Hansard: NCOP: Unrevised hansard
House: National Council of Provinces
Date of Meeting: 15 Nov 2023
Summary
No summary available.
Minutes
UNREVISED HANSARD
NATIONAL COUNCIL OF PROVINCES
WEDNESDAY, 15 NOVEMBER 2023
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
Watch here: Plenary
The Council met at 14:03.
The Chairperson took the Chair and requested members to observe the moment of silence for prayers of meditation.
The CHAIRPERSON OF THE NCOP: Hon members, allow me to take this opportunity to remind delegates that the rules and the process apply for this hybrid sitting.
But before we proceed I would like to remind delegates of the rules relating to virtual and hybrid meetings and sittings, in particular sub-Rule 21, 22 and 23 of Rule 103, which provides as follows:
That the hybrid sitting constitutes a sitting of the National Council of Provinces.
That delegates in the hybrid sitting enjoy the same powers and privileges that apply in a sitting of the National Council of Provinces.
That for the purpose of a quorum, all delegates who are logged-on to the virtual platform shall be considered present.
That delegates must switch on their videos if they want to speak. Delegates who experience connectivity issues are encouraged to use still-photograph or identification on the virtual platform as is the practice.
Delegates on the virtual platform are encouraged to log-on with one device only, as logging-on with two or more devices further lowers the bandwidth.
That delegates should ensure that the microphones on their gadgets are muted and must always remain muted unless they are permitted to speak.
That all delegates in the chamber must insert their cards to register on the chamber system. That delegates who are physically on the chamber must use the floor microphones and
that all delegates ... [Inaudible.] ... participate in the discussion through the chart room.
In addition ... [Inaudible.] ... delegates, that interpretation facility is active.
Permanent delegates, members of the executive, special delegates and SA Local Government Association, SALGA, representatives on the virtual platform are requested to ensure that the interpretation facility on their gadgets are properly activated to facilitate access to the interpretation services.
Permanent delegates, special delegates, SALGA representatives and members of the executive in the chamber should ... [Sound cut off] ... to access the interpretation facilities.
Hon delegates, before we proceed I would like to take this opportunity to welcome the Deputy Minister of Trade, Industry and Competition, hon N Gina; I hope the Deputy Minister is available on the virtual platform. To also welcome permanent delegates, MECs, all special delegates and SALGA representatives to the House.
NOTICES OF MOTION
Mr J J LONDT: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That the House debates the increased responsibility of the Independent Electoral Commission of South Africa to ensure that libellous and deliberately false information and clips of parties and their political leaders are acted upon swiftly.
Parties that choose to be populists, disregarding the safety of South Africans, negatively affecting our economy and risking the livelihoods of more South Africans should be held accountable because our hard- fought democracy and freedom associated with it should never be abused for personal short-term narrow gains.
I so move.
Ms B M BARTLETT: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates coordinated and sustainable efforts geared at reducing the proliferation of drugs and substance abuses that pose a severe threat to South African communities.
I so move.
Ms M L MAMAREGANE: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates strengthening of regulations in order to ensure that sphaza shops comply with applicable standards and are not trading without permits and selling counterfeit goods and expired foodstuff.
I so move.
Mr K MOTSAMAI: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the EFF:
That the House debates how we as a country do not have police service to speak of, as we have come to rely on deployment of SA National Defence Force, SANDF, to help fight high-level of crime and bring calm and stability to the country.
I so move.
Ms M L MOSHODI: Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates increasing investment in infrastructure to ensure the construction of projects is undertaken with the necessary urgency in order to improve access to basic services and increase the overall efficiency and competitiveness of our economy.
I so move.
WORK DONE BY BIRDLIFE SOUTH AFRICA
(Draft Resolution)
Mr J J LONDT: House Chair, I move without notice:
That the Council-
(1) notes that the tourism industry is critical to the economy of our country;
(2) also notes that we are blessed with a natural beauty and a diverse geographical and cultural offering that caters to a variety of needs;
(3) further notes that it is unfortunate that often some activities are not accessible to everyone and that individuals and groups that works for the easier and affordable accessibility should be applauded;
(4) also notes the efforts of Birdlife South Africa that has started a series of free Avitourism Educationals aimed at stakeholders, providing the opportunity to join guided birding experiences at different sites;
(5) further notes that over the next two weeks there are such educational experiences available in the greater Mossel Bay area covering regions such as Groot-Brak
and Klein-Brak, Vleesbaai and Voelviei as well as to the North of Mossel Bay at 8 Bells Mountain Inn; and
(6) appreciates the work done by Birdlife South Africa to develop and grow the tourism sector and thereby contributing towards not only awareness of our beautiful country but also towards job creation that is so needed.
Motion agreed to in accordance with section 65 of the Constitution.
DA-RUN WESTERN CAPE
(Draft Resolution)
Mr F J BADENHORST: Hon Chair, I move without notice:
That the Council-
(1) notes that the DA-run Western Cape has yet again emerged as a job creating administration amidst a very tough national economic climate following the release
of the latest Quarterly Labour Force Survey statistics by Statistics SA earlier this week;
(2) note that with the creation of 305 000 jobs in the past year, the Western Cape is now responsible for an impressive 31,5% of South Africa’s net employment gains, totalling 979 000 positions since the 3rd quarter of the previous year;
(3) noting that the Western Cape now has the lowest unemployment rate across all provinces at 20,2% representing a decline of 4,3% over one year, surpassing the national average by 11,7%;
(4) noting the expanded unemployment rate in the Western Cape is currently the nation's lowest at 25,6%. This rate is not only 13,8% lower than that of Gauteng but also significantly more favourable than the North West province, which stands at double the Western Cape's rate;
(5) noting that the above statistics serve as evidence of the positive impact of the DA-led Western Cape government's policies, fostering a business friendly
environment enabling private sector growth along with employment opportunities, as enabled by the Jobs for Growth strategy in the province;
(6) noting that the DA's governance in the Western Cape is synonymous with opportunity and prosperity, as evidenced by our unparalleled employment statistics;
(7) congratulate Premier Alan Winde and his Cabinet on behalf of this House.
Thank you.
The CHAIRPERSON OF THE NCOP: Any objection to the motion? [Interjections.] There has been an objection. The motion may not be proceeded with and it will become a notice of a motion.
ELECTRICITY INTERRUPTIONS IN LYDENBURG
(Draft Resolution)
Ms H S BOSHOFF: Hon Chair, I move without notice:
That the Council-
(1) notes with great concern the continuous electricity interruptions in Lydenburg, that has nothing to do with loadshedding and these interruptions can at times last up to four days;
(2) also notes that the residents of Lydenburg are sitting with their hands in their hair as their pleas for service delivery falls on deaf ears;
(3) further notes that during the Rugby World Cup period no electricity interruptions were experienced, but since the re-introduction of loadshedding, parts of Lydenburg are off for days on end;
(4) also notes that the DA calls on the MEC of Co- operative Governance and Traditional affairs in the Mpumalanga Legislature to urgently engage with the Municipal Manager of the Thaba Chweu Local Municipality to determine what the problem is and how it can be rectified; and
(5) requests that the Municipal Manager and the Mayor of the Thaba Chweu Local Municipality engage with the residents to provide them with an explanation on these
continuous interruptions to prevent the officials being the bearers of the residents’ anger.
Motion agreed to in accordance with section 65 of the Constitution.
DEVASTATING FIRE IN THE NORTH WEST
(Draft Resolution)
Ms C VISSER: Hon Chairperson, I move without notice:
That the Council-
(1) notes that a devastating fire in the North West, that destroyed more than 1,3 million hectares, has catapulted the province into another disaster in the form of hunger, the citizens of the North West are going hungry, in 2023;
(2) recognises the vast plains of Jagisano Molopo, Taung, Naledi, Mamusa and Tswaing are covered with ash and stone, no employment and no food;
(3) further notes the suffering of extreme hunger not being able to feed their families due to the outrageous cost of basic foods;
(4) Acknowledges the inevitable disaster that further intensifies due to the unabated growing unemployment; and
(5) requests urgent measures from the national government to intervene and prevent them from intense and inhumane conditions of forcing South Africans to live in hunger and without foods.
Thank you.
Motion agreed to in accordance with section 65 of the Constitution.
ARREST OF FIVE SUSPECTS FOR ATTACKING POLICE OFFICERS
(Draft Resolution)
Ms A D MALEKA: Hon Chairperson, I move without notice:
That the Council-
(1) condemns the arrest of five suspects for attacking police officers;
(2) notes that the incident occurred on Thursday, 9 November 2023 in Freedom Park near Phukeng Rustenburg;
(3) also notes that two detectives from Phokeng Police Station were officially on duty and conducting investigation in Freedom Park where this incident happened;
(4) understands that the suspects the police were looking for and members of the community gathered at his place and tight up the police officers with ropes and assaulted them with knobkerries;
(5) believe that the attack of the police is undermining the authority of the state;
(6) calls for the strengthening of stringent measures geared at combating attack of the members of the
police so as to protect law enforcement officials in the execution of their duties;
(7) also calls members of the community to work together with the police in the fight against crime; and
(8) condemns the Public Order Police and Tactical Response members who swiftly rescued to the two detectives who have sustained serious injuries.
The CAIRPERSON OF THE NCOP: Any objection to the motion?. [Interjections.] There has been an objection, the motion may not be proceeded with and it will become a notice of a motion.
MAMELODI SUNDOWNS CROWNED THE AFRICA FOOTBALL LEAGUE CHAMPIONS
(Draft Resolution)
Ms N E NKOSI: Hon Chair, I move without notice:
That the Council-
(1) notes that Mamelodi Sundowns were crowned the Africa Football League champions after they beat Wydad
Casablanca at Loftus Versfeld Stadium on Sunday, 12 November;
(2) also notes that Sundowns became the first team to lift the trophy of the inaugural competition;
(3) believes that Sundowns deservedly became champions because they played brilliant football, outplayed the Moroccan giants and dominated the game from the onset; and
(4) congratulates Sundowns for being crowned African Football League champions and for flying the South African flag high.
Thank you.
The CHAIRPERSON OF THE NCOP: Any objection to the motion?. [Interjections.] There is an objection, the motion will not be proceeded with. Motion without notice will become a notice of a motion. Hon Mohai?
THE CHIEF WHIP OF THE NCOP (Mr S J Mohai): Sorry Chair, it is inconsistent with the dignity of this House to congratulate a
team for winning. What is the objection all about? Is that this House must congratulate a football team for excellence. So, it is incorrect really to set this precedence.
Mr T J BRAUTESETH: Hon Chair, I misunderstood the motion. I withdraw my objection.
Motion agreed to in accordance with section 65 of the Constitution.
The CHAIRPERSON OF THE NCOP: Please pay attention to what we have warned against before because if we just keep on objecting and so on and creating a situation where we are no longer listening to what has been said. But we are worried a person who is raising the issue and so on. That’s okay. I am just saying please be warned. Hon mmoiemang?
PROFESSOR DIRE TLADI
(Draft Resolution)
Mr K M MMOIEMANG: Hon National Chairperson of the National Council of Provinces, I move without notice:
That the Council-
(1) notes that the South African government nominated Professor Dire Tladi, as a candidate for the election to be a judge in the International Court of Justice;
(2) also notes that the International Court of Justice is the principal judicial organ of the United Nations and only the most highly qualified international lawyers are elected to that august body;
(3) further notes that, as an academic, Professor Tladi has published over 100 publications and was recently presented with the University of Pretoria’s Exceptional Academic Achiever Award for 2022;
(4) notes that his work within the International Law Commission, including as special rapporteur and as Chair of the Commission, is well-known and well documented; and
(5) ongratulates Professor Tladi for being the newest member of a fraternity of South Africans globally who
are in positions of service to the international community.
Motion agreed to in accordance with section 65 of the Constitution.
SUSPECT TRAFFICKING DRUGS WORTH R2,7 MILLION
(Draft Resolution)
Ms S SHAIKH: Hon Chairperson, I move without notice:
That the Council-
(1) commends the police for swiftly arresting a 34-year- old suspect who was trafficking drugs worth R2,7 million en route to Cape Town from the Eastern Cape, on Saturday, 11 November 2023;
(2) notes that the arrest was effected out by a multi- disciplinary operation led by the Hawks, South African Narcotics Enforcement Bureau Team based in Bellville together with Western Cape Crime Intelligence Counter Narcotics and Gangs;
(3) further notes that the arrest was effected with the assistance of active South African citizenry who tipped and gave the information of a suspect travelling from the Eastern Cape to Cape Town with a truck loaded with mandrax tablets to the police;
(4) notes that drugs pose a threat and wreak havoc in South African communities, and most of the time are the cause of violent crimes and women abuse; and
(5) commends the police for the job well done in reducing and ridding drugs off our streets effecting arrest of drugs traffickers.
Motion agreed to in accordance with section 65 of the Constitution.
THE SPEAKER OF GAUTENG PROVINCIAL LEGISLATURE HON. NTOMBI LENTHENG MEKGWE ON RECEIVING THE CPA 2023 AWARD
(Draft Resolution)
Ms L C BEBEE: House Chairperson, I move without notice:
That the Council –
(1) notes that the Speaker of Gauteng Provincial Legislature, hon Ms Ntombi Mekgwe, was awarded the 2023 Parliamentary Equality and Diversity Award at the 66th Commonwealth Parliamentary Conference, CPA, in Accra, Ghana;
(2) further notes that the award is in recognition of her parliamentary services and her commitment to gender mainstreaming and the promotion of women’s empowerment, the work of the Multi-Party Women’s Caucus and the sector of Parliament’s work;
(3) further acknowledges that through the annual awards, the CPA recognises and highlight the invaluable contributions that the parliamentarians are making to their local communities, both nationally and internationally within the Commonwealth;
(4) believes that Speaker Ntombi Mekgwe is a fitting and deserving recipient of this illustrious award; and
(5) congratulates Madam Speaker, Ntombi Mekgwe, for being honoured with this award.
I so move.
The HOUSE CHAIRPERSON OF THE NCOP: Any objection to the motion?
Ms M O MOKAUSE: We object. The CPA is nothing else but a coloniser’s organisation who continues to colonise some parts of Africa, therefore, we object.
The HOUSE CHAIRPERSON OF THE NCOP: There being an objection, the motion may not be proceeded with ... [Interjections.]
Ms W NGWENYA: Agreed, Chair, not objection, Chair.
The HOUSE CHAIRPERSON OF THE NCOP: ... and it will become a notice of motion.
Ms M O MOKAUSE: Ma’Ngwenya, agree that it is a colonised arrangement.
Ms W NGWENYA: No, we don’t agree with you, it’s not like that.
The HOUSE CHAIRPERSON OF THE NCOP: Order.
CONGRATULATORY MESSAGE TO MAMELODI SUNDOWNS
(Draft Resolution)
Mr M S MOLETSANE: House Chairperson, my motion was about congratulating Mamelodi Sundowns and it has been covered. Thank you, Chairperson.
COMMENDING LAW ENFORCEMENT AGENCIES FOR ARRESTING THE CULPRIT IN UNIVERSITY STABBING INCIDENT
(Draft Resolution)
Ms L MOSS: House Chairperson, I move without notice:
That the Council –
(1) notes with shock the gruesome stabbing of the 26- year-old woman at her private student residence in Belhar, Cape Town, on Saturday, 11 November 2023;
(2) also notes that the 26-year-old woman was a student at CPUT, while her alleged attacker, aged 30, is a UWC student;
(3) believes that the stabbed woman and the suspect are a married couple;
(4) condemns by contempt it deserves the persisting violence against women worse at institutions of higher learning,
(5) calls for the institutions of Higher learning to increase the implementations of programmes geared towards addressing the challenges of sexual and gender-based violence; and
(6) commends the law enforcement agencies swiftly arresting the perpetrator of the merciless and brutal stabbing of this 26-year-old woman.
I so move.
Motion agreed to in accordance with section 65 of the Constitution.
CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE (ATCs, 14 NOVEMBER 2023) 2023 REVISED FISCAL FRAMEWORK AND REVENUE PROPOSALS
Ms L MOSS: Chairperson, fellow delegates, ladies and gentlemen, the Select Committee on Finance, having considered the revised and proposal physical framework referred to it, I would like to present the report for consideration by this House.
On 1 November 2023, Mr Enoch Godongwana, the Minister of Finance, presented the 2023 Medium-Term Budget Policy Statement, MTBPS in Parliament. The Minister along with senior officials from the National Treasury and the South African Revenue Services, Sars, briefed a joint session of the finance and appropriation committees on 2 November.
Subsequently, on November 7, the committee received input from the Parliamentary Budget Office, PBO, and the Financial and Fiscal Commission, FFC, following the Budget tabling.
The committee held public hearings on 8 November and received oral submissions from various stakeholders, including the following: Cosatu, the Institute for Economic Justice, IEJ,
Public Economy Project, PEP, Western Cape Commissioner for Children, Coalition on Debt Justice, Alternative Information and Development Centre, AIDC, Johannesburg Institute for Advanced Study, JIAS, and South African Breweries, SAB. The National Treasury and Sars responded to the issues raised during the public hearings and engaged with the committee and stakeholders on 10 November 2023.
The committee recognizes that the 2023 MTBPS is presented amid very challenging economic conditions. The nation faces significant economic challenges, including electricity supply, rail network, elevated inflation rates, which increase borrowing expenses, weak demand side support to the economy, and global economic challenges. These factors among others are expected to curtail economic growth.
The committee acknowledges the resilience of the South African economy over the past three years, rebounding from a 6,0% contraction in 2020, to 4,7% and 1,9% in 2021 and 2022 respectively, having been negatively impacted by, amongst others, electricity load shedding over a protracted period.
The committee notes the revised gross domestic product, GDP, growth forecast for 2023, lowered from 0,9% to 0,8%. The primary contributors to this revision include lower household
consumption expenditure due to inflation and interest rate increases, and a lack of overall stimulation to the demand side of the economy as well as reduced net exports.
The committee acknowledges persistent structural constraints, particularly in energy and logistics, contributing to the moderate average GDP growth rate of 1,4% projected over the medium-term. Observing the trajectory of inflation, the committee notes the implementation of a cumulative increase of
475 basis points in the repurchase rate by the SARB between November 2021 and May 2023.
While there is a positive shift in the employment landscape, with an increase in the number of employed persons, the Committee expresses concern about the persistently high unemployment rate, currently at an official rate of 32,6% and 4%, when using the more comprehensive definition – not what the hon members are bragging here about the Western Cape government for creating jobs. You must look at the total of the entire country and not a certain province. [Interjections.] No, don’t brag about the province. It is about the country. Its not about a province in a country or a country in a country.
Recommendations: recognizing the impact of structural constraints on economic growth, the committee strongly recommends the swift implementation of energy and logistics improvements, encompassing comprehensive measures to overcome challenges in these critical sectors and unlock their potential for economic development. In expressing concern over the performance of state-owned enterprises, SOEs, particularly Transnet and Eskom, the committee recommends that the National Treasury, together with the Department of Public Enterprises, share detailed turnaround strategies for these entities before the tabling of the 2024 Budget. The committee will confer with the Portfolio Committee on Public Enterprises for the feasibility of a joint meeting. Given the downward revision in GDP growth attributed to lower household consumption, the committee proposes policies to stimulate household spending as the most appropriate way of driving growth. This may involve targeted interventions to address inflation and interest rate impacts on consumer behaviour. The committee recommends close monitoring of inflation, particularly in relation to fuel and food prices. Mitigation strategies should be developed to address potential risks such as oil price increases, currency fluctuations, and other factors influencing the inflation outlook. To address the persistently high unemployment rate, the committee recommends a comprehensive approach that goes
beyond short-term GDP growth. The government should also implement comprehensive economic interventions to stimulate the demand side of the economy, focusing on infrastructure development, education, and skills training, fostering innovation, and creating a favourable business environment to attract investments. Not only in the Western Cape, but around the country. I want to ... [Interjections.] ... No, don’t dream.
In conclusion, I want to table this report and thank the hon Chairperson. The ANC supports this report. Thank you very much.
Question put.
Voting.
Ms C LABUSCHAGNE: On a point of order.
The CHAIRPERSON OF THE NCOP: Yes.
Ms C LABUSCHAGNE: I want to do a declaration, Chair.
The CHAIRPERSON OF THE NCOP: I didn’t hear what you are saying. Please repeat.
Ms C LABUSCHAGNE: I want to do a declaration, Chair.
The CHAIRPERSON OF THE NCOP: Hon members, we can’t be going back and forth. We must be disciplined and keep to programme and the proceedings as they unfold. Because we are trying to encourage a culture where people participate, we will stop for now and allow you ...
Mr Y I CARRIM: On a point of order, Chairperson.
The CHAIRPERSON OF THE NCOP: Yes.
Mr Y I CARRIM: Ms Labuschagne and I, are like a soapie like Isidingo, Uzalo, or the Bold and Beautiful. I know what she is going to say, she knows what I am going to say, and you and everybody here knows what she and I are going to say. Can’t you exercise your extraordinary powers and say that we must both table our respective inputs? You have better things to do. Thank you very much.
The CHAIRPERSON OF THE NCOP: Yeah. The fact that you have allowed her to do so, we will allow the others to do so too. We are back to declaration. Hon Labuschagne! [Interjections.]
Ms M O MOKAUSE: If it was the EFF, you were going to say no, but because it is the DA, you have allowed them. We see you! We are watching you!
Mr Y I CARRIM: Chairperson, I withdraw my point of order.
The CHAIRPERSON OF THE NCOP: Hon Mokause, you are out of order. We also don’t want to waste time, we will therefore proceed.
Declarations of Vote – Ms C LABUSCHAGNE The CHAIRPERSON OF THE NCOP
Declaration of Vote:
Ms C LABUSCHAGNE: Hon Chair, the report in question is a total whitewash and a perfect example of why Parliament has been criticised for its lack of credible oversight foregoing responsible scrutiny of ideological experience and party alignment.
The report is a product of joint meetings of committees from both Houses. The processing of the report was done under the overbearing control of Mr Maswanganyi, who chairs the Standing Committee on Finance. Rather than taking the traditional role of moderating the meeting, Joe chose to use the chair to whitewash the report, cutting out observations and recommendations proposed by the Secretariat. Observations and recommendations that emerged from the deliberations of the joint committees, but which may not align with Mr Maswanganyi’s deference to the executive and his party, were simply deleted. He never wants facts to guide perceptions. The chair vetoed a comment on the imminent tax increases clearly signalled by Mr Maswanganyi and the National Treasury, but obviously hard to sell to ANC voters. The most alarming whitewash of all was the refusal to state that the public wage bill is crowding out service delivery although the additional allocation of R1,7 billion of equitable share to the Western Cape Province is hopelessly insufficient to cover the increased wage bill. This means that, in the Western Cape alone, R1,2 billion will need to be taken from service delivery to fund the wage agreement that government granted to appease their alliance partner.
Now, according to Mr Maswanganyi, we can’t tell the truth despite it being told by every presenter to the committee. While it was clear that there was broad disagreement even amongst the ANC members in the committee, the one good thing is that there was agreement across party lines that the DA’s proposal to increase the basket of items zero-rated for VAT is a necessary step. This sanitized report bulldozed through the committee by the ANC - we will agree on that hon Yunus - as well as the fiscal policy framework are rejected. Thank you.
Mr Y I CARRIM: Thank you, Chairperson, hands up those of you who didn’t in some or other form anticipate what Ms Labuschagne is going to say, and what I am about to say. Let’s start with this, if you’re talking about whitewash, your account of what happened there is a whitewash. Firstly, it’s not true that anybody said that Treasury didn’t say it in the public. Anybody who has access to the media, even on the smallest cellphone, which has some data, knows that. What he was saying - and by the way, it’s not fair, Chairperson - Mr Maswanganyi is not here. He is in the other House. The DA must raise that in the other House if they so feel. It’s not true. Also, to suggest that he bulldozed the meeting implies that the DA is like a sheep the DA and more like I'm like a sheep. Whatever my weaknesses, I think it’s hard to say that I’m very
weak and servile, and I am under some powerful influence of Mr Maswanganyi, who is half my age, anyway. Right. But let me put this to you this way, it’s just not true. On the matter of the wage bill, what he was basically saying is that we do not agree with Treasury. That’s what he was saying. He did not agree with Treasury that the wages of the public servants should be sacrificed as against other options, including by the way, as one of us said, Members of Parliament’ salaries, right. So, we’re not saying the public sector wage will is exactly where it should be. No, like everybody else, starting with us as MPs, even workers who claim to be developmental not just interested in wages and working conditions, particularly our allies and Cosatu should also bear some responsibility.
Why don’t they focus on what we did? There’s no whitewash. We said we don’t approve of that. We don’t approve of our VAT increase. We said no to it. They must look for other forms of taxes. It is outrageously inaccurate. It’s blatantly wrong for Ms Labuschagne to say when she wasn’t even there, right, that the DA put this novel idea. Why doesn’t she look at the 2017 or 2018 report when they increased VAT by 2%? It was the ANC. And only the ANC that said no to it. And we said no to zero- rating to extend the basket of products and commodities that are zero-rated. We said it there, it’s in black and white so to speak. There's no racist term there. What I mean is that
it's in type, okay? So, why is she lying because that’s a lie? I don't know where this happened. Which planet was she in or those who helped her to draft that speech? That just didn’t happen. If people can watch the recording, the DA never suggested something that the ANC... Well, maybe we should thank the DA, that finally ... [Interjections.] ... after four and half years ... [Interjections.] ... they will come around to recognize what we said in our report in the Standing Committee on Finance. Where is Ms Mahlangu? She will confirm it. Thank you very much.
Mr J J LONDT: On a point of order. Hon Chairperson, I think you raised that in one or two debates ago that if you accuse another member of the House of lying, you should bring a substantive motion. You can’t just say it in the House. I know sometimes we struggle to rule immediately on that, but I think it is a straightforward one. The hon member should withdraw that, and then we can continue. Thank you.
The CHAIRPERSON OF THE NCOP: Hon members, no ... [Interjections.]
Mr Y I CARRIM: I am happy to withd ...
The CHAIRPERSON OF THE NCOP: ... we can’t blow hot and cold the issue of unparliamentary language. I have consistently said to members, please, stay away from doing that. I am sure the issue that hon Londt is raising, we can back to the House and give you very brief report on how this matter of lying as word has been used in this House consistently over time, and the kinds of rulings that have been made. We are not going to
...
Mr Y I CARRIM: But I am happy to withdraw that.
The CHAIRPERSON OF THE NCOP: Please, hon members, allow me to continue.
Question put.
Voting.
[TAKE IN FROM MINUTES]
Agreed to.
PREVENTION AND COMBATING OF HATE CRIMES AND HATE SPEECH BILL
(Consideration of Bill and of Report thereon)
Ms S SHAIKH: Hon Chairperson, greetings to your good self and to all hon members. The Prevention and Combating of Hate Crimes and Hate Speech Bill seeks to give effect to the republic’s obligations in terms of the Constitution and international human rights instruments concerning racism, racial discrimination, xenophobia and related intolerance, in accordance with international law obligations; to provide for offences as hate crimes and the offence of hate speech and the prosecution of persons who commit these offences; provide for appropriate sentences that may be imposed on persons who commit hate crime and hate speech offences; provide for the prevention of hate crimes and hate speech; the reporting on the implementation, application and administration of this Act; effect consequential amendments to certain Acts of Parliament; and to provide for matters connected therewith.
The Bill is tagged as a Bill to be dealt with in terms of section 75 of the Constitution.
The Bill was referred to the Select Committee on Security and Justice on the 14 March 2023. In response to the select committee’s invitation for written submissions, 40 substantive submissions were received, as well as submissions and
petitions that were delivered to Parliament on the day of the deadline. The committee took the decision to host public hearings on the substantive submissions and 30 oral submissions were made to the committee. Emanating from the old submissions, the committee requested certain organisations that had presented to provide further information and received full submissions.
The committee received a briefing from the Department of Justice on the department’s response to the public, written and oral hearing submissions on the Bill. On the
18 October 2023, the committee deliberated on the Bill and received proposed amendments by the DA, which the department responded to. In the committee deliberation on the
25 October 2023, the committee considered proposed amendments that emanated from the public hearing process, as well as areas that the National Prosecuting Authority advised and need amending. On the 1 November 2023, the committee considered and adopted clause by clause amendments and the DA proposed that their amendments be considered as well. The committee report was adopted on the 8 November 2023.
In the committee’s consideration of the Bill, the committee discussed the need for the definition of hatred and whether
the definition of hate speech required expansion. However, after due deliberation, the committee agreed that the definition is clear as the term carries its ordinary dictionary meaning and is aligned to the Promotion of Equality and Prevention of Unfair Discrimination Act, Pepuda, and the Qwelane judgement. Further, that the Director of Public Prosecutions, DPP, will decide whether to prosecute according to directives set by the National Director of Public Prosecutions, NDPP, and the courts ultimately will decide whether there was hate or hatred in each particular case.
The committee considered the penalty clause in class 6 and proposed reducing the maximum sentence from eight years to five years, with the understanding that the courts will have a discretion, and this is a maximum sentence. The importance of having a reasonable sentence was emphasised. The committee further supported the notion of making hate crimes and hate speech a statutory offence. Committee members emphasised the need for a statutory crime to combat racism, as well as prejudice against vulnerable groups. But at the same time, continue to engage in efforts towards greater social cohesion and celebrating diversity.
Committee members also expressed support for the National Prosecting Authority, NPA, amendments, and that these amendments will serve to improve the Bill and make the Bill more effective in dealing with hate crimes and hate speech, and how these matters are dealt with in the criminal justice system. Committee members further expressed support for hate crimes and hate speech being dealt with in the district courts, as well as the regional courts as this will ensure that the regional courts are not overburdened with too many cases. The committee also found - during its deliberation and engagement with stakeholders - that they that there is a strong need for education, public awareness and training on this Bill.
The proposed amendments are largely of a substantive nature, with some technical amendments and include the following: In clause 1 which deals with definitions, amending the term asylum seeker to asylum seeker status; deleting definitions that are unnecessary, the definition of Criminal Procedure Act, the definition of Director of Public Prosecutions and DPP; amending the definition of court to include the district courts in addition to the regional courts.
Clause 3 which deals with the offence of hate crimes clause 3 sub (1)(b), amended to refer to the victim, the victims’ family member or the victims’ association with or support for a person or a group or person who shared the said characteristic. This amendment deals with the inclusion of a person exhibiting the characteristics and is not limited to just a group of persons exhibiting the characteristics.
Clause 5 which deals with impact statements. Clause 5(2)(a), deletion of when adducing evidence or addressing the court on sentence in respect of an offence under this Act consider the interests of a victim of the offence and the impact of the offence on the victim. This is deleted because it was unnecessary to include this as the NPA does this in any case.
Clause 5 sub (2)(b)(1) and (2), that the sub pro should be amended to include the following: Someone authorised by the victim to make such a statement on behalf of the victim; in the event of the victim’s death; an organisation or institution with expert knowledge or experience of the group to which the victim belongs on. This provision is made for when you can’t get a victim impact statement. For example, if a victim dies or can’t testify, then you can’t get it from other people specified in the Bill.
Clause 6 which deals with penalties or orders to amend the maximum sentence from eight years to five years, which was in line with the international best practise. Clause 7 which deals with the national instructions and directors. Clause 7 (2)(b)(3) to delete as many as possible, which is a consequential amendment as a result of the amendment to the definition of court.
Clause 8 which deals with reporting on implementation of the ACT. Clause 8(1)(a) and (b) are consequential amendments.
Clause 8(1)(c), the removal of quantitative and qualitative data and the insertion of prescribed information that must be collected and collated by the clerks of the court and registrars of the High Court.
The committee thanked all stakeholders for their valuable input as it allowed the committee to internalise some of the challenges, which stakeholders had with the Bill. This world is of great importance in addressing South Africa’s past and future. Given our long history of racism, majority of our people were killed, and their land stolen, on the basis that they were believed to be lesser human beings. This racism continues to the present day, where black people in
particular, are dehumanised, are called other derogatory words which indicate extreme hatred towards them.
There should be absolutely no place for this to be happening so many years after the dawn of our democracy. But sadly, it is. In addition, we know that hatred and prejudice against vulnerable groups are becoming more common, particularly on social media platforms. This Bill will go a long way in ensuring that every citizen is respectful towards others and that the balance between the right to human dignity, equality, freedom of religion and freedom of expression is found in a democratic South Africa.
The Bill is important in ensuring that the statutory crime is created to combat such offences, and the five-year penalty clause will further strengthen the Bill and ensure that people are deterred from expressing hatred or prejudice in all walks of life. The penalty will set a clear message that intolerance and hatred will be punished accordingly. The Select Committee on Security and Justice having been considered the Prevention and Combating of Hate Crimes and Hate Speech Bill (B9-2018), referred it on the 14 March 2023 and classified by the Joint Tagging Mechanism, JTM, as a section 75 Bill, recommends the
council to pass the Bill with proposed amendments. I thank you, Chair.
Declarations of vote:
Afrikaans:
Mnr S F DU TOIT: Agb Voorsitter, ’n paar aspekte om oor na te dink is die volgende. Kan hierdie wetgewing as nog ’n poging om politieke haat op papier te laat manifesteer voordat dit die wig van verdeeldheid net verder indryf gesien word? Kan hierdie wet juis as ’n gereedskapstuk wat deur gemeenskappe en groeperings gebruik gaan word om lewens te verwoes gesien word? Of gaan hierdie wetgewing in praktyk as die dolk van veragting eerder as die swaard van gereg gebruik word?
Sodra die aard van ’n oortreding se omskrywing of beskrywing vir interpretasie oorgelaat word, is dit mos duidelik dat dit misbruik gaan word om ’n gewenste uitkoms te bewerkstellig en ook daarom as ’n wapen te gebruik.
English:
All the regulation of free speech could result in the limitation of free speech, and this is what will happen if this Bill is passed. As indicated by the Association of Christian Media: The actual and threatened civil hate speech
litigation under Promotion of Equality and Prevention of Unfair Discrimination Act has already severely inhibited public debate on controversial issues. With the threat of jail sentence, the effect on legitimate free speech would be greater. Up to eight years is more than the penalty for house breaking - five years for the first offence and seven years for the second offence. The maximum penalty does not differentiate between a person inciting violence and a person expressing an opinion someone else disagrees with.
Afrikaans:
Op hierdie punt is die departement van mening dat die kwessies aan die diskresie van die voorsittende beampte oorgelaat moet word. Dit is belaglik. Die kort en die lank is dat die regte van alle Suid-Afrikaners ten alle tye beskerm moet word maar sodra wetgewing ingestel word om die toonhoogte en melodie van die loerie se lied te beperk maar die vink se kwetsende skril uitroepe om groeperings te skiet en vermoor as ’n struggle [stryd] lied te klassifiseer, weet jy dat die dirigent met hierdie toorstaf in die hand staan en niks goed uit hierdie wetgewing kan vloei nie.
English:
As the hon Shaikh said that, in my own words I say that this will definitely be used to address some things that is currently happening in this country, but I want to put it to you that incitement by certain political parties chanting, “Kill the Boer, kill the Farmer”, must be revisited in the light of this Bill, if it is passed.
Afrikaans:
Voorsitter, die VF Plus ondersteun nie hierdie wetgewing nie. Dankie.
Mr G MICHALAKIS: Hon Chairperson, let me begin by stating unequivocally that hate crimes and hate speech whether based on racism, sexism, homophobia, transphobia or any other form of prejudice, has no place in a democratic society. But it is a societal problem that will require society to call it out wherever we encounter it and build a freer, more open society for all. However, it is our job as lawmakers to ensure that we pass the best possible version of all legislation that comes before us. It is the DA’s belief that this Bill is not that.
Our issues with the Bill include that, one, in criminal law, elements of the crime need to be clearly defined to ensure that the public knows the nature of the crime before it is
committed. This is not done with regards to the definition of hate and the definition of hate speech in its current form and it is too wide. Two, clause 4 (2) is too narrow, creating a risk of limiting free speech and the lack of a definition as I just mentioned is in our party’s opinion, increasing the need for clarity and a broader clause.
Finally, the DA is of the view that the sanction, as contained in the initial Bill introduced by the department in the National Assembly would be more appropriate and in line with sanctions handed down to date for similar crimes. However, we welcome any form of reduction of the ridiculous eight-year maximum sentence that the National Assembly initially worked in. In its current form, it is not a good law and in the sense that it is unclear and likely to be unconstitutional in some aspects, in which case it would make no contribution neither to the victims of such crimes who deserve respect and protection, nor to free speech in our country. The DA therefore, cannot support this Bill. Thank you.
Mr K MOTSAMAI: Chairperson, regarding the Prevention of Hate Crime and Hate Speech Bill, we must firstly outline how complicated and open it is to manipulate this Bill. As the EFF, we have various platforms highlighting how in truth many
people are discriminated against in this country based on their sexual orientation, their gender, their skin, and those injustice must be criminalised by any means necessary. Race remain a continuous issue and is used by those with money for instead, AfriForum, who seek to gag political speech by calling and ... [Inaudible.] ... who continue to harass our president and commander-in-chief should never be allowed to prosper. The bones of continuum should be who should be prosecuted for the crime of hate speech and inciting harm, for the truth is, it is black people who work in farms who are exposed to hate speech and hate crime. It is the LGBTQ+ community who are subjected to hate crime and hate speech. It is people who have albinism who are subjected to hate crime and hate speech. Those are some of example of what hate crime and hate speech are, and what characterise them.
Speaking out about the 11:38clarity this parties in the country that continue to thief, even post-apartheid should never be termed as hate speech. We should highlight that we as the EFF will not tolerate elements which seeks to gag the truth that the economy of this country is still in white hands, that the history of this country is still told through the white lines and that we must at all times seek to regain
our dignity as black people. The EFF supports this Bill. I thank you, Chair.
Mr T S C DODOVU: Hon Chair, if the host can also unmute me because the video is off, but that being the case, hon Chair, the ANC supports the Prevention and Combating of the Hate Crimes and Hate Speech Bill. Since its formation in 1912, the ANC declared its aim to bring all South Africans together, and that they must work together to achieve their own common hood and nationhood. Building a nation and promoting national unity is a historical objective of the ANC. For centuries, human dignity and equality were consistently denied to most of our people in South Africa. We declared in 1955 that South Africa belongs to all who live in it, black and white.
In 1996, we adopted the Constitution that was solely and mainly driven by the ANC, which is the highest law in the land to heal the division of our past and to bind all South Africans with regard to building their future. We adopted in this Constitution to create an inclusive society based on the values of equality and human dignity. Our Constitution is an important tool to transform society. While we have made great strides by enacting progressive legislation to foster social cohesion and establish state institution, the damage caused by
centuries of colonial rule, the entrenchment of divisions, degradation, humiliation, and hate are still embedded in the minds of our people. Our nation is still deeply divided.
We support the enactment of this law, the Prevention and Combating of Hate Crimes and Hate Speech, as it seeks to give effect to the Republic’s obligations regarding prejudice and intolerance. It seeks to provide for the prosecution of persons who commit offences referred to and provided for appropriate sentences. The Bill seeks to provide for the prevention of hate crimes and hate speech and provide for effective enforcement measures. From time to time, we witness violent conduct of persons who are motivated by clear and defined prejudices. The Bill seeks to address that. The message of deterrence is very much important. We want to live in a country free from hate and prejudice, where we are united in our diversity. It is in this context that the ANC of Luthuli, Mandela, and Tambo supports this Bill. Thank you very much, hon Chair.
The CHAIRPERSON OF THE NCOP: We will now allow one minute window for delegates who are outside the platform to join the House. That one-minute starts now. [Interjections.] [Inaudible.]
Ms M O MOKAUSE: Dodovu is abusing us, and you are quiet, Chairperson. I don’t know why.
An HON MEMBER: We can’t hear the Chairperson.
An HON MEMBER: Open the mic, Chairperson!
An HON MEMBER: We can’t hear you, Chairperson.
An HON MEMBER: Chairperson, they have muted you.
An HON MEMBER: We can’t hear you.
Ms
M O
MOKAUSE: They are dealing with you.
An
HON
MEMBER: We can’t hear you, Chair.
Ms
M O
MOKAUSE: Why are they raising hands?
An
HON
MEMBER: The staff has muted you.
Ms
M O
MOKAUSE: They have dealt with you, that’s the staff.
Ms Z V NCITHA: Chair, it’s Ncitha, I have a problem with network.
An HON MEMBER: We can’t hear the Chair.
An HON MEMBER: Let the Chair unmute himself.
An HON MEMBER: We can’t hear nothing. We don’t know whether to vote or not.
Mr S J MOHAI: Can the table team please assist; members are finding it difficult to follow the Chair’s instructions? [Interjections.]
Ms M O MOKAUSE: This time the table staff are dealing with him.
An HON MEMBER: We will have to restart the voting because we didn’t hear.
An HON MEMBER: We are not starting anything.
An HON MEMBER: Order, Chair.
An HON MEMBER: Hon members! [Interjections.]
An HON MEMBER: Chairperson, we can’t hear.
An HON MEMBER: I will vote in favour; I don’t know for what. [Interjections.]
An HON MEMBER: Can the table assist us. [Interjections.] We can’t hear the Chairperson on virtual. Please, we are only seeing members raising their hands.
An HON MEMBER: Order, Chairperson. I am raising a point of order.
An HON MEMBER: Ms Ngwenya, hon Ngwenya! Apparently, the House is aware of the audio problem.
An HON MEMBER: Please be patient.
An HON MEMBER: No, we can’t work like that.
Ms M O MOKAUSE: Yeah, tell him Mma Ngwenya, we can’t work like that.
Adv. M PHINDELA: Hon members, can you give us a second, we lost connection with the Chamber. We lost the audio. Give us a second, we are dealing with it.
Mr Y I CARRIM: They could be in the House. There is no reason for them to be here, Chair. Please ... [Interjections.]
Ms M O MOKAUSE: Shut up!
The CHAIRPERSON OF THE NCOP: ... I am sure that is a sentiment that is supported by most members. For now, all we can say is that ... [Interjections.] ... noted.
Ms W NGWENYA: On a point of order, Chairperson. It is hon Ngwenya.
The CHAIRPERSON OF THE NCOP: Hon Ngwenya.
Ms W NGWENYA: Chairperson, I think we do have ...
The CHAIRPERSON OF THE NCOP: Hon Ngwenya.
Ms W NGWENYA: Yes, Chairperson, I can’t hear you.
The CHAIRPERSON OF THE NCOP: Yeah, that’s the thing.
Ms W NGWENYA: Can I speak, Chairperson?
The CHAIRPERSON OF THE NCOP: The system is being taken care of. Can I urge members to keep quiet a bit.
Ms W NGWENYA: Can I speak, Chairperson? [Interjections.]
Adv. M PHINDELA: Chair, with your permission?
The CHAIRPERSON OF THE NCOP: Yes, Advocate.
Adv. M PHINDELA: Chair, with your permission, we just want to test if the sound has been restored? [Interjections.]
The CHAIRPERSON OF THE NCOP: The sound has now been restored. Thank you very much.
Adv. M PHINDELA: Okay. Thank you very much.
The CHAIRPERSON OF THE NCOP: The sound has now been restored. Can we look at the question of again.
Question put: That the report be adopted.
[TAKE IN FROM MINUTES]
Agreed to.
Mr Y I CARRIM: On a point of order. As the elections are drawing closer, I just want to find out if there is any Rule that prevents us as ANC members from putting up our hands like that, and the same goes to those who are linked virtually to press a button and do that also. Can we monitor that Chief Whip? Thank you. [Interjections.]
Ms M O MOKAUSE: On a point of order, Chair!
The CHAIRPERSON OF THE NCOP: Hon Mokause, what is your point of order?
Ms M O MOKAUSE: Chairperson, I think your party – the ANC, must consider taking its members on a course. Even the youngest of them all can’t use the gadget, just to press, raise your hand and lower your hand. It has been five years now that we are using the virtual system ... [Interjections.]
... you guys are such a disgrace; how can you provide services when you can’t even press a button ... [Interjections.]
The CHAIRPERSON OF THE NCOP: Let’s proceed to the Subject for Debate.
DEBATE ON 2023 AFRICA INDUSTRIALISATION DAY: RENEWED COMMITMENT TO-WARDS AN INCLUSIVE AND SUSTAINABLE INDUSTRIALISATION AND ECONOMIC DI-VERSIFICATION PLAN FOR SOUTH AFRICA
The DEPUTY MINISTER OF TRADE & INDUSTRY & ECONOMIC DEVELOPMENT
(Ms N Gina): Thank you very much, hon Chairperson, hon Masondo, greetings ... [Interjections.] Good afternoon hon members.
The CHAIRPERSON OF THE NCOP: Yes, good afternoon, hon Deputy Minister. Please proceed.
The DEPUTY MINISTER OF TRADE, INDUSTRY & COMPETITION (Ms N
Gina): Chairperson, today we are celebrating Africa’s industrialisation day. This year’s AU’s theme for the Africa Day is, “Accelerating Africa’s Industrialisation through the empowerment ... Chairperson, I am not sure if I hear an echo.
The CHAIRPERSON OF THE NCOP: No, there is no echo this side. Please proceed.
The DEPUTY MINISTER OF TRADE, INDUSTRY & COMPETITION (Ms N
Gina): Ooh, thank you. Chairperson, today we are celebrating Africa’s industrialisation day. This year’s AU’s theme for the Africa Day is, “Accelerating Africa’s Industrialisation through the empowerment of African women in processing for an integrated market.” The theme focuses on the critical role of women-led enterprises in driving Africa’s industrialisation through processing the value addition, as well as the integration of the African markets under the African Continental Free Trade Area.
This theme resonates well with the theme that our esteem Parliament selected for this debate, which is titled, “Renewed commitment towards an inclusive and sustainable industrialisation and economic diversification plan for South Africa.”
The African continent is a land of opportunities, which, if unlocked, can facilitate sustainable development and accelerate structural economic transformation, which is essential for job creation. Our continent is blessed with a
wealth of resources and the fastest growing population in the world, that promises both as a sort of human capital and a ready market. The continent is well endowed with natural resources that can drive resource-based industrialisation.
The continent is sitting on more than $82 trillion in discovered natural resources - and I want to underline that, ‘in discovered’, because there are so many of them that are not yet discovered - with the potential to contribute
$30 billion a year in government revenues over the next 20 years. Africa also possesses other natural resources, like minerals, rivers, forests, fisheries, et cetera, in vast quantities worth significant amount of money.
The value added of these fisheries and aquaculture alone, is estimated to be more than $24 billion. However, many countries continue to export your raw materials with little value addition. For an example, Africa exports 69% of the world’s raw cocoa bean, but under 16% of ground cocoa, which is typically worth two to three times more fertile than the raw cocoa. Transforming the agriculture sector in Africa towards agro-aligned industrialisation could open markets with more than $100 billion a year by 2025 and can contribute to increasing trade in Africa in alleviating poverty.
African economies are remarkable import-dependent for even basic product, ranging from apparel to shoes and electronics. The African continent continues to record the fastest growth in imports of manufacturers. The COVID-19 pandemic, the geopolitical tension and the food insecurity crisis highlighted the fragility of our continent in terms of its heavy reliance on imports. For an example, around 99% of vaccines needed in the continent are met with imports.
As we move towards the integrated market through the African Continental Free Trade Area, industrial development has become of critical importance to sustainable and inclusive economic growth in African countries. It is for this reason that we have adopted the development integration agenda that combines market integration with industrial and infrastructure development, so as to address the fundamental constraints to the low level of intra-Africa trade, which currently stands at 18%.
Although this figure of the intra trade is low by global standards, we need to note that with intra-African trade dominated by manufactured products, there is a huge potential for women to take up more roles in manufacturing as a pathway
to the continent structural transformation, economic inclusion, as well as job creation.
Chairperson and hon members, Africa must industrialise in order to fulfil its economic potential. To achieve the Sustainable Development Goals as part of the 2030 Agenda, promoting inclusive and sustainable industrialisation is key to ensure that no one is left behind, especially women.
Including women is critical, not only because gender equality is a fundamental human right, but also because it enables faster economic growth, shared prosperity and sustainable development.
Women provide critical support for their household and communities. In addition to childcare and other household responsibilities, it is estimated that they are responsible for 70% of crop production, 50% of animal husbandry, 60% of marketing and nearly 100% of food processing. However, despite these social economic contributions, women represent only 38% of the manufacturing workforce in the continent.
In order to industrialise and attain sustainable economic development, African economies must move beyond raw materials production and low value addition. Structural transformation
can be driven by an increased integration in regional and global value chains. Technology transfer and leveraging existing technological innovations will be critical to building the capacity to produce high value goods and to support women-led enterprises to be competitive.
The contribution of the manufacturing sector to the GDP, in the majority of Africa, remains low, at under 12%; and continent’s share of the global manufacturing remains less than 2%. Africa’s tragedy of the industrial output is a stack contrast to the performance of other newly industrialised countries, where manufacturing peaked at 30%, contributing to GDP.
As a result, the. African continent still accounts for only the mired share of global trade, barely over 2%. Without investing in industrialisation, even the best-meant efforts at integrating the African market and integrating women-led enterprises into international support chains, will fail to achieve their full potential. South Africa values the potential presented by the African market and the importance of regional integration for building the resilience of our country, and that of the continent.
South Africa is a reimagined industrial strategy provides an integrated and coherent framework for the inclusive and sustainable reindustrialisation and economic diversification of the South African economy. It is primary focused on developing and threatening strategic value chains by promoting localisation and sector masterplans, leveraging private investment and infrastructure.
Industrialisation efforts are looking to promote the legal and other modalities required to increase trade within Africa, through the African Continental Free Trade Area, in line with Africa’s structural transformation goals. Our industrial strategy focuses on increasing the level and composition of export through trade with the rest of the world. Our trade policy is increasingly geared towards being a source of new jobs and expansion of industrial economy.
Over the years, the country has maintained centres of excellence, notably, the auto industry and related activities, as well as mining and high-level farming. We have focused efforts towards competing in more labour-intensive value chains that have driven job creation through: Industrialisation worldwide, including food processes;
clothing and footwear; electrical appliances and electronics; and plastics and services sector.
The industrial strategy seeks to boost levels of investment through co-ordination and the use of various policy measures, making it possible to take advantage of opportunities, to expand our markets through localisation and exports.
Chairperson, this strategy aims to promote green industrialisation and ensuring a just transition.
South Africa is well positioned to become a key player in this area: Given its vast reserves of platinum group metals used as a catalyst in green hydrogen fuel cells, as well as vanadium used in battery storage technologies; and by developing green hydrogen commercial commercialisation strategy, in order to position the country as a major producer exporter of green hydrogen.
Since the shift from internal combustion engine vehicles to the new energy vehicles, the NEVs, it is a disruptive trend for the automotive industry globally. Failure to transform to advance the electric vehicle evolution will potentially lead to a loss of up to 80% of exports to the EU. The industrial
strategy aims to promote greater levels of employment and sustainable entrepreneurial opportunities.
All of the pillars of industrial policy are geared towards generating more inclusive industrialisation outcome. The strategy looks to strike the balance between high tech capital intensive, highly competitive activities and more labour intensive and often less productive industries that generate employment and support smaller producers on a mass scale.
Hon members, we recognise the efforts made so far towards Africa’s industrialisation. However, we remain conscious of the tremendous efforts needed to unlock the potential productive capacity and transformation in the world’s most compromising continent. South Africa’s industrialisation is interlinked to that of African. Hence, South Africa, in its engagement in the region, through Southern African Customs Union, Sacu and SADC, is putting emphasis on developing and strengthening various value chains on agreed factors.
The web also further deepens the efforts on linking infrastructure development that facilitates industrialisation and private sector participation, which has specific focus on Africa’s comparative advantage in mining and minerals, oil and
gas, and green technologies. In the context of climate change and the corresponding just transition, there is a need to position Africa to benefit from energy transition through leveraging green minerals for economic transformation, inclusion and economic diversification.
So, as of South Africa, we really think more and invest more on the industrialisation part of it, through the interaction and the debate ... [Inaudible.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Deputy Minister, if you can switch off. If you are still able to hear us, you can switch off the video and try to conclude your speech. Let us agree that she will have the remaining four minutes added to the five minutes, because should be concluding. I think it is a fair process; we are not going to be stopping. Let now us invite the chairperson of the Select Committee on Trade and Industry, Economic Development, Small Business Development, Tourism, Employment and Labour, hon Rayi.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Deputy Minister, if you are still able to hear us you can switch off the video and try to conclude your speech. Let’s agree that she will have the remaining four minutes added to the five minutes as she will
be concluding. I think it is a fair process. We are not going to wait.
Mr M I RAYI: Hon House Chairperson, Chairperson of the Council, hon members, hon MECs and special delegates, greetings to you and good afternoon. South Africa emerged as a semiperipheral economy on the African continent during the period of colonialism and apartheid as a consequence.
Apartheid has left the country with an economy characterised by the excessive levels of concentration of ownership and control as well as lack of participation by all South Africans. The apartheid regime actively promoted national champions in different sectors, developed industrial state- owned enterprise monopolies and agricultural corporatives that were later privatised and cordoned industries cartels in its efforts to promote self-sufficiency and the economic interest of the minority. This era also saw the emergence of a few conglomerate holding companies that held investments in businesses across much of the economy resulting in an excessive concentration of wealth in the Johannesburg Stock Exchange. The South African economy as a result is highly concentrated.
While these conglomerates were generally unbundled in the initial postapartheid period selling off noncore businesses, The individual businesses that dominated particular industry often remain intact and could continue to command certain sectors given their market positions. In the South African context, the concertation is of particular concern because it is generally not associated with the efficient forms of growing concentration, but rather inefficient forms. This is because the economy inherited a concentrated market structure from the apartheid era with an entrenched leaders that remain dominant today. Inefficient concertation is associated with higher margins and seen to impose a structural constraint on growth. Persistent concertation by historically dominant firms is also associated with a lack of transformation of the economy denying opportunities for those that were historically excluded to participate and grow their share of economic value.
According to the Organisation for Economic Co-operation and Development and Development, the skewed economic structure in South Africa is evident from the fact that amongst tax paying firms the small medium and micro enterprises, SMMEs, contribute only 24% of the total firm turnover relative to the 50% to 60% amongst the developing nations. Given that the
SMMEs generally are more employment intensive in comparison to large firms or formal sector firm contributing 38% of employment in South Africa. The skewed economic structure will also constrain employment generation and contribute to household inequality.
On industrialisation, the South African economy has struggled to achieve sustained long-term growth. Instead, the growth has occurred in fits and starts which suggest that the economy suffers from structural weaknesses. This inevitable require the urgent structural transformation of the economy which has several dimensions which include, among others, breaking the chains of our colonially defined place in the imperialist division of labour as producer and exporter of primary products by moving to higher value-added production. This must involve the reindustrialisation of our economy.
Industrialisation is a critical driver of economic development and a tool for job creation. This requires a shift towards decentralised production and the development of new global production value chains and business models which require modernisation of the manufacturing sector. This does not mean just growing the manufacturing sector in a narrow sense though it includes this, but it will also include promoting mineral beneficiation, in other word, adding more value to mineral
commodities rather than exporting them as dealt out of the ground as well as smart agricultural aiming, inter alia, at capturing more of value chains as exported product.
Historicises are that almost all the few countries that have broken out of the underdevelopment and poverty have done so by undergoing such structural transformation. History also teaches us that all those who have followed this path we are the exception having implemented state led high impact industrial policies. This requires that reindustrialisation become an overarching policy of government to be implemented by spheres of government using the District Development Model as a catalyst to advance this which will require investment in infrastructure development, innovation, skills development and training.
The ANC-led government is pursuing the policy of transformational and inclusive growth through the reimagined industrial strategy with a focus on decentralising the economy through the establishment of the special economic zones, SEZs, the revitalisation of the industrial parks and the strengthening of the social compact with the business through master plans.
Through the reimagined industrial strategy, the DTIC mobilises incentives through the fiscus and partnership with the private sector to enable structural transformation and support to firms to enhance their competitiveness. In addition, it has a range of nonfinancial support schemes ranging from rebates on duties to trade tariff support, an action by the competition authorities and developed financial institutions to support the firms. This strategy has registered substantial success in the automotive sector. For example, 140 455 units including passenger cars, light motor vehicle and medium and heavy vehicles have been produced during the fourth quarter of 2022 alone.
On beneficiation, our efforts at the economic diversification through the industrialisation will be meaningless if not accompanied by the beneficiation and localisation. We have to see this throughout the productive sectors of the economy like mining, agriculture and transport. Some of this work is already underway although not at a substantial rate. One successful programme is the Gibela Rail Transport Consortium which has made advances in the production of new trains locally and building local capacity around train manufacturing. A consortium in terms of the contract with the Passenger Rail Agency of South Africa, Prasa, is expected to
manufacture 600 for Prasa and to date it managed to deliver
115 from the Dunnottar factory. Furthermore, 1 126 direct jobs have been created. An amount of R650 million has been spent by the consortium on training including the training for small businesses. This type of localisation has brought our positive implications for economic diversification and beneficiation. We need more of this kind of beneficiation consortiums in all critical sectors of our economy.
The COVID-19 pandemic and the conflict between Ukraine and Russia have exposed the vulnerabilities of the South African economy and economy and weaknesses of the global economy. It has demonstrated the fragility of our world. It has laid bare risks in areas such inadequate health systems, gaps in social production, structural inequalities, environmental degradation and climate crisis. The economic fallout of the pandemic is affecting those who work in the in formal economy, small and medium-sized businesses and people with caring responsibilities who are mainly women. Economic diversification will therefore require that we build internal resistance and self-sufficiency as a country. We have to redistribute land, encourage and enable South Africans to grow and produce their own food. Our people must plant wheat and
corn amongst others. This will minimise the impact of global supply chain constraints whenever they emerge in future.
The essence of the reimagined industrial strategy seeks to drive us in this direction through the industrial parks and the SEZs. The implementation process of the SEZ programmes requires collaboration efforts from all spheres of government to ensure that the roll-out of the programme is efficient, integrated and well co-ordinated. It is through co-operation of national, provincial and local government levels that South Africa can successfully build an inclusive economy.
Intergovernmental relations both horizontally and vertically are therefore important in achieving the set objectives of the reimagined industrial strategy. The efforts of pursuing the
co-ordinated framework through the District Development Model approach has presented an opportunity for the creation of a balance ecosystem for integrated development. In further pursuit of this objective, government is currently reviewing the role of private sector in the ownership, management and operation of industrial parks. This may improve the effectiveness of the industrial parks. This is not withstanding the key role of government to ensure that the
SEZs and industrial parks operate optimally and are adequately resourced.
On growing township and rural economies, the economic diversification cannot occur without growing the rural and township economies where the vast majority of the people of South Africa reside and are in need of services. Thre are approximately 12 million people who live in townships and
20 million people who live in rural areas. This is where road should be. Many of these people who are black and Africans rely on the informal economy. The diversification of the economy requires the necessary integrated plan to include growth in the informal sector.
Globally, on average for a developing an emerging country similar to South Africa, employment happens 45% in a formal sector and 45% in the informal sector, leaving on average 10% of people unemployed. For South Africa however the picture is very different where 52% of the people are in informal employment, with only 16% in formal jobs and 32% unemployed – and now it’s 31% unemployed. The opportunities is clear, we cannot expect the formal sector to save us from our unemployment issues. Instead, South Africa needs more informal
opportunities and should create an ecosystem that encourages and support individual in starting and operating businesses.
Internationally, more than 60% of the world’s employed population are in the informal economy. A 2018 International Labour Organisation report showed that two billion people work informally. Most of these people are in the emerging and developing countries such as ours. In Africa 85,8% of the employment is in informal. The promotion is 68,2% in Asia and the Pacific, 68,6% in the Arab State, 40% in the Americans and 25,1% in Europe and Central Asia. In contrast, South Africa has consistently ranked poorly in the global entrepreneurship monitor survey regarding entrepreneurial activities. South Africa’s rate of entrepreneurial activity is migre for a developing nation. A quarter of that is seen in other sub- Saharan countries. We are not producing as sufficiently entrepreneurial economy. This need to be addressed if we wish to create employment, expand markets, increase production and equip people to support heir families.
In conclusion, to address the historical injustice of colonialism and apartheid which has intensified concertation and dependent structural unemployment in South Africa, we need systematic changes that support and encourage
entrepreneurship, diversification and industrialisation of the economy through, among other things, eliminating barriers to entry access to affordable capital and real business opportunities. We must also do the hands-on work to move people from the dependency to dignity. This includes creating a deliberate ecosystem that unlocks human potential by engaging at heart and hands. This is a most demanding work and the most overlooked requirement. There are no quick fixes when dealing with the multilayered intergenerational issues such as poverty. We need to be willing to roll up our sleeve and invest in people if we want to create a new generation of economically active contributing citizens. I thank you.
Mr J J LONDT: Hon House Chair, I want to begin with a quote Tony Elumelu, it says:
I would say changing Africa is a collective responsibility. Every one of us must realise that we need an improved Africa. The world is moving and evolving, and we face a huge risk of further widening the developmental gap if we do nothing.
Therefore, in order to move and evolve we need to understand where we are coming from and that is to understand the
necessary conditions for industrialisation to occur. I consulted the National Industrial Policy Framework of 2008 by the Department of Trade and Industry, DTI, which indicated that four main sets of policies need to be implemented. A stable and supportive macroeconomic and regulatory environment, skills and education for industrialisation, traditional and modern infrastructure and innovation and technology.
I want to touch on a few key areas within these conditions, firstly, a supportive regulatory environment. The World Bank Group defines ease of doing business as the extent to which the regulatory environment is conducive to starting and the operation of a local firm. Entrepreneurs depend on a conducive environment that aids their success, but that’s simply not the case in South Africa, and hon Rayi pointed to this. The irony is that he does not realise, or he does not understand that it is his party’s policy that has ensured that ease of doing business is not working in South Africa ... [Interjections.]
What has been done where there are competent governments, the Department of Economic Development in the Western Cape established the rate type reduction unit directly responsible for helping to create an enabling environment for businesses
to do business. Since the inception, over 9000 cases received assistance with the positive resolution rate, while in excess of 80%. Between 2015 and 2019 impact assessments on 27 red tape reduction intervention has generated savings and benefits amounting to over a billion rand. As hon Labuschagne said it earlier during the motion, the Western Cape and its citizens are reaping the rewards of an enabling government with the lowest unemployment rate in the country.
Secondly, to achieve and succeed at economic diversification, this entails producing goods and services at an increasingly sophisticated level, requires an alignment between industrial policies and skills institutions. In short, this means that all stakeholders need to be in line in order to provide the requisite output, but we sit with the country where 80% of learners in Grade 4 cannot read for comprehension. This is a direct ANC policy failure. [Interjections.]
So, since hon Rayi keeps chirping in here from the side, and he doesn’t like to be reminded, hon Rayi, you say that for entrepreneurs to be successful government needs to help them. But, hon Rayi, you come from a province where the roads are falling apart and every time we mention this you start crying and crying: “Why do you mention that our roads are falling
apart? Why do you mention that my roads are falling apart?” But hon Rayi, you are from that province, yet you do not stand up and fix the roads in your province. You, hon Rayi, are failing the people in your province. You should be ashamed, hon Rayi, and not complain when we point out your faults.
Mr T J BRAUTESETH: On a point of order, House Chair.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Sorry hon Londt for disturbing. Let me take hon Brauteseth.
Mr T J BRAUTESETH: House Chair, I stand on the Rule that says that drowning out the speaker is not allowed. We all understand that we are hackling, but in this case, hon Rayi who I have great respect for, is actually seating at ... [Interjections.] ... you can’t turn on your mic and hackle, that is drowning out the speaker. House Chairperson, that is what has been happening. I have no problem with hackling but turning your mic on to hackle I don’t think is correct.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members, if there is a member who is turning their mic on to hackle, that is not in line with the Rules of the House. We don’t have to do that.
hackling is allowed but let’s not drown hon Londt. Let the debate continue.
Mr J J LONDT: So, hon Rayi, if you do not take up your responsibility for holding your own government accountable and your province and its citizens are driving on roads that are falling apart, railways that are falling apart, the arteries that are supposed to feed this country. Hon Rayi, shame on you. You are the chairperson ... [Interjections.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): Order, members. Order! Hon members, order! Order! Hon members, you will have ample time to respond to the debate. Hackling is allowed but let us not drown him. Continue, hon Londt.
Mr J J LONDT: Hon Rayi, if you made members in this House sleep, it’s not my fault now that they have woken up, they hear what the truth is. Hon Rayi, you should be ashamed because as the chairperson of a committee that can actually do oversight, you fail in your duty to do that oversight.
Proper infrastructure plays a pivotal role in aiding all of the above sets, an indication as to why the City of Cape Town has spent R6,9 billion on infrastructure in the 2022-23
financial year. This is the highest capital expenditure eclipsing even the mega projects of the 2010 Soccer World Cup. This is money that has gone into sewer and water pump, sewage pump stations, water works, road upgrades, electricity grid maintenance, safety technology as well as equipment and vehicles. It goes to the voters; it does not go into the pockets of a crony and a cadre from the Luthuli House.
It is also important to note that economic diversification occurs ... [Interjections.] Hon House Chair, can I ask you ... I’m trying to ...
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members, I am ... No, hon Labuschagne and hon Moss, let us allow hon Londt to continue with the debate. You can continue, hon Londt.
Afrikaans:
Mnr J J LONDT: Dit is mos nie mooi om so te praat nie.
English:
South Africa’s industrial policy has only achieved modest gains because we have not been able to scale up our manufacturing sector. According to the Centre for Development Enterprise, South Africa’s current manufacturing output is
still below that of 2008. By contrast, emerging markets overall have increased manufacturing output by some 50%. South African manufacturing output growth has consistently been below output growth in the rest of the economy.
South Africa’s crude steel production reached 418 500 tonnes in September 2023, marking a 4,9% decline compared to the same month in 2022. In 2010 South Africa accounted for 0,6% of global steel production, but this has since decreased to 0,2%. This is a direct result of the failed policies of the current national government.
With all of these significant headwinds in one of our most important markets, the South African government is not doing enough to protect the local iron and steel industry. Our industrial sector needs a comprehensive decarbonisation strategy to maintain and increase our competitiveness. We need to be exploring decarbonisation initiatives such as producing steel using green hydrogen. We need bold and decisive leadership that focuses on citizens and businesses externally and not on those elected to government internally.
This is why the recently launched Growth for Jobs Strategy in the Western Cape is such an incredibly positive step. It is
never easy to step out of the norm, but with the unacceptably slow growth in the South African economy it is important that government steps out of the way, and here I mean the national ANC-led government, steps out of the way and allow the private sector to flourish in an enabling environment that will create the necessary jobs to lift thousands, if not millions, of people out of poverty.
Minister of Infrastructure, in the Western Cape the newly elected provincial leader, Tertuis Simmers, said at the launch of the Growth for Job Strategy:
Investment in infrastructure allows the Western Cape government to create an environment that enables jobs and economic opportunities. The Western Cape Infrastructure Framework is the overarching guideline that will ensure infrastructure becomes the catalyst in the growth of job creation. Furthermore, we will look to strengthen public and private partnerships so that the Western Cape becomes the economic hub of South Africa.
The hacklers here from the front, this province is not an island, but it is an example of what the rest of the country can be because here ... [Inaudible.] ... government that does
not steal the money of taxpayers, but it reaches the voters. This is what we need on a national level. We need this in Gauteng, in KwaZulu-Natal and all over, and it is possible. Our potential is waiting to be unlocked, but we need to unblock ourselves at the polls next year and get rid of the corrupt African National Congress. I thank you.
Ms N TAFENI: Chairperson, may I continue in place of hon Moletsane?
The HOUSE CHAIRPERSON (Mr A J Nyambi): Yes, you can continue hon Tafeni.
IsiXhosa:
Nks N TAFENI: Ndicela ukuvala ividiyo kuba sifunyenwe ngucimi- cimi kweli cala.
USIHLALO WENDLU (Mnu A J Nyambi): Yivale.
Nks N TAFENI: Kulungile, enkosi Sihlalo.
English:
Chairperson, Africa Industrialisation Day is celebrated every year on 20 November and is a day where African countries
reflect on Africa’s industrialisation concerns and challenges. On this day, the EFF reaffirmed the principles contained in our founding manifesto that the development of the African continent is extricable linked to the development of South Africa. No amount of sustained socioeconomic development stability will be realised in South Africa unless the state plays an active role in the economic development of the African continent. This obviously should include long network trade links in the entire continent and create capacity to consume goods and services produced on the continent.
As the EFF, we have a firm focus on industrial policy which is a fundamental requirement for development, to create jobs, defeat poverty and reduce inequalities as industrialisation is singularly responsible for economic and developmental superiority of all nations and countries that are classified as developed nations in the world. As the EFF, we believe that all black people in the continent and diaspora should always be reminded of the Africa Industrialisation Day and that this day should be a celebration of African political, economic and social unity.
We take note however, that many generations of African leaders, post 1963 have not progressively carried forward this
vision and that most African countries continue to be neocolonial enslaves of their former colonisers. The neocolonial masters ruthlessly extract and exploit natural resources particularly mineral and energy resources from African continent without paying taxes and at the expense of our people. The neocolonial master continues to sponsor civil conflicts and terrorism on the African continent because instability in the continent gives them space to extract and steal our natural resources without consequences.
Chair, this year, we once again commemorate Africa Industrialisation Day under uncertain circumstances as our nation is in poverty and in unemployment crisis that is worsened by the lack of coherent and aggressive industrial policies under the ANC-led government. In its current form, content and direction, South Africa’s industrial policy is misdirected. Much more still needs to be done to unlock the potential of the country in its various areas, such as in manufacturing and agriculture, as it is through decisive industrialisation that South Africa or any other nation will be able to defeat poverty in a meaningful manner.
Chairperson, what we need is the adequate instrument to drive the industrial development. These include state-owned banks,
coupled with a clear developmental mandate of driving industrialisation. South Africa’s industrial policy and manufacturing must include... [Inaudible.] 01:09 – 14:59 made in South Africa, automobile. South Africa must, for example, produce millions of cars and other useful industrial and household products for local continent and global trade and consumption.
As in its current form, South Africa does not have a single massive manufacturing industry that creates jobs and produce globally consumed goods and products in the same way Japan has Toyota and Nissan and South Korea has LG and Samsung electronics. South Africa’s industrial policy and the manufacturing are currently anchored by over subsidized foreign corporation which can relocate to any other destination in the world when offered better services, access to large markets and protection.
South Africa must build its own industries to manufacture and trade made in South Africa brands and anyone who thinks it is too late to do so is a coward. While I have chosen the automobiles as an example of how South Africa should pursue the necessity of industrialisation, this should apply to many other industrial products such as telecommunications and
workplace gadgets, household appliances, and advanced industrial and renewable energy product products.
The essence of all these pursuits should be South African ownership and control, while allowing space for external investors to play a role. The present dilemma is that almost all industrialisation and demand for manufacturing produce are foreign owned and controlled. Unless we move towards this direction. South Africa’s industrial policy will continue to be placed out of context, unscientific historical, and therefore a dismal miscarriage.
Chairperson, the pace of industrialisation in this country remains too slow. We need to invest more of our national budget, industrial business and significantly increase energy and infrastructure capacity, I thank you, chairperson.
Ms N N PIETERS (Eastern Cape): Hon Chairperson of the NCOP, the Deputy Chairperson, the hon members of the House and the hon Deputy Minister, ladies and gentlemen, good afternoon. Hon House Chairperson, with your permission, can you allow me to switch off the video as we have load shedding on this side.
The HOUSE CHAIRPERSON (Mr A J Nyambi): You can, hon acting member of the executive council, MEC.
Ms N N PIETERS (Eastern Cape): Thank you, hon House Chairperson. On behalf of the Eastern Cape, let me appreciate the opportunity we have been afforded to be part of today’s debate. As the Eastern Cape we join this debate in support of the Africa Industrialisation Day, which its purpose is to raise awareness about the importance of Africa’s industrialisation and the challenges faced by Africa with an intention to mobilise both the African leaders and international organisations to advocate for an accelerated industrialisation in the continent. This year’s theme “Renewed commitment towards an inclusive and sustainable industrialisation and economic diversification plan for South Africa” recommits us to the work that we have set for ourselves to achieve National Development Goals in terms of economic diversification and increasing the well-being of South Africans.
Government places greater emphasis on industrialisation to facilitate broader development and mainly to address triple challenges of unemployment, inequality and poverty. As we all know now, industrialisation is structural, economic change
enable a country to accelerate its development effectively. All cases of rapid and sustained economic growth in more than economic development have been associated with industrialisation and particularly growth in manufacturing production.
Hon members, the Eastern Cape is characterised by a large rural population with high levels of poverty and unemployment, and limited investment. These challenges are a product of a complex development legacy and have been influenced by a range of factors, including historical injustices and structural inequalities. Over the last two decades, the provincial government has driven extensive policy interventions in its attempt to address the economic hardships experienced by residents of the province. These interventions have included skills development and capacity building ... [Inaudible.] ... support to business and indigent households and public works programmes geared towards improving the province’s economic and social infrastructure. Driving these interventions has been an economic policy that seeks to stimulate growth while also making inroads to address the triple challenges I have alluded to.
The province’s drive economic and industrial interventions through the provincial economic development strategy. This five-year strategy is currently under review to consider changes in the current macro and microenvironment factors that South Africa and the province are currently being experiencing. These include the post coronavirus disease, Covid-19, effects on global economy and its aftermath on our industrial sectors in particular, and the automotive sector; the effects of conflict between Russia and Ukraine that resulted in global supply chain disruptions, sharp rises in commodity and food prices and higher international interest rates and world governments seek to ... [Inaudible.] ... the runaway inflation. At the domestic level, all levels of society are having to deal with the electricity crisis, increase cost of living, higher inflation and interest rates, and government constrained by a tight fiscal environment. All these events are occurring against the backdrop of climate change and the just transition to new low carbon industries.
As the provincial economy is highly dependent on climate sensitive sectors such as agriculture, forestry and tourism, increases in extreme weather events such as drought and flooding are likely to have an oversized impact on the Eastern Cape’s future economic development. Additionally, the changing
global technology landscape in the automotive sector, where internal combustion engines vehicles will gradually be replaced by electric vehicles. Equally, the Eastern Cape economy will have to manage the transition to the Fourth Industrial Revolution and the rise of artificial intelligence that is projected to fundamentally transform not only the nature of work, but all aspects of society. Taken together the global and domestic future remains deeply uncertain.
International relations focusing on the opportunities international agreements would have on the province, in particular the African Growth Opportunity Act, Agoa, duty-free and quota-free access to the United States, US, market for a wide range of South African product. All these factors are mandating the province to embrace agility and adaptability to the ever-changing economic environment. With that said, the provincial government with the support of the private sector has made massive investments to high priority industrial sectors of our economy. These sectors include agro-industry, sustainable energy, oceans economy and manufacturing. As things stands, work is underway to complete the agro-industry focused wild coast special economic zone in Mthatha. It was initially conceptualising as the special economic zone, SEZ, by the Department of Trade, Investment and Infrastructure in
line with Chapter 5 of the Special Economic Zone Act but was not granted full designation in 2022, due to insufficient investment commitment to the zone. As a result, it had remained as an industrial park whilst work to ensure that it reaches the SEZ status was intensifying behind the scenes.
We have now accumulated sufficient investment commitments to the value of R1,7 billion and the reapplication for SEZ designation status for the wild coast SEZ has been submitted to Department of Trade, Industry and Competition and we are confident of positive outcomes.
On sustainable energy, the province has proven to have considerable capability to generate green energy through wind and solar. As thing stands, the large-scale wind and solar farms in the province have a capacity to produce 1 509 megawatts of power per hour, which translates to 5,1 billion kilowatt hours of energy per year. This positions us as one of the largest producers of clean energy in the country. Our wind resource is truly amongst the best in the world. Currently, there are 651 megawatts of wind farm under construction or that is proceeding to construction this financial year. This represents approximately R14 billion of investment value under construction in the province, yielding over 4 200 direct
construction jobs. The first wind farms plan to reach commercial operation date by mid-2024, with the remainder coming online the after ... [Inaudible.] ... to 2025. Given that capability, government must mobilise investment for storage capacity for the benefit of the province for purposes of great security and stability.
Hon members, our ports give us a comparative advantage to achieve our industrialisation agenda. We note the progress in Transnet implementation of the 9,1 billion Transnet infrastructure development projects in the port of Ngqura, East London, and Gqeberha. Just recently, we witnessed the first shipment of the manganese from the Port of East London through such an investment by Transnet. There have been vocal about the need for Transnet to significantly invest in the rain and port infrastructure of our province for some time because an adequate logistics system that includes road, rail and port is essential to our economic growth ambitions.
On manufacturing sector, which is led by the automotive industry, has been key in supporting our economy. Considerable work is being done to support the auto industry to achieve its transition to energy vehicles. As such, the province is implementing a project to install initially 13 electric
vehicle charging stations across the province. This is meant to encourage mobility for those who own electric vehicle, EVs, encourage consumption for those who wish to own EVs and demonstrate our commitment to the EVs transition. This project is anticipated to be completed by April 2024. As part of EVs skills development, our entity auto industry development centre, Eastern Cape has agreed to sign an agreement with the Mercedes-Benz Learning Academy to recruit 30 apprentices to undergo training on high voltage electric vehicle training.
Again, this is to ensure that we build these EVs skills within our province in order to create EVs skills amongst our young people.
Through a partnership with Nelson Mandela University, we are subsidising 42 engineering students as major mechatronics mechanical and electrical engineering. We are wishing to build capacity of engineering skills within our province for the industry. We are keen on extending these bursaries to other universities and technical and vocational education and training, TVET, colleges in the province. We are also looking at ... [Interjections.]
Let me conclude by reiterating the fact that building the provinces industrial capacity requires the enhancement of
technological capabilities, establishing appropriate institutions and instruments, addressing the deficiencies of infrastructure and putting in place appropriate industrial policies while submitting our total commitment as a province in working with all the partners to address and overcome the challenges towards the development of world class industrialisation in South Africa. Thank you, hon House Chairperson.
Ms H G S MAVIMBELA (KwaZulu Natal): Thank you very much, House Chairperson, and thank you very much for allowing me to represent my province KwaZulu-Natal, which is part of the provinces of South Africa like Western Cape and is not different from other provinces and led by the African National Congress policies. As I’m starting my debate today, hon House Chair, on the industrialisation day, which is celebrated every year on the 20th of November. This year, we are celebrating this day under the theme: Renewed Commitment Towards an Inclusive and Sustainable Industrialisation and Economic Diversification Plan for South Africa. As we join the rest of African countries and African Union in celebrating industrialisation day, it is important to appreciate how far we have come as the African continent. Over the past few decades, we have seen vast improvement of how African
countries have come together to fight towards a common economic goal.
In July 1989, the Organisation of African Unity held its 25th ordinary session of the Assembly of Heads of State and Government in Addis Ababa, Ethiopia. This is when the idea of the African Industrialisation Day was announced. Since then, the United Nation has held events on this day throughout the world to raise awareness about the importance of Africa’s industrialisation and the challenges faced by the continent’s economic growth in African countries, with many countries in African continent still struggling with triple challenges of poverty, inequality, and unemployment.
Industrialisation can play a critical role in transforming those countries’ economies through enhanced productivity, increase the capabilities of the workforce and generating the employment. Industrialisation plays a significant role in helping African countries to achieve high growth rates and to diversify the economies. Thus, industrialisation can be driven by poverty eradication through employment and wealth creation. As part of our economic transformation efforts, we as the African National Congress have adopted the industrialisation strategy which will assist in accelerating industrialization
by supporting black industrialists especially in manufacturing, agro-processing, mining and tourism. As an organisation which puts the people of South Africa first, especially the previously disadvantaged we have adopted ‘buy local’ campaign, in order to reverse the imbalances of the past which were caused by those that were in power and who have stolen our land. I think those that in control of Western Cape must also do introspection, as we are dealing with these issues which are used to encourage communities and companies to support local businesses.
Agenda 2063, adopted in January 2015 by the Heads of State and the government of the African Union is one of the Africa’s blueprint and master plan for transforming Africa into the global powerhouse of the future. Twenty-nine years into democracy as South Africans, we are proud to play a part in building a better Africa that we can all be proud of. Our vision as the African National Congress, which has been tabled in our manifesto, is to see better Africa free from the shackles of underdevelopment and clouded by the legacy of colonialism. Working with the African Union, we have seen vast improvement in the work that has been done in the African continent, making us closer to achieving some of the goals set in the Agenda 2063.
Hon members, allow me to quote President Ramaphosa when he said:
We imagine a country that is integrally and enthusiastically part of the great African continent as comforted with immigrants from other countries, as we are made to feel when we visit their countries to trade, to invest, to learn, to work and to settle.
If we continue to work together and support each other as African countries, it is possible to achieve the agenda 2063. Industrialisation day comes as South Africa just recently held successful 15th BRICKS Summit. In this summit, one of the key priorities include a focus on African continental Free-Trade. This will enable a predictable environment for trade and investment in Africa, particularly in infrastructure development. Key focus areas include strengthening the partnership between BRICKS and Africa, to unlock mutually beneficial opportunities for increased trade, investment, and infrastructure development towards the operationalisation of the African Continental Free Trade Area in line with the priorities and objectives of the summit.
As we focus on the renewed commitments towards an inclusive and sustainable industrialisation and economic diversification in South Africa, the ANC-led government is at the forefront of efforts to drive the modernisation of industrialisation tools and skills development to achieve competitiveness of local industries. More work still needs to be done to develop and support previously disadvantaged communities in order to unlock their full potential in building our economy. If we can successfully achieve this, we will be step closer to achieving a better Africa for all.
It gives me hope that we see more African leaders standing together against the West to find solutions to challenges faced by Africans across the continent. This unit and African leaders echoes the words of the former Ghanaian President Mr Kwame Nkruma who once said:
It is clear that we must find an African solution to our problems, and that this can only be found in African unity. Divided we are weak; united, Africa could become one of the greatest forces for good in the world.
As African countries, we will be flying our flag high on the 20th of November knowing that African unity, which was once a
dream, is close to becoming a reality and there is hope of achieving Agenda 2063. The policy of the African National Congress is clear. We want to create peace and stability, and development on the African continent. We need to play an active role to pursue greater integration at a political, economic, and social level between African countries. As I sit down, hon House Chair, allow me to wish ...
IsiZulu:
... usuku oluhle lokuzalwa uMongameli wethu ...
English:
... who is the champion of the renewed commitment towards an increased and sustainable industrialisation and economic diversification plan for South Africa, which will be on the 17th of November on Friday. Thank you, House Chair.
Mr N M HADEBE: Thank you so much, hon House Chairperson, industrialisation stands at the power of sustainable and inclusive economic growth and development in the African continent. Its importance stems from its potential to enhance productivity. Increase the capabilities and output of the workforce and create much-needed sustainable employment and livelihoods. In turn, this will aid in our efforts to combat
the high levels of poverty, unemployment, instability, as well as slow and stagnant economic growth in the country. This day serves as the perfect opportunity for us all to raise awareness about the importance of the need for industrialisation and the challenges that continue to haunt us as a lack of its prioritisation and implementation.
Sustainable industrialisation and diversification stand to benefit marginalised groups such as women, youth, the poor and those in rural communities who are currently sidelined and excluded from playing a crucial part in the development of the country, both socially and economically. As the country faces globalisation and climate change, we must adopt and maintain a strong industrial base that will safeguard our resilience.
While there’s been attempts at promoting inclusive and sustainable industrialisation, these stand minuscule in comparison to efforts needed to ensure its completeness and full realisation. Development plans are futile without the prioritisation of industrialisation and the subsequent incorporation of marginalised groups as owners of manufacturing enterprises and meaningful employees and contributors, which will serve as a block against external shock.
Hon House Chairperson, we all have the mammoth task of ensuring that adopted strategies and policies are indeed prioritised and implemented. This can only be achieved if we invest in human capacity. The increase of an infrastructural base for industry and the strengthening of mutually beneficial partnerships with other countries that have successfully embarked on a similar journey.
In conclusion, I would like to emphasize the importance of women empowerment and youth participation in all our efforts, because no sustainable and viable development can take place as long as we continue to exclude women and youth from our endeavours. I thank you.
Ms T MOTARA (Gauteng): House Chair, hon Member of Executive Council, MECs, members of the NCOP, members and leaders of various political parties represented in the NCOP, the Chief Whip of the NCOP, distinguished guests, ladies, and gentlemen.
Thank you for inviting me here and allowing me the platform to honour such an important day. Today we underscore the paramount importance of commitment towards an inclusive and sustainable industrialization and economic diversification plan for our country.
In an era marked by rapid global changes, embracing inclusivity and sustainability is not just a choice but an imperative. The Africa Industrialization Day provides an opportunity for key stakeholders to reflect on African’s industrialization. By looking at how the continent and how we, as South Africa, can change our current economic status.
Since 2018, the African Industrialization Day has been commemorated with weeklong events, marking a departure from the one-day tradition, and this affords more time to reflect and accelerate action towards Africa ‘structural transformation as an enabler to meet the objectives of Agenda 2063 and its Sustainable Development Goals, 2030.
Thus, South Africa’s industrialization and transformational gender towards a renewed commitment to inclusive and sustainable industrialization and economic diversification must be supported at all levels of government. These must be focused efforts to accelerate several key policy areas such as energy and road infrastructure, trade facilitation, financial sector development, education development, agro-industrial transformation, green industrialization and technological innovation and transformation.
On the other hand, industrialization should not be perceived as a single pathway for sustainable development in Africa, particularly, South Africa. Instead, industrialization with strong multisectoral and multidirectional linkages to local economies, will help us as a country to achieve higher economic growth rates and economic diversification.
Testing industrialization will be at the core of efforts to address critical structural economic growth and development weaknesses and fragilities. From poverty and inequality to inadequately developed education, health, housing, and sanitation services, and see beyond the current challenges, requires policymakers to tackle other supply side structural bottlenecks and barriers such as energy and infrastructure, will require us to tackle these head on for enhanced enterprise comparative.
This also places due pressure on policymakers at all spheres of our government to improve business and regulatory regimes to enhance private capital flows, absorption and adaptation of technology, artificial intelligence and skills transfer to unleash private sector growth.
Furthermore, sustainable success on South Africa’s industrialization front, will only be achieved with deliberate efforts to integrate and systematically address South Africa’s underlying development features, such as the micro, small, medium enterprises and informal economy, the urban rural transition, socioeconomic diversity across the nine provinces of our country, as well as linkages between education, skills development, and industry.
Cross cutting issues such as gender, climate change, energy security, youth population, and growing unemployment to facilitate the evolution of a sustainable and inclusive industrialization pathway in all corners of our country.
We have much to learn from our own experiences and those of others on industrialization over the past several decades and from other parts of the world. However, what is abundantly clear that industrialization successes in Europe and America, more recently in Asia cannot be fully replicated anywhere in Africa or at home.
Apart from just that South Africa has its unique circumstances. And many factors that no longer exist that propelled industrial success in other countries. That is why
advancing South Africa’s industrialization requires considering what can and should work for us, while ensuring interdependencies with the rest of Africa and the world.
There is an urgent need to improve our production tools, including energy, digital logistics and transport infrastructures, to support the productivity of our industries.
There is an urgent need to ensure the employability of our young people by further developing technical and vocational training, so that from the welder to the design engineer, our country can have the human capital to support the structural transformation of industries at all levels, from the small medium enterprises, SMEs to the large production corporates.
Without quality human capital, our resources will continue to be grounded and the demographic dividend will be more of a handicap than an advantage in stimulating the development of our country.
I also draw the attention of this House sitting to the need to overcome the procedural and bureaucratic red tape that hinders the preparation and implementation of our projects. No time
must be wasted on undue formalities and delays on the road to emergency.
The pace of industrialization in South Africa needs to be faster and achieve South Africa’s development goals under the National Development Plan, NDP.
We must invest mobile provincial budgets in industrial policy and significantly increased energy and infrastructure capacity. We must also build stronger links between our universities and the private sector to promote a culture of innovation that includes our young people.
Our commitment today is to our present and the generations that will inherit the legacy mission. It is a commitment to a future where industries thrive, economies prosper, and every individual, irrespective of background, finds a place in the tapestry of progress.
Let us move forward with determination, guided by inclusivity, sustainability, and economic diversification principles.
Together, we can forge a path towards the future where industry is a force for good, and all share prosperity.
All members present, let’s work together towards achieving the African developmental agenda and meeting all priorities for sustainable economic growth and development. Let us be the transformation that the world needs. I thank you.
Ms H S BOSHOFF: House Chair, and all other protocol observed, good afternoon. Industrial development is of critical importance for sustained and inclusive economic growth in South Africa. With the industry enhancing productivity, increasing the capabilities of the workforce, and generating growth through the introduction of new equipment and techniques.
It is imperative that quality, reliable, sustainable, and resilient infrastructure be developed and maintained to support economic development and human well-being with a focus on affordable and equitable access for all.
So too, must this government device and implement a long-term diversification strategy, in order to attain the transformation of the economies. For too long now has this country been geared towards primary commodities rather than diversification, with a heavy reliance on mining, especially the extraction of gold and diamonds.
Government must foster an environment that prioritizes the development of human and social capital. According to the 2030 inequality and sustainability agenda, the sustainable goal number nine, which is included as a commitment to build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
Therefore, in order to implement this goal, proactive industry policies are needed. They take into account aspects of inequality and sustainability. We must not forget that sustainable industrialization and economic diversification go hand in hand. Fostering innovation is at the heart of our efforts, to meet sustainable goal nine, as innovation is the engine driving industrialization and economic growth in the modern world.
House Chair, sustainable goal number nine, set forth by the United Nations is a goal that is of great significance for South Africa and its vision for a prosperous and sustainable future, as it focuses on building resilient infrastructure, promoting inclusive and sustainable industrialization, and should be aligned to your government’s own goals.
With the start of democracy in 1994, our country had a plan for transformation and resilience. However, this is no longer the case. It must be said that resilient infrastructure is not only about constructing roads, bridges, and energy grids, but the durability they are, must also be insured.
And hon members, herein lie the problems as the ANC-led government has all but forgotten about the maintenance of infrastructure to ensure the durability thereof.
Furthermore, to be able to promote inclusive and sustainable industrialization, the economy must be diversified and by doing so, we can reduce the inequalities and foster sustainable industrial growth.
To reach this goal, it must be stressed that more active investment must be made in technology, innovation, and green industries, whilst also encouraging small and medium sized enterprises and entrepreneurs to participate in this journey towards industrialisation.
Unfortunately, this country faces energy related challenges. This is crucial for industrial growth. This country is also faced with political instability and policy uncertainties,
which has led to the disruption of progress, balancing industrialization with environmental sustainability is also a complex challenge.
And therefore, we need to see a transition to green technologies and practices whilst fostering economic diversification. A skilled and capable adaptable workforce is critical for industrialization, ensuring access to quality education and addressing the skills gap, remain an ongoing challenge.
Hon Deputy Minister, one of your core principle approaches should at all times be complete inclusivity. The historical disparities must be addressed to ensure that all benefits of industrialization are accessible to all who live in South Africa.
You and your government must also ensure that every single policy and initiative, is designed to empower our marginalized communities, and in doing so, create opportunities for all our unprivileged citizens.
Unfortunately, South Africa has faced several challenges in its commitment towards an inclusive and sustainable industrialization, and economic diversification plan.
These challenges can significantly impact the efforts to achieve these goals and therefore, this government must share with its citizens on how their plans have been implemented in providing the means for new economic activities and livelihoods. As we have not experienced the population moving from working and low productivity sectors to higher productivity sectors.
As a developing country, we will surely be facing obstacles, both material and ideologically, in applying industrial policies. Upgrading the capability of the state to design and implement industrial development will require a broad political consensus to sustain an effort that is by nature long term.
Therefore, an invitation should be sent to all stakeholders to join in on this journey and together we can shape a brighter, and more equitable future for South Africa and its people.
Thank you.
Mr S F DU TOIT: Hon Chairperson, industrialisation can be described as the process of transforming the economy of a nation or region from a focus on agriculture to a reliance on manufacturing. Growth of industries leads to an increase of production of goods and services which are available to people at cheaper rates. It reduces dependence on other countries and improves the economy. It results in a rising standard of living and it creates new job opportunities, helping in the removal of unemployment.
Afrikaans:
Hierdie is wat tans wêreldwyd gebeur maar wat van Suid-Afrika? In Suid-Afrika word industrialisering voorgehou as ’n meganisme vir werkskepping maar sal nooit die gewenste uitkoms hê wat verwag word solank wetgewing wat tans in plek is so bly nie. Hoekom nie? Dit is omdat die rasgebaseerde transformasie teikens deur middel van wetgewing onder die aanhef van versnelde rassegelykheid ondersteun word.
Hierdie wetgewing is dekades lank van krag maar het slegs sekere kaders bevoordeel terwyl minderheidsgroepe in Suid- Afrika verwerping en verarming as gevolg van hierdie diskriminasie ervaar. Vreemd genoeg dat die uitermatige polulasieaanwas van verskillende etniese groepe in Suid-Afrika
word nooit in ag geneem wanneer daar na rasse– en klasseverskille verwys word en hierdie regstellende onheile ingestel word nie.
English:
In support of infrastructure development in South Africa, the President announced the Infrastructure Fund, IF, in 2018. It aimed to address the need for blended finance to enable the efficient execution of socioeconomic infrastructure programmes and projects in South Africa. The IF is currently housed within the Development Bank of Southern Africa, DBSA, and is the result of an agreement signed in 2020 by National Treasury, the Department of Public Works and Infrastructure, Infrastructure SA and the DBSA. National Treasury funded this initiative to the amount of R100 billion over a 10-year ... [No audio]
... has a lucrative business in South Africa, as you know. The matter was recently discussed and debated in this House.
Unfortunately, the reality is the fact that the DBSA, a state- owned entity, was proud to announce that they believe that black economic empowerment, BEE, forms a natural and integrated part of sustainable business.
Afrikaans:
Transformasie het die afgelope 29 jaar plaasgevind, maar ongelukkig met ’n afwaartse trajek. Die ANC was veronderstel om ‘n sterk funksionele ekonomie te vergroot, maar het in die proses hul gunstelinge op aarsvoeding van swart ekonomiese bemagtiging, SEB, gekoppel en slegs sekeres vind baat daarby.
Volgens die Instituut vir Rasseverhoudings se verslag van 2019 was daar gedurende die afgelope dekade onder SEB sowat
R1 triljoen aan politici, vakbonde en staatsamptenare oorbetaal, met bitter min werksgeleenthede wat vir arm individue geskep is.
Swart ekonomiese bemagtiging het tot deindustrialisering gelei aangesien alle entrepreneurs nie daarby baat gevind het nie.
Die administratiewe rompslomp as gevolg van SEB het vele beleggers ontmoedig om te belê.
Swart ekonomiese bemagtiging het daartoe gelei dat Suid-Afrika se infrastruktuur verval het. Met die regering se aanvanklike begroting vir aankope wat in 2019 op sowat R500 miljard gestaan het, het die Spesiale Ondersoekeenheid op daardie stadium verdagte kontrakte van sowat R139 miljard ondersoek.
English:
The Institute of Race Relations mentioned that in order to achieve prosperity, South Africa has to get rid of BEE policies.
Afrikaans:
Die VF Plus wil graag hê dat infrastruktuur in Suid-Afrika gevestig moet word, dat werksgeleenthede geskep moet word en dat armoede uitgewis moet word.
Die VF Plus het planne aan die President voorgehou, en dit om die ekonomie te laat groei om toe te laat dat alle Suid-
Afrikaners aan die ekonomie met waardigheid kan deelneem en ’n bestaan kan maak.
English:
Unfortunately, the parable of Marie Antoinette is applicable
to government. They are eating cake while the country is dying of hunger.
Afrikaans:
Die voorraad van aarsvoeding van baantjies vir boeties is laag. Dit is ons elkeen se plig om ons deel te doen en in 2024 te stem, en daardeur toe te sien dat die ekonomie weer groei
en die goud, geel en groen tot verantwoording geroep word. Dankie.
Ms C MURRAY (Western Cape): Hon Chairperson, members of the National Council of Provinces and distinguished guests, in the quiet dawn of Khayelitsha as the first rays of sunlight warm the streets, our people wake to the rhythm of possibility.
Yet, as Africa Industrialisation Day approaches, we are reminded that the promise of dawn must be met with the sustenance of the day.
Our focus today on a renewed commitment towards an inclusive and sustainable industrialisation and economic diversification plan for South Africa should not be seen as yet another parliamentary debate but rather as a means to create a lifeline for every resident yearning for dignity through work.
For too long, the national government's vertical industrialisation policy approach has followed a path of distant nations such as the Asian Tigers, by focussing narrowly on specific sectors with the hope of spurring widespread economic growth. Unfortunately, this vertical approach has resulted in a disproportionate allocation of resources, fostering growth in certain sectors while
neglecting the broader economic landscape. This has led to a reality where the anticipated benefits for the wider economy have been more of a trickle than a wave.
The DA has consistently voiced concerns over the vertical industrial approach taken by the national government, highlighting its likelihood to create market distortions as well as inefficiencies. Throughout its 29 years in government, the ANC-led national government’s heavy hand has led to unsustainable subsidies and protectionism.
The broader and dire implications of such vertical industrial policies adopted are clear when we look particularly at the declining share of the manufacturing sector in gross domestic product, GDP. This is from 14,2% in 2005 down to 11,2% in 2022 and the decrease in employment within the same sector is seen from 14,4% down to 10,4% in the same period. These sobering figures are a testament to the detrimental impact of vertical policies which have compromised the integrity of our economy's very bone and sinew through its narrow scope and limited capacity to foster broad-based prosperity and development.
This interventionism has left us with an economy where a few sectors bask in the sun of government support, while the
majority remain in the shadows, struggling to grow. And, it has fashioned a landscape of economic disparity, creating peaks of industrial success overshadowed by valleys of missed opportunities. This is exemplified, not just in the devastating management of electricity, ports and rail, but also in the African Growth and Opportunity Act, Agoa. The Agoa represents a pivotal opportunity for the diversification and industrialisation of South Africa's economy and granting duty- free access to a wide range of South African products. In
2022 alone, Agoa enabled South Africa to export approximately US$132,6 million in citrus, approximately US$110 million in jewellery and approximately US$65,2 million in wine. We also saw a staggering 1,4 billion in cars and automotive parts.
However, the vertical nature of these policies has meant that while certain sectors such as automotive parts have flourished under Agoa, the advantages have not been evenly spread. The Western Cape’s agricultural sector, for example which is heavily reliant on export markets like the USA, stands to lose if this agreement is not managed with a view towards a greater economic mosaic. With 70% of the Western Cape’s agricultural exports flowing to the USA, the potential loss of 136,000 jobs in this sector alone cannot be ignored. This renders us vulnerable to external shock.
Our overdependence on certain industries means that global economic downturns reverberate throughout our economy with amplified intensity. The time has come for us to diversify our alliance and to build a resilient industrial sector that can withstand the ebb and flow of international markets.
As the clarion call for sustainable development grows louder in the face of climate change and environmental degradation, our industrial policies must pivot towards sustainability. The UN Sustainable Development Goals, particularly SDG 9, urge us to build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation. This global vision aligns with our national imperative. South Africa must not industrialise without doing so sustainably. It must ensure that our growth does not come at the expense of our environment or our future generations.
The time has come to water every field and to nourish every seed from the Special Economic development Zone in Atlantis to the farms of Stellenbosch through our horizontal industrial policy that shows or showers opportunity indiscriminately.
Switching to a horizontal industrial policy approach is about building a solid foundation. It's about building good schools, reliable busses and fair opportunities for everyone. A
horizontal industrial approach supports the entire ecosystem of enterprise. It's about laying down the foundations, such as reliable power, efficient transport and robust education that all businesses need to thrive. This approach does not pick winners but fosters a nurturing ground for every contender in the race of development. The Western Cape government’s Growth For Jobs, or G4J plan, is a testament to this policy approach and shows that it can work. It is indeed our blueprint for an economy that thrives at every level. It sees the value in every hand and the potential in every mind.
In the Western Cape, our economic landscape is dynamic and diverse. We are actively applying our new approach through our G4J plan, which understands the challenges of unemployment, poverty and crime that our communities face. This strategy isn't a one size fits all. It's a comprehensive plan grounded in evidence and extensive consultation, aiming to boost our economy's growth rate to between 4% and 6% by 2035. It's about creating an environment where businesses of all sizes can thrive, generate jobs and foster self-reliance throughout our province. This strategy anchors itself in clear principles and prioritises focus areas that impact every resident. It's a collaborative effort that calls for commitment from government, from the private sector and from civil society.
By embracing horizontal enablement, we empower every citizen with the freedom to grow and contribute to our province’s prosperity. This is how we in the DA-led Western Cape government are building a sustainable future where economic growth translates into real opportunity and improved living standards for all and not just for a select few. As we seek to nourish the roots of our economy, let us remember that growth is not measured by the wealth of a few but by the prosperity of many.
Our province’s strategy is comprehensive. Our ambition is boundless and our dedication is unwavering. In the DA-led Western Cape, we are more than just a landscape, but we are a people united in purpose and diverse in strength. The time has come for us to lay down the tools of vertical industrial policy approaches and adopt those that build the horizontal industrial frameworks necessary for sustainable growth. We need to stabilise our electricity supply, protect critical infrastructure, uphold the rule of law and ensure transparency in market information.
We are at a juncture where we must choose. Do we continue down a path of select support or do we pave a new road towards an inclusive economy that holds a place for each citizen, each
entrepreneur and each innovator? Our industrial policy must be a blanket that warms every sector and a strategy that enables the growth of small micro enterprises as outlined by the AU.
I stand before you, not with a speech filled with rhetoric, but with an invitation to my fellow lawmakers to open their minds to this new approach to rebuild our economy amid the many social economic challenges that our country faces. Let us be the architects of a future where opportunity is guaranteed for all and not just a few. I thank you.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Thank you. Hon Murray, as the NCOP we also congratulate you on the big step which happened over the weekend.
Ms M L MAMAREGANE: Hon Chairperson, greetings to all my colleagues. The ANC-led government is committed to fully implement the mandate of the National Development Plan, NDP, and use it as a map on how South Africa as a country can combat past injustices and achieve inclusive economic development for all South Africans. The main objective of the NDP is to annihilate poverty, reduce inequality in the country. This can be achieved through economic diversification and inclusive economy in South Africa.
One must understand that when we speak of economic diversification, we want to shift an economy away from a single income source towards multiple sources from a different sector and markets. We should make emphasis that in the context of South Africa, we want to provide growth and development for previously marginalised groups in South Africa during the time of apartheid period in our country.
Hon House Chairperson, in order for the country to utilise current industrial programmes to achieve inclusive and sustainable economic diversification plan, we need to identify areas that have a potential to act as growth reforms. But also as we identify these areas that have opportunities for promoting growth, we need to have certain fundamental basics that need to be applied in all nine provinces in South Africa and to ensure diversified inclusive growth in our economy.
As government, we have engaged on research in partnership with the Department of Higher Education, Science and Innovation, the Minister of Basic Education and universities in South Africa on how we can develop early childhood development and tertiary education on how it can be aligned with industrial programmes and labour market in the country.
The government has a plan to modernise network industries to encourage competitiveness and inclusive growth in identified industries like transportation, energy, water and telecommunications.
Through the Integrated Resource Plan government is committed to providing a platform to predict electricity tariffs in a transparent and predictable manner and try to be less dependent on municipal budgets when it comes to electricity revenue. The government is committed to accelerating the installation of telecommunication infrastructure and there should be proper monitoring and evaluation to avoid duplication of telecommunication infrastructure.
The Independent Communication Authority of SA, Icasa, proposed economic regulation component should be independent on line departments and directly funded from the industry levies as per international best practice.
The rich should leverage private sector expertise in broadband rollout rather than relying exclusively on state-owned companies.
When it comes to transport we need to enforce different accounting division on separate financial statements with different operating divisions like if we can take Transnet for example to ensure subsidies across divisions.
We are working with the private sector to identify third party to rebuild our rail network and also improve freight transportation. Obviously these are just few of the industries which we can put focus into provinces not saying that there are no plans in mining, water sector, agriculture and others.
We have provided an integrated plan which looks into how we can promote inclusive as government and the private sector through a detailed approach which is the District Development Model, DDM. The DDM investigate accountability and consistency on how government is performing with regard to how far they are and what strategies are in place to address poverty, inequality and unemployment.
In the state of the nation, Sona, address in 2019, the President of the Republic of South Africa the hon Matamela Cyril Ramaphosa mentioned that for the country to create more jobs and improve service delivery to our people, we should make sure that the national departments present implementation
plans in line with prioritise identified in Sona. The idea is to have the DDMs that shows evidence of processes of collaborative planning that is undertaken at local, district and metropolitan levels which is the representatives of all these spheres of government to produce a single focus strategy to promote growth and the economic development.
The DDM also seeks to ensure inclusivity through gender budgeting which is based on the needs of our people and also pay attention to on how people living with disabilities are catered for.
The government also has engaged on programmes to build capacity in order to improve operational performance of municipalities in line with the DDM through strengthening monitoring and evaluation in local and district levels.
Another focus area towards developing the economic diversification plan through growing provincial economies in the urban and rural areas is to develop industrial parks and agroprocessing zones.
The ANC-led government has developed a sophisticated value- chain which enables agricultural inputs and packaging
specialised logistics to marketing and retail equipment. We are as a country blessed with agricultural related products which include wheat, corn, sugarcane, nuts, poultry, beef, fish, mutton and wool.
As government, we have identified industrial parks as stimulus for industrial development through accelerating economic development in rural areas and how to support job creation in the sector of manufacturing to discourage urban migration.
There is a focus on increasing investment in Special Economic Zone in both rural and urban areas as these areas have proven to be catalyst of inclusive growth for our communities. There must be evidence of the creation of the digital hubs through funding provided by provincial and local government. There must also be quantitative and qualitative results on how digital hubs have had an impact on our communities. The focus is on high growth in demand when it comes to agroprocessed products local and also for the purpose of exports to generate revenue.
Investors support is needed, but government must also make sure that there is proper infrastructure with optimised supply chain and efficiency to provide logistical support to provinces.
In South Africa the informal sector approximately contributes 60% of our gross domestic product, GDP and it contribute to one third of the country’s job creation which is why the Department of Small Business Development has partnered with Nedbank to provide R40 million to informal fruits and vegetable traders to assist them in restarting their businesses.
Government has also committed to the development of township and rural development with the aim of assisting micro and informal businesses in order to be sustainable. This is driven through township and rural enterprise programme.
In order to allow Small, Micro and Medium Enterprises, SMMEs, to be sustainable and contribute to enhance inclusive diversified growth the government through the Department of Small Business Development has set out plans on how to make sure that small business is provided with financial education across all provinces. This will target mainly rural areas and townships where most participants are usually excluded from profitable economic activities by the markets.
Small enterprise firms have a challenge when it comes to competition with large co-operations and businesses which are
fully fledged firms which makes difficult for them to gain market share which is constituted in the formal business mainly promoted to assist these business to gain access to funding as they usually get challenges when it comes to equity, credit history and collateral as they are usually start-ups and do not get required funding from traditional commercial banks.
As the ANC-led government we are focussed on the small business and innovation fund which aims at identifying start- up firms where there is evidence of market failure prospects.
We also understand that such initiatives should be communicated to all spheres of government across all provinces by government, so that those who are start–ups in small business get the required support programmes which are intended for them.
Hon House Chairperson, it is important to understand that to achieve economic diversification in our land, we still have vast areas where our people still depend on subsistence agriculture where upcoming farmers face challenges of productivity because of lack of training in the field and lack
of funding as compared to other areas in our country, where you find skilled farmers with the ability to raise funds.
If we are to improve and develop small scale farming we should be to first understand all the challenges, but not use a blanket approach of treating everyone the same, because rural women in this field face most of the hardships. Rural women engage in farming, but at the same time need to multitask with taking care of children, looking after the household and are the ones who suffer more from economic and social hardships in their communities.
Greater emphasis need to be put into the manufacturing sector in our country, so that we can implement an efficient and effective localisation strategy. If you look into the manufacturing sector in South Africa, in 1994 we had manufacturing represented at 19,2% of our economy. However, if you look into the data which was released around the year 2020, our manufacturing had declined to only represent 11,8% of our economy. This has in large affected our people through a decline in jobs and reduce economic activity as the manufacturing sector economically has one of the strongest stimulatory effects. This strong stimulatory effect and economic multiplies come from industries like logistic
packaging and transportation. The decline in the sector basically means as a nation, we have been engaging on the industrialisation and not to reindustrialisation.
It also shows that we have dependent on imports and not exports in our country.
As I conclude hon House Chairperson, we need to implement properly for the Economic Recovery Reconstruction Plan to be able to promote economic diversification. This requires emphasis on inclusive growth through aggressive infrastructure investment. The government is fully committed to having to implement strategy localisation and export promotion. We are committed to strengthen food security, support for tourism recovery and growth in our country while making sure gender equality and economic inclusivity of women and youth is done practically. I thank you, hon House Chairperson.
Cllr K PHUKUNTSI (Salga): House Chair, can I be unmuted? Thank you. Good afternoon hon members and the Chief Whip of the NCOP. We bring our greetings from the organised local government. We also welcome the platform given to us to be part of this important debate. Hon House Chair, the present world owes a profound debt of gratitude to trail blazers who
preceded us, men and women who defied formidable odds propelling humanity forward by leaps and bounds.
Today we find ourselves elevated on the shoulders of these giants and pioneers who dared to push the limits of innovation and human ingenuity to unprecedented heights. Their courageous and groundbreaking endeavours have left an indelible mark ushering in substantial perhaps seismic transformations through the various industrial revolutions that have sculptured the world we inhabit today. Each of these industrial revolutions ushered in a new progress and distinct advancement propelling mankind to new heights with the First Industrial Revolution in the 18th and 19th century.
We saw major developments in the mechanism of textile production, steam power and the growth of the three systems. It had major implications on the way of life as became ground zero for urbanisation with people moving from the rural areas to the industrial centers. Such was the profound impact that it led to the formation of working class and a new social economic structures. Hon Chair, between 1870 in 1914 the world experienced another monumental stride forward with the advent of the Second Industrial Revolution marked by the introduction of electrical power and the internal combustion engine
advancement in steel production and the extensive expansion of railway networks.
This era saw the establishment of mass production and the implementation of assembly lines resulting in heightened overall efficiency. As a standout feature of this period, was a significant increase in globalisation and internal trade.
The Third Industrial Revolution proved to be even more revolutionary ushering in automation, electronics, telecommunications and the emergence of computers, colloquially known as the information age. This era was marked by the widespread availability of information. Thanks to the advent of the internet. Globalisation gained further momentum with the advancement in communication and transportation.
Traditionally, many developed countries experienced a notable shift from manufacturing to service-based economics during this transformative period. Fast forward into 2023, we find ourselves in a pivotal area that is regarded as a defining moment in human history, the Fourth Industrial Revolution.
This period is marked by the revolutionary inventions including artificial intelligence, robotics and biotechnology among others. These innovations seamlessly integrate various technologies into different aspects of our daily lives.
Furthermore, this era has resulted in heightened connectivity and the prevalence of data-driven decision-making.
Hon Chair, I am framing my speech with a historical overview of ... [Inaudible.] ... revolutions because despite the transformative impact they had globally, reshaping economic structure societal norms and the nature of work, the African Continent did not fully realise the benefits ... [Inaudible.]
... Africa has regrettably served as a site for resource extraction with its wealth plundered to fuel the industrialisation of the western nations.
The historical backdrop of colonisation and brutal oppression has relegated Africa to the margins of development and industrialisation resulting in a dependence on 8 from more developed countries. Throughout this pivotal periods Africa has consistently lacked behind. House Chair, even in the context of ongoing Fourth Industrial Revolution the situation remains unchanged. Once again, we stand at a crossroads navigating the uncharted territory of concept like artificial intelligence while simultaneously mindful of the imperative of safeguards jobs.
Chair, while the Fourth Industrial Revolution presents numerous opportunities, it is crucial that we adopt these changes gradually tailored to the African context rather than simply replicating strategies employed by more advanced continents. It is through this ... [Inaudible.] ... approach that we can ensure that benefits of this revolution are hastened to address the unique challenges facing our continent. While the past has witnessed this systematic fragmentation of the African Continent, it is imperative that we refrain from dwelling on to the past and instead focus on energies and efforts on forging ahead.
Fortunately, thanks to the concerned African efforts in the form of the African Continental Free Trade Area. This groundbreaking trade agreement, the largest of its kind globally in terms of both area and participating countries, is poised to establish a single African market serving as a catalyst for industrial development across the continent. The African Continental Free Trade Area represent a significant step towards fostering increased inter-Africa trade among the participating nations. A prospect that has remained elusive in the history of the international trade on the continent.
Chairperson, while we are mindful of the challenges that lie ahead in the implementation of the African Continental Free Trade Area, we commend the bold initiatives undertaken by the African Union. This treaty not only holds the promise of economic transformation but also symbolises a determination to shape Africa’s destiny in the realm of international affairs throughout Africa-led initiatives.
Since 2021, Salga has been instrumental in ensuring that the municipalities are prepared to seize the numerous opportunities that will be precipitated by the African Continental Free Trade Area. This has been done through amongst others, holding annual local government after dialogues and centered in cultivating environments conducive to the Africa success with a primary focus on enhancing infrastructure and ease of doing business.
As I am about to conclude, Chair, as we reflect on the eve of Africa Industrialisation Day, let us acknowledge the strides we have made and humbly learn from our challenges. With South Africa standing as the most industrialised nation on the continent and serving as a ... [Interjections.] ... ourselves in a unique position. Let us embrace this this responsibility for in doing so, we become the launch base that propels
forward the continent’s ambition in the international agenda. Together with concerted effort and shared commitment we can unlock a new era of economic growth and prosperity for all Africa leaving no one behind. I thank you, Chair.
Mr T J BRAUTESETH: What a centralising debate this has been. Hon members and fellow South Africans, you know, when we start off the debate and we look at the title it is a renewed commitment, I mean, that is obviously to start off with an admission of failure that you have to renew the commitment to this, but anyway we gotten used to this with this government.
Speaking in the same sentences the ANC is akin to a search for a purple spotted unicorn. This statement is based on the fact like the grandiose title of this debate that this governing party is rich in ideas but it is poverty stricken on implementation. A perfect example of this sluggish or nonexistent implementation is the cannabis industry, a perfect avenue for diversification and let’s be clear, we are not talking about the Cannabis for Private Use Bill that is going through Parliament at the moment, we are talking about the promised framework for the commercialisation of cannabis.
Economic diversification is defined as the process of shifting an economy away from a single income source towards multiple sources of growing range of sectors and market as pointed out by hon Boshoff earlier. If there is ever potential for a game changing industry in South Africa that would address many obstacles, it is the industry of cannabis. The Deputy Minister of Trade and Industry herself pointed out a few months ago that government estimates the cultivation and commercialisation of cannabis production in South Africa can generate around R28 billion to the fiscus and could create
10 000 to 25 000 jobs. Other estimates have said, a 130 000 jobs.
However, here is the problem, what has happened since the announcement by the President in the sona 2022? The President promised that urgent work is being finalised. It is quite an oxymoron when it comes from the ANC, urgent work being finalised. Nevertheless, urgent work has been finalised by government to create an enabling regulatory framework for herbs and cannabis plants. Other than the various visits around the country and many talk shops it would appear that the cannabis masterplan has gone missing.
The plan included working groups and work streams set up in 2021-22 involving all the relevant stakeholders. Nevertheless, these working groups like the masterplan have all collapsed and disappeared without a trace. Again, involving this government in the diversification of the economy is like chasing a mirage. Just like the member of the executive council, MEC, Mavimbela who participated earlier in the debate, she got her face plastered all over two buses in Pietermaritzburg for mobile libraries when she is the Arts and Culture MEC.
Well, those two buses are still sitting in Pietermaritzburg and they are certainly not mobile whatsoever. Maybe, she should use one of them to come down here for the debate herself. Anyway, in contrast to the meddling big brother approached by the ANC, we must consider the achievements of the DA-led Western Cape government. The Western Cape has the third largest contribution to South Africa’s GDP. The service sector is the largest sector in the provincial economy, a country from a 70% of the provinces gross value added and unemployment. The top contributors to the province economic activity are finance, insurance, real estate business services, trade, hotels, restaurant, manufacturing, community, social and other personal services. That is diversification.
The real commitment to economic diversification in the Western Cape has translates into the simple fact that the Western Cape’s unemployment is now at 20,2%. I see we have our engines here from the NA. The decrease from 20,9% in the previous quarter, the self-evident truth as I complete, Chairperson, is that our economy has grown where the DA governs, period! The people of South Africa can replicate this across the country when the ANC ... [Interjections.] ... in 2024. Thank you.
IsiZulu:
Siyabangena!
Mr K M MMOIEMANG: Hon House Chair, hon members and colleagues in this House and on the virtual platform, as well as South Africans in all parts of our country, I greet you all. Allow me to take the floor on behalf of the mighty African National Congress to participate in the debate. I would like to begin by emphasising once again that a renewed commitment to achieving an important, inclusive and sustainable economic development is very crucial for the country. This is necessitated given the need to strengthen our quest to grow our economy and also to create jobs. Economic diversification is important but what is quite critical is that it is an integral part of the economic Reconstruction and Recovery Plan
that was launched in 2020. For your information, hon Badernhost you were not part of this House.
We must note that this Economic Reconstruction and Recovery Plan was mainly aimed at diversifying and expanding the growth in our provincial economies. The growth of our provincial economies requires diversification but its point of departure is the current economic base in the provinces. What is quite critical is that this economic diversification through the Economic Reconstruction and Recovery Plan requires infrastructure investment and land reform to be expedited.
Indeed, it requires clarity of vision through the industrial plans and master plans for growth and the development of industrial sectors.
It is important to point out that we have been informed of the progress we have made about the Special Economic Zones, SEZs. They have attracted more than 253 investors in various sectors with investment commitments worth over R61 billion. This has created more than 19,013 jobs. It is also important to point out that the revitalisation of the industrial park is an integral part of our work that is taking place in all seven provinces. And those who are opposed to progress will never mention this.
I must indicate that seven master plans are completed and under implementation. And here we talked to the steel, automotive, clothing, textile, poultry, sugar, furniture and forestry sectors and this is quite important hon Badernhost because you are new in this House. The ANC-led government has made an important start in these industrial sectors, which has already been highlighted as I indicated.
Equally, it is important to align the increase in agriculture
... [Inaudible.] ... to the European Union. Therefore, we must focus on inclusive and sustainable economic development in the context of reversing poverty, inequality, unemployment and historic economic exclusion that the system that you are the beneficiary of hon Badernhost has caused. Therefore, when implementing the Economic Reconstruction and Recovery Plan, an economic diversification plan must be drawn up to ensure that the economic concentration in certain parts is not further entrenched, but spread across the various provinces. As I have outlined, the SEZs, and industrial parks are exactly doing that.
For that to occur, infrastructure development must occur for microeconomic development to be viable and ensure job creation, localisation and industrialization must be premised
on sourcing raw materials available in different provinces. For example, this means that in dense forest areas which produce wood, local industrialization would be based on wood manufacture and the same with wool and leather.
The development of Small, Medium and Micro enterprises, SMMEs, in the provinces becomes a critical source of economic diversification. We received the privilege of having the Minister answering questions here on the red tape. She also took part in the debate and mentioned what the ANC-led government is doing to address red tape. But you will have the doomsayers not appreciating that.
The District Development Model is premised on developing the microeconomy of different areas to ensure the development of SMMEs for manufacturing, fabrication, automotive and other services. This is also linked to the development of local industrial parks as I have indicated.
Hon House Chair, what is quite critical is that in rural areas the development of small and medium-scale farmers equally requires market outlets and agro-processing zones to get products and goods to market. In both urban and rural areas infrastructure support in the form of water, electricity and
transport infrastructure is required to ensure production and connect people to the markets. Likewise, the importance of water supply is quite critical and we must be able to appreciate the work done by the Department of Water and Sanitation in its quest to improve the lack of water, particularly in areas where there are challenges. It is important also to appreciate the work that this department that deals with water affairs is doing about dam projects to increase the storage and supply of water. These projects are currently underway in the Eastern Cape and KwaZulu-Natal.
These projects will also include hydroelectricity. We must appreciate the fact that no economic plan can be successful without economic inputs such as water and energy.
The ANC-led government continues its quest to confront the challenges of load shedding, and this is done through ensuring the maintenance of units and has been bringing on stream units from Kusile Power station. Moreover, the government has brought independent power producers, IPP, and energy on stream to complement custom so that supply can meet demand.
Hon House Chair, it is quite critical to also appreciate the work that is done on the feasibility study that is underway for the expansion of the Durban Port. The rail transport
infrastructure has recovered as the South African Passenger Transport Agency, Prasa, has opened most of the four rail corridors that were originally planned and we can report that it has opened 16 of them. And we can say that 31 out of 40 rail corridors are currently operational and train services have improved. That is progress under the ANC-led government.
Given the fact that the country has a single integrated rail network for both goods and commuter rail. The opening of rail corridors means that Transnet Freight Rail can develop a plan through the implementation of the new real policy to ensure that the movement of goods from road to rail can occur.
We also appreciate the work that the ANC-led government is doing through the South African National Roads Agency SOC Ltd, SANRAL, because it is developing several national roads which reduce travel time and connect different economic centres, thereby enabling economic diversification as it connects people to markets and markets to each other.
It is important to also appreciate the work that is done by the Department of Public Works and Infrastructure in developing small harbours, as these provide coastal communities with economic opportunities to access the ocean’s
economy. These small harbours provide further opportunities for the development of SMMEs in the service sector of the harbour and the fish processing industry. These opportunities that are being created will grow both the provincial and thereby the national economy in an increasingly sustainable manner. The Department of Forestry, Fisheries and Environment is dealing with fishing quotas, hon Moss. Coastal communities and harbours in the Western Cape have been refurbished, creating much-needed jobs.
It is important also to appreciate the work that is done about small-scale mining in the provinces where mining is the predominant economic activity. It is also quite critical to appreciate the work that the ANC-led government is doing about the beneficiation of minerals by the mining houses which remains a key area of concern. But of course, we appreciate the progress that is being made. Particularly given the fact that beneficiaries need to commence with small-scale miners and the national mining companies. This requires deep encouragement and support from the different departments in the economic sector.
House Chair, it is important to also appreciate the work that is done by the Competition Commission, which is quite critical
in deconcentrating the market to enable new entrants to enter the market to ensure an increase in competitiveness. It is this competitiveness that is the secret of success for the Economic Diversification Plan, as it ensures space for new businesses and new entrants to reverse the historical economic exclusion from which some of you benefited.
It is noteworthy to mention the work of the Department of Trade, Industry and Competition, DTIC, because these governments must work closely together so that economic infrastructure is well developed and opportunities for business in the various provinces are improved. This would mean that DTIC should co-operate with small business development and we have seen that this is happening.
Especially with the SEZs, as we initially outlined at the very beginning. It should be noted that the DTIC needs to work more closely with other departments which are engaged in developing economic opportunities through infrastructure development.
We appreciate the work that the National Treasury is doing, but it is also quite important to appreciate the fact that it is not the source of economic growth, nor can the fiscus drive, economic growth. But we must appreciate the fact that
inclusive and sustainable economic growth will be driven through the development of local industrial sectors and beneficiation of minerals and agricultural products, and therefore needs to be driven by the economic cluster of departments.
We should note that an integrated way of working is the only way to achieve inclusive and sustainable economic growth and to develop an economic diversification plan that ensures the development of provincial and local economies. South Africa has proven its resilience and growth potential over the past
30 years.
As we celebrate the 30th anniversary and also report back to our people in terms of the implementation of our manifesto, we need to appreciate the fact that mass progress is being made in terms of infrastructure development, and land reform. And that the democratic government has demonstrated over the past
29 years, that investment in the economy is secured and the market is.
The South African market is a profitable market, which means that it provides a good rate of the rate on capital invested. Therefore, current government programmes for economic
development will ensure inclusive and sustainable economic development, which will ensure the development of an economic diversification plan in all the provinces through the implementation of the economic Reconstruction and Recovery Plan takes place.
In conclusion, some would not want us to confront the legacies of the past. They want the economy to remain untransformed and characterised by high levels of concentration. It is because the apartheid government consciously and actively supported monopolies and agricultural opportunities and condoned industrial cartels in its effort to promote the economic interest of the white minority. They will continue to attack the ANC-led government for its policies to promote a better life for all. They believe that they are the only ones entitled to a better life for all. But we can assure them that the ANC has been a glue that continues to hold our country together. The last 29 years have proven that. What we see here today is a clear example of what the ANC has done. Perhaps you would like this House to remain white. That would make you happy. Thank you, House Chair.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Order members! I will now invite the Deputy Minister of Trade, Industry and Economic
Development. Hon Deputy Minister, when you opened the debate, there were some glitches towards your conclusion so we will add that four minutes to your allocated concluding time. Hon Deputy Minister?
The DEPUTY MINISTER OF TRADE & INDUSTRY & ECONOMIC DEVELOPMENT
(Ms N Gina): Hon Chair, now I think the glitch is on my video, I don’t know what is happening. Hon Chair, let me take this opportunity to thank all the speakers who participated in this important debate on Africa industrialisation day. Indeed, all the contributions to this debate were heard and most of them are very important and we take note of them, including the criticism that we've heard.
Chair, few speakers from the opposition this afternoon speak about South Africa that has no conducive environment to do business. I would really love to respond to that. That is not true at all. This government has been levelling all the fields in making sure that there is ease of doing business in all the sectors of our economy, using the policy space and direct engagement with the private sector, attracting them to invest.
Our reimagined industrialisation strategy is anchored on creation of conducive environment for businesses to thrive.
Just to make an example on that one, through investors, you have established a one stop shop to facilitate investments including foreign investments.
Just three months ago, we have just opened an Energy One Stop Shop to first check green energy related projects in the country to bipack the red tape. This has been key for government as President Cyril Ramaphosa removed a curb on energy projects in the renewable energy generation. I'm just trying to prove that when it comes to the ease of doing business, we are making sure that we level the ... [Inaudible.]
As we undertake these measures will not drop the ball Hon Chairperson on economic transformation and localisation. Let me respond to what the hon J.J Londt has said. He has been very much this dishonest to argue that manufacturing output growth in South Africa today has declined massively than it was five to six years ago without interrogating the factors that caused that decline.
The hon J.J Londt knows very well that we are from COVID-19. There are so many things that affected the growth, significantly the manufacturing outputs in 2020 and March of
2021 as global supply chains were disrupted. But what is heartwarming - and I know he also sees that, he knows that and hears that, is that we do see a steady growth after all the challenges that we have been faced with and our post COVID-19 reconstruction and recovery plan, we are seeing the positive impact of such.
I just want to share with you the hon J.J and the advice that you are giving to us as government to use green hydrogen into steel manufacturing and other commodities. Yes, part of our energy mix includes the usage of green hydrogen, a lot of work around green hydrogen in the Northern Cape, Boegoebaai and the Western Cape, Saldanha Bay will contribute to the call that you are making on hydrogen to be used in steel manufacturing.
One other thing that I just want to talk about here is the form of the response to the debate for today. It is important and it is good that we become honest when we engage ourselves in such debates. The Western Cape government queue from the national government. A lot of work that we are doing as the Department of Trade, Industry and Competition, DTIC, in the Western Cape government, we are doing with them which they succeed through our national efforts.
As an example, in the Atlantis SEZ which has positioned itself as a green energy, attracting investment and Saldanha SEZ has a gas and oil industry forecasts. We, as the national department have been funding a lot of projects in the Western Cape, working with the government so that we benefit as the country on that. We do this because this is one country, there is no South Africa and the Western on the other side. We must stop this federal tendency that they are coming up with.
And even taking from what the hon Murray has just said. The hon Murray has raised a very important point of the vertical industrial approach when we do our industrialisation. The hon Murray says we must water and nourish everything. We must make sure that we take care of everyone. For me, though, this statement coming from hon Murray when she was saying that is what they are doing in the Western Cape. For me it's a little bit of an insult because it says to me, what they are doing ignoring those black people in those townships, it means they don't even consider that those people are there. So, it is an insult to our people who live in the Western Cape, that they're not taken care of, whereas they know exactly that they must cater for all.
So, for me that is the statement that says black people we know you do not even exist in the Western Cape. We only take care of those that we can. So, I think she will learn from her words and make sure that they take care of everyone in the province and make sure that everyone benefits on what the country is offering them. When it comes to the issues of industrialisation, let us see everyone being taken care of as she was alluding to.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Deputy Minister, sorry, let me take the point of order from hon Murray.
Ms C MURRAY (Western Cape): Thank you, hon House Chairperson. I believe that the Deputy Minister is casting aspersions on my character by insinuating that it wouldn't be prudent to me to take care of other people within the province to take care of all people within the province that she certainly misled in terms of what I had said. And she is casting aspersions on my character.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Order members. Hon Murray, you are responding to the debate. It's so unfortunate that it's a point for debate. Let's allow the hon Deputy Minister to continue and conclude her remarks.
The DEPUTY MINISTER OF TRADE & INDUSTRY & ECONOMIC DEVELOPMENT
(Ms N Gina): Thank you very much, Chair. Unless she is casting aspersion on me as to say I didn't understand what is it that she said? But let me continue hon Chair.
I want to agree with hon Radebe that inclusive industrialisation will not be complete without locating at the centre, women, and youth. This is exactly what we are endeavouring as government.
Hon Chair, again, let me re-emphasize this point, we are committed to Africa's industrialisation. We are determined to consolidate SADC region and Saco system so that we can trade in the continent from a stronger region, which strengthens value chains built with all our regional economies.
So, what we are saying is that we'll continue with our efforts and making sure that when it comes to the issues of industrialisation, we are there. Before I conclude, can I also comment on the ease of cannabis and hemp. One member - I might not remember who but it was the last member who spoke, he was saying that the government is doing nothing when it comes to the issue of cannabis and the master plan.
Hon Chair, let me update this House as to say that we have completed the Cannabis Master Plan and sending on the European Union, EU economy and value chains to be created by cannabis economy. There is an interministerial committee that has been mandated and it has mandated us as the DTIC to develop a commercialisation policy of cannabis.
Hon Chair, our technical teams always brief us every month as to say what the progress is and by early next year, that policy will be out. The President has also taken upon himself to establish a committee driving this process made of affected Ministers and directors-general in line departments of this industry.
So, it’s not good for a member to stand up here and speak something that is not founded. It's one area where we are saying there are a lot of opportunities that will be open once we industrialise that sector and so much has been done to that.
Indeed, we are committed in making sure that whatever sector that is there in our country, we are higher on industrialisation when it comes to the issues of localisation, we are there so that we even trade the intra trade within the
continent. We want to be high on that. Thank you very much hon Chairperson. Whatever they have said has been taken into consideration. Thank you.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members, I would like to thank the Deputy Minister, permanent delegates, MECs, all special delegates and Salga representatives for availing themselves for the sitting. Hon delegates, hon members, that concludes the business of the day, and the Houses is adjourned.
Debate Concluded.
The Council rose at 18:07.
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