Hansard: NCOP: Unrevised hansard
House: National Council of Provinces
Date of Meeting: 30 Jul 2024
Summary
No summary available.
Minutes
UNREVISED HANSARD
NATIONAL COUNCIL OF PROVINCES
TUESDAY, 30 JULY 2024
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
Watch here: Plenary
The Council met at 14:04.
The Chairperson took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENT
The CHAIRPERSON OF THE NCOP: Hon delegates, may I take this moment to remind you of the rules in particular sub rules 21, 22 and 23 of Rule 103. I have been informed that there will be no notices of motions or motions without notice. Hon delegates, we will now proceed to the first and second orders of the Order Paper.
APPROPRIATION BILL
(Policy debate) Vote No 36 - Small Business Development and Vote NO 39 - Trade, Industry and Competition:
The MINISTER OF SMALL BUSINESS DEVELOPMENT: Chairperson of the National Council of Provinces, hon members, Minister Parks Tau, Deputy Minister Jane Sithole and other Deputy Ministers present, acting directors-general of Trade, Industry and Business Development, chairpersons and acting chief executive officers of CEOs of Seda and Sefa, senior government officials, distinguished guests, ladies and gentlemen.
I am humbled to stand before you to present Budget Vote 36 of the Department of Small Business Development. We are gathered here at the end of the month in which we all remember and honour Tata Nelson Mandela who established the first Government of National Unity, GNU when there was no pressure to do so but because of the principles of his organisation the ANC that believed in democracy.
As we find ourselves back in the GNU and this time because of the will of the people of South Africa, it is appropriate that we invoke his decisiveness and wisdom to guide us successfully through this seventh administration which has prioritised inclusive growth through micro, small and medium enterprises.
Hon members, we are starting this seventh administration on a solid footing. Building from the sixth administration’s successes, South Africa now has a clear micro, small and medium enterprises, MSME strategy, the National Integrated Small Enterprise Development Framework, which was completed in 2022, and supported by all eco-system stakeholders.
The Sixth Parliament also passed the National Small Enterprise Bill, that has just been signed into law by the President. I would especially like to commend the role played by the Portfolio Committee on Small Business Development through the leadership of the late hon Violet Siwela, may her beautiful soul rest in peace, and the select committee of the National Council of Provinces led by hon Mandla Rayi.
The National Small Enterprise Act has generated new hope among entrepreneurs and stakeholders in the eco-system as we all see it as a game-changer for small enterprises for our country. We are certain that even in the seventh administration, the hon members will make their own mark by passing the Business Licensing Bill that we will table during this term after approval of the business licensing policy that is awaiting Nedlac processes that will culminate into Cabinet approvals.
Hon Chair, the tide is turning irreversibly in favour of small enterprises. The previous legislative framework for MSMEs development was outdated and not fit for purpose. The department just turned 10 years in May. The policies that we had did not sufficiently respond to constitutional principles of socio-economic rights and justice. We now have a solid foundation and legal instrument to champion the interests of small enterprises. South Africa ...
IsiXhosa:
... nelizwe lomthetho.
English:
As empowered by the National Small Enterprises Act, NSEA we are in a process of establishing the Small Enterprise Development and Finance Agency that is stipulated in the Act. It incorporates the Small Enterprise Finance Agency, Sefa, the Cooperatives Bank Development Agency, CBDA into the Small Enterprise Development Agency, Seda.
Through the Act, we will also establishe the Office of the Small Enterprise Ombuds Service, while also empowering the Minister to declare certain trading practices in relation to MSMEs as unfair trading practices like long term exclusive
agreements aimed at preventing weaker parties from entering existing markets, unfair compliance requirements practices or unfair contract terms in retail and commercial leases amongst others.
We have also revised the definition of small micro medium enterprises, SMMEs as you know that we used to refer to them amongst others as part of asset value, we have now removed that, ensuring that we only have three categories. Hon Chairperson, we stand here before you fully cognisant of the central role that provinces and local government play in socio-economic development. We have so much work ahead of us.
One of the reasons why the South African economy continues to experience low growth is because we have not unlocked the economic potential of all corners of our beautiful country.
Since 1994, the percentage contribution to national output has declined in all provinces except Gauteng, the Western Cape and Kwazulu-Natal, particularly Durban.
We need to change this and get behind local growth drivers in all provinces. We must drive localisation and increase the participation of MSMEs in key value chains. Our District Ecosystem Facilitation Strategy which is piloted through Seda
is aimed specifically at aligning our SMME support as a portfolio to local growth drivers, Local Economic Development LED Strategies and District Development Model, DDM plans.
We are committed to improving the ease of doing business at local government level and working with provincial governments on various efforts to reduce red-tape. Deputy Minister Jane Sithole will talk more to this.
Hon Chairperson, access to finance remains one of the key constraints that confront small businesses and cooperatives, particularly those owned by historically disadvantaged individuals and those in the start-up phase of the business lifecycle.
To address this, we have developed the MSME and Co-operatives Funding Policy to expand access to finance and early-stage investment. We will be tabling this policy to Cabinet for final approval in a month or two. This policy is another gamechanger as it also proposes the establishment of a fund of funds, which we are currently designing.
We will also continue to build on the work we have already done in the previous administration to invest more in under- served SMME and co-operatives.
Now hon members, during the sixth administration, we managed to support R9,68 billion that went to MSMEs both in direct and wholesale lending, blended finance and grants to 378 201 small enterprises across the country which is done through Sefa.
Through Seda, we established 110 incubators and in total provided non-financial business support to 252 942 MSMEs at a cost of R4,1 billion.
This includes 104 595 township and rural enterprises. The breakdown by province is detailed on the written speech that is being circulated to hon members. Hon members, there can be no denying that despite our small budget, we are making an impact across the entire country. Both with respect to financial and non-financial support.
For this financial year, Sefa plans to disburse just under R2,16 billion which will facilitate the creation of 130 000 jobs. The R2,16 billion disbursements comprise fiscal transfers and Sefa’s balance sheet funds. We will target underserved MSMEs, 40% women owned, 30% youth owned, 7% to
people with disabilities. Even with the little budget, we are leading with issues of economic transformation as a portfolio.
In this financial year, we have made sure that we increase non-financial support, what we call pre-investment and post-
investment support in those provinces where we do not have the investment pipeline to attract Sefa and other funding. Many people have been complaining that government keeps pumping funds and businesses are failing. At the same time small enterprises are not able to access certain funds because there are issues of compliance amongst others and this why we say that it’s high time that we pay attention in enhancing those capabilities and support that we must provide to SMMEs before they apply for funding and after they have received funding and all this is done to ensure that we build sustainable businesses that must in turn create jobs that we need in our country
We also have instruments such as the Shared Economic Infrastructure Facility which we implement in partnership with provincial and local government, and the private sector.
Recently, we completed the Mangaung Retail Hub and Informal Trader Stalls in the Free State; King Sabatha Dalindyebo
Ntozonke Market in the Eastern Cape; Manguzi Market Precinct Stalls in Kwazulu-Natal; Intloko Meat Sellers Facility in Kwa- Mashu, KwaZulu-Natal; and the Manufacturing Supplier Park, Industrial in Gauteng. This is a tiny drop in the ocean, but we intend to build more facilities to give dignity to our people when they trade so that the hon members and their families can see it important to go eat and buy from those products produced from the SMMEs of our country.
In May this year, we launched the Light Industrial Hub Project in Bergville, KwaZulu-Natal. Work is continuing to ensure completion of the North West Development Corporation’s Mahikeng Trade Market Project. These projects will go a long way in easing the cost and burden of doing business for many micro enterprises in townships and rural areas.
This year we have set aside about R200 million that we are going to be using for this product market and the shared economic infrastructure that I spoke about.
We will also support MSMEs and co-operatives access markets, which we know are very concentrated with high barriers of entry. Here we will support MSMEs access export markets, especially targeting new opportunities presented by Brics and
Africa Continental Free Trade markets. We will also be ramping up our support to SMME suppliers, both to leverage the new Public Procurement Act as well as Enterprise Supplier Development programmes of large private corporates.
To enable this, we have allocated an amount of R266 million directly from our coffers outside what the entities provide to beef up capacity to manufacture by those small businesses. We have partnered Proudly SA to encourage our people to buy locally and expose their products to various potential consumers.
We are also focusing on enabling township and rural enterprises to service local market demand. This year, we have allocated R344 million for the Township and Rural Entrepreneurship Programme which will go on the lending side, R255 million to the Asset Assist Programme which support that provides equipment to SMMEs that make around R3 million a year, and R45 million to support general dealers as we seek to reclaim the township and rural economies. Our people must produce, buy and service their communities to have the rand circulated around themselves. Ladies and gentlemen, I plead with all of you, let’s buy local.
Hon Chair, as I move to wrap up, let me table our budget of R2,437 billion. This budget is primarily directed towards transfers and subsidies, which accounts for 83,5% of the budget. It does not go to the staff, it does not come to us, it goes directly to transfers of both provisional non- financial support and financial support to the SMMEs.
As the department, we only manage R478,1 million, accounting for 19,6% of the total budget. This budget has been cut in line with the government’s broader cost containment measures, but we have tried as much as possible to ensure outputs are not affected.
This is evident in our big targets for the year. The 50 000 competitive SMMEs, 10 000 youth start-ups, and 30 000 township and rural enterprises. Working together with provinces and municipalities, we will be unwavering in our commitment to make small enterprises the engine of economic growth and job creation.
As government, we cannot do this alone, and will be entering into strategic partnerships with key eco-system stakeholders, including our big brother, the Department of Trade, Industry and Competition. We will also be ramping up our capacity and
capabilities as the portfolio and we will automate business processes to achieve efficiencies and scale.
Many entrepreneurs have complained that we take too long to respond as they apply for financing from state-owned entities, the development finance institutions, DFIs even ours as Sefa they complain that we take up to 18 months to respond to tell them whether it's approved or not and this is what has led to us to say part of building a capable state ensures that we automate processes to make things easier, and therefore to be able to provide efficient services that SMMEs need in our country.
Fellow South Africans and hon memnbers, we do not have the luxury of time and we need to act with unity of purpose as the three spheres of government and the broader support ecosystem. There is no time to politic about the challenges that are faced by entrepreneurs.
We are all brought here to understand that we need to drive the economic growth for our people, irrespective of the party ideologies that we hold, it is important that when we gather in this House, we attend to that that matters first, creating jobs for our people, transforming our economy as we have all
signed as the parties in the GNU on the statement of intent that 99% of its contents have been adopted by all the parties in the Government of National Unity.
Now, as Tata Nelson Mandela once said:
“The time has come to affirm and celebrate the decisions that you have taken to put in place a national leadership collective that will take our country into the new millennium.”
The people have spoken, in the true spirit of democracy. Let us not fail them and make sure that enterprises strive and South Africa gets the jobs it desires. Thank you, Madam Chair.
The MINISTER OF TRADE, INDUSTRY AND COMPETITION: Hon
Chairperson of the NCOP, Minister Ndabeni-Abrahams, Deputy Ministers present, hon members, directors-general, senior officials of the departments, distinguished guests, ladies and gentlemen, greetings to you all. As we begin commemorating and celebrating Women’s Month, it is sincerely an honour to be here in the National Council of Provinces. Undoubtedly, this is an important platform to promote, above all, the principles of co-operative governance and intergovernmental relations. As
the Department of Trade, Industry and Competition, DTIC, we are focused on realising the objectives of the Government of National Unity.
These objectives revolve around achieving inclusive growth to demonstrably meet the expectations of all our citizens. To meet these objectives, as a Ministry, we are today tabling a Budget Vote of bold, transformative actions.
All three spheres of government and the private sector will have to plan and implement together. By the end of August 2024, we will convene a Minmec in the spirit of co-operative governance to co-ordinate government’s economic and transformation programmes. This collective approach provides the new administration with an opportunity to strengthen existing programmes and interventions aimed at creating investment attraction opportunities for the country.
Over the Medium-Term Expenditure Framework, MTEF, period, R30,1 billion has been allocated to the DTIC family. Our biggest portion of the budget is allocated to the Incentives Programme, receiving 48,7% of the budget. This is followed by the Sector Programme and Transformation and Competition, receiving almost 30% of the budget.
Alone, we will not achieve our desired impact as outlined in the National Development Plan. Therefore, we call upon all sectors of society to partner with us. To this effect, we will use our budget to leverage existing resources, initiatives and programmes that will help the country to move forward.
Now, talking about expanding and improving South African exports, today, we convened a press conference to present some of the major outcomes emanating from two international engagements that we, as the DTIC family, have participated in recently. Namely, the 21st AGOA Forum in Washington, D C and the 14th Brics Plus Trade Ministers’ Meeting in Moscow, Russia.
At the AGOA Forum, the DTIC family was supported by a diverse South African delegation who engaged with the United States stakeholders with a view to strengthen trade and investment relations. Our mission was undertaken, guided by the GNU Statement of Intent that outlines the key priorities for the Seventh Administration, with a focus on achieving rapid, inclusive and sustainable economic growth. Our key message was to reset and create partnerships with an emphasis on industrialisation, building a capable state and job creation.
As the DTIC family, we regard the AGOA Forum as a crucial engagement, reinforcing the strong economic ties between South Africa and the United States and our African continent. Both the AGOA Forum and the Brics Plus Trade Ministers’ Meeting were fundamental in advancing international trade relations and economic co-operation. The outcomes emanating from the Brics Plus Meeting included, among others, firstly, the need for co-ordinated multilateral action on climate change and expressed concerns about unilateral measures like the Carbon Border Adjustment Mechanisms, or CPEM, impacting developing countries.
Furthermore, they agreed to ensure climate measures that respect the World Trade Organisation, WTO, commitments and resist discriminatory practices. Secondly, the potential of e- commerce to enhance market access and economic growth, with calls for developing international rules and standards to address challenges such as cross-border taxation and data piracy. Thirdly, the role of special economic zones in driving economic growth and investment was discussed with a commitment to shared best practices.
In the spirit of transparency and in the hope that we further improve the ease of doing business, we welcome the President’s
ascension to the Companies Amendment Act. This Act will achieve the following. First, it aims to improve the ease of doing business, by ensuring that our company law is consistent with well-established principles that are not overburdensome on businesses.
Secondly, it aims to achieve equity between directors and senior management on the one hand and shareholders and workers on the other hand, as well as addressing public concerns regarding high levels of inequalities in our society. And thirdly, we are pleased with the signing into law of the Companies Amendment Act, which will go a long way in ensuring adherence to sound corporate governance, accountability and transparency, and that directors carry their duties with integrity and care.
We have to work together to find each other. All three spheres of government and the private sector will have to plan and implement together. With regards to spatial equity, to achieve better spatial equity requires the strengthening of our Special Economic Zones, SEZs, Programme. Fortunately, there are local success stories we can learn from to accelerate the SEZ models in our underserviced areas.
As you know, the Coega Industrial Development Zone is presently home to 63 firms, employing approximately 10 000 people, with cumulative investments of about R11,5 billion. The much-celebrated Tshwane Automotive Special Economic Zone, or Tasez, suggests that we have found a much better and enhanced SEZ model. One major lesson learned from Tasez is the importance of national, provincial and local government to have an equitable share and responsibility in the SEZs.
This model was tested in Tasez and has been proven to really work. The national government is providing funding for the top structures and the provinces and metro supported the bulk infrastructure investments. This model will now be rolled out more widely, as we consider SEZ existing and new applications. And these are the Nkomazi SEZ in Mpumalanga, the Bojanala SEZ in the North West, the Fetakgomo-Tubatse SEZ in Limpopo and the Namakwa SEZ in the Northern Cape. This is an example of the district development model at work.
Transformation remains a key imperative, as required by our constitution and the DTIC family will continue to guide and monitor triple BEE progress to ensure that designated groups benefit directly from South Africa’s growing economy. As part of this priority, we will work to explore working with
stakeholders, to ensure effective implementation, how to more efficiently aggregate enterprise-level spending on triple BEE components, such as enterprise and supply development, skills development, and socioeconomic development.
South Africa has over 200 industrial parks, which are often located in or adjacent to our townships. Many of these industrial parks provide jobs and incomes to people from the surrounding townships. If we were to unshackle our township entrepreneurs, then fixing South industrial parks is an essential policy intervention.
We therefore call upon all three spheres of government to support the revitalisation and growth of industrial parks. We also call upon the three spheres of government to improve operations and facilities, including through encouraging private-sector participation.
At national and provincial level, we know that many departments fund SMME support agencies, incubators, regional offices, outreach centers, and so forth. Some if not many of these could be located within professionally run accessible industrial parks and thereby improving community access, providing stable income for the industrial park, and
potentially lowering the cost of providing services to citizens and stakeholders.
With regards to industrial policy, as indicated during our Budget Vote speech in the National Assembly, the DTIC group’s smart industrial policy and programmes are being implemented through strong co-ordination across the three spheres of government. Our smart industrial policy and programmes are being implemented through partnerships with both state departments or agencies and the private sector and organised labour.
Two weeks ago, at the opening of Parliament debate, we made mention of the Sage Council of Wangari Maathai when she emphasised the balancing of the needs of the economy and the demands of the environment.
She’s on record as saying, and I quote: “The environment and the economy are really both two sides of the same coin. If you cannot sustain the environment, we cannot sustain ourselves.” The corollary in this context also holds true that, if we cannot sustain ourselves, we cannot sustain the environment.
This context allows us, as South Africans, to celebrate the signing of the Climate Change Bill by the President and it came at an opportune time. Fortunately, as the department, we had already taken significant steps towards identifying opportunities in industrial decarbonisation and manufacturing of green products for both local and export markets. The Bill makes provision for a role for provinces and municipalities in co-ordinating our climate change responses, as well as setting emissions targets for manufacturing and related sectors.
In this regard, the department has developed a green hydrogen commercialisation strategy, which will be implemented in the next few weeks, as the Ministry will be meeting with the provinces and Salga to map out these further and ensure that we all channel our energies towards building a greener and climate-resilient South African economy.
We have to work together to find each other. All three spheres of government and the private sector will have to plan and implement together.
We have to ensure that industrial opportunities resulting from policy, regulatory, and private-sector decisions are maximized to enable manufacturing-led growth. Why the focus, an explicit
focus, on manufacturing? Quite simply, manufacturing induces or catalyses growth and jobs in upstream and downstream sectors. These jobs are typically permanent, pay relatively decent wages, and provide workers with sustainable careers. And as you would agree, these jobs offer a sense of dignity to our citizens and our communities. Crucially also, manufacturing is not dependent on mineral resource endowments or the perfect climate for agriculture. The manufacturing sector is generally able to operate in any environment that has basic municipal economic infrastructure.
That is why, as we pursue inclusive growth, the manufacturing sector will be prioritised to bring growth to our underdeveloped provinces, rural areas, and township spaces. We have seen the impact of the migration of our people to urban and metro areas primarily because we have not been able to create sufficient jobs closer to where people live.
One of the most significant threats to the economy and job creation that undermines our industrial efforts is the illicit economy. Some importers underdeclared the value of their goods and make false declarations of the goods they are trading in. Others misuse certain rebates created to support local manufacturing by allowing duty-free importation of certain
inputs to support local value-adding manufacturing. This makes it difficult for many local manufacturers to compete with such low-priced or illegal imports, resulting in an adverse impact on the creation and retention of jobs and sustaining livelihoods.
It is against this backdrop that we have formed the interagency working group comprising the DTIC, ITEC, National Treasury, and Sars to combat this illicit economy, with an immediate focus on illicit trade in scrap metal, gold, and clothing, textile, footwear, and leather products.
Our focus is on stabilising the administration. We are currently reviewing the organisational structure to ensure that it is aligned and optimised to support the department's mandate and prioritised programmes.
It is envisaged that the proposed structure will promote a value-chain approach to integrate the work of the department and its agencies and thereby eliminate silos, duplication, and inefficiencies. We have prioritised the filling of key leadership positions in the department and our agencies to strengthen the department’s capacity to execute on its mandate.
As I conclude, I would like to remind us that the electorate expects political parties of the GNU to work together constructively to the benefit of all South Africans.
I wish to thank the Select Committee on Small Business, Trade, Industry, and Competition on their contribution during our engagements on the 2024-25 annual performance plan briefing. I hereby table Vote 39. Thank you very much.
Ms H S BOSHOFF: Hon Chair, hon Ministers, and Deputy Ministers, fellow South Africans, and all other protocol observed, I am deeply honoured as the newly elected chairperson of the Economic and Trade cluster to present the 2024-25 annual performance plans and estimates of expenditures of the Department of Trade, Industry and Competition, as well as that of Small Business Development, and this all under a new political dispensation, namely the Government of National Unity, GNU. Afford me the opportunity to congratulate the respective Ministers and their deputies on their election to these important portfolios. I would also like to take this opportunity to acknowledge the staff of this committee for the work they do and for the assistance given to me.
Chairperson, I further note that the priorities in the annual performance plan I am presenting are based on the previous administration and that we must soon work on priorities based on the Government of National Unity. The Department of Industry, Trade and Competition’s mission is to promote structural transformation towards dynamic, industrial, and globally competitive economy. This department’s main objective will be to create a thriving economy that benefits all South Africans from all racism backgrounds through inclusive and sustainable industrial development.
At our recent select committee meeting, Minister Tau stated that he and his department are focused on accelerating the implementation of the industrial policy and economic transformation. This, hon Minister, is welcomed as it will assist in fostering foreign investment to help grow the economy. The Fifth and Sixth government Administration’s economic policy strategy documents highlighted that persistent structural constraints remain a challenge. It is advised that economic policy reforms need to be implemented faster to create necessary jobs and encourage investment over the medium term. The Department of Industry, Trade and Competition’s work is organized to nine programmes which focus on economic research and industrial sectors, investments, incentives,
regulation, transformation and competition, international trade, export, and administration.
Furthermore, this department is responsible for 17 entities and 45 pieces of legislation covering a substantial part of South Africa’s economic policy landscape. The department has further identified economic opportunities, which include the following: The implementation of the Economic Reconstruction and Recovery Plan and structural reforms, such as private sector electricity generation, third party access to rail networks, red tape, removal on licensing and approvals, e- visa, scaling up spectrum digital access and reduced data costs, and new mining rights to name, but a few; infrastructure deliveries supported by effective project preparation and blended innovative financing models; multilateral structures such as the BRICS, which provide opportunities for expansion of trade, investment, and industrialization; the African continental Free trade area, AfCFTA, outcomes for industrialization and infrastructure development; the beneficiation of strategic minerals; SMME development; special economic development using special economic zones and Industrial Development Zones as key drivers; automotive investment production, exports, electric vehicles value chain, and South Africa’s music industry,
making up the bulk of sub-Saharan Africa’s revenue growth on streaming platforms.
In the past year, hon members, I can report that the Department of Industry, Trade and Competition has made significant strides in areas such as investment promotion, SMME support and trade facilitation. The strategic objectives for 2024-25 financial year are to review and accelerate implementation of industrialization policy and strategy that promotes jobs and rising incomes. Transformation that builds an inclusive economy, building a capable state to build greater capacity and to ensure national objectives are achieved through the ability to plan and develop strategies, creating stability across the Department of Industry, Trade and Competition family, solve systemic and alignment across the state, and filling of strategic vacancies.
At the top of the agenda are the following: Which are aimed at combining economic growth with transformation; growing employment with the creation of a conducive environment for jobs; boosting local production, growing exports, and expanding African trade; increasing investment; and establishing a more reliable and low-cost energy system while greening the economy overall. Keeping in mind the priorities
from the GNU statement of intent and the President’s opening speech on 18 July 2024, which will further shape the strategic plans and annual performance plans towards advancing transformation, industrialization, and job creation. This department will focus on the following five areas: Industrial policy action plan, trade policy, and strategic framework; investment; climate change and promotion thereof; competitiveness and innovation; and regional and international trade relations. The annual performance plan highlights will focus on special economic zones, export development programmes and SMME support programmes.
Hon Chair, the budget for 2024-25 has been strategically allocated to ensure maximum impact across all key areas. In the fiscal year 2024-25, the department’s financial allocation is set at R9,6 billion, down from R10,709 billion the previous year. This 10,36% reduction calls for a careful reassessment of the department’s budgetary priorities and resource management strategies. Hon members, the implications of the budget reductions will have a serious impact on the performance of this department and will bring along its own challenges but will ensure that mitigation strategies are put in place. Furthermore, fellow members, the Department of Trade, Industry and Competition is committed to driving South
Africa’s economic growth through targeted and effective initiatives.
Hon Chair, afford me the opportunity to table the annual performance plans and estimates of expenditures for 2024-25 for Budget Vote 36, Small Business Development. The National Development Plan, NDP, aspires for a more inclusive economic system, one where millions of excluded people can find jobs or space to start new firms. The NDP envisages that the economy will create approximately 11 million additional jobs between 2010 and 2030. In this regard, the vision has identified that small and expanding firms will be able to create 90% or
9,9 million of those jobs under the assumption that the economy grows by 5% on average.
In pursuit of this inclusive growth part, the Department of Small Business Development must assume a leading and co- ordinating role across the board; small, medium, and micro enterprises support ecosystem. The annual performance plan indicates that 2023-24 financial year, the department processed the National Small Enterprise Amendment Bill through Parliament and the subsequent signing into law of this Bill by the President is welcome and will undoubtedly lead to the establishment of the Office of the Small Enterprise Ombuds to
assist in tackling nonpayment and unfair practices against SMMEs and co-operatives. The annual performance plan also reports that in the previous financial year, the department developed the business licensing policy and in the current year, the Business Licensing Amendment Bill will be introduced to Parliament with the intention to repeal the outdated Business Act 71 of 1991. This will, amongst other issues, deal with the mushrooming of illegal, which includes domestic, foreign, and unregistered businesses across all municipal jurisdictions in the country. In 2022-23, the department initiated the National Integrated Small Enterprise Development, Nised, strategic framework, which was announced as a third iteration of small enterprise development strategy. The implementation framework of the Nised is mirrored in the annual performance plan of 2024 and the Minister of the Department of Small Business Development has outlined five broad aspects of this operational plan in the annual performance plan to include Red tape Reduction Programme, which will be rolled out at municipal level and for the 2024-
25 support will be extended to 30 municipalities, increasing the participation of SMMEs and co-operatives in key markets and value chains to, inter alia, provide entrepreneurship and business development support. The department also aims to implement the recently developed national entrepreneurship
strategy and strengthen the performance of its 110 incubators. The operational plan will also continue to roll out business infrastructure, realigning its shared economic infrastructure facility programme with the product market programme implemented by the Small Enterprise Development Agency, Seda. It will also provide better access to finance for start-ups.
The recently developed SMME and co-operative funding policy will address how the sector can move forward in establishing a fund of funds in the 2024-25 financial year. It will continue to develop the internal capacity and capabilities. The Minister also reported to the select committee during the recent briefing on the Budget Vote that a 25% vacancy rate in the department is being addressed. As such, 40% of those positions are currently under recruitment.
Hon Chair, the budget for 2024-25 is R2,4 billion, down by 3,7%, and in real terms, it is much higher, namely 8%. The budget of R2,4 billion will be spent as follows: Administration, R169,6 million; sector policy and research, R60,9 million; integrated co-operatives and micro integrated development, R202 million; and enterprise development innovation and entrepreneurship, which is made-up of sub- programmes with a budget of R2 billion. Various priorities are in place which, inter alia, include the following: The
National Integrated Small Enterprise Development strategic framework; co-operative strategy and informal economy; policy and legislation to create an enabling environment for SMMEs and co-operative with various programmes; Township and Rural Revitalization policy framework, which speaks to the Township and Rural Entrepreneurship Programme, Trep, which will be done in collaboration with Department of Trade, Industry and Competition, National Treasury, provincial economic development departments and selected municipalities; addressing the localization policy framework and the implementation programme on SMMEs and co-operatives; the creation of one-stop shops and digital support towards SMMEs and co-operatives and this will be validated by the envisaged to be established Small Enterprise Development Finance Agency; facilitate and increase in the number of competitive small businesses with a focus on township and rural economies; and the department will put in place interventions that will prioritize women, youth, and persons with disabilities to ensure a minimum target of 40% for women, 30% for youth and 7% for people without disabilities. That is commended Minister.
In closing, hon Ministers and Deputy Ministers of both these departments, as chair of this committee, I wish to extend my hand together with that of the hon members of these two
committees to you to work as a collective in ensuring we build South Africa into a vibrant economy, a capable and ethical state. We look forward to seeing bold, decisive action taking place to address the critical challenges faced by all our sectors clustered under this committee. Following the 29 May election results, we have been entrusted with a duty to save this country under the newly elected GNU and together, hon Ministers and Deputy Ministers, we can work and will work towards executing this mandate. Thank you, Chair.
THE DEPUTY CHAIRPERSON OF THE NCOP: Thank you, hon Boshoff, it is now my pleasure to greet all the Ministers that are here, Deputy Ministers, chairpersons of committees, as well as our guests who are in the House, as well as those in the gallery.
Ms M DHLAMINI: Thank you, Deputy Chairperson. Good afternoon to you, hon Chair and your Office of Chairs, hon Chief Whip and your office of Whippery, hon Minister, Stella Ndabeni- Abrahams, hon Minister Parks Tau and your Deputy Ministers, distinguished guest and hon members in the House. As the ANC, we would like to adopt this report of the debate on Budget Vote 36 of Small Business Development, DSB. We are supporting this budget based on the following observations.
A sizable portion of the workforce in South Africa are employed by small businesses. However, the country’s formal employment rate is still lower than that of the Organisation for Economic Co-operation and Development member states, which is between 60% and 70%. According to Statistics South Africa 2023, on the breakdown indicated that the turnover by business size, small businesses generated R2,3 trillion, which is 22% of R10,5 trillion total formal businesses turnover,
Approximately, about 67% of the total turnover comes from larger businesses in the economy, while the remaining 10% is generated through medium-sized businesses. It is based on this that we further made the following observations and appreciation: That the department’s medium-term goals will centre on expanding access to both financial and nonfinancial assistance to the township and rural businesses, co-operative start-ups, small and medium=seized enterprises or small and medium businesses, which are your SMMES.
The 68% of total turnover comes from the larger business in the economy, while the remaining 10% is generated through medium sized businesses. It is based on this trend. We further make the following observation. And appreciation that the department. Yes. Committed to do the following that the
departments medium term goals share will center on expanding access to both financial and nonfinancial assistance to the Township and rural businesses, co-operative startups, small- and medium-sized enterprises or small and medium-sized businesses, which are your SMMES, across nine provinces of the country.
This also speaks to the mandate of improving co-operatives to the international market prospects, renovating or constructing authorized businesses infrastructure for SMMES, to advance the standards of informal and micro enterprise support systems for informal businesses development initiative. This was also emphasised by the Minister, which we appreciate, as the ANC. This clearly shows that the department is essential to the economy and will continue to drive the South African growth.
It is based on this, as the ANC has the confidence that the budget allocated or the planned budget for this department for the current financial year will assist in achieving the priorities of the departments as indicated by the Minister. In order to generate high performance entrepreneurs, we would like to support the department in Incubation and Digital Hub Support Program that is dedicated to great ecosystem of
improved sector-focused support service centers, which is one of the core priorities of the department.
Those will be done by assisting already existing incubation centres and digital hubs to help businesses to grow by expanding and introducing them to the refueled support offerings that will enable a variety of programs, derived from already existing into patient support programs, packaged together to help businesses reach their full potential through partnerships.
The department wants to assist 30 000 young entrepreneurs in the next three years, to provide a platform for the next generation of job creators, to participate in the economic transformation.
Chair, we would like to appeal to the department that, as and when they are going to execute this important initiative, they should give us, as the house, the breakdown of these 30 000 young entrepreneurs, so that we are able, when we play our oversight role, to assist also the department in making
follow-ups and give them the necessary support they need.
The Department of Small Business Development will put the SMMEs and co-operative funding policy into effect. This minister also emphasises the need to hasten the accomplishment of game-changing force. The introduction of specific funding instruments connected to the business development life cycle, such as the Microfinance Intermediary Program, will be necessary to accomplish this game-changing initiative.
The DSB will focus on implementing the recommendations of the World Bank Diagnostic Review pertaining to cooler credit guarantee to address identified shortcomings, with a view to do the following: To make the guarantee more responsive; to raise more capital; to remove access to finance barriers in the form of collateral requirements; and make SMMEs’ lending more attractive by mitigating the credit risk through KCG. We welcome this initiative because that will also speak to what the Minister emphasised earlier on, in terms of the focus being to the businesses that are run by women, young people and people with disability.
Through the various partnerships formed, 2 500 spaza shops and general dealers, the majority of whom are situated in rural areas, will receive training for business development support. The agency has allocated funds from the National Skills Fund
to support the costs associated with this initiative. We really appreciate this initiative. However, we want to raise a concern that this space of spaza shops is predominantly occupied by foreign nationals, and that defeats the good and progressive initiatives that the department will be coming up with.
We appeal to the department that, as and when we are going to pass the Bills, they must consider the synergy between three departments, which is Home Affairs, Small Business Development and local government, to ensure that the plight of our SMMEs in the country will be heard. We are not against foreign nationals trading in our country. However, the plight of our people has to be at the forefront of our agenda at all material times.
The growth of small businesses in a variety of industries, including apparel, footwear, food processing and many more, will help to lower unemployment in the communities where they are located. The expansion and success of small business contribute to economic resilience because, in the event of a cyclical downturn, employment is retained and even grows in small businesses, while unemployment rises in larger corporations.
We are in favor of this budget vote because it will enable the President’s directive to be practically carried out through departmental programs. The ANC is optimistic that, this fiscal year, we will see continued growth and improvement in the small business sector. Hence, we say that we will support the department throughout to ensure that their initiatives, their APPs and their budget realise what they have presented in this august House.
In conclusion, I would like to indicate to our people that the ANC is still the ANC that they know. The ANC has never changed its character. What the ANC only does is to respond to the material conditions on the ground, as we will be dictated by the current epoch. So, the ANC has not made any mistake or faltered in entering a GNU arrangement. This is a response that the ANC, over the years of its existence, has been preparing to face along the way.
Sesotho:
Ho Ntate Parks Tau, Letona la ka le kgabane, le ho Mme Stella, Letona la ka le kgabane, ke le lakaletsa mahlohonolo, beng ba ka, mosebetsing o thata oo le o fuweng ke setjhaba. Ka bonyane boo le bo fupereng, etsang diphetoho setjhabeng sa rona.
Setjhaba sa rona ha se na mang kapa mang eo se mo tshepileng;
se tshepile rona, re le barongwa kaofela ba dutseng ka hara Ntlo ena e hlomphahileng, beng ba ka. Ke ka hona ke reng ho lona, ...
English:
If life gives you lemons, make lemonade! That is a positive attitude that will carry you through, Ministers – through your journey of ensuring that the lives of our people do change.
Chairperson, in closing, ...
Sesotho:
Ke rata hore ke qotse sena:
English:
This is one of the principles of the African philosophy that I admire so much: Ubuntu - I am because we are. I can only be a person through others. This is what has carried the ANC throughout its existence of over 100 years. Thank you.
Sesotho:
Ke a o leboha MOtsamaisi wa dipuisano, le lekgotla la hao le hlomphehileng. Ho dubui tsohle tse tla latela: Ebang le letsatsi le monate. Ke lebohile haholo ntate. Tanki.
Dr I SCHEURKOGEL: Chairperson, hon Minister, hon members, fellow South Africans, good afternoon, to hon Dlamini, the next time you bring the lemonade to the House, I will bring the ice. I will be waiting for you. The President’s commitment during the inaugural address to Parliament on 18 August 2024, to strengthen his support for the Industrial Master Plan 2030 and the Industrial Exports and Trade programme is key to growing the economy and creating decent, sustainable jobs and value chains.
Furthermore, the President stated that the Government of National Unity, GNU, will pursue a smart industrial policy that focuses on the competitiveness of our economy. Which incentivize the business to expand our exports and create jobs. This was reiterated by Minister Parks Tau when his department tabled its annual performance Plan.
However, we need to re-evaluate all existing master plans and trade programmes to bring them in line with an entirely new approach to building a capable and ethical state in which our economic transformation - not only at the macro level, but down to rural South Africa - takes place. Unfortunately, the current industrial policy has resulted in the manufacturing sector’s contribution to gross domestic product, GDP, falling
from 24% to 13% in 20 years. The stagnant growth has also resulted in unemployment reaching a record high. More than 62% of people between the ages of 15 and 24 are out of work.
The approach and forward thinking of the Department of Trade, Industry and Competition and decisive action in addressing the critical state of our trade, industry and competition sectors is urgently needed. Streamlining industrial and trade policy and cutting red tape will unlock much needed investment. The economic cluster must drive this forward with vigour to ensure that all levels of our economy are unlocked, and real jobs are created.
South Africa is one of the biggest economies in Africa, however, the distribution of resources, jobs and opportunities are concentrated in three main provinces namely, Johannesburg in Gauteng, Cape Town in the Western Cape, and Durban in KwaZulu-Natal. Therefore, particularly attention on government priorities that seek to reset the economy and accelerate employment creation needs decisive and urgent attention. In the Free State, for example, the N1, N3, N5, N6 and other provincial roads pass through the province to reach other provinces. Therefore, there are numerous opportunities to create industries in rural provinces like the Free State, to
boost the local economy and reduce the cost of products. Boosting domestic and foreign investment is crucial.
Therefore, programmes that support and encourage the development of industrial finance, including programmes that support the growth and expansion of small and medium-sized enterprises, SMMEs, and ... [Inaudible.] ... must be high on the agenda.
Minister, we must address our trade deficit with our Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates, BRICS, counterparts. The increased imports, particularly manufactured import from BRICS, remains four times greater of export on average. If we do not properly benefit from this relationship, it needs to improve intra BRICS trade. Government needs to enhance its engagement with its BRICS counterparts.
We must then continue to strengthen trade relations with our other traditional trading partners, which includes the United States of America, USA, and the European Union, EU, we must look towards opportunities in Asia and other global South economies. A puzzle is that our export to Africa continues to dominate. We trust that the implementation of the African
Continental Free Trade Area grows to improve beyond the sub- Saharan African economies.
Hon Ministers and Deputy Ministers, I do not want to dampen any enthusiasm, but looking at our rail network, which once was the backbone of trade logistics being relegated to shambles, is counterproductive. Close to R24 billion in iron ore and coal export trade has been forfeited due to persistent transport inefficiencies. South Africa’s ports are in shambles as well, our busiest ports: Cape Town, Durban and Gqeberha have been ranked among the world’s worst performing container ports according to the World Bank’s recent 2023 Container Port Performance Index. The South African Association of Freight Forwarders said that delays at ports had a direct cost to the SA economy of R98 million a day.
All indications are that South African citrus export challenges will continue in 2024. This industry has saw a decrease in exports of 12,2% year to year, from 22,6 million tonnes in 2022, to 2,3 million tonnes in 2023.
According to the South African Citrus Growers’ Association, the main contributor being logistical problems, such as our ports being unable to facilitate storage and transport
logistics. Minister, we need to see you engaging with the Minister of Transport and with Transnet National Ports Authority, TNPA, to look into means of addressing this.
Another huge barrier emanating from this department are the frivolous regulations, statutory requirements, and extremely punitive tax implication which businesses and SMME’s are confronted with. Failure to comply with them, puts businesses at risk and have a negative impact on job creation. Minister, you have the power to reverse some of the restrictive policies of your predecessor, and we urge you to do so with haste.
Hon Chairperson, the Department of Trade Industry and Competition has no option but to act as the catalyst that holds together the economic Ministries to ensure the establishment of a cohesive and coherent framework.
The Portfolio Committee on Trade, Industry, Competition, Small Business Development, Tourism and Employment and Labour in the Sixth Parliament, recognised that cities and regions are the engines for economic growth and job creation. Cities, towns including rural, mining, and small towns need co-ordinated infrastructure investments, both with regard to social and economic infrastructure.
It is therefore imperative that the new GNU enhances the efficiency of infrastructure spending across the three spheres of government. Strategic and financial support should be solicited from national and provincial government as well as investments from the private sector to support regional economic development.
Another important request of this committee in the Sixth Parliament was that efforts be made by government to create a conducive environment for private sector confidence in the economy and sustainable investment that supports inclusive economic growth outcomes.
In conclusion, this department will not be a success if we keep working in silos creating the environment through proper legislation to grow industries, but we cannot transport the products, or we are unable to connect to international markets. For your department to be the driving force of creating a holistic plan, we need to ensure other departments incorporate it in their APP and understand the role they play in ensuring the goals of the GNU are reached. Thank you.
Ms N N PIETERS (Eastern Cape): Hon Chairperson, hon Minister Ndabeni- Abrahams and Minister Tau, Deputy Ministers and MECs
that are on the platform and the hon members of this august House, good afternoon to everybody. Hon Chairperson, both Budget Votes bear witness to the challenges confronting the country’s overall economic growth trajectory.
Many industries are challenged by microeconomic challenges. Additionally, to that, trends in cross-border investment shows that where there is growth, this is mainly driven by investment in internationally tradeable services and investment in manufacturing continues to lack behind.
Manufacturing has followed a flat trajectory over the past two decades and a negative growth trajectory post the COVID-19 pandemic. Whilst 2023 saw a slight rebound in the manufacturing sector, it remains to be seen whether this will signal structural recovery in the long term. However, the growth in the services sector presents an opportunity for investment promotion agencies such as the Special Economic Zones, SEZs to revise their targeting strategies and ensure optimisation of related services investment opportunities.
The construction and manufacturing sectors are two of the hardest hit sectors in this regard. And within manufacturing, were aware of the recent announcements by Mercedes-Benz South
Africa relating to the realignment of their operations, which will see the organisation move from three shifts to two shifts. As a result, there will be a loss of about seven jobs in the province.
Hon Chairperson, our efforts continue to be undermined by post-COVID 19 impacts on global economy and its aftermath on our industrial sectors, in particular the automotive and
manufacturing sectors. The effects of geopolitics resulting in global supply chain disruption, sharp rises in commodity and food prices and higher international interest rates.
Equally, the province 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 future of work, but aspects of society. Taken together, the global and domestic future remains deeply uncertain. All these sectors are mandating the province to embrace agility and adaptability to the ever-changing economic environment.
On the Department of Small Business Development, the National Small Enterprise Amended Amendment Act of 2024 is appreciated, more especially the establishment of Small Enterprise
Development Finance Agency that is the amalgamation of the Small Enterprise Development Agency, Seda, the Small Enterprise Finance Agency, Sefa and the Co-operative Banks Development Agency which streamlines the support to small enterprises.
The newly enacted Public Procurement Act of 2024 will go a long way in creating a single framework that regulates public procurement. It will further enhance and enable the Buy Eastern Cape Campaign as articulated in the provincial Local Economic Development, LED Procurement Framework.
During this term, the LED Procurement Framework will be reviewed to be in alignment with the Public Procurement Act and further cascaded to municipalities and public entities. Also, the township and rural entrepreneurship programme, will also be implemented at scale, enabled by this legislation.
At the at the provincial level was developed, the provincial informal business strategy aligned to national strategy. The strategy and enables purchasing of equipment, production tools and stocks for the deserving micro and informal enterprises.
It also complements the township and rural enterprises by Department of Small Business Development and small town,
township and rural entrepreneurship support programme by Eastern Cape Development Corporation, ECDC.
Furthermore, we have developed and are implementing the provincial small, medium and micro-sized enterprises, SMME strategy that is aligned to National Integrated Small Enterprise Development. We are also in the implementing, supporting and strengthening the enterprise development ecosystem aligned with the District Development Model. This will be made possible through the reviewed memorandum of understanding, MOU with Department of Small Business Development, DSBD in the Seventh Administration.
Our partnership with DSBD expands to reach the local government and underserved communities for the red tape reduction awareness campaign to address the rampant red tape issues. As the department, we have prioritised development and hosting of the provincial SMME portal that is aligned to the national initiative to ensure an updated SMME database for co- ordinated support, information sharing and rollout of awareness programmes. This portal will cover all SMMEs across all economic sectors.
Lastly, we are looking forward to enhancing our co-operative support program that is funded through Imvaba Fund, working with DSBD’s newly established Small Enterprise Development Finance Agency.
On Budget Vote 39, Trade, Industry and Competition, as the Eastern Cape province we are home to five automotive or original equipment manufacturers and a variety of nonautomotive companies. It is affected by the vulnerability of supply chain as well as the distressed economy. This has impacted negatively on job retention and job creation efforts in the province.
Some of the strategic interventions that are being lobbied across government sectors include, the efficiency and effectiveness of the port’s largest cost drivers for manufacturing sectors due to the distance to markets. The ease importing, low-cost manufactured goods which have a direct impact on localisation efforts by all SEZs and other critical stakeholders, and also subdued support and infrastructure investment on state-owned industrial parks.
It is important now more than ever, hon Chairperson, that renewed focus should be on national policy to improve the
retention, stabilisation and growth of the manufacturing sector and related sub-sectors. We welcome the commitment for the review of the National Industrialisation Policy Framework. As the province was determined to support and enable our industrialists to benefit and play a meaningful role under the black industrialist programme.
Also, on trade investment attraction Chair, as the province we will continue partnering with the Department of Trade, Industry and Competition, DTIC on international missions, focusing on business and investment platforms.
Critical for this term is our focus on trading with the continent, strengthening implementation of the agreements and leveraging of opportunities created through Africa Missions anchored on the African Continental Free Trade Agreement.
On high value services such as hon Chair, the province working with Business Process Outsourcing, South Africa welcomed two new operators, namely Outworx and Teleperformance, who have opened operations in Gqeberha. Furthermore, this was also followed By the expansion of Discovery Health Services located at the Coega Special Economic Zone. This led by intensive
sector is critical for creating more jobs, especially for youth in our province.
Lastly, we are looking forward to Ministers’ meetings with MECs. This platform would strengthen our efforts as the different provinces in sharing best practices and integrating our efforts for inclusive economic growth, employment creation and poverty eradication. We are saying, as the Eastern Cape, we do not want to waste time as we are meeting this important month in the calendar of South Africa ...
IsiXhosa:
... inyanga katata uMandela.
English:
I want to close by quoting tata Nelson Mandela when he said: We must use time wisely and forever realise that the time is always right to do right.
This is the time to do right, and this time is ripe for doing the right. Lastly Chair, as the Eastern Cape, we support Budget Vote 36 and Budget Vote 39. Thank you
The DEPUTY MINISTER OF TRADE, INDUSTRY AND COMPETITION (Mr A G
Whitfield): Deputy Chairperson, hon members, Minister Tau, Minister Ndabeni-Abrahams, Deputy Minister Godlimpi, Deputy Minister Sithole, director-general and senior officials of both departments, good afternoon. As South Africa heralds a new and exciting era in her young democracy with the historic establishment of a Government of National Unity, GNU, the Department of Trade, Industry and Competition has a critical role in gearing for economic success and job creation by working hand in glove with provinces to facilitate trade and investment by creating an enabling environment for growth.
In the wake of stagnant economic growth, high unemployment and the increased cost of living, our people have sent us a clear message and we dare not ignore them. They are hungry for economic opportunities, jobs, and a government that creates a conducive environment in which businesses can flourish and people can prosper.
The GNU is committed to placing inclusive growth and job creation at the centre of government’s agenda. The National Development Plan, NDP, will remain a core guiding policy framework in our pursuit of growth and jobs. In addition, the United Nations, UN’s, Sustainable Development Goals, aligned
to the NDP, will help to guide our new government, specifically Goal 8, which is to promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all; and Goal 9, which is to build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation.
As Minister Parks Tau has already alluded to, industrial policy is placed as a central theme of the seventh administration. Improving the effectiveness of this industrial policy will be key to this administration’s success.
Therefore, we need to focus our interventions on those which grow exports, while targeting activities such as investment infrastructure and innovation.
However, as alluded to by hon Scheurkogel, this is not the job of the Department of Trade, Industry and Competition alone. In the spirit of working together outlined by the Minister, our department will be bold in developing a more transversal relationship between key partners and moving away from the silos that are holding us back. By investing in safety and security, building and maintaining infrastructure such as our ports, and ensuring quality education and training for citizens, South Africa’s competitiveness will be improved,
which will assist in making our exports more competitive in global markets. I would add that we need to strengthen key economic agencies and entities in our provinces in order to unlock their full potential to deliver the growth we need to create jobs.
To succeed it is also critical that we partner with the private sector to unlock deep pools of capital, benefit from their expertise, and ensure strong investment inflows into our economy. To do this we will focus on creating an enabling policy environment by identifying and extracting efficiencies within our existing processes while advocating for other departments to play their role in collaborating to create this enabling environment.
The Department of Trade, Industry and Competition remains committed to open and transparent engagement with the private sector that builds trust and fosters investment and growth.
Ultimately, ensuring that effective industrial policy remains consistent over time will create a predictable business environment and certainty that encourages the private sector to increase its investment in the South African economy, in turn leading to real and sustainable job creation.
One of the department’s key focus areas will be a renewed export drive to lower the risk of slow domestic growth, while also identifying high growth opportunities. Bolstering our international competitiveness and expanding export markets is key to South Africa’s economic recovery and growth trajectory. South Africa’s exports in May this year totalled over
R178 billion. In addition, we recorded a trade surplus of over R20 billion, significantly higher than forecasts. This is commendable efforts highlights that with dedicated and pragmatic focus, the important contribution which exports can make to our fiscus.
South Africa must create an export-oriented economy. This can be realised with a dedicated focus on implementing measures to boost the competitiveness of our local industries in global markets, streamlining export processes, lowering trade barriers, offering financial and technical assistance to exporters, while cultivating beneficial trade alliances with other nations.
In this regard, I joined the Minister in Washington last week for the African Growth and Opportunity Act forum where we stressed the importance of early renewal and strengthening African Growth and Opportunity Act to secure greater impact,
but also highlighting the benefits of aligning the efforts of the African Growth and Opportunity Act together with the African Continental Free Trade Area to extract greater benefits from our regional value chains. The South African delegation of business, labour and government were positively received with particular excitement around the Government of National Unity and our democracy’s resilience under pressure. The response to our visit bodes well for our relationship with the United States as the key trading partner, and we are committed to strengthening that relationship.
One anecdote from this trip which is relevant to this House was a conversation I had with a senior staff member from the United States Trade Representative’s office who highlighted one of the great African Growth and Opportunity Act success stories from the Eastern Cape, which is a company called Dynamic Commodities based in Coega Industrial Development Zone, IDZ, which employs around 2 000 people which receive funding from the Industrial Development Corporation, IDC, in the 1990s and benefited from access to United States market through African Growth and Opportunity Act. This conversation highlighted for me the importance of understanding the ... [Inaudible.] ... at the national level we are dealing with trade investment at one level. That trade and those
investments lend in our provinces, and that is where this House is very critical important to the conversation around economic growth trade and investment. However, it also highlighted the vast potential of agro-processing in a province like the Eastern Cape. I’m sure that the previous speaker would support me when I said that the Eastern Cape and many other provinces have untapped potential. That untapped potential requires strongly intergovernmental collaboration.
Therefore, I’m sure this House will welcome the Minister’s commitment to collaborating with members of executive council, MECs, in the provinces to unlock further growth opportunities.
Hon members, ultimately it is essential that South Africa’s economic growth is grounded in manufacturing-led growth.
Manufacturing is, indeed, less volatile and less vulnerable to economic downturns and will create real, sustainable and decent paying jobs for our people. We will support local industries by building a supportive and competitive ecosystem to drive manufacturing growth. Ultimately, a dedicated focus on manufacturing growth will also lead to export growth. Key to this will be identifying intermediate good that could make our manufacturers more competitive, as well as identifying the products we produce competitively and the markets that consume those products in large and or growing volumes.
As I conclude, I would like to commit to working hand in glove with the NCOP and all provinces in pursuit of inclusive economic growth and job creation. Nobody can do this alone ... [Inaudible.] ... certainly, cannot continue to do it in silos. I would also like to acknowledge Minister Tau and Deputy Minister Godlimpi, with whom I commit to work together in good faith, and always in the best interest of South Africa and her people, guided by the National Development Plan, the United Nation’s Sustainable Development Goals and the GNU’s collective commitment to foster inclusive growth and job creation. Deputy Chairperson, I thank you.
Mr K M ZONDI (KwaZulu-Natal): Hon Deputy Chairperson, hon Ministers Ndabeni-Abrahams and Tau, Deputy Ministers present, esteemed members of the NCOP, it is a pleasure for us to participate in this important debate. This debate comes roughly two weeks after the President addressed to the National Assembly highlighting the call for co-operation leading to the formation of a Government of National Unity.
The President outlined three strategic priorities, namely driving inclusive growth and job creation, reducing poverty and the high cost of living, and building a capable, ethical and developmental state as the focus areas for the next five
years. Today I'm honoured to present the KwaZulu-Natal Department of Economic Development ... [Interjections.] ...
Mr M BILLY: Chairperson, on a point of order: I apologise for interrupting the speaker, I think we would be doing an injustice not to get assistance for the hon Zondi to be assisted with the video so we can see him. I think it would be correct for us to try to get some assistance for him.
The DEPUTY CHAIRPERSON OF THE NCOP: Thank you, hon Billy. I was going to intervene there. Hon Nondaba [Zondi clan name], your video is very bad. We can hardly see you. See if something can be done to assist. Otherwise, you may continue with your video switched off, it's fine. We understand. Thank you.
Mr K M ZONDI (KwaZulu-Natal): Is it fine now?
The DEPUTY CHAIRPERSON OF THE NCOP: Yes, you may continue, hon Zondi.
Mr K M ZONDI (KwaZulu-Natal): KwaZulu-Natal faces a multitude of economic challenges, including an eroding primary sector, muted manufacturing growth, an increasingly services-driven
economy, highly concentrated industries, low growth and investment, distressed companies, a high volume of raw and semi-beneficiated exports, uncompetitive and costly infrastructure, limited regional integration, and a high volume of imports across many sectors. These challenges hinder the province's potential for robust growth and sustainable development. Our approach, therefore, reflects a commitment to inclusive growth, economic resilience, and sustainable development, mirroring the President's vision. We have deliberately identified industrialisation as a key to unlocking growth that meaningfully dents the core challenges of unemployment and poverty confronting us as a province. In this regard, we intend to focus on the following:
Modernisation of industrial parks, special economic zones, manufacturing and value addition, investment attraction, market access, and trade facilitation for exports. In our quest to ensure support for SMMEs, our focus is the following: Economic transformation and empowerment. In this regard, we intend to implement initiatives that target black economic empowerment and priority groups such as the youth, women, and people living with disabilities. Apart from the above, we have another focus on research and innovation. This includes the
establishment of digital centres and innovation in rural areas and promoting innovations to address provincial challenges.
We also want to focus on research and regulation. In this regard, we aim at conducting research in priority sectors and enhancing business regulations, including informal economy management and consumer protection. In conclusion, our 2024-25 budget reflects our commitment to the President's strategic priorities. It represents a holistic approach to driving inclusive growth, reducing poverty, and building a capital state by investing in key areas such as industrialisation, SMMEs, tourism, and environmental sustainability. In this regard, we are laying the foundation for a prosperous and equitable future for all citizens of KwaZulu-Natal and the whole of South Africa. I thank you for listening to me, hon colleagues.
Ms S M MOKOENA: Thank you for that honour, Ministers, Deputy Ministers, directors-general, and senior managers in both departments, Chairpersons, hon members, it is my honour to represent the MKP, who stand here representing our people in this Budget Vote. Ministers, it is a fact that our trade policy is still a mixed bag years later, and signing the African Continental Free Trade Area agreement was a major win.
However, there is still so much to be done. It did open new markets and opportunities, but despite these shiny agreements, we're still doing far less than we should be. We're still dealing with trade deficits. For example, we're still importing more than we are exporting. Our high-value sectors like technology and advanced manufacturing haven't quite hit the spot yet. It's time maybe for the department to stop a little bit of window shopping and start building competitive export industries that can balance out our tradebooks.
While the budget has plans that should ideally empower and support small businesses, accessing government funding is like trying to crack the Da Vinci Code. There are significant issues that we cannot ignore. We need to find South African solutions for the South African economy because our economy is unique. With ...
IsiZulu:
... indlela engcono yokuxazulula izinkinga zezwe esibhekana nazo ...
English:
... because South Africa is great, and we are so diverse. Towns like ...I'm from KwaZulu-Natal, and towns like Greytown, Nquthu, Bergville, ...
IsiZulu:
... izindawo lezi ezina ...
English:
... 90% black residents, yet ...
IsiZulu:
... zigcwele ama-spaza ...
English:
... that belong ...
IsiZulu:
... kwezinye izinhlanga.
English:
We need to curb that. We need to enable ...
IsiZulu:
... abantu ...
English:
... to control the supply chain within the areas they live in. Real local economic empowerment.
IsiZulu:
Kukhona amaloli ...
English:
... for example ...
IsiZulu:
... aletha izinkwa kulezi zi-spaza, ...
English:
... places like Dambuza near Edendale, is because ...
IsiZulu:
... abantu abakwazi ngempela ukusukuma babhake, abakwazi ukufundiswa ukuthunga, abakwazi ukuthengisa, abakwazi ukutshala?
English:
Is that the reason why these trucks are coming in instead of using people who reside within these areas to do the actual
trading? That is one thing that maybe the taxi industry has gotten right.
IsiZulu:
Uboke uzame nje uthathe itekisi yaseMbali uthi uyoyifaka erenki yaseSobantu, ubone ukuthi uzokwazi yini.
English:
Perhaps we should learn a little bit from these other informal industries ...
IsiZulu:
... sibone ...
English:
... what we can do better in our economy to grow our people.
IsiZulu:
Siyakwazi ukukhulisa imfuyo, siyakwazi ukupheka, siyakwazi ukubhaka, okusele nje ukuvulelwa umnotho nathi sikhule.
English:
Currently, there's a major informal economy skill in the spaza shops. It's now worth R160 billion as a sector. Fast foods like ...
IsiZulu:
... amagwinya, amakota ...
English:
... chicken dust, and fried chips, you'll be surprised ... R90 billion, taverns, a R110 billion contribution. You find them from the ones where you sit on crates to the fancier ones like Max’s Lifestyle in Umlazi. Also, the salon industry within the townships is growing quite big as an informal sector, and that's not even taking into consideration, Ministers, the booming industry where you find ...
IsiZulu:
... sekwenziwa izinzipho, izinkophe, ...
English:
... hair extensions and wigs are also being sourced from China, and most of us here are buying from that economy. So, there's a growth of about 64% over the last four years of imports of hair extensions, and wigs, and these are known as
the informal economy. However, what's certainly formal about it is the impact and the contribution that it plays to our economy.
These unseen and mainly cash-based operations contribute via VAT and employment opportunities. So, the significant underfunding of these areas raises serious concerns about the effectiveness of the support provided for our small businesses. The persistent funding gaps indicate a systematic issue that must be addressed urgently.
The issue of delayed payments, Ministers, is still quite significant and it is a difficult one for small businesses. The Office of the Ombudsman was brought up to handle complaints, but still, it's not doing enough. Timely payments are crucial for maintaining the cash flow and operational stability of our small businesses, and our small business owners cannot afford to wait for bureaucratic processes to resolve in days. These are the cases where ...
IsiZulu:
... babuye bacelwe ...
English:
... 10% upfront payments before ...
IsiZulu:
... kuphume i- ...
English:
... appointment letter, ...
IsiZulu:
... bacelwe o- ...
English:
... 5% upfront payments before ...
IsiZulu:
Kuphume i- ...
English:
... order. There are some other challenges where ...
IsiZulu:
... abantu bacelwa izimali ...
English:
... to push the invoice. So, you've already paid 10% to get the order. You do the work with the little money that you have. You get the invoice into the department. You are told by a clerk who receives your invoice ...
IsiZulu:
... ukuthi faka imali ye-invoyisi ukuze i-invoyisi yakho ikhokheleke ...
English:
... within 30 days. These are some of the significantly corrupt areas that we need to look at and get stamped out. Until we have more action-packed and results-driven actions in this department, we will, unfortunately, as the MKP, reject these Budget Votes. I thank you.
Mr T B MATIBE (Limpopo): Deputy Chairperson of the National Council of Provinces, the Chief Whip, Minister Tau and Minister Stella Ndabeni-Abrahams, permanent delegates and special delegates, fellow South Africans, as Limpopo we welcome and appreciate Budget Vote No 36 and Budget Vote No 39 as presented by Minister Stella Ndabeni-Abrahams and Minister Parks Tau. We support the Budget Votes.
Indeed, the Budget Votes are representative of the will and wishes of all key players in the small, medium and micro enterprises, SMME, sector. It provides hope to the hopeless and calls to young businesspeople and those aspiring to become SMMEs that indeed the future looks bright amidst the volatility and unpredictability of the current financial markets.
It is an uncontested fact that SMMEs are critical in the success of all economies across the world and ours is no exception. It is on this basis that we declare that as the Limpopo province we shall not deviate a single inch from our commitment to empower small businesses in our province so that the sector becomes an axle around which our provincial economy revolves.
As the department responsible for economic development through the enterprise development and economic empowerment directorate, we have designed the Limpopo township and rural business support programme to strengthen and empower local enterprises with access to funding opportunities and access to business operational equipment to increase their capacity to conduct business more effectively and efficiently.
The department is also mainstreaming the co-ordination of enterprise development institution products and services to leverage available resources from both the public and private sectors with the intention of contributing towards the support of local enterprises, emphasising targeted groups.
The department has also conceptualised a programme designed for youth graduates with technical skills and those who aspire to pursue entrepreneurial ambitions. The impetus in the implementation of this programme is on leveraging available resources, your technical and financial skills, from all relevant stakeholders inclusive of institutions of higher learning and development finance institutions.
The department also initiated the Local Economic Development, LED, capacity-building programme in collaboration with the SA Local Government Association, Salga, municipalities and our universities to empower LED practitioners, more especially municipal councillors and officials in Limpopo, with requisite economic development acumen to effectively and efficiently develop and support enterprises to contribute towards the growth of our local economies. It is on this basis that an additional 75 LED practitioners will benefit from this
programme at a value of R1,6 million in the financial year ahead.
The province has approved the Limpopo township and rural economic strategy to empower SMMEs and co-operatives operating from our townships and rural areas. This has assisted a lot in developing them. Through the Limpopo Economic Development Agency, Leda, the government of Limpopo owns a total of six industrial parks, five of which are in the province and one in Mpumalanga. It is through these industrial parks that we are working together with our people to ensure that we indeed create job opportunities.
We also want to support and appreciate Budget Vote No 39 as presented by hon Minister Parks Tau and indicate that the province is steadfast in pursuing its industrialisation agenda through special economic zone, SEZ, instruments.
We have the Musina-Makhado SEZ, which is also progressing very well. The provincial government, working together with the Department of Trade, Industry and Competition has injected capital of close to a billion for bulk infrastructure roll-out in the project, which will create immediate job opportunities for local communities.
It is also through our collaboration with the Department of Trade, Industry and Competition that we have realised commendable progress, in what we call Fetakgomo, towards an industrial park, which we want to develop into a fully fledged SEZ. It has been packaged and submitted, and appointed contractors are already there. The mobilised and attracted investment pipeline of close to R10 billion is projected to create more than 1 200 jobs for local communities. Hon Minister Tau, it is through our Minmec that we are pleased that we will put forward the application to make Fetakgomo an industrial park and into becoming an SEZ.
As we have already indicated, the provincial government owns five industrial parks in the province and one which is in the Mpumalanga province. Working together with the Department of Trade, Industry and Competition, the province has already injected money in the Nkowankowa and Seshego industrial parks. All these refurbished factories in Seshego as well as in Nkowankowa are going to create much-needed jobs for our people.
The Nkowankowa Industrial Park attracted a total of
R89 million grant funding from the Critical Infrastructure Programme, CIP, and part of the work has already ensued. The
remaining money will be used to refurbish factories and warehouses in all these industrial parks. We must indicate upfront that the scope of the work of the CIP includes the renovation of these factories, and this programme will go a long way in providing a platform for our SMMEs to grow.
With those words, we want to indicate that as Limpopo we fully support Budget Vote No 36 and Budget Vote No 39. I thank you, Chairperson.
IsiXhosa:
Nksz N P MCINGA: Sihlalo, ndiyabulisa kubaPhathiswa nooSekela baPhathiswa babo nakumalungu ahloniphekileyo.
English:
Chairperson, this weekend, as the EFF...
IsiXhosa:
... besinombhiyozo eKimberley, sigqiba i11 leminyaka sasekwayo. IEFF yaqalwa ngamagorha namagorhakazi kumaphondo onke aseMzantsi Afrika. Sifuna ukubulela kakhulu eKimberley, bekumnandi, ngenene niphosiwe.
English:
Before I deal with the reasons on why we reject this budget, I must correct hon Modise who claimed that in the EFF we wait to be told what to say. That is a lie, hon Modise. We write our own speeches, and we are encouraged to be bold, to do research, go to the ground forces, talk to people and speak facts only. For your information, we speak what we know and have experience on. Members should stop making themselves relevant by attacking the EFF but alas, you have just confirmed how great we are and how our speeches strike a nerve.
The EFF firmly rejects the proposed budget of the Departments of Small Business Development and Trade, Industry and Completion. As the EFF, we have stood on many platforms before over the years and made it noticeably clear that there is no need for the Department of Small Business Development. There was also no need to separate the Department of Small Business Development from the Department of Trade and Industry. We, therefore, reject this budget as the budget presented here today shows that the Ministry does not understand the realities of small businesses in South Africa. It lacks the vision to build sustainable small businesses that can grow the economy and create jobs.
The Minister mentioned roadshows with small, medium and micro- sized enterprises, SMMEs and co-operatives with all nine provinces, yet the budget does not address real issues and lacks foresight. If the Minister has never been in business, it becomes a real struggle to manage such a department effectively. Business is not just a career, Minister, it requires passion and a deep understanding of challenges and nuances that come with entrepreneurship. Not everyone is an entrepreneur and without first-hand experience or a genuine commitment to support small businesses, it is difficult to develop policies and allocate budget that fully addresses the needs and realities of entrepreneurs in South Africa.
This lack of practical experience and insight is reflected in the shortcomings of the current budget which fails to offer the meaningful support to the small business sector. This budget consists of mere words of no understanding of the small business’s realities. I am a living example of being oppressed by the system. My personal experience invoked in me the spirit of Mama Winnie Mandela, who once said:
There is no longer anything I can fear. There is nothing the government has not done to me. There isn’t any pain I haven’t known.
This resonates with us, as we fight for justice, for women- owned businesses and rejects this oppressive budget. I took my life savings, hon Minister, to start a business at the O R Tambo International Airport in 2008, when you were starting politics. Many Members of Parliament and all political parties, except for the DA, supported my business at O R Tambo International Airport. This made me bold in saying that these people will never support black businesses. That is why they advocate for tourism because their market is in hospitality. I have never had friends who owned bed and breakfast establishments telling me that they have white customers. So, for black people, we must work for them, take the same money and plough it back into their businesses. Wake up South Africa, we cannot be fooled in this lifetime.
I then invested my hard-earned money in a building that was not operating for five years in Hamburg village in the Eastern Cape which was built by the government for R40 million to aspire. I refurbished it and turned it into a bed and breakfast accommodation, conference centre and training centre establishment with 35 jobs on the payroll. When the business flourished, Ngqushwa Local Municipality started fighting with me. I was fought by the same government despite the empowerment through training rural women and youth in
hospitality and produced successful mentees like Thina Sam, Thobile Madikiza, Mzikayise Marhawula and the rest.
This injustice is again perpetuated by the government that ignores its critical issue. Today, I stand before you as part of the EFF to fight for these SMMEs. I met President Cyril Ramaphosa in the ICC in East London to tell him about what I was experiencing. The only thing he did was to take my details and nothing happened after that. When I called the EFF, my president Jullius Malema – I googled his number from the Parliament’s website and called him in 2018 and in 2019 he referred me to the Chairperson of that time, Commissar Yazini Tetyana. This just shows that, as the EFF, we practise what we preach, hon Modise.
The EFF equality policy aims for real equality of opportunity by promoting equal opportunities, land reform, fair wealth redistribution and support for marginalised businesses. It also ensures equal rights and addresses gender-based violence, advocates for women empowerment and promoting equal representation in all the sectors.
We encourage the Department of Small Business Development to work towards a legislated quota system to ensure equal
participation. This can help create more sustainable small businesses, Minister. We are particularly concerned about the participation of women in small businesses. The Department of Small Business Development launched the SheTradesZA campaign to support women-owned businesses aiming to connect 50 000 woman-owned businesses to markets by 2023 during your time of administration, Minister.
The Minister did not mention the progress of this programme or allocate funds for it, in this budget. This shows the government is out of touch with the struggles of women entrepreneurs. This means that the budget you are asking for will also go unreported. Unless Minister today you will provide tangible proof such as pamphlets and videos with names and reports of the 50 000 entrepreneurs who have benefited, where they are now, whether they have broken even or had a breakthrough. Perhaps, I am mistaken, Minister, but as this was your department in the previous administration, you should have the evidence. We as the EFF, reject incomplete victories and we claim full time breakthrough for the people of South Africa.
In 2020, the budget presented noted the liquidity challenges of SMMEs due to the lockdown. Four years later, we have the
budget that makes no mention of the current challenge of nonpayment of SMMEs. In 2021, Nelson Mandela Museum in Mthatha owed me. I reported to the Eastern Cape Premier, wrote to the President’s office and reported to the board. This process took over a year. After the work was completed the Nelson Mandela Museum left me indebted.
A short film called Nelson that created employment for 85 South Africans. This short film addresses forgiveness and solutions to men to stop running to drugs and gender-based violence. I sold my assets, Minister. I sold my cars to pay the debts made through this project. Audit came out in my favour, only to be told the Nelson Mandela Museum did not have enough money to pay me. They only paid me 50% to what was due to me.
I cried during the meeting as no one understood the loss caused in my life and those I am responsible for. I do not just feed my family, Minister. I also feed people in the street.
IsiXhosa:
OoRasta balamba, Mphathiswa...
English:
... in the streets, Minister, because I feed the homeless in the Eastern Cape. The budget does not consider the sustainability of small businesses. The department announced a partnership with Proudly SA to develop an e-commerce platform in May 2023, but it is now July 2024 and still it is not launched. The Minister’s vague commitment does not inspire confidence. We need a budget that supports businesses throughout the digital market lifestyle.
Let me illustrate a young entrepreneur from Mafikeng who faces high input costs for goods he sells online including printing, logistics, subscription fees and storage costs without even owning a car or printer. These initiatives might consider the realities of black entrepreneurs. We reject this budget as it fails to support small businesses practically. This department should have by now a very clear programme on how to assist women, young people, and persons living with disabilities, especially those who are deliberately excluded by the system. This department should have by now a database for all young people who are interested in starting and owning their own businesses, regardless of their political affiliation.
Chairperson, on the Trade, Industry and Competition we reject this budget as this department has not created a policy to support manufacturing industries in shacks communities across South Africa. I have a ... [Inaudible.] 04:24 that was brought to your ministry that came with a solution create factories in shacks communities, but was rejected. The Department of Trade, Industry and Competition is supposed to help with industrial development, business growth and economic transformation.
However, without this policy, these poor communities remain neglected. These policies would help to reduce poverty and empower these areas. I want to know why the Department of Trade, Industry and Competition has not made this policy and how they plan to fix this problem? This failure shows a lack of commitment to helping all parts of our society. That is why I am rejecting the budget vote and asking the Department of Trade, Industry and Competition to do better for the people in shacks communities...
IsiXhosa:
... amatyotyombe...
Afrikaans:
... dit is swart huisies.
English:
Chairperson, as I conclude, this budget is like the artificial grass laid on infertile soil. We must also remember Sibongile Beauty Khunju, a founder of Coffee Bay Festival, Minister, who committed suicide due to oppressive systems. Also, lady, Bongeka Buso in Butterworth who tragically killed herself and her children, a daughter Anathi, her sons eight-year-old Orabile and four-year-old Oratie.
Today I remember my friend Nokwanda Patoka, a passionate businesswoman who was murdered in Zwelitsha. Ishmael has authored an entrepreneur book titled Understanding Entrepreneurship, in isiXhosa and in Braille because the government does not cater for the blind community in small businesses sector. I personally endorsed this project and encouraged it due to feedback we were getting from communities we were training entrepreneurship. This book was brought to the former Minister Lindiwe Zulu, but that did not help and was overlooked. This makes me think that the ignorance of people’s need is deliberate. Maybe, we are missing a plot. How then can we support the budget that fuels inequality and historical injustices?
Minister, today, I brought you the books that are authored in isiXhosa and English.
IsiXhosa:
Mphathiswa, ndithetha nawe, ndicela undijonge.
English:
Here is another book and it is in Braille. There is a letter that I brought for you Minister today, that is from the Library of South Africa which is also endorsing the same book that is teaching people about entrepreneurship. Minister, when you go to the roadshows to talk to people, you will find out that people do not even understand this English you are talking...
IsiXhosa:
... abasiva isiNgesi.
English:
I did a survey in around Mthatha and Hamburg area and the results of the survey came out. People were saying they only enjoyed food when the Ministers come to them.
IsiXhosa:
Abaniva ukuba nithini na. Ndiyanicela xa nisiya kubo kuyafuneka ukuba nibajonge, Mphathiswa. Zifundiseni ukuthetha isiXhosa, isiZulu, Xitsonga, Setswana, nezinye, ukuze banive. Kuyafuneka xa nisiya kubo niphathe amaphepha abhalwe ngesiXhosa ukuba niya eNqadu, umzekelo. Ukuba niya eLimpopo, sebenzisani iilwimi zalo ngingqi. Yimali yaba bantu le niyicelayo namhlanje. Aninxulumani ngokufikelelekayo ebantwini ngesi siNgesi. Asiyazi nale mali ukuba niyenza ntoni.
English:
Small Enterprise Development Agency, Seda and Small Enterprise Finance Agency, Sefa’s offices are in town but the money for these agencies is for the people in the townships. Why don’t we have Seda offices in the townships? Why don’t you collaborate with the traditional leaders and have inhouse offices that are in the kingdoms? That is where the people are. People do not have money to take taxis to go to towns.
How can you sponsor a catering company to a person who does not have a car? Minister, this budget does not talk to our people.
IsiXhosa:
Ndiyanicela Mphathiswa ukuba nibajonge abantu. Nantsiya imarike yakwaNtozonke...
English:
... you were there. The people you were supporting there do not even have cars. So that budget went to waste.
IsiXhosa:
Ndiyabulela.
English:
We reject this budget as it does not talk to our people.
Ms M B NDLANGISA-NODADA: Hon Deputy Chairperson, hon Chief Whip, hon members of this august House, hon Ministers and Deputy Ministers, ladies and gentlemen and our guests up there, I greet you all this afternoon. I am sent by the ANC. I am coming from the rural and poor province of the Eastern Cape. Therefore, I want to start with supporting this budget so that our people in the rural areas can see the change.
Hon House Chair, over the past 30 years, the people of South Africa led by the ANC have been at the forefront of a movement to construct a new South Africa. That is well known. Our country has come a long way. We have made incredible strides and achieved so much. However, even after 30 years of freedom
and democracy, our journey towards the South Africa that our people truly desire is far from over.
We still have a long way to go in advancing structural transformation to improve the lives of the majority of the people of South Africa.
Our manifesto as the ANC places at the forefront the need to advance industrialization as a driver of economic transformation with active support for localization in a society with extra ordinary level of unemployment and poverty. All efforts will need to be made to find commercial sustainable ways to create new jobs in the private sector to complement what can be done through public employment opportunities.
Hon members, new job growth will be stimulated by demand for the product and services so produced. This can come from the combination of expanded domestic demand and increased level of exports. To create jobs on a scale both these drivers of new private sector job growth must be pursued. This strategy called localization is about building local industrial capacity for domestic market and for export markets. It is not a turn away from engaging in global markets, but it is about
changing the terms of the engagement to, firstly, where we are no longer mangle and exporter of raw materials.
The Public Procurement Bill that President signed into law will give greater impetus to advance localization, structural transformation and support for small, medium-sized and microenterprises, SMMEs. The Bill will enable the government to successfully prioritize procurement by the state from local manufacturers.
The strategic localization objective outlined in the master and the Economic, Reconstruction and Recovery Plan brings together learnings from the pandemic with a new galvanized purpose to drive industrialization and integration of the African Continent.
South Africa is not unusual in the focus on local production, hon members. Many developing countries have run campaigns and used a range of measures to appeal to local consumers to buy goods made in their communities. Many governments buy their core products from local producers.
IsiXhosa:
SinguMzantsi Afrika, sifundile ngexesha apha ebekukhe kwahlasela ubhubhane weCOVID-19. Ngelo xesha siye sabona ukuba ukuxhomekeka ...
English:
... on global suppliers ...
IsiXhosa:
... kusenzele ingxaki enkulu nobunzima elizweni lethu.
English:
The pandemic has both exposed the fragility of global supply chains and were to reveal the great capacity we have here in South Africa for innovation and adaptation in manufacturing.
Most recently, the conflict between Ukraine and Russia has further exposed the vulnerability we are faced with due to importance in port reliance. Therefore, we need to ensure this policy is expressed through all spheres of government. We require this not only to produce goods to meet local needs, but also to meet the needs of our countries on the continent.
Local production is important because it encourages national pride in the goods, services and products made on our home
soil. It supports the growth of small businesses and expansion of larger firms. It also creates employment which is much needed and sustains livelihood.
Local production supports our manufacturing sector. It enables us to build much needed infrastructure and improve services.
The survival of the industrial park is essential in promoting the decentralization of industrialization to the less economic activity laid in areas such as township and semi-rural areas. The revitalization programme is meant to improve infrastructure which has aged because of the exit of investors in the last few decades.
Working with the provincial government, investors are being sourced to settle in the parks and create jobs. Our people really need these jobs. To this end, there is a dedicated budget allocate of R156,3 million for industrial parks and R417,6 million for critical bulk infrastructure such as water, electricity and sewage connection.
The Budget Vote and annual performance clearly articulate a practical and unique approach to respond to the structural transformation of our economy. This is informed by creating
opportunities for all South Africans. This involved decentralizing of our economy and open exclusive products and service markets to participation by all. It is also about injuring commitment to support the black industrial and workers who were previously denied access to opportunities for economic ownership and participation.
Furthermore, the Budget Vote is also about ensuring that spatial strategy that inform how we build and support a new model of Spatial Economic zones, SEZ and industrial parks in secondary towns and rural areas is informed by the principle of trying to expand industrial activity beyond its concentration in the urban metropolitan areas.
On Black Industrialist Programme, we are happy that it shows that it should be in the heart of advancing transformation and increased participation of people who have been disadvantaged by colonialism and apartheid.
Transformation is vital for sustained growth, and it is in everyone’s interest that the substantial capabilities of the private sector are mobilized to support broad-based black economic empowerment.
The industrial development corporation has a black industrialist covering manufacturing as well as mining, part of agriculture and certain productive services. However, the Industrial Development Corporation, IDC, also covers firms that are not part of the black industrial programme. For example, manufacturing and other firms that do not need the criteria of being majority black owned.
The National Empowerment Fund, NEF, within its mandate also covers black industrialist. The NEF mandate covers a broad range of activities, going beyond industrial sectors. Outside of black industrial definition it covers black entrepreneurs in retail service stations, finance, security and many other sectors. A black entrepreneur is thus a wider definition and recovers intermediation services such as banking and finance as well as retail, wholesale and distribution.
South Africa must also explore opportunities in Brazil, Russia, India, China and South Africa, Brics, bloc in which we are part of. The percentage share of trade amongst countries was just 11% when compared to its global trade in 2017.
The engagement in Brics summit provided a platform for discussion and exchange of views on issues of mutual interest
that have helped develop closer co-operation and strengthening of trade and investment ties between Brics and nations. As a result, trade and investment over these years strengthened the new Development Bank with the purpose of mobilizing resources for infrastructure and sustainable development projects in Brics and other developing countries. The post Covid recovery strategy, therefore, has to revive commitments in light to the recent agreement by the Brics countries that it is important to enhance co-operation with other emerging markets and developing countries, further improve the representation of Brics and make Brics voice in the major international arenas and uphold common interest and development space of emerging markets.
When I am about to finish, the ANC has changed the lives of many people and continues to do so. A lot more needs to be done. I just quote from Karl Max:
If we have chosen the position in life in which we can most of all work for mankind, no burdens can bow us down, because they are sacrifices for the benefit of all; then we shall experience no petty, limited, selfish joy, but our happiness will belong to millions, our deeds will live on quietly but
perpetually at work, and over our ashes will be shed the hot tears of nobble people.
As the ANC, we support as I have already said.
The DEPUTY MINISTER OF SMALL BUSINESS DEVELOPMENT:
Chairperson, hon members, Minister Stella Ndabeni-Abrahams, Minister Parks Tau, Deputy Minister Whitfield, Deputy Minister Godlimpi, Acting director-general and senior officials of the department, Chairpersons and Acting Chief Executive Officers, CEOs, of Small Enterprise Development Agency, Seda, and Small Enterprise Finance Agency, Sefa, entrepreneurs present in the House today, ladies and gentlemen.
The 7th Administration is bestowed with the urgency to deliver services to all South Africans. In the context of the Government of National Unity, GNU, we are all expected to work together for the betterment of the lives of our citizens.
The dial on economic growth and job creation must move with speed because we do not have the luxury of time. Creating a more inclusive economy and uplift people out of poverty is our goal, and that can only happen if we work together.
I will build on the platform that the Minister has established and talk specifically to issues of red tape, co-operatives’ development, informal traders and micro enterprise support as well as support for women, youth and persons living with disabilities.
On the matter of ease of doing business we know that much of the red tape that frustrates Small, Medium and Micro Enterprises, SMMEs, is found in the local sphere of government
... [Interjections.]
Ms J S MANANISO: Chairperson, I just want to alert the House that I’ve been hearing people referring to persons living with disabilities and they don’t actually appreciate that. Persons with disability. It’s not a rule but it’s an interjection in terms of calling the House in order. Thank you.
The HOUSE CHAIRPERSON (Mr D R Ryder): Hon member, as a hearing-impaired person myself, wearing one on this side and having nothing on this side, I think that your inputs is appreciated. It is, however, a matter of style how people
choose to phrase these things. So, I think while your point is noted, I think we can leave the hon member to continue.
The DEPUTY MINISTER OF SMALL BUSINESS DEVELOPMENT: On the
matter of ease of doing business, we know that much of the red tape that frustrates SMMEs is found in the local sphere of government. We have a duty to make it easier for our SMMEs to do business.
Overcoming this barrier requires a laser-sharp focus on red tape reduction and not just rhetoric that yield no significant difference.
The department will enhance its monitoring role and during the 2024-25 financial year will focus on developing sector indicators for red tape reduction and the ease of doing business.
The department will move to establish the Office of the Small Business Ombuds as stated by the Minister when she outlined the National Small Enterprise Amendment Act.
This will begin to address the issue of nonpayment and late payment of small is by government and the private sector, which causes tens of thousands of small businesses to shut shop each year.
The department will also, this year, finalise the Business Licensing Amendment Bill, which will streamline business licensing procedures and costs across all spheres of government.
Hon Chairperson, allow me to speak to the matter of
co-operatives’ development. This is an area that we are prioritising as much work needs to be done there. This year we will target 250 co-operatives, with 40 being supported financially and 210 supported with the non-financial support to build investment readiness. The budget allocation for
2024-25 is R61 million.
We must put more emphasis on sustainability and on co-operatives being supported with market access and
co-operatives getting an integrated package of both financial and non-financial business support.
We must be more deliberate in building the co-operative support ecosystem. Without this ecosystem, co-operatives will continue to struggle with issues of sustainability.
Hon members, in respect of the informal economy and micro enterprises that are a buffer to the impoverished and
unemployed, we have adopted a holistic approach to support informal micro enterprises, including cutting red tape.
Our key intervention is the Informal Micro Enterprise Development Programme, which is 100% grant offered to informal and micro enterprises from the minimum of R500 to the maximum of R15 000. Through this programme, we have delivered business equipment and machinery to many informal traders across the country.
During 2023-24 we allocated R20 million and we were able to support 2 076 informal businesses to the tune of
R27,956 million across the nine provinces dispersed as follows:
In the Eastern Cape we supported 539 beneficiaries at an amount of R7,1 million.
In the Free State we supported 313 beneficiaries at an amount of R4,2 million.
In Gauteng we spent R495 000 on 71 beneficiaries.
In KwaZulu-Natal 313 Enterprises received support to the tune of R4,3 million.
In Mpumalanga R1,3 million was spent to empower 92 informal trade traders.
In North West they received support with R1,7 million to 227 informal traders.
In the Northern Cape we invested R6,3 million in support of
160 enterprises.
In the Western Cape we invested R2,2 million that were spent to empower 161 informal traders.
In Limpopo we supported 665 beneficiaries to the value of R9,2 million.
In 2024-25 we have made provision for a budget of R57,3 million.
Finally, I’ll talk to our intervention targeting women, youth and persons with disabilities. This, through Sefa,
R649 million will be dispersed to youth-owned businesses
through direct and wholesale lending, blended finance and grants.
The Youth Challenge Fund is specifically designed to encourage youth innovation and startups.
For 2024-25 we’re also planning, through Sefa, to disperse R866 million to women-owned businesses and R64 million to businesses owned by persons with disabilities.
While others find relevance in mobilizing on the basis of racial hatred, there is no doubt that the GNU has gained investor confidence and credibility. While they climb on podiums like this and spit racial venom, we must be intentional about removing impediments that hamper small enterprises and co-operatives, especially in townships and villages to thrive.
In our course to build, we must be careful of the breakers who discourage people to be entrepreneurs because they themselves have failed. Nothing good has come has ever come out of bitterness.
South Africans are looking at the 7th Administration with optimism and we dare fail them. We have a duty to uplift people out of poverty and ensure that no one is left behind. I thank you, House Chair.
The HOUSE CHAIRPERSON (Mr D R Ryder): Hon members, as the House that gives the voice to local government, we now invite the South African Local Government Association, Salga, to participate today represented by Councillor Mogoje.
Cllr M MOGOJE (Salga): Chair, I am still trying to start the video.
The HOUSE CHAIRPERSON (Mr D R Ryder): Thank you, Councillor. Please if you can start it, we would appreciate it. You have
10 minutes. You may start now.
Cllr M MOGOJE (Salga): Hon Chairperson of the NCOP, hon Minister of Small Business Development, hon Minister of Trade Industry and Competition, hon Deputy Ministers and MECs present, hon Deputy Chairperson of the NCOP, hon Chief Whip, hon members, it is with great pleasure and a deep sense of responsibility that Salga is afforded an opportunity to
respond to what we are forward-looking and balanced Budget Vote delivered by the respective hon Ministers.
As Salga, we have always valued our long-standing relationship and mutual co-operation with both the Department of Trade, Industry and Competition and the Department of Small Business Development. We have worked hand in hand with both departments in strengthening local government’s prospects of fostering economic growth through creating an enabling environment for industrialization. As the leaders of the economic cluster, we see the two departments as strategic partners for attaining our shared objectives of inclusive and restorative economic growth.
The Department of Trade, Industry and Competition emphasise on industrialization as a pivotal strategy to economic development, resonate profoundly with our own objective at Salga. Industrialization not only creates jobs, but also build a globally competitive industries that can propel South African industrial capabilities to new heights. By focusing on sectors such as the new energy vehicle, green industrialization and higher value service sectors, we can position our country as a leader in this emerging market.
Industrialization is largely contingent on a capable local
government given a sector positioning as the implementation side of all government policies. Salga will work tirelessly in ensuring municipalities provide required services that are reliable and affordable for industries to prosper.
The importance of a Special Economic Zones and Industrial Parks cannot be overstated. These initiatives are vital for expanding economic activities to underdeveloped regions, creating jobs and fostering economic inclusion. Salga is committed to playing a more prominent role in creating an enabling environment for these zones and parks.
We believe that municipalities can significantly contribute by providing the necessary infrastructure, streamline regulation and support services to attract and retain investors. We further call for inclusion of Salga in the Special Economic Zones and Industrial Park, Intergovernmental Relations, ITR, structures as this is an area of common interest or easing of doing business and red tag reduction. We as Salga are saying we need to improve the ease of doing business and reducing red tape are essential for fostering a conducive business environment.
We commend the department for its effort in developing the Companies Amendment Bill and other measures aimed at simplifying business processes. We further express our sense of appreciation to the Department of Small Business Development for the collaborations we have been able to forge in the area of red tape reduction. That being said, there is still a lot of work that lies ahead. Salga will continue to work closely with local municipalities to implement the necessary reforms, ensuring that our citizens become hubs of economic activity where businesses can thrive with minimum bureaucratic hurdles.
On market access and strategic procurement, the signing into law of the Public Procurement Bill marks a significant milestone in our journey towards strategic and transformative procurement. This legislation will only ensure that public procurement processes are transparent and efficient, but also that they are used as a tool to restorative justice by targeting local businesses. By prioritising local procurement, we can create demand for locally manufactured goods, supporting our industries and creating jobs.
Localization is key to protecting our local industries while integrating into the global economy. We must balance the need
to shield our industries from unfair competition with the benefit of participating in open market. Salga support initiatives that promote local manufacturing and content, ensuring that our industries remain competitive on a global scale while retaining the benefits within our communities.
To this end, Salga has been working closely with the Department of Small Business Development in developing a blueprint that serves to encourage municipalities to direct their procurement spend towards local goods and services, especially in cases where it relates to non-specialised services that are available in ... [Inaudible.] ... locally. The African Continental Free Trade Area presents immense opportunities for South African municipalities. By expanding our export footprint and leveraging our strategic position within Africa, we can access new markets and foster regional integration.
Salga is dedicated to ensuring that municipalities are well prepared to take advantage of the merit of opportunities presented by the African Continental Free Trade Area. To bring this into fruition, Salga has initiated a series of dialogue with municipalities on the African Continental Free Trade Area readiness and cross-border trade, amongst others.
We express our sincere appreciation to the Department of Trade, Industry and Competition for being part of these dialogues and sharing the African Continental Free Trade Area related insights with our members. In accessing finance, we call upon the Department of Small Business Development to strengthen its collaboration with municipalities to enhance and expand financial support programmes targeted at SMMEs. The key initiative effort is to township and rural entrepreneurship programme which aims to provide essential funding and resources to businesses in underserved areas.
By working closely with local governments, the department can ensure that this financial support mechanism is effectively deployed and made accessible to our entrepreneurs that need it most in townships and rural communities, where there is a serious need. This will help breach the gap in access to finance while contributing immensely to fostering the growth and sustainability of our SMMEs, which are the backbone of the economy.
In conclusion, the vision articulated by the hon Ministers aligns closely with Salga’s mission to strengthen local government and promote economic development. We are committed to continuing our partnership with the two departments of
working collaboratively to build a dynamic industrial and global competitive South Africa together through joint planning, joint implementation and joint accountability. We can achieve inclusive growth and transformation, ensuring a prosperous future for our beautiful South Africa. I thank you.
Mr N H PIENAAR: I am getting more and more comfortable up here, colleagues. Hon House Chairperson, it is nice seeing you in that seat again. Hon Chairperson, hon Ministers, hon Deputy Ministers, hon members, and as always, my fellow South Africans ...
Sepedi:
... thobela ...
Afrikaans:
... goeie middag.
English:
The Department of Small Business Development has a significant role to play in the development of this Republic and its economy. Yet, to date, the department has failed in its mandate. With unemployment sitting at 32,9% in the first
quarter of 2024, we are not off to a great start, as was the case with an 0,8% increase in the fourth quarter of 2023.
Currently, the State is the largest, single employer in our country, sitting at over 1,2 million employees including state owned enterprises, SOEs. No free-market economy can flourish in these circumstances. As it stands, our economy merely changes money from the left hand to the right, without growing the pie and creating the environment for new businesses to flourish and prosper and without thriving businesses, we cannot have a thriving workforce. At this pace, we may lose a whole generation of getting people into the workforce.
Thriving SMMEs are what is required to create a growing middle class, that not only brings new money into the fiscus but also fosters innovation and encourages investment. Let us be reminded that the state does not generate its own income.
Every single cent that the government has is from working people and this, Minister, includes your budget. As this budget was paid for by working people, it must therefore work for working people. It is a fact that I feel government tends to forget.
We must open the marketplace for healthy competition. Government monopolies on industries like rail and power supply will eventually come to an end - the history books have made this very clear. It is about time that South Africa becomes the towering investment capital of Africa it deserves to be instead of the begging bowl it is.
Hon Minister, with or without government, entrepreneurs are resilient in their nature, but government must give them that space to thrive by cutting the red tape like racial quotas and the minimum wage. I would implore the Minister to have a look and consider the Western Cape red tape reduction unit created by the Premier and has greatly assisted to reduce unemployment and make it easier for SMMEs to do business.
The marketplace determines the wage levels, not the state. If the market does not financially allow for business owners to hire more, they will not. The tougher the market becomes, the less number of employees will be on the payroll. We can therefore have a minimum wage, but it is in fact harmful without matching economic growth.
The R350 Social Distress Relief Grant is by no means a sustainable model, especially for economic growth. It costs
the state billions, while not being enough to feed the impoverished. We should rather be investing that in 0% interest loans to SMMEs that need capital to grow from being a micro enterprise to a medium enterprise. This will empower businesses on a grass root level.
Another area where we need more focus on is to get more private sector business owners involved in helping assist and mentor SMME. They should be the point of departure. Government might know how to spend money, but it is the private sector that knows how to make money. Government should merely be the middle man if that. Let business be business and government be government.
Minister, we cannot hide behind the COVID Pandemic forever. We need SMMEs to lead the charge and ensure that the unemployment crisis in South Africa is resolved. I am excited for the future and the potential your department and your Ministers have, especially taking into considerations the experience you have as a Minister with your highly qualified and skilled Deputy Ministers, we have a bright five years ahead as a collective Government of National Unity, GNU. Let us get South Africans working again. I thank you, House Chairperson.
Mr B J FARMER: Hon Chairperson, hon Ministers and hon members, Deuteronomy 28, verse 43 and 44 states, and I open quote: “Foreigners who live in your land will gain more and more power, while you gradually lose yours. They will have money to lend you, but you will have none to lend them. In the end, they will be your rulers.”
Hon Chairperson and hon Minister, local economies in our community have this problem - a problem that clings like a leech and suck the lifeblood out of our communities, rand by rand. As the Patriotic Alliance, we call them Abduletjie. We have been shown numerous videos and pieces of evidence on how Abduletjie sells expired goods to our communities, and how they sell products produced by themselves in their bedrooms, making use of unbecoming methods and raw materials. In one case, it is shown how they suck water out of a toilet bowl into a container, which is then sold as fountain water.
Abduletjie managed to start businesses in every street without having the burden of compliance as is imposed on us, local people, before we can open anything.
It almost seems as if government regulations are only applicable to us - the people of this country, and not to them. Hon Chairperson and hon Minister, why is laws not being
enforced on Abduletjie? Why is it that our community cannot depend on law enforcement entities to act in a manner that support and assist the sustainability of us as a nation? We as a people need Abduletjie Abahambe [to go].
We need these bloodsucking leeches removed from amongst us so we can breathe and prosper. We don’t want Deuteronomy to become a reality upon us. We are perfectly capable to rule ourselves. What we do not need is to walk around with files of documents and forms we need to comply with before we can start to sell anything. Our country and its laws and regulations should seek to benefit us rather than others. Our system must stop to block us from being prosperous in our own country.
Hon Minister, can I humbly request that your approach to this term with this portfolio committee would be one as a friend to our communities on the ground - an approach of championing the establishment of small businesses all over within our communities owned by South Africans. I am in a process of putting a committee together in my hometown, which I hope to use in establishing learnerships for young people, particularly in entrepreneurship and business studies. I hope to also give exposure to the world of financial markets and forex trading. Our people are too much referred to as not
being business minded. I would wish to change that perspective by exposing our young people to the world of business. This notion of beneficiation for our people always being referred to as work opportunities – no! Why can’t we also benefit the shareholders, business owners, CEOs and executives, becoming the employer rather than the employee or just simply the unemployed.
I do hope to make use of your department as an ally in this process, starting in my hometown as a pilot project. Let’s abandon the term poverty alleviation and replace it with wealth creation. Hon Minister, you portray youthfulness and enthusiasm and an understanding of where we need to go in the Seventh Parliament, not just because it’s a Government of National Unity, GNU, but just generally because we want to be there for our people. We want our legacies to be something to be proud of. Thank you for providing that hope, hon Minister. I am looking forward to working with you and your department. Thank you.
IsiXhosa:
Mnu M M PETER: Sihlalo weNdlu, aBaphathiswa nooSekela Baphathiswa abahle. Ingaba inkonzo intle nayo eluntwini kusini
na? Ndibulise kumalungu ahloniphekileyo ale Ndlu, molweni. Mandiqale apha kwi ...
English:
... Small Business Development led by the hon Mama Ndabeni.
IsiXhosa:
Iqela leUDM lixhalabile kakhulu ngolu hlahlo lwabiwo-mali Mphathiswa noxa nje siluhlasa. Olu hlahlo lwabiwo-mali siluxhasa sisenzela ukuba iinkonzo zikwazi ukufikelela eluntwini. Nazi ke iimeko neenkalo ezibangela ukuba sibe madolwanzima, sibe nentandabuzo nenkxalabo siyiUDM:
Uninzi lwamashishini lukwizandla zabemi bangaphandle. Umzekelo, iivenkilana zasekuhlaleni akusekho mntu umnyama ukuzo, abathengisi, iihoseyile, nditsho nakwindawo zokucheba intloko sichetywa ngabantu bangaphandle namanye ke amashishini.
Bangenele ngoku nakwiindawo zentselo kunye noshishino lweeteksi. Ukuba iimpepha-mvume bazifumana phi, asinayo impedulo singayifumana kuni Mphathiswa. Mphathiswa ohloniphekileyo, ezi nzame uthetha ngazo asiziboni ndawo. Umbuzo wona umile, ngawaphi la mashishini uthetha ngawo?
Uninzi lwabemi beli lizwe baba yimiqodi bethe bhazalala bekhangela impilo ngaphandle kwemida yeli. Uninzi lwabantu ngoku sele luxhomekeke kushishini lweeteksi. Nalo olu shishino lusecicini lokuthathwa amehlo sivavulile. Mandingene ...
English:
... on Trade and Industry ...
IsiXhosa:
... Tata uTau. Mphathiswa wam omhle, aphi la mathuba emisebenzi nithetha ngawo? Le misebenzi nithetha ngayo asifumani ngxelo ithe ngqo ngayo. Umzekelo, uMzantsi Afrika wohlulwe wazizigaba ezine. Wohlulwe waziiwadi. Xa zidityanisiwe iiwadi zenza oomasipala bendawo. Oomasipala xa bedibene benza ingingqi (region). Iingingqi xa zidibene zenza iphondo. Amaphondo xa edibene enza uMzantsi Afrika opheleleyo.
Umbuzo ke ngulo: Kutheni ezi ngxelo singazinikwa ngokwewadi, ngokwendawo, ngokwengingqi, ngokwephondo, ngokoMzantis Afrika ukuze sibone ukuba isebe lakho liyasebenza. Muza ukusibrasha uthi nantsi ingxelo ibe ingenazo iinkcukacha. Mandigqithe ke apho Mphathiswa ndize kwenye into. Ukusukela ngowe-1994, le ntetho yokuvezwa kwemisebenzi iye yaba sisicengcelezo Mphathiswa.
Ngowe-1994, siye sanesicengcelezo sokuvezwa kwamathuba emisebenzi. Ngenxa yemsindo yabantu beli, ngowama-2024 umbutho iANC uye wachatshazelwa yintswela-ngqesho kwizihlalo ezimalunga nama-71. Ezi zizihlalo kwiNdlu yoWiso-mthetho yeSizwe ngenxa yesi sicengcelezo samathuba emisebenzi. Loo nto ibangele ukuba abantu baphelelwe lithemba kuni Baphathiswa.
Umbuzo umile, aphi la mathuba emisebenzi nithetha ngazo?
Okokugqibela, ezi ngxelo azisiniki ncakasana ukuba le nto yenzeka phi na. Siyaluxhasa ke ngaphandle kwamathandabuzo olu hlahlo lwabiwo-mali kwaye sinicela ukuba ningasenzi oonopopi beGNU. Sisebenziseni ukuze singabililo ihlazo kubemi boMzantsi Afrika siyiGNU. Enkosi Mphathiswa.
English:
Thank you, Chair.
IsiXhosa:
Yhuuu, Mphathiswa andikwazi ukungayichazi ukuba ...
English:
... we support the budget without any doubt.
IsiXhosa:
Enkosi.
Ms M C MASILELA (Mpumalanga): Chairperson of the National Council of Provinces, hon Deputy Chairperson of the NCOP, Minister of Trade, Industry and Competition, Deputy Ministers of Trade, Industry and Competition, Minister of Small Business Development, Deputy Minister of Small Business Development and permanent delegates to the NCOP, “san’bonani” [hello]. It is with great sense of humility and privilege to participate and input into the debates of the Trade, Industry and Competition and Small Business Development Votes. Equally, it is a fulfilling exercise to participate in the debates in a year in which the nation is celebrating 30 years of democracy. In the
30 years of democracy, we have been able to successfully change the lives of our people, most of whom have experienced better life for the first time since the dawn of democracy in 1994.
The debates are taking place just few days after the commemoration of the contribution of our global icon, Isithwalandwe, Nelson Mandela. I am highlighting this precisely because the former statesman advocated for equality and a better life for all. Therefore, we have a collective responsibility to do all in our powers to emulate the selfless
contribution of Madiba by continuing to make indelible imprint in the lives of the less fortunate.
The Premier of Mpumalanga, Mr Mandla Ndlovu, while delivering his inauguration address, he instructed the newly appointed members of the executive council of the Seventh administration in Mpumalanga to work tirelessly to improve the lives of our people. The address of the premier clearly highlighted what our government plans to do, which is to increase investment and create jobs for our people especially for the youth and women in order to realise inclusive economic growth.
Evidently, if we do not facilitate the creation of new additional jobs, youth and women unemployment will remain worryingly high and economic growth will become stagnant. Accordingly, we have a responsibility to ensure that through the department that I am leading, government is able to address the triple challenges of unemployment, poverty and inequality.
While delivering his opening of Parliament address, the President of the Republic, His Excellency Cyril Ramaphosa made a clarion call to government of the Seventh administration to place inclusive economic growth at the top of the national agenda for the next five years.
In response to the clarion call by the President to drive inclusive economic growth, we are forging ahead with our programme of nurturing small, medium and micro enterprises, SMMEs, and co-operatives. We will continue to implement government policies which are geared towards accelerating inclusive economic growth and development.
Growing the economy will bolster government’s effort in the fight against the stubborn triple challenges of unemployment, poverty and inequality. We however, rely on partnerships with the private sector given that jobs are actually created by the sector. Accordingly, collaborating with development finance institutions, we continue to offer financial and non-financial support to SMMEs and co-operatives with preference given to those owned by women and the youth.
The ANC-led government in Mpumalanga remain steadfast in its commitment to forge partnerships with the private sector to enable the small business sector to participate in the private sector value chain ranging from construction, mining, agriculture and tourism amongst others. Moreover, as we strengthen our support to small business, we are vociferously advocating for our SMMEs and co-operatives to claim a stake in
the procurement of goods and services in the roll-out of all provincial infrastructure projects.
Hon members, the ANC-led government in Mpumalanga will continue to spearhead the revitalisation of the township and rural economy through the implementation of the tyre initiative programme where we will support SMME tyre outlets in the township and rural areas with the necessary technical and business skills as well as linkages with tyre suppliers.
Furthermore, we will continue to partner with municipalities to ensure that the regulatory environment in the township and rural areas is conducive for business to thrive without experiencing cumbersome red tape. To this end, we have developed a red tape reduction strategy to provide support to municipalities in easing the way of doing business by SMMEs and the broader informal sector.
We are encouraged by the fact that the Departments of Trade, Industry and Competition and the Department of Small Business Development are planning to create a conducive environment for economic growth through industrialisation, transformation, job creation and the support of small and developing businesses in the country.
Economic transformation remains a critical imperative for the country, and it is encouraging that the two departments are prioritizing inclusive economic growth. It is a fact that our county is still grappling with high levels of inequality which requires government and the private sector to expedite implementation of radical transformative policies. To this end, the province remains committed to the implementation of the broad-based black economic empowerment, B-BBEE, legislation and is working very closely with the DTIC and the Department of Small Business Development in facilitating the implementation of this policy.
Chairperson, we agree with Minister Parks Tau on all the critical issues that he has raised in his Budget Vote on 16 July 2024, with regard to the strategic interventions that must be taken to stimulate inclusive growth that will culminate to job creation. We concur with the Minister when he says as a country we need to pursue a manufacturing-led growth in order to expand our industrial base. As Mpumalanga we have placed reindustrialisation and diversification of the economy high on the agenda. We are hard at work accelerating our industrial development programme that hinges on value addition and beneficiation. We are planning to exploit the upstream and downstream opportunities presented by the petro-chemical and
steel industries, including agro-processing of both wood and agricultural commodities.
Chairperson, let me hasten to point out that we are already in the process of creating a conducive environment to the development of the special economic zones focusing on agro- processing and another on manufacturing of components to support the Just Energy Transition programme that is being rolled-out in the province.
On localisation, we align ourselves with the sentiments of the Minister on the issue of localisation. I believe the time has come that as government we intensify our support for local industries, especially those companies operating in areas where we enjoy comparative advantage in terms of natural resources and technical capabilities. For example, Mpumalanga is strong in the space of steel ad stainless manufacturing, manganese production, petrochemical and specialised cellulose
- a sought-after natural resource, renewable fibre with a wide range of uses in the textile, consumer goods, foodstuff and pharmaceutical industries, just to mention a few. In order to accelerate inclusive growth and job creation, we need crowd in investment in these industries.
The Minister also emphasised the need to enhance our export programmes, a very critical area of work indeed. We also agree that Brazil, Russia, India, China and South Africa, Brics, the African Continental Free Trade Area, the African Growth and Opportunity Act, Agoa, and the Economic Partnership Agreement with the European, EU, provide the country with opportunities to increase our market share globally.
Evidently, poor economic infrastructure remains a serious threat in the realisation of this strategic objective. This situation calls for a different approach if we are to make a meaningful impact on the development of the required economic infrastructure that must support the promotion of export.
Massive investment will be required in the renovation and building of industrial parks, including the improvement of logistics infrastructure.
In the context of Mpumalanga, the Maputo Corridor is critical in terms of moving goods through the Maputo Harbour to the rest of the world. Hon members will agree with me that the current traffic congestion at the Lebombo border is presenting a serious challenge and is an impediment to economic activities. With the emergence of the Nkomazi Special Economic Zone, SEZ, without a doubt, the situation will worsen.
Accordingly, we agree with the Minister that with more collaboration in all sphere of government and the private sector we can improve the infrastructure conundrum we are facing.
Chairperson, as part of my 100 days in office, I will be handing over light industries that has been renovated by our public entity, the Mpumalanga Economic Growth Agency. The infrastructure we are referring to is the light industrial park in Kwaggafontein and Tweefontein in the former Kwandebele area. [Time expired.]
Mr H J VAN DEN BERG: House Chair, Ministers, guests and hon members of the House. I would think it’s safe to make the statement that the Department of Small Business is meant to be seen as the incubator of our future champions of industry. The image of the Springbok rugby team seems to come to mind. They are products of many years of matches and by dedicated coaches and rewarded by reaching through potential and eventual success.
Entrepreneurs are normally seen as the champions of business. They outgrow the gross domestic product, tax income base; they
also create jobs, and every new job opportunity can easily improve the lives of up to five other people.
Like a good rugby champion, not all the people are born to be entrepreneurs. In essence, the entrepreneur would be attentive to the needs of people and markets. They would spot an opportunity and then be willing to take a risk in order to achieve a goal. Achievement of a goal would lead to motivation and confidence to take on an even bigger goal.
Eventually, the champion of industry is born, and the actions of the Department of Trade and Industry then becomes more relevant. Just as in sport, champion entrepreneurs come from all cultures and races. Therefore, an injustice will be done if some potential players are denied a chance to play on the field and participate in the learning academy.
House Chair, affirmative action and black economic empowerment is slaughtering job creation. Throwing money at small, medium and micro enterprises, SMMEs, program is also not going to fix it. Rather, put all the potential players on the same field first, then create the entrepreneurial spirit, then give them a helpful hand and without making it too easy.
House Chair, who still remembers when the mobile phone industry came to Africa? There was a vibrant rush to get the Independent Communications Authority of South Africa, ICASA, license tenders out. Both cell phone coverage towers and service centres. The service supplier with the best coverage, dominated most of the market share. It was a hustle and bustle. At one stage the size of a man’s wealth, was determined by the size of his phone. The smaller the better.
Then came the smartphone industry with software and application, app, creation. Later, some entrepreneurs started assembling their own niche market phones like the rugged and military used phones. That is how industry develops.
But now, we take our broken phone to someone from a foreign country as they have the screens and the know-how, how to fix it. We have lost the benefit of job creation by not teaching repair technology and imports of spares, etc, to our entrepreneurs.
The same rings through, for solar panels production and other renewable energy technology. Because we do not own the technology and the intellectual capital, someone else will capture this opportunity. Are we going to let the technology
pass us by again? Poor legislation and spoon feeding is killing the spirit of business, and we are now mostly creating grant and funding collectors.
In this term, we have to fix it. And it starts with what we allow and promote in these budget vote. House Chair, we are at the edge of a demographic dividend when all economic factors, especially labour, business, growth and in education fall into lockstep. Our generation moves forward by leaps and bounds.
Let us not hold this way back, with the politics of
self-interest, but rather strive for the blessings available to us. If we can get this right.
The Department of Trade and Industry should protect the interest of its business community and also aim to keep as much of our wealth as possible in the country. Our budget and fancy policies do not speak to this, and it’s time for change. We do not support discriminative legislation. I thank you.
Mr N MAPISA (Western Cape): House Chairperson good afternoon to you, Ministers in the House and hon members of this august House. South Africa has achieved what many countries with similar backgrounds have failed to achieve, the government of national unity.
And thanks to some of the lawmakers in this House who have shown their dedication towards building and rescuing our beloved country. Bravo to them for taking a stand and unequivocally rejecting the extortionists of the Venda Building Society, VBS, state institutions, and vulnerable small businesses in our townships. Let’s give them a round of applause or at least thumbs up for trying.
House Chairperson, we are here as the National Council of Provinces to make our inputs to the budget debate of the Department of Small Business. It will be remiss of me not to raise a concern regarding the notice time given to consider speaking on this crucial debate. It concerns me that not enough time or notice was given to members of the provinces to prepare.
The government of national unity must change this. Provinces aren’t just here to rubber stamp the National Assembly’s work. We are not a bunch of yes men, after all, House Chairperson.
Let me start my debate by making it very clear that the DA and the government of the Western Cape led by the able Premier Alan Windy do not support the Procurement Bill that has since been signed into law. Some critics besides us wrote:
Chapter Four provides for preferential procurement for Black South Africans, women, the disabled, military veterans, youth, small enterprises, and cooperatives. It is this section that attracts the most criticism since it entrenches race, and other preferences rather than relaxing them, as some had hoped for.
The Premier of the Western Cape, Alan Windy, together with Minister Batman, wrote to President Ramaphosa to argue that the Bill is constitutionally flawed. The letter to the President States categorically that:
We firmly believe that the act in its current form does not pass constitutional muster as it ceases the autonomy of provinces and municipalities in adopting their preferential procurement policies.
They further pointed out that the Constitution:
Envisages that organs of states have the discretion to decide whether to adopt a preferential procurement policy. This act is the national government drafting policy and seizing the autonomy of organs of state, instead of providing a framework.
In the light of that, the Western Cape government has asked for more consultation with provinces and municipalities to deal with this impasse. We are still waiting for the reply from the President.
House Chair, the Western Cape townships have been experiencing a surge in extortions. Small businesses in these townships are suffocating under this pressure. The small business department cannot close its eyes to these problems. This inherent risk cannot continue unattended to.
The department has a duty to call a stakeholder meeting to have a proper engagement with the affected businesses and jointly address this issue with the local police and community forums. It cannot be correct that the small business department stands idle and remains a spectator in this unfolding mess.
The media has been highlighting this extortion problem for a while now. A recent tragic example is the mass shooting of four young kids at a barber shop in Khayelitsha, may their souls rest in peace, apparently by an extortionist. And yet the small business department remains silent, when its investment is under attack.
Following this incident, the mayor of the City of Cape Town, Geordin Hill-Lewis, and the Member of Mayoral Committee, MMC, for Safety and Security, JP Smith, reiterated their call for the devolution of police powers to protect our citizens, small business owners and the work of the City of Cape Town, the government of the Western Cape and the national government.
Extortions on any of the local work or local province and provincial government and national government affect small business owners and indirectly create an unemployment problem, which small businesses are trying to address.
The mayor of the City of Cape Town and MMC for Safety and Security, have not only lamented the problem on this Mandela month, but they also increased law enforcement in the Cape Flats and Bellville with an additional 50 officers to provide safety for residents and businesses to boost the economy.
House Chairperson, it will be remiss of me not to highlight some of the remarkable achievements of the Western Cape government, notably the booster fund, the red tape reduction, business unit and the business hub.
The Western Cape booster fund has supported over 950 small, medium and micro enterprises across the Western Cape, sustaining 4977 jobs, and dedicating R85,5 million since 2019.
Additionally, between 2019 May and March 2023, the Western Cape government’s red tape reduction has saved the province economy R2,4 billion through its interventions. Through programs such as this and concerted effort on safety and service delivery for businesses and residents, the Western Cape proudly boast the lowest unemployment rate in the country.
Today, I can confidently state that the Western Cape government aims to bring unemployment below 20%. And we firmly believe that small businesses are a crucial vehicle in achieving this goal this goal.
Over the past five years, nearly 79% of all net jobs created in South Africa were in the Western Cape. This means that out of every five jobs created in South Africa, four were created in this province.
With our focus on SMME, we have seen significant successes, including creating thousands of jobs and fostering a thriving
business environment. Load shedding brought about by corruption, and the nine wasted years by some members on the opposite side of the government of national unity, GNU. Not that we regret having them on the opposite side
And COVID-19 have contributed to over 1000 businesses shutting their doors in 2023, as highlighted by my colleague Hendrik Kruger in the National Assembly, we are concerned that with the budget shrinking by 7,8% whilst spending on employee compensation is growing by 24,7%.
The Western Cape government, while not having the GNU is happy to contribute meaningfully to making small businesses in this country work. The Western Cape government works, because we have the government that works for its citizens and its businesses.
We call on the GNU partners to engage and collaborate with us to make South Africa a better, safer place to start and maintain a small business that can grow the economy and reduce unemployment in this country. After all, as they say, teamwork makes the dream work. Sometimes it also makes the light stay on. I thank you, House Chair.
The DEPUTY MINISTER OF TRADE, INDUSTRY AND COMPETITION (Mr Z
Godlimpi): Hon Chairperson, the Ministers, Mr Tau and Ms Ndabeni, the Deputy Ministers, Mr Whitfield and Ms Sithole, the Director-Generals, the Department of Trade, Industry and Competition, DTIC, and the select committee chair, hon Boshoff. Hon Chair, following the President’s formation of the Government of National Unity, GNU, the Minister, supported by Deputy Ministers, Mr Whitfield and I have hit the track at full throttle, from multiple deep dives strategic sessions with officials at the DTIC to various stakeholder engagements, and more recently, as indicated by the Minister, our two international engagements on both African Growth and Opportunity Act, AGOA, and Brics. Let me take you through some key outcomes of the 14th Brics Plus Trade Ministers’ Meeting, and how we can use them to advance our industrial objectives.
Hon members, the global trade system remains fraught with inequalities and inconsistent application of rules and norms. South Africa is one of the leading voices calling for the protection, deepening and strengthening of multilateralism.
Against this objective reality, we must continue to call for the reform of multilateral institutions such as the World Trade Organisation, WTO, to foster international co-operation and interdependence, and ensure the meaningful participation
of developing countries in global trade to advance their economic development. The recent Brics Trade Ministers Meeting I attended on behalf of Minister Tau, spoke in one voice about committing countries to promote profitability, stability and legal certainty for international trade. This means that we have to oppose the emergence of unilateral tariff and nontariff measures as a result of the protectionism we’re seeing re-emerging globally. The Brics group of countries, are created to reaffirm and defend the principles of special and differentiated treatment in the World Trade Organisation, WTO, and common but differential responsibility and respectful capacities regarding our responsibility towards climate action.
Building on the collaborative efforts demonstrated that the United Nations Framework Convention on Climate Change, UNFCCC, the Brics Plus members agreed to form a consultative framework that allows our representatives at the World Trade Organisation, WTO to meet on an ad hoc basis, and have informal dialogues when the need arises to discuss trade related issues of common concern. This is not withstanding an acknowledgment by the member countries, of areas of divergent in perspective on some contentious issues at the World Trade Organisation, WTO. The consultative framework will help us
identify issues of common interest and provide space for persuasion and negotiations on areas of difference while maintaining our commitment to the principles of development- oriented world trading system that is predictable, fair and equitable. Hon members, the pressing challenges posed by climate change and environmental degradation call upon us to improve co-ordination and adopt a multilateral, agreed-upon approach to climate change action. While recognising the importance of addressing climate change, we stressed at the 14th Ministers’ Meeting of Brics, the negative impact of unilateral trade measures such as the carbon border adjustment mechanism on developing countries.
The Brics Plus Trade Ministers’ Meeting called for a just and equitable transition to a low carbon economy. It urges developed countries to provide adequate financial and technological support to developing countries to facilitate this transition, as agreed to at the United Nations Framework Convention on Climate Change, UNFCCC. Brics members have agreed to ensure that measures taken to combat climate change should respect World Trade Organisation, WTO, commitments, and should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade. To this end, we have agreed to co-operate and resist
the adoption of such measures in the international forum. It was important for the developing world to reaffirm the importance of upholding and recognising the WTO special and differential treatment provisions and the principle of equity, common but differentiated responsibilities and respective capabilities within national circumstances, encouraging all nations to engage in climate action, while considering their unique circumstances and developmental levels. Hono members, during our deliberations, the Brics Plus members also recognised that critical and noncritical minerals and other raw materials are crucial for new energy industries. In this context, Brics members agreed to work towards establishing a regular dialogue on critical and noncritical minerals and other raw materials, and their extraction and processing technologies to ensure the resilience of trade flows and value addition close to their source.
We have committed to further collaboration on minerals beneficiations needed for a low carbon emission and technologies of the future. We will endeavor to collaborate to ensure that mineral resources within Brics members and our region are utilised for the sustainable development objectives of our countries, our regions and our people. We also discussed the importance of food security and agricultural
trade and also stressed the need to address global food price volatility, ensure market access for agricultural products and promote sustainable agricultural practices. Other Brics Trade Ministers joined South Africa in emphasising the role of agriculture in poverty reduction and rural development and supporting our alignment for increased co-operation amongst Brics countries in this area of agriculture. We took the opportunity to discuss with our trade partners during bilateral discussions areas of concern regarding nontariff barriers to our agricultural products entry into specific markets. Amongst the issues discussed included citrus transit treatment, alternative treatments for timber and market access for our beef products.
Hon members, during our engagements in bilateral meetings and the Brics formal engagements, we raised the vital role of trade in promoting economic growth, job creation and poverty reduction. We also emphasised the importance of increasing intra-Brics value-added trade. We used our participation at Brics to emphasise further the importance of inclusive trade policies that benefit all segments of society, particularly, the small and medium-sized enterprises, SMEs, and to encourage the exchange of best practices and experiences in supporting SME development and enhancing their participation in
international trade. The Brics members and other developing countries continue seeing the impact of e-commerce and digital trade in our countries and region. We highlighted the potential of e-commerce to drive economic growth, create jobs and improve market access for businesses, especially SMEs.
However, we also raised e-commerce challenges such as cross- border taxation, consumer protection and data privacy. Joined by other Brics Ministers, we agreed to support and call for developing international rules and standards for e-commerce to ensure a level playing field and maximise its benefits. The other issue we discussed was combating under invoicing and price transfers. Under invoicing or under evaluation remains a persistent problem, globally. This leads to negative consequences for the competitiveness of our infant industries, in particular, and our economy, more broadly. Of particular interest to South Africa, is the evaluation challenges and transfer pricing in the customs space. Customs treatment of transfer pricing adjustments is currently inconsistent worldwide. South Africa wants to establish best practices for how other customs administrations deal with transfer pricing.
In this regard, we’ve used bilateral engagements to facilitate knowledge sharing and technological transfers to help our authorities to avoid the risks posed by transfer pricing.
Deepening economic co-operation amongst Brics countries is an important issue all Brics members recognises, and their resolve is deepening. We emphasise the importance of trade and investment facilitation, infrastructure development and financial co-operation in promoting economic growth and development within our block. We also discussed the potential of Special Economic Zones, SEZs, to drive economic growth, create jobs and attract foreign investment. We are committed to exchanging views on best practices within SEZ development and management and exploring opportunities for co-operation in this regard. Hon members, the question might arise in some members’ minds about the importance of Brics Plus outcomes to the imperative of economic growth in our provincial and local economies. As indicated by President Ramaphosa during his opening of Parliament and the Minister in this debate, industrial policy will be the grounding logic of statewide policy. Trade diplomacy is therefore an important instrument that our country can use to find new markets for South African produced products. Therefore, ensuring a predictable, fair and equitable global trading system that allows developing countries like ours to be competitive is essential.
However, how should we position ourselves as provinces and municipalities? On the opportunities presented in
collaboration in critical minerals and the beneficiation for better storage and renewable energy technologies, provinces such as Limpopo, North West, Northern Cape, Mpumalanga and Gauteng are endowed with critical minerals that are necessary for the green transition. The Brics Plus meeting also agreed on a framework for collaboration on SEZs. Our provincial government oversee our SEZs, and it is important to take advantages of opportunities to share expertise and best practices with Brics nations such as China, which are global leaders in SEZ development. In conclusion, hon Chair, the 14th Brics Trade Ministers was a productive and constructive engagement. We acknowledge that we are all facing challenges but commit to finding ways and exploring opportunities to deepen our economic co-operation amongst Brics countries and other developing countries. I thank you.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Thank you, hon Deputy Minister. I now call upon the hon M Zondi. Hon Zondi, you only have five minutes. Hon Zondi, are you there on the virtual platform?
An HON MEMBER: Going, going, gone.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Alright, I’m told that he is on the platform, but he is not able to be visible or audible to us. I think that we should go on to the next speaker, and then we shall come back to hon Zondi. I then call upon the hon Gotsell. Hon member, you have six minutes.
Mr N GOTSELL: Hon Chairperson, hon Ministers and Deputy Ministers, hon members, fellow South Africans, good day. Chairperson, I’m not an entrepreneur, in fact, I don’t think there are any entrepreneurial bones in this body, but I’m a proud South African. I proudly buy proudly South African endorsed products, and I have great respect for the millions of South Africans who go out there every day to practice their entrepreneurial trade or their profession, and especially the ones that go out there with determination and purpose to put food on the table for their families. We’ve heard a lot of catchphrases and buzzwords here today, and many abbreviations about strategies and key value changes, global growth drivers investing for accelerated inclusive growth, etc. See, I even struggled to pronounce it, lots of big terms. However, the one thing that is still not very clear to me after this entire debate today, is how are we going to tackle the red tape issue? The Minister alluded to the Bill on business licensing, which is making its way to Parliament, that’s great. It’s a
step in the right direction, but in order to get our economy going and growing, we must use the budget to create an environment that makes it easy for people to put their entrepreneurial bones in action.
The DA recognises that small businesses are the backbone of an economy that play a significant role in driving innovation, fostering growth and creating jobs. Global experience shows that job growth depends on a strong and growing small and medium-sized enterprises, SME, sector. This is something the DA-led Western Cape government has put into action through the Khayelitsha Bandwidth Barn, which is South Africa’s only township-based tech hub, and it offers community space that supports tech, entrepreneurship, innovation and digital skills development within the Khayelitsha and Mitchells Plain communities. South Africa must become a country of entrepreneurs, not simply employees. It is important that the programmes prioritised through this budget, should create professional business people or entrepreneurs and not professional grant recipients. Minister Ndabeni-Abrahams, you referred to the importance of strategic partnerships. Well, the DA has a world-class policy suite and with the DA Deputy Minister, the South Africans can certainly look forward to a powerhouse strategic partnership. I’m sure Deputy Minister,
Sithole, has brought this to your attention already, but here is a recap of how we can get those entrepreneurial bones working and the red tape cut.
Firstly, by removing import duties on essential business tools such as single cab bakkies or pickup trucks. This can significantly support small business, entrepreneurship and economic activity, especially in rural areas. Secondly, by accelerating the rollout of one-stop shops across the country to reduce the time and cost of opening a business. Let’s call them opportunity centers. They will assist entrepreneurs in registering a company name, lodging their documentation with the company’s commission and registering with SA Revenue Services, Sars, and the Department of Labour. All of this can be done with a single online form and with a single registration fee, whilst applicants will be able to follow their registration ... [Interjections.]
Mr F J BADENHORST: Chair, point of order.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Coud you take your seat, please. What is the point of order?
Mr F J BADENHORST: Chair, I just want to ask the 11-year-olds to back of the whole year Rule 58. If the 11-year-old children can please not drown out the speaker when they speak, it will be much better ... [Interjections.]
Mr V GERICKE: Order, Chairperson. Order, Chair.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Yes, go
ahead. What’s your point of order, and on what rule?
Mr V GERICKE: Can you see, I stand up and I can quote Rule 57, and it tells you, no unbecoming language must be used in this House, and it’s unbecoming of the hon member to call other members 11-year-olds, while we are all adults here in this House. Okay, thank you, sir.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): You’ve
quoted a wrong rule. Please take your seat.
Mr V GERICKE: Say again.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Thank you.
Mr V GERICKE: No, it’s Rule 61, Rule 61.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Please take your seat. You’ve quoted a wrong rule, hon member. Thank you.
Afrikaans:
An HON MEMBER:
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Hon
Badenhorst – order, hon members - Hon Badenhorst, you were out of order in terms of calling an hon member a 11-year-old. So, I will ask you to please withdraw that. Please withdraw.
Mr F J BADENHORST: My apologies, Chair. It wasn’t my intention to enter into a battle of wits over an unknown person ... [Interjections.]
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Hon
member, please withdraw and take your seat. Thank you. Hon Gotsell, could you please continue? Thank you.
Mr N GOTSELL: Thirdly, the DA has proposed to collaborate with industry experts and local business growth organisations to develop an extensive business starter toolkit for local entrepreneurs. These toolkits will offer checklists, guides,
templates, and tools for all stages of business, including a startup checklist, legal and regulatory step-by-step navigators, business planning templates, finance resources, and digital tools such as accounting software and e-commerce platforms. Fourthly, facilitating microfinance opportunities to support and promote the creation of small businesses.
Microfinance is a proven model for promoting inclusive economic growth. Minister Tau, I’m afraid the District Development Model, DDM, is not as effective as you claim it to be. Not everything needs to be centralised, it’s simply not possible to consider local needs and local context with one size fits all plan and they don’t deliver. The existing Intergovernmental Relations Framework and the Companies Acts, already allows for co-operation across different spheres of government. The DDM is this is designed to undermine local municipalities, and not to foster co-operation. Hon Farmer, you quoted a Bible verse to support the analogy of what is known in your political party as, Abdulhatjie.
You stood here before this House just the other day, expressing your gratitude for the improvement in your health. You struck me as a believer, the religious person. I’m also wondering, what is your Bible say about hon Mckenzie’s undertaking to switch off the oxygen of an immigrant to
prioritise the South African national? Again, how is this analogy of Abdulhatjie supposedly taking opportunities away from South Africans different from hon McKenzie’s selfish delivery of bicycles to underprivileged kids, only to take it away after he has taken the picture for his social media profiles? I don’t know, perhaps you’re reading a different Bible to me, but be that as it may, your xenophobic utterances and your disregard for the rule of law should be disregarded with the contempt it deserves. Hon Mokoena, you say that accessing government funding is like cracking the Da Vinci Code, but he did not offer the Minister any advice.
Interesting analogy. In the history of this country, there is one man who was very crafty and very successful in cracking that cut ... [Interjections.] ... Did you take into account
...
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Yes, we
did.
Mr N GOTSELL: They didn’t.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Alright, I will make another call for hon Zondi. If you are on the platform, hon Zondi. No, I don’t think he’s there. So, we’ll
move on to the next hon member, and that is the hon Modise. Hon Modise, you have 15 minutes.
Mr M G MODISE: Hon Deputy Chairperson, if my voice is not audible, please forgive me. I had a displeasure of taking a cold shower this morning, because there is no electricity at Acacia Park. It has terribly affected me.
[Interjections.]
Mr F J BADENHORST: ... [Inaudible.] ... government thing.
Mr M G MODISE: Chairperson and Deputy Chairperson of the National Council of Provinces, NCOP, Minister, Parks Franklyn Tau, Minister Stella Thembisile Ndabeni-Abrahams, Deputy Minister Zuko Godlimpi, Deputy Minister, Raesetja Jane Sithole, and Deputy Minister Andrew Whitfield, Chief Whip of the NCOP, MECs on the virtual platform, Cllr Merriam Mogoje, hon members and fellow South Africans, it is a distinct honor and a humbling experience to take part in this important debate today because the ANC-led government has a long tradition of advancing basic and democratic rights, which were denied to the overwhelming majority of our people and for which many fought and died.
Not only were our people treated without dignity by the regime of terror in Pretoria, but they also excluded from accessing institutions of higher learning which were the preserve of the exclusive minority.
Friedric Engel teaches us that dialectics is a term used to describe a process of debate that involves conflicting and different three parties. These are thesis, antithesis and synthesis. This is known as negation of the negation which is one of the laws in a debate that defines thesis as a path of progress; antithesis as integration of progress and synthesis as some of the old and structures within the development.
The mandate of the ANC-led government is to respond, hon Badenhorst, to the legacy and imbalances created by the past and to deracialise ... [Interjections.]
Mr F J BADENHORST: What about the 17%?
Mr M G MODISE: ... and to deracialise the South African economy through racial socioeconomic transformation.
The Small, Medium and Micro Enterprises, SMMEs, are the backbone of our economy. They contribute significantly to job
creation, innovation and economic growth. It is crucial that we recognise the vital role they play and take proactive measures to support their development and success. The support of SMMEs in a developing economy like ours cannot be overemphasised.
Therefore, it is concerning that only 40% of SMMEs do not make it in their first year of existence. We need to create a conducive environment for SMMEs to be sustainable. It is therefore imperative that the Department of Small Business Development forge ahead with the implementation of SMMEs and a co-operative funding policy which will ensure improvement of access to affordable finances for SMMEs, and co-operatives and further accelerate the implementation of township and rural entrepreneurship programme which is a dedicated programme to provide financial and nonfinancial support to the township and rural enterprises with emphasis on enterprises owned by women, youth and people with disabilities.
As the ANC we are committed to seeing the small businesses achieve their localisation policy framework and implementation of programme on SMMEs and co-operatives. There must be a well- developed business infrastructure that will provide a friendly environment for small businesses to enable them to interact
with the market to show case their product or service offering with the few to transect, to address the issues of poverty, inequality, unemployment and historic economic marginalisation.
Small and medium enterprises must develop both historically and economically. The root cause of the current state of poverty, inequality, and high unemployment is ahistorical fact, hon member, Badenhorst.
It is a common course, Deputy Chairperson that listening is not a skill, but it is a requirement. In order for the hon member Badenhorst to engage in a debate, he is required to listen.
It is common course that our economy in the township is largely based on the service sector. It is also factual that the majority of our township spaza shops, hair and beauty salons have been outsourced to foreign nationals which has overtime fuelled xenophobic and afro phobic sentiments amongst our people.
We have to develop our SMME sector to create a sense of cohesion and co-operation amongst foreign nationals and South
Africans in order to integrate the two for expansion and as a consequence create a vibrant and dynamic township economy.
Successful economies around the world have acknowledged this positive.
Young entrepreneurs, women and even individuals with disability must take advantage of the ANC-led government support through programmes and entities meant for expansion and development for small business sector.
The department is responsible for making sure that communities are informed about resources and programmes that have been made available to support the economic inclusion and empowerment by government. In other words, communities have now economic opportunities to be empowered by government.
The objectives of SA Film and Television Production Incentives are to support the local and television industry to contribute towards employment creation, local procurement and enhance the international profile of SA Film, Television Industry and while creating creative and technical skills base. The incentive is designed to address the historical imbalances in
the sector and ensure diversity and inclusion at all levels of production, including township and control.
Whilst the hon Badenhorst is adamant that we have been in power for 30 years, he deliberately forgets that they have been here for more than 400 years. There is no magic that will rub off the 400 years of inequality in 30 years.
No human being in this world can perform miracles in 30 years to make up 400 years of exclusion.
The incentives are designed to address the historical imbalances in the sector and ensure diversity and inclusion in all levels of production including ownership and control. To support the local film industry and to contribute towards employment opportunities in South Africa. The sector is expected to create 1 500 jobs from the additional funds allocated and attract about 3 billion in foreign investment over the medium-term expenditure. [Interjections.]
Mr F J BADENHOSRT: In the Western Cape, right.
Mr M G MODISE: Currently, South Africa is facing skills deficit. The skills shortage has a negative impact on
socioeconomic advancement and a rapid economic development required for a South African economy as well as absorption of labour. The absence of appropriate skills required for the development of the South African economic constrains growth, limits employment opportunities and impacts on investment possibilities.
The tools to resolve the lack of appropriate skills do not reside only with the department led by the hon Tau. However, it is required that they engage with the relevant educational institutions, the Department of Employment and Labour, science technology and Sector Education and Training Authority, Seta, to address the critical skills shortage because these are essential for our industrialisation effort and rapid transformation and technology.
The slow economic growth in South Africa, together with the weak revenue and rising debt service costs among others contributes towards a revenue shortfall.
Mr F J BADENHORST: Hon Deputy Chairperson.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Sorry, hon Modise could you please take your seat please.
Mr F J BADENHORST: Hon Deputy Chairperson, will the hon member take a question?
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Yes. The
hon member has indicated that he will take a question.
Hon Badenhorst, go ahead.
Mr F J BADENHORST: Thank you, Deputy Chairperson.
I just want to ask the hon member, as he is referring to the booming film and television production industry: Could he tell us which province has the biggest benefit from that industry and why?
Thank you.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Thank you. Hon Modise, could you continue.
Could you continue if you want to answer the question.
Mr M G MODISE: Thank you so much.
The slow economic growth in South Africa, together with the weak revenue and rising debt service costs amongst others contribute towards the revenue shortfall. This has led to a protracted fiscal constrains and austerity measures. However, within this context, South Africa faces triple challenges of poverty, inequality and unemployment where the department led by Minister Tau should play a critical role in addressing this through its industrialisation drive which I know for a fact that the hon Deputy Minister Godlimpi is in your heart.
Amongst others, especially during the multiply effect of the manufacturing factor.
Notwithstanding an acknowledgement of significant reduction on the budget presented here today. While we appreciate the difficulties that the budget is been adopted under, the reduction of the budget of a critical Department of Small Business Development and the creative industry should not be permitted to continue perpetually as these two departments are critical to the creation of jobs and alleviation of poverty in our society.
Many drivers of industrialisation such as logic system, input pricing and administrative costs lies outside the department’s mandate. This and effective industrial policy require
effective integration at the level of government and public entities as well as the private sector.
The Department of Trade, Industry and Competition, DTIC, must ensure that there is cohesion and co-ordination across all national departments and spheres of government.
We are hopeful that all parties of the government of national unity, GNU, will honour the statement of intent that places the country’s industrious strategy at the centre of growth and development.
Deputy Chairperson, a member of the EFF stood here and attended to me. I am gentlemen, I will not attend to ladies. However, I just want to flag one thing for you. When you leave here today, quick research on your tablet that has been provided to you by Parliament, or laptop or phone and google
16 December 2021, where your president and supreme leader Julius Malema addresses the plenary assembly in Nasrec and he says and I quote:
That in the next five years will have built a private school in Elexander which will cater for the children of poor background, child headed families and the children of people
suffering from HIV and Aids. If we do not do this, fighters and comrades you must not elect us in the next conference.
As we speak, when I say in the EFF you are told what to say, I am not imagining things. Julius Malema and the 90% of the leadership of the EFF we were together in the ANC Youth League. We talk to these comrades. They cry to us. They have no space to raise their issues. We are the people who can confidently confide in us that this is what the supreme leader is doing.
Let me make you an example. Every member of the EFF who has found his voice in the EFF like Khanyisile Litchfield- Tshabalala, Andile Mngxitama, Patrick Sindane and the lady from the Gauteng legislature, Mandisa Mashego, where are they? These are all members who have found their voices in the EFF. Mpho Ramakatsa, the list is endless.
Let me tell you what you do not know. As I tell you now, your supreme leader is aware that you took to the podium given to you by the EFF to promote your business and never said anything about the EFF. He knows! As I speak to you now and he is going to attend to you believe me. [Laughter.]
When we say in the EFF you are told what to say, we are not imagining things.
Let me ask you: Which meeting took the decision to redeploy Floid Shivambu from KwaZulu-Natal? Which meeting took a decision to say: Those who did not achieve 10% in their wards must no longer be available to stand for the leadership of the EFF?
Mr V GERICKE: Deputy Chairperson, on a point of order.
Mr M G MODISE: There was no meeting, it was a decision of an individual!
You know why?
He needed to come back! Well, he knows even in his ward he did not get the 10%, but you are going to elect him! You cannot say anything in the EFF!
Mr V GERICKE: Deputy Chairperson, on point of order.
Mr M G MODISE: As I close, Minister Ndabeni-Abrahams, I have a favourite quote that everywhere I go I quote it.
Mr V GERICKE: Deputy Chairperson, on point of order.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Hon
Modise, can you take your seat.
On what rule are you standing, hon member?
Mr V GERICKE: Deputy Chairperson, will the member take a question?
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): On what rule are you standing, hon member?
Mr V GERICKE: Deputy Chairperson, I am standing on Rule 61.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Hon
member, I hope you got your rule correct this time. Let us see. Alright, go ahead.
Mr V GERICKE: Deputy Chairperson, yes can I ask if the member can take a question?
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Hon
member, that was a wrong rule again, hon member.
Rule 61 refers to offensive and unbecoming language, here.
Please take your seat.
Mr V GERICKE: Deputy Chairperson, yes, I want to ask a question on those grounds.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Hon
member, alright, go ahead.
Hon Modise will you take a question?
Mr M G MODISE: Alright.
Mr V GERICKE: Thank you very much. Hon member, are you aware that your ANC decreased its votes in the national elections of 2024 and 2019 from 56% to 40% are you aware of that? What is your response? Thank you very much.
The DEPUTY CHAIRPERSON OF THE NCOP (Mr P Govender): Go ahead, hon Modise.
Hon members, please do not drown the speaker.
Mr M G MODISE: Minister Stella Ndabeni-Abrahams, as I sit down, because the two questions posed here are not necessarily questions, they are a beauty contest-seeking question. I do not have time for them.
As I sit down, Minister Ndabeni-Abrahams, I want you to remember this quote for the remainder of your natural life. It is a quote I use everywhere I go. It says and I quote:
Men are haunted by the vastness of eternity and so we ask ourselves: will our actions echo across the centuries? Will strangers hear our names long after we are gone, and wonder who we were, how fiercely we fought, how bravely we loved?
Thank you very much.
IsiXhosa:
UMPHATHISWA WEZOPHUHLISO LWAMASHISHINI ASAKHASAYO: Malibongwe
igama lamakhosikazi!
English:
Chairperson, I just want to confirm that earlier on I left five minutes and some seconds, and the Deputy Minister left three minutes, which means we add two to the five minutes that
I have. If the table can confirm that, please. I see here, it cited five minutes and it’s not a true reflection of the minutes that were left behind.
The DEPUTY CHAIRPERSON OF THE NCOP: I will get the
confirmation from the table. Hon Minister, I have been informed that those rules do not apply in the NCOP. If you have forfeited time in your previous allocation, then it is gone. So now you have five minutes.
The MINISTER OF SMALL BUSINESS DEVELOPMENT: May we be then
privileged to get those rules updated because we have not received them. Thank you. Nevertheless, I would like to quote the preamble of the Constitution, as I had so many speakers here expressing themselves and some of them are the ones that have signed the statement of intent that I spoke about earlier, that has been agreed to by the parties in the GNU citing the importance of recognising the Constitution and the preamble goes like this:
We the people of South Africa, recognise the injustices of our past, honour those who suffered for justice and freedom in our land, respect those who have worked to build and develop our
country and believe that South Africa belongs to all who live in it, united in diversity.
It goes on and on, which is why I thought it is important, hon members, that I highlight that, so that there isn’t any other Member of Parliament who can come here and say we do not have a right to correct the imbalances of the past. When we introduce transformational policies like the BEE and the affirmative action, it is because our Constitution entrusts us with that responsibility and for all of us that respect the Constitution ought to recognise those.
I am going to highlight a few things, as I am looking at the time, many members have spoken about the issue of the foreign nationals that are occupying our land. They must please go back and read the documents from the Department of Home Affairs that issued the White Paper Policy on Legislation that talks to who gets to do what in terms of the visas.
The second one, are the standardised by-laws that were drafted and gazetted by the Minister of COGTA, the former Ministers of those departments and the department that just said we will be presenting the business Licensing Bill and all of those talk to tackling the challenge that we are faced with, like any
listening government to say we’ll recognise that there is a crisis in our country. The fact that in all segments of the sectors of our economy, there are people that by law are not expected to trade. This is why we came back, and we said, first things first. Let us fix the legislation because South Africa ...
IsiXhosa:
... lilizwe lomthetho ...
English:
...it is not like we are sitting and dreaming, not thinking and not knowing the realities that face our people because we live amongst our people. We do not read about them. Others came here and said show us those SMMES. Go for Pomegranate Wellness. I invite the hon members to please make sure that when they go on oversight, they ask us for specifics so that they can get the information. I will not be reading because of time. Tastemaker fish and many others that we have supported, of course, not all of us can see even when we have eyes. It is the beauty of democracy.
Here in Western Cape, some people come here and say there is only one tech hub in the country in Khayelitsha. Well as the
government that has the responsibility in the Sixth administration to build inclusive growth and make sure that we reach out to everyone here in the Western Cape. There in Mitchells Plain, there is a Got Game, it’s a tech hub. Savant in Observatory, it’s a tech hub. Fourth Industrial Revolution, 4IR, incubator in Centurion is a tech hub and all of those are the gains of the Sixth administration.
We presented here that we disbursed R9,68 billion, but there are people who want to stand here and say that the government has not done anything and make reference to R85 000000. In the Western Cape alone, which disbursed more than R1 billion as I referred earlier on.
Now P2 building, the entrepreneurs, is recognising the support of the ecosystem and all of us must work towards focusing on that. I did plead with members earlier on, but at the end of that is a department that must be strong, which is why you are attending to the legal prescripts that must give the department the teeth to bite because we are 10 years - just like others who are saying they are 11 years. So we are still on the foundational phases, if you understand what it takes to build an organisation. Watch us as we will be rolling out implementation in this year and you will be here.
We are filling vacancies as we have explained very well. ‘Askies’ to those that get chest pains every time we talk about GNU. It does not mean that we can’t express where we have differences or where we have advice on how things must be done. However, we do not expect people who do not understand democracy to understand that.
Hon numbers, we are ready to deliver in the 7th administration and place SMMEs and co-operatives in their rightful place at the centre of South Africa’s growth and job creation. We invite you all as you politic, at least, to bear in mind that there are ordinary people that require your support. Even if you refuse to support their budgets, I hope you understand the implications of that. Thank you so much, House Chairperson.
The MINISTER TRADE, INDUSTRY & COMPETITION: Thank you,
Chairperson, maybe starting with the same theme that Minister Ndabeni Abrahams started on. Hon Vanderburg, if there was no affirmative action, Springboks would not have had the same profile of play as it has today. We can now celebrate the merits on which the selection of the team is based, but it took the pain and the derogation of so-called quota players. All we are saying is that this economy needs its Siya Kolisi. It’s Manie Libbok and Salmaan Moerat playing alongside Eben
Etzebeth, and it is normal. That is all we are saying. If you understand that you'll understand affirmative action and BBBEE very well.
Hon Chairperson, I would like to reiterate that industrialisation cannot happen without the involvement of provinces and municipalities. We are happy with the announcement by hon Mathibe, from Limpopo, of the billions of investments attracted in the Mussina SEZ and potential
R10 billion investments in Fetakgomo Tubatse. Hon Kotze, please understand the DDM for what it is. It is a decentralised mechanism of intergovernmental relations. It is an inversion of the system. This is in terms of the intergovernmental Relations Framework Act, it is taking intergovernmental relations to the ground and not centralising it. If you don't understand that, then you do not understand what the District Development Model is about, but on a different day, possibly send by Cogta, I will spend a bit of time explaining it.
Now the Chairperson raised the matter on innovative financing and on private sector participation. I agree that the inability to cloud in private sector investors, particularly as it relates to critical infrastructure and network
industries, will be a crucial catalyst for our economic growth. This has to be done through working together with the private sector and facilitate PPPs private sector participation models and facilitating institutional investor participation. With regards to localization and BBBEE. We have to aggregate and consolidate our efforts and resources, including finances allocated towards these within both the public and the private sector. Indeed, we need to re-evaluate the master plans and instruments at our disposal to assess the efficacy of this. However, we should also guard against throwing the baby out with the bathwater. There have been some green shoots and some of these partnerships with a private sector.
With regards to operation ‘Vulindlela’, it has demonstrated the extent to which collaboration between the public and the private sector can yield positive results. The impact has been made with regards to load shedding and its devastating impact on the economy and this is a clear example of that co- operation.
The next key area of focus for Operation ‘Vulindlela’ is in logistics with a specific focus on ports, rail and road networks. The Gauteng, Eastern Cape Rail Corridor and port
initiatives will also make a huge impact on the bottlenecks experienced in our logistics value chain.
Now, hon Mokoena, I fully agree with the comments around the levels of economic activity in the townships. As would be reflective in your input, the bulk of these activities is in the retail and informal. We must turn this around. There’s no reason why we should keep black business as informal and small. Our budget vote has set out to do exactly that to resolve that problem. So, you must join in supporting this budget because it resolves a bigger problem than you are trying to resolve. Therefore, we call on you to reconsider aligning yourself to your own province.
Hon Mncinga, how do we do this without a budget? All the things that you are saying how do we do them without a budget? If you have not internalised the budget, it can only happen if you have a budget to be able to execute. Thank you very much.
The DEPUTY CHAIRPERSON OF THE NCOP: Thank you very much, hon Minister. Hon delegates, that concludes the debate and business of the day. I would like to thank the Ministers, Deputy Ministers, MECs, permanent delegates, all special
delegates and Salga representatives for availing themselves for this sitting. This House is now adjourned. I thank you.
The Council adjourned at 18:09.
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