial economic
development will see the DTIC planning and putting resources
per each district municipality, with a provincial government
also putting resources in establishing economic hubs, economic
zones and industrial parks.
District municipalities will play a pivotal role in driving
the economic growth, which will be a new mandate to districts.
The task of job creation in the economy must be seen as a
collective responsibility of all spheres of government.
District Municipal LEDs working with national government
economic cluster departments and provincial government
involved in the economic development will now be entrenched in
this approach that the DTIC brings. At the centre of
catalysing industrial hubs, parks and special zones, is the
drive to fast tract the level of localisation as a fundamental
policy of industrialization and resilient national economy
that is self-sufficient and strong.
Our excessive exposure to imports has exposed us during the
pandemic when global supply chains were disrupted. Hon House
Chair and hon members, it is interesting to note that what
started as a far-fetched dream from President Ramaphosa to

 
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launch an investment drive has already produced commitments of
more than 95% targets, despite Covid-19 fears.
This achievement translates to R1.14 trillion of the
R1.2 trillion overall target by the President when he
announced this initiative in 2018. We recently opened an
Ireland multinational ingredients company in Hammarsdale,
Durban. The Kerry Group invested R650 million and will play a
significant role in the food ingredients sector in the
continent as a whole, creating more jobs directly and through
SMMEs, small micro medium enterprises, contracting.
Hon Chair, we need to share more with the hone members for
them to know exactly that we see the fruits of the commitments
that were made in the Presidential Investment and the
commitments are adhered to. We see those investors coming into
our country. That’s one area where we must be open so that hon
members are aware of this and do not criticise from the
unknown background.
One of the key pillars of re-industrialization is the building
of economic social compacts. With the experience of the
automotive, sugar, clothing, textile, leather and shoes
masterplan, steel and furniture masterplans, we can deduce

 
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that there is no stakeholder in all economic sectors that is
not committed to the re-industrialization agenda.
The tripartite engagement between government, business and
organized labour, often gets intense on the terms of the
ultimate goal of the plan and how to reach there in terms of
targets, but ultimately all parties emerge as committed to the
implementation.
Whilst covid environment created some slow pace in steaming
ahead with implementing some of the targets in the automotive
sector, but sugarcane sector is already implementing its
elements, working with stakeholder partners.
Let me make a few examples of the achievements that we have
seen in our master plans to prove that it is not just master
plans but it is a working plan where we plan and implement
whilst still in discussions with all the role players within
the sector.
In the Steel Master Plan, the DTIC has supported 11 projects
in the value chain resulting in disbursements to the value of
R209 Million; R1.3 billion investments leveraged and 2 439
jobs supported. We are not just planning, we are implementing.

 
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In the Poultry Master Plan, 10 Black contract growers have
been established leveraging investment of R336 million, with
122 new jobs created.
In the Sugar Master Plan, Shoprite is partnering with the SA
Cane Growers to promote the sale of locally produced sugar in
its 1,189 stores. There are so many discussions that we are
with when it comes to the Sugar Master Plan. Right now we know
when we have listened to the Minister of Agriculture, we are
together in ensuring that when it comes to this master plan,
the black growers need to benefit. It is what we are engaging
with as the Department of Trade, Industry and Competition.
In the Autos Master plan, the Automotive Industry
Transformation Fund is supporting six companies with funding
of R82 million but more importantly, access to orders of
R1.8 billion.
We are generally encouraged by the collegiality and commitment
of all sectors that have achieved the signings of the master
plans. We see no retreat and backhand auto manoeuvring by some
stakeholders.

 
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Chairperson, one other thing, I would like to touch on the
African free continental trade area progress.
The HOUSE CHAIRPERSON (Mr C T FROLICK): Deputy Minister, your
time has expired. Thank you.
The DEPUTY MINISTER OF TRADE, INDUSTRY AND COMPETITION (Ms N
Gina): Thank you very much Chair.
Mr C N MALEMATJA: Thank you, hon Chairperson. Hon Ministers,
Deputy Ministers, hon members and fellow South Africans, as
the African National Congress we support the Budget Vote
number 39. It is a great honor and privilege to be of service
to the people of South Africa. Let me start by quoting Amilcar
Cabral when he said:
Always bear in mind that the people are not fighting for
ideas, for the things in anyone’s head. They are fighting to
win material benefits, to live better and in peace, to see
their lives go forward, to guarantee the future of their
children ...
It is along this line that the ANC has been given a mandate by
the people of South Africa to defeat unemployment, poverty and

 
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inequality. They trusted us structurally to transform our
economy to do away with over concentration of our economy and
ensure their participation in the life of people. Apartment
has left country with an economy characterised by extreme
level of concentration of ownership and control as well as the
lack of participation by all South Africans. Apartheid regime
actively promoted national champion in different sectors
through the development of industrial state-owned enterprise
monopolies and agricultural property that was later
privatised.
The regime also condoned industrial cartels in their efforts
to promote the interest of a minority. The ANC-led government
is hard work to challenge all of these and ensure that the
vast majority of South Africans do not remain barrier in the
land of their forefathers. The economic recovery plan places
considerable emphasis on reindustrialisation export promotion
in key local areas. The primary through which this will occur
it through sectoral master plan. In support of this, the
Competition Commission has activated its exemption provision
for the steel, sugar, agriculture and manufacturing sectors.
This will enable deeper co-operation amongst ... [Inaudible.]
... to support localisation and export promotion among

 
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business and firms owned by the previously disadvantaged
person.
This will be instrumental in decentralising in our economy
making it more inclusive as the evidence has shown that high
level of concentration of high of ownership in many sectors of
economy are ... [Inaudible.] ... to growth the entry of the
black South African into economy effectively. Inclusive growth
must mean that black people are no longer relegated to being
laborers forever. Inclusive growth is to have a real meaning
in South Africa embrace the need to increase the participation
of black people; women and youth in all aspect of business
including as shareholders’ managers’ entrepreneurs.
It increased budget of R87 million to the competition will
ensure that the commission is sufficiently empowered to work
towards ensuring that we have a growing, decentralising and
inclusive economy.
IsiZulu:
Mhlonishwa ...
English:

 
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... the recent research by the Competition Committee has
found that the economy remain concentrated 15 years since the
Act was promulgated. As a result of high level of
concentration, the Competition Amendment Act was promulgated
in 2019 with the specific aim of adequately equipping the
Commission to address to the system structural constraint in
the South African economy, namely; the high level of economic
concentration in the economy and the skewed ownership profile
of economy. If we do not deal with this structure of our
systematic ... [Inaudible.] ... we will not be able to
transform the economy.
Sepedi:
Mohlomphegi ...
English:
... greater competition, foster greater efficiency, innovation
from ... [Inaudible.] ... and insult to introduce prices to
the benefit of other ... [Inaudible.] ... in the economy
delivered by the state purchasing product, services and
consumers. A more competitive economy is largely in higher
growth, job creation by enhancing the ability of domestic
theme to replace, import, expand export and greater innovation
also creating new opportunities for businesses. The

 
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Competition Act further seeks to also ensure that such growth
is more inclusive, addressing the past inclusive through
actively promote transformation and small, medium and micro
enterprises, SMME, participation as a public interest
objective in its enforcement action.
The work of the commission through its market enquiry sought
to protect the South African public from the ... [Inaudible.]
... The data enquiry found that the data prices were
excessively high and anti-poor. A settlement agreement was
reached with the network provider to reduce data costs by 35
to 50% to offer extensive zero rate of educational and
government websites along with some daily free data. Business
ensured that the poor are not left behind considering the
digital era we live in. The Commission also worked tirelessly
to monitor the prices of food in the market on a quarterly
basis. This meant to protect ordinary South Africans from the
unjust ... [Inaudible.] ... by the ... [Inaudible.] ...
merits, reducing barriers to entry and increasing the
participation of small business important contribution to
dynamic and transformation of ownership in the economy.
Small business are the greatest creators of employment and the
support provided by the commission in protecting small

 
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business in this regard is necessary and critical for our
transformation.
Sepedi:
Batho ba baso, le tsebi?wa gore borakgwebopotlana kamoka ba
swanet?e go tsenela phenkgi?ano ya moruo wa naga. Kgoro e
tlo?it?e dilo kamoka t?eo di bego di dira gore le se ke la
kgona go tsena. Go tloga mamohla, re le ...
English:
... the African National Congress, we believe that the budget
will further empower and strengthen the important role that
the Competition Commission ensures to improve the lives and
the living conditions of our masses. We therefore want to take
this opportunity to further say ...
Xitsonga:
Muchaviseki, ... [A swi twali.] ... swa hina swa tsakisa.
English:
Thank you.
Mr M G E HENDRICKS: Thank you very much, hon House Chair. Hon
House Chair, this report of Trade and Industry take the vision

 
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and mission of President Ramaphosa seriously. We just heard
the criticism now about data nothing is being done by Trade,
Industry and Competition with regard to ensuring that South
Africans, especially those in poor areas, don’t have access
but they have a right to 1Gig of data. So, Al-Jama-ah does not
think that the Department of Trade, Industry and Competition
take anything seriously with what the President said to the
nation.
We haven’t heard a response to the ... [Inaudible.] ... side
business opportunities the President alluded to. This is the
responsibility of many departments including the Department of
Trade, Industry and Competition. While it is acknowledged that
South Africa has a conspicuous presence and firm foothold in
the African Union and Brazil, Russia, India, China, and South
Africa, Brics, can we proudly say that South Africa is playing
a meaningful role in its own interest and that of the
continent? I don’t think so. Can we argue that in the African
Unions South Africa has contributed substantially? And if so,
how then has South Africans gain from members of factory in
the socioeconomic loans that the country encounters.
Since South Africa became a member of Brazil, Russia, India,
China, and South Africa, Brics, have we gained a win-win

 
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scenario bearing in mind that we hold the smallest position
financially? We either allow them with their bigger projects
to engage in forced removals and to demolish homes. The export
marketing assistance scheme must be transparent on how the
poor sector of our population benefit from the scheme and the
support for the businesses adversely affected by the riots in
July last year. The South African pavilion project that
organises exhibits in Dubai and other countries should play a
more inclusive role for ... [Inaudible.] ... roles to benefit
economically from such exhibitions.
It is indeed good to know that South Africa has access to
large economic markets such as North America, Western Europe
or the European Union, EU, but what efforts does South Africa
make to retain the interest of the smaller markets where
innovation and growth also take place with smaller risk? We
will hear the President and the Minister talk and address some
of these issues. The department support for dynamic companies
that we ... [Inaudible.] ... in economic inclusion, to what
extent is this inclusion of the marginalised communities? The
marginalised communities should be included. This Department
of Trade, Industry and Competition has a record of being in
bed with big business. I hope the President and the Minister

 
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can respond to Parliament and tell us that they are not in bed
with big businesses. Thank you very much, hon House Chair.
Mr M J CUTHBERT: Hon House Chairperson, cognitively dissonant
towards the long-term consequences of government-led import
substitution, Minister Patel, has forged ahead with his plans
to localise up to 20% of all non-petroleum goods. There is a
certain emotive appeal of “local is lekker” that resonates
with South Africans who find themselves out of work, living in
poverty and looking for a convenient scapegoat upon which to
lay the blame.
The reality is that localised goods for which there is no
specialisation will soon start to decline in terms of quality
and increase in price due to diminished competition and a lack
of international market access. Ultimately, economic growth
starts to slow as other countries put in place retaliatory
measures and workers who rely on the export of goods lose
their jobs.
This policy is being pursued in the context of rising cooking
oil, fertiliser, transport and wheat prices as a result of the
Russian invasion of Ukraine. Coupled with inflation gathering
pace towards the outer limit of the targeting band and we find

 
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ourselves in a full blown cost of living crisis. As much as
the governing party like to virtue signal about fighting
inequality, poverty and unemployment, this comes across as
inauthentic. The fact is they are the cause of the very
challenges they claim to be fighting.
Virtue-signaler-in-chief, Minister Ebrahim Patel, will talk
about how he envisions an inclusive and transformed economy,
but what he fails to admit is that he protects special
interests at all costs. Under the auspices of localisation, we
have also seen industrial policy become more vertical with the
creation of industry master plans and working groups that get
to pick the winners and losers in a given economic sector. His
latest localisation hobby horse being the total ban on the
export of scrap metal. It is difficult to accept that he is
acting in good faith on this issue considering his track
record and, therefore, it is naïve not to question his bona
fides.
There is no doubt that the industrial scale theft and
vandalism of our public infrastructure is an issue that needs
to be urgently addressed. This was confirmed in a joint
statement released in July 2021 by Telkom, Eskom, Prasa and
Transnet, which said that both cable theft and infrastructure

 
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vandalism contributed to a direct loss of R7 billion and a
R187 billion knock-on effect on the economy per year. In
particular, this scourge has crippled our export economy,
local government service delivery and public transportation.
However, a blunt instrument is not the cure, even though
Ministers Gordhan and Mbalula would have you believe so.
As the editorial in last week’s Business Day remarked:
It would be a mistake to apply such a heavy-handed
approach as it would punish legitimate dealers, and the
ban could create a thriving black market. The unintended
consequences of the ban on the sale of alcohol and
cigarettes in 2020 should be a cautionary tale for
policymakers.
It concludes by saying, “SA has a crime problem rather than a
trade policy problem”. On this score, the DA agrees. It is as
a result of this government’s failure to enforce the law that
we find ourselves in the situation we do. This is why we have
put forward a series of local, provincial and national
interventions that we believe will go a long way in addressing
this crisis. For the purposes of this speech, I will share the

 
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national interventions we have proposed to you and your
colleagues in Cabinet:
Proper implementation of the Second Hand Goods Law of 2009;
Giving copper theft its own crime code and making the theft of
it a priority crime at the SAPS; Creating a specialised SAPS
unit; Setting copper theft reduction targets at parastatals;
Close co-operation between law enforcement and metal recyclers
to assist in the tracking of illicitly-traded metals;
Empowering the Non-Ferrous Theft Combatting Committee, NFTCC,
through legislation and its own dedicated budget; Establishing
a reward hotline; Eradicating the backlog of scrap dealer
licenses; Multi-agency co-operation and information sharing;
and Standardised transaction recording of scrap metal sales.
The onus is on you, Minister, to cost the interventions that
fall within the purview of your department and investigate how
best to include them in your budget. Despite our respective
parties’ clear policy differences, I’m sure that we can both
agree that if we fail to safeguard our country’s
infrastructure then we fail to protect our economy. I thank
you, hon House Chair.

 
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Prince Z BURNS-NCAMASHE: House Chair, hon Ministers, Deputy
Ministers, hon members fellow South Africans, the ANC supports
the Budget Vote 39. The ANC Strategy and Tactics highlights to
us the relationship between the state and private capital, and
it reads:
The relationship between the national democratic state and
our private capital, including monopoly capital is one of
unity and struggle, cooperation and contestation.
As indicated by President Cyril Ramaphosa in the state of the
nation address, the private sector has a cooperative role to
play with the public sector to transform our economy and
create the necessary jobs, for the vast majority of
unemployed, unemployed South Africans. Far from the deliberate
mischievous misrepresentation of the trust of his assertion.
What I do know is that the representatives of white capital in
Parliament, will never run out of spurious and nefarious
negative things to say about the public sector.
The Department of Trade, Industry and Competition will forever
be their target, because its mandate seeks to strengthen our
resilience as an inclusive economy. Unsettle and dismantle the
historical ... [Inaudible] ...of oligopolistic oligarchs,

 
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institutionalized by colonial and apartheid establishment, so
as to transform the face of our industries to be more
representative of the demographics of our country. Their wish
is to relegate Black Africans to the slaves of white capital,
who remain deprived of access to economic opportunities and
ownership of strategic assets, which are means of production.
According to them, black people are not worthy of being black
industrialists, being captains of industry and producing their
own goods and finished products. This is why they are against
the industrialization and localization efforts of our
government. We also have amongst us populist demagogues who
masquerade as revolutionaries in red overalls. But in all
honesty, we know them to be wolves in Louis Vuitton and Gucci
sheep cloaks, who are also in bed with white capital and are
beneficiaries thereon.
IsiXhosa:
Baxhaphe umhluzi wamanqina abawutya bewugxeka. Umqolo wabo
uphandle kweli sebe lenkawu likrelekrele basithele ngalo.
English:
The introduction of sector masterplans is predicated on the
reimagined industrial strategy, which is laying out the plan

 
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for achieving greater, greener and more inclusive growth with
more jobs, and is meant to resuscitate our industrial and
manufacturing capabilities. Our sector master plans will help
us achieve in bringing together the role of government with
other social partners as the Economic Recovery and
Reconstruction Plan puts it. We are determined not merely to
return our economy to where it was before the coronavirus
outbreak, but to forge a new economy in a new global reality.
At the centre of forging this new economy, is the intricate
role that the state has to play in public investment schemes.
There are people who are direct beneficiaries of this, who
without the support of the government and our black
empowerment policies, would otherwise never have had the
opportunity to participate in the life of our economy. Thus,
the Black Economic Empowerment Policy compendium is a
strategic imperative, we are neither ashamed no apologetic to
implement.
That is why we applaud people like Beverly Mhlabane, who lives
in Benoni. She is a poultry farmer empowered by the Poultry
Master Plan. She has 6 500 hens for her egg laying business,
which is expanding now into broiler production. An amount of
R1,79 billion is allocated to the Industrial Policy, which

 
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supports the development and implementation of policies that
facilitate diversifying the manufacturing sector and promoting
local production.
Many more previously disadvantaged people will be empowered
through this programme. In addition, the Industrial
Development Corporation through its funding vehicles, will
continue to support businesses that produce locally. In the
2022-23 financial year, the Industrial Development
Corporation, IDC aims to facilitate localisation worth
R7,5 billion. The IDC has funded and is providing support to
people like my Matshela Maloka and Kate Machaba who are
running an asphalt company where they manufacture hot mix
asphalt and does placement of difference surface seals, with
an onsite logistics offering. They have thus far created 30
jobs.
The firm boasts one of the few technologically advanced and
fully automated plants in the country. Without the support of
government and black economic empowerment policies, these
young people may never have had this opportunity.
IsiXhosa:
Asigungqi, siyaqhuba singenadyudyu bethanda bengathandi.

 
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English:
The state can never be left to be a spectator in the economy,
as the reality of the matter is that, free markets themselves
are products of state intervention. In other words, markets
are not freestanding realms in which states can intervene for
good or ill, but rather, they are outcomes of public as well
as private action. Therefore, the logic that the state should
not intervene in the economy, is without merit and not
scientific as some amongst us want us to believe.
Hon House Chair, South Africa is part of the continent. Trade
facilitation through the African Continental Free Trade Area,
will be instrumental in opening up markets and creating value
chains in the continent. This will be highly beneficial for
our black industrialists, and presents an opportunity for
industry and for new industrial entrepreneurs to build
sustainable businesses. It will further be instrumental in
building resilience for the continent, reducing the reliance
from the powerful global forces.
There are already a few South Africans who are expanding their
business throughout the continent. Ntsiki Biyela who sells
wine to Ghana, Thami Gxowa who exports cooler boxes to

 
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Mozambique and Doron Barnes who sells steel to the Democratic
Republic of Congo, DRC.
IsiXhosa:
Obu bubungqina bokunaba bomzila wokunaba kwabantu bakowethu
kwilizwekazi abayinxalenye yokuphila kulo, bengeyiyo
imigqakhwe, bethobela kwaye behlonipha imithetho yorhwebo
nentengiselwano.
English:
In this regard, we are steadfastly determined to create new
industries. Work he is underway to create opportunities for
farmers in the hemp and cannabis industries, which has the
potential to create in excess of 130 000 jobs for unemployed
South Africans in the Eastern Cape and KwaZulu-Natal. With the
opening up of markets through the African Continental Free
Trade Area, AfCFTA, the future can only be limitlessly bright
for the industry. The department, together with the Department
of Agriculture, Land Reform and Rural Development is working
on a legal framework to ensure that South Africans benefit
fully from this. Yet again, the role and investment of the
state will be critical in ... [Inaudible] ...in the private
sector to create these anticipated job opportunities.

 
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IsiXhosa:
Abantu bephondo leMpuma Kapa neKwaZulu-Natal, inene asifikanga
sigalelekile. Sizimisele ukuthethathethana nabantwana begazi,
iikumkani, iinkoi noluntu jikelele ukuze kudalwe amathuba
ngokuveliswa kwentsangu.
English:
In conclusion House Chair, serving our people is the greatest
honour that can be bestowed upon anyone. The ANC has changed
the lives of many people, and continues to do so. Yes, it is
not enough, a lot more needs to be done. As Karl Marx said:
If we have chosen the position in life in which we can most
of all work for mankind, no burdens can bow us down, because
they are sacrifices for the benefit of all; then we shall
experience no petty, limited, selfish joy, but our happiness
will belong to millions, our deeds will live on quietly but
perpetually at work, and over our ashes will be shed the hot
tears of noble people
House Chair, let me as a parting shot, respond to the issue of
Russia and Ukraine. the anticommunist, anti-Russian and anti-
Cuban deep seated hatred by the fascist DA will not deter
peace loving real South African democrats to appreciate the

 
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role of Russia and Cuba in our struggle for hard-earned
freedom and liberation. We are not oblivious and amnesiac to,
your historical role against the cause of our liberation.
Hence, your hysterical nostalgic psychosis about Russia and
Cuba.
IsiXhosa:
Kufuneka sinihlangule kwizabatha nezirhintyelo zobungqondo-
gqwirha, nihlambuluke kwingqakaqha yentiyo nenzondo. Makube
chosi, kube hele!
The MINISTER OF TRADE, INDUSTRY AND COMPETITION: House chair,
thank you to the various parties for their contributions. I,
in particular, have taken note of some important comments by
hon Hermans, hon Moatshe, hon Malematja, hon Ngcobo, hon
Burns—Ncamashe, hon Thring and Hendricks, that pointed to
specific areas that we will be following up.
The work of the department is always enriched out of a debate
in Parliament. What the debate has confirmed? It’s confirmed
that there are two narratives in South Africa. First, is the
narrative of the DA and the EFF, filled with doom and gloom,
unable to see what South Africans are doing, what firms, small
business, in partnership with government is doing in the

 
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difficult circumstances to create jobs, to help to grow the
economy, to feed the nation.
The second narrative is a more balanced one. That recognizes
our challenges and our hardships, but also tell the inspiring
stories of South Africa. Let’s take, as an example, few of the
issues that have come up. I’m going to highlight, in my
response, that the debate has demonstrated the inconsistencies
and the extremism of some of the approaches and views.
Let’s take poultry as an example, it’s an area that has been
raised by two speakers here, two hon members and I think what
the poultry example demonstrates, are a number of
contradictions in the views of some members of the opposition.
It’s the DA versus the EFF as the first contradiction. So, hon
MacPherson versus hon Tshwaku. On the one hand the DA says you
have got your tariffs too high, just abolish them, make them
zero. On the other had the EFF says you have your tariffs too
low, just raise them up so that nothing can be imported at
all.
It seems to me that the ANC-led government’s approach is a
more balanced approach, it’s a more mature position that
avoids these two extremes. What we’ve done is we’ve looked

 
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case by case and the evidence before us, based on that
evidence we’ve been able to ensure that there is sufficient
protection for South African producers, for people who create
jobs here. At the same time, we’ve got to keep pressure on the
poultry industry, the domestic poultry industry, to ensure
that South Africans have access to affordable pricing, that
our people are able to afford the protein that comes from that
industry; and it’s an important one.
Of course, globally poultry prices have been rising. We’ve
seen food price inflation going up across the world. I can
regale hon MacPherson on all the results here on your food
price inflation, 13,5% for Brazil, almost 10% for the United
States, 8,6% for the European Union. I can also take you
through what has happened to poultry prices in different
countries in the world, if facts matter as we believe they
should matter. If you take, as an example, the year-on-year
growth in poultry prices, globally by April 2022 it was 19%,
that had nothing to do with South African policy-making, it
had to do with a surge in prices of foods across the world
caused by supply chain disruptions, caused by geo-political
tensions and the war in Europe, caused by a number of factors.
And what we trying to do is to build the domestic poultry

 
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industry that can supply food to South Africans and ensure
that South Africans have access to livelihoods too.
And that brings to another contradiction. It’s the
contradiction of the hon MacPherson versus the hon MacPherson;
it’s the DA versus the DA. On the one hand hon MacPherson says
just cut these tariffs, just remove them. The fact that 50 000
jobs in poultry farming, in the manufacture of poultry feed
and the associated industries would be affected, is just
conveniently forgotten. But in that same speech hon MacPherson
then comes back and says create more jobs, it’s 40%
unemployment, you’ve got to do more on jobs. Hon MacPherson,
one is got to be able to have internal consistency in one’s
position. You can’t argue on the one hand, hon member, that we
should take a set of policies that will destroy local jobs and
on the other hand bemoan the fact that there is high
unemployment. South Africans need affordable poultry, South
Africans need jobs and government is trying to find ways in
which we can balance these important, both are important,
objectives and that’s what we doing in our work.
Hon MacPherson gives us an interesting challenge; a challenge
that I want to accept. He says: Why don’t you give us
something that we can support as the DA? Why doesn’t

 
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government or the ANC-led government put something on the
table? Let me take a cracker at it, hon MacPherson, because
it’s a good thing that you’ve raised. Let me give the auto
industry as an example and say: Why don’t you support our
efforts there? In the last 12 months, just since the last
budget speech, Mercedes Benz has started to produce the new C-
Class vehicle in Buffalo City. One of only three locations in
the world that makes this vehicle. The others being Beijing in
China and Bremen in Germany. Toyota in eThekwini launched its
locally-made Corolla Cross hybrid vehicle; bringing locally-
made lower emission vehicles to our roads. And Isuzu produces
its new D-Max bakkie in Gqebera; that farmers can use to take
their products to market. Why didn’t you support that, hon
MacPherson? It creates jobs, it provides opportunities for
South Africans, it localizes what we need to localize.
Let me take another example. Let me take Tshwane. In Tshwane
we finance the building of a new special economic zone, that
this past year has seen three new factories already in
operation. Two years ago it was an open veld. A year ago it
was just yellow metal, trucks in and dust and mud all over as
construction took place. Today you go there and you see
factories that are actually producing components. And by
October this year we expect a further eight factories to have

 
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opened; that’s 2 000 real jobs, hon MacPherson. Jobs that
South Africans need. Why don’t you support that?
We’ve had private investment of R4,3 billion that is committed
by these contractors and factory owners in the special
economic zones and we’ve invested money in bulk infrastructure
and top structures with 45% of that infrastructure budget
spent on small and medium enterprises. Why don’t you support
that, hon MacPherson?
But hang on, the DA leader, hon John Steenhuisen, has already
tried to claim credit for the Tshwane special economic zone
last year in a photo opportunity in the run up to the Local
Government Elections. So, the DA says, well, here is a great
thing, at the same time the DA has to recognize because the
facts speaks for themselves that the Department of Trade,
Industry and Competition, DTIC, budget has helped to make that
possible, has put the money there. That our meeting with Ford
has brought that production to South Africa, has made it
possible, indeed, for South Africa to manufacture components
using the labour of young South Africans, people in Gauteng
that are able to produce those goods. So, there we have it
then, hon MacPherson, just to take some small examples.

 
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Let me give other examples. Why don’t you back us and the work
that the DTIC has done to ensure that we have the industrial
capability to produce covid products here in South Africa? Let
me take the example of vaccines as one clear example. By
October or November this year we will have the biovac factory
that the Industrial Development Corporation, IDC, has
supported. That factory that, in fact, government has some
equity in, they will be producing the Pfizer vaccine. In
Gqebera the Johnson & Johnson, J&J, vaccine has been produced
by a South African company called Aspen Pharmacare. And the
factory that they are using was supported by the incentive
schemes that the DTIC has administered.
We’ve worked with Patrick Soon-Shiong, a South African-
American, who has announced that he wants to open up the
NantSA factory in South Africa.
We’ve worked with Afrigen, who has reverse engineered the mRNA
vaccine technology and they now will have clinical trials
early next year.
We’ve been able to produce outsider vaccines, hon MacPherson.
The continuous positive airway pressure, CPAP, ventilators,
20 000 of them that have been used, largely in public

 
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hospitals. But the other day I was in a meeting with the chief
executive officer, CEO, of a private hospital and he
congratulated government for that effort. He said they too had
use it when they ran out of stocks in their own hospitals. Why
don’t you support us, the fact that the first anaesthetic
plant on the African continent has opened? You ask for things
that we can put on the table that you can support. I’ve put
just a small sprinkling of things on the table, I hope you
will be able to support this now.
Hon Thring, I look forward to your support for the DTIC
budget. You raising an important issue around beneficiation.
And I’m happy to say that we provided the detailed information
recently at the mining indaba on things that we doing on
beneficiation. Take, for example, that South Africa’s first
fuel cell factory started production in the Dube TradePort
using South African platinum group metals, PGM, minerals. A
greater proportion of our local scrap metal has been used in
our foundries. Further beneficiation actions include a
vanadium electrolyte manufacturing plant in the East London
Industrial Development Zone, IDZ, using South African mined
vanadium oxide to create energy storage solutions and a nickel
sulphate facility in North West using the bi-products of the

 
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PGM mining process to create components for lithium batteries
used in electric vehicles.
Let’s look at the Industrial, Development Corporation, IDC,
which is a key strategic partner to Bushveld minerals, which
is leading in the development of the domestic vanadium value
chain essential for grid scale renewable energy storage
facilities.
Or look at the support we now giving to Loanex and Thakadu
mineral battery material investment which produce high purity
battery grade nickel sulphate.
Or the support for Gilgamesh that entails the processing of
coalbolt nickel and copper that’s earmarked for the electric
vehicle and energy storage markets.
And I can give many examples in the steel industry. The South
African steel mills project, the score metals one, the support
that the IDC is giving to the aluminium value chain and to
veer aluminium.
What these illustrate, is taking a vision and implementing it
in very concrete and practical ways.

 
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Hon Tshwaku, you raised the issue of support for small scale
sugar famers and you say: Where is the support? I encourage
you, visit small scale sugar farmers and you will see examples
there, you will see that last year just over R200 million of
tangible support was given as a result of the sugar master
plan to small scale farmers. You would have seen the report
that we tabled at the Portfolio Committee on Trade and
Industry, at which the SA Farmers Development Association,
SAFDA, which is the body for small scale farmers, have
indicated in writing and a press release that they published
on the 29th of January this year. There’s strong support
there, appreciation and congratulation to government for the
efforts that government has taken to support small scale
farmers. I can add to that, also the work we’ve done with
retailers to ensure that they buy from small scale farmers.
The work with Coca-Cola to ensure that it too uses sugar
produced by small scale farmers. And these are some of many
examples.
Hon Hendricks made an important point that we must get more
value from our trade agreements. We agree. We now have a whole
set of very concrete actions in our annual performance plan.
Hon Hendricks, you’d be delighted to know and I’m happy to
provide more information.

 
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Hon Cuthbert, I like what you say, that local is lekker. And
you right that we must ensure that our quality and price don’t
disadvantage South Africans and that we, in fact, work
together to improve the dynamism and strength of local
industry, because when we buy locally, when we support these
programmes we create jobs for South Africans. That 40% of
South Africans that need jobs, that are unemployed, they not
going to get jobs out of air, it’s out of us, building those
kind of capabilities. And I hope you’d be able to support us
on this. You’ll also find that many of the work we doing on
scrap metal is helpful and some of those you might well see
that we’ve done work on the areas that you’ve indicated, but
you’ll see we’ve gone even beyond that.
Let me begin to wrap up by saying, there’s lots that we’ve
done and I you at least things, hon members, there was more
time that we can point of the many other excellent examples of
work done by the DTIC and its entities building South African
capacity. We’ve just brought together 50 black exporters in
areas like food, engineering, auto components, beauty
products, getting them to work together to unlock
opportunities elsewhere in the world. We just had a successful
investment conference where we’ve had more than R300 billion
committed. And over the last number of years it’s ensured more

 
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than 167 000 jobs that have been unlocked in just support
[Time expired.]
Let me conclude by thanking all hon members for the support,
thank you very much. I think what this illustrates is we have
a plan, we have concrete actions and I look forward to the
support of all Members of Parliament as we take this journey
to create jobs and promote industrial development. Thank you
very much.
The mini plenary rose at 12:01.

 

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