Questions and Replies
06 January 2025 - NW2408
Gasa, Mr MM to ask the Minister of Trade, Industry and Competition
What are the reasons that his department permits the unchecked proliferation of online gambling, particularly sports betting, when it is clear that the practice is preying on the most vulnerable citizens, turning desperation into addiction rather than offering legitimate economic solutions;
Reply:
- Online (interactive) gambling is unlawful in South Africa in terms of section 11 of the National Gambling Act, 2004 (Act No. 7 of 2004). Online betting or wagering is lawful in South Africa and is offered by licensed bookmakers. Gambling is a functional area of concurrent national and provincial legislative competence with regards to casinos, racing, gambling and wagering as provided in Schedule 4 of the Constitution, 1996. Provinces issue gambling licences. Section 30 of the National Gambling Act imposes on the Provincial Licensing Authorities (PLAs) responsibility to issue gambling licences and to monitor the licensees’ compliance with the licence conditions and the Act.
The department is aware of the growing challenge of illegal online gambling in South Africa. There is also a challenge of illegal sports betting activities identified, wherein bookmakers are offering online gambling illegally. The National Gambling Board (NGB) is working closely in collaboration with law enforcement agencies to combat illegal gambling in the country, including unlawful online gambling. The collaborations include awareness campaigns. To strengthen initiatives, this matter will be discussed in the National Gambling Policy Council between Minister, the Members of the Executive Council (MECs) in the provinces, PLAs and the NGB.
- The gambling industry plays a vital part in the economy, contributing significantly through revenue generation and job creation. Conversely, it also brings challenges, such as problem gambling and social issues, which require continued attention and responsive regulation. Provincial Licensing Authorities collect gambling revenues in the 9 provinces.
There is collaboration between the dtic, PLAs, the NGB and other institutions on issues of prevention of problem gambling through education and awareness programmes and workshops that take place annually in the nine provinces. The licensees (operators) contribute a certain percentage of their Gross Gambling Revenue (GGR) towards funding counselling and rehabilitation offered by the South African Responsible Gambling Foundation that works closely with the NGB.
3) Section 15 of the National Gambling Act, 2004 and Regulation 3 of the National Gambling Regulations, 2004 provides for gambling advertisement regulation, which ensures responsible advertisement that is not targeted at minors and vulnerable persons. To close the gaps in gambling advertising and its related negative impact on the vulnerable members of society, the comprehensive National Gambling Amendment Bill, 2016 was adopted by Cabinet in February 2016 and introduced in Parliament in August 2018 after undergoing legislative processes between 2016 and 2018. The Bill that was introduced had strengthened regulation on advertising to prevent unsolicited short message services (SMS) and multi-media messaging services (MMS) intended on enticing people to gamble.
Due to time constraints at the time, the Portfolio Committee resolved to concentrate on matters that were considered to be urgent before the end of the term and reduced the Bill. The reduced Bill had lapsed during the dissolution of the sixth Parliament and has been resuscitated by the seventh Parliament. The issues of gambling advertising were in the comprehensive Bill. The department plans to revisit the remaining amendments not in the current Bill in Parliament, including issues of advertising restrictions.
-END-
06 January 2025 - RNW2366
Zondi, Mr S to ask the Minister of Trade, Industry and Competition
With reference to the widespread sentiment that his department’s focus on protectionism, masterplans and selective, interventionist approach to regulating firms, especially in the realms of competition policy, has been counterproductive, what (a) are the relevant details of his department’s plan not to limit emerging firms from becoming sufficiently competitive in order to expand their share of the world’s demands for goods in this unfavourable economic climate, (b) is his department’s strategy to ensure that protectionist policies do not hinder the potential of South African firms and (c) are the further relevant details?
Reply:
Competition Policy in South Africa was developed and is being implemented in the context of a relatively highly concentrated economy. This flows from the legacy of the political economy of our recent past with profound implications for consumers (relatively high prices of specific goods and services and significant increases in prices of certain goods including food). In essence, South Africa’s competition policy seeks to achieve economic competition and transformation to realise inclusive growth.
Competition policy is key in the creation of a climate conducive to investments (where investors know that their investments will not be undermined by the anti-competitive behaviour of their rivals and other players upstream or downstream) and supporting the participation of Small and Medium Enterprises and firms owned by Historically Disadvantaged Persons.
- the dtic is deploying its policy instruments to drive industrialisation (including global competitiveness of firms) without ignoring domestic economic imperatives like competition, transformation, innovation, and investments.
- the dtic is not pursuing protectionist policies but a policy mix that takes into account the realities of our economy (concentrated, low levels of transformation, low levels of innovation, low levels of investments, etc.). As such, markets cannot fix these challenges on their own but require the agile deployment of regulatory instruments.
- Finally, the benefits of competition policy to the South African economy are well documented including impact studies/other reviews on some of the market inquiries (e.g., Data Market Inquiry resulting in savings to the South African consumer in excess of R 2 billion, recent enforcement intervention by the Commission resulting in Johnson & Johnson abandoning its intentions to extend patents at a huge benefit for the fiscus and the economy on those drugs).
-END-
06 January 2025 - RNW2386
Zondi, Mr S to ask the Minister of Trade, Industry and Competition
(1) With manufacturing contributing less than 13% to the gross domestic product in 2023, what specific, immediate steps is his department taking to (a) halt the decline and (b) stimulate growth in the sector; (2) how will his department assist smaller manufacturing firms to access global markets, given that over half of such firms currently export less than 5% of their output
Reply:
1. (a)&(b)
The performance of the manufacturing sector cannot be analysed in isolation. The decline in economic growth was influenced by a myriad of factors such as significant rise in load-shedding, challenges with rail networks and ports, as well as global dynamics such as the geopolitical tensions, trade wars between our trading partners. Also, investment levels by the public sector, private sector and households have been low relative to the trading partners.
In addressing some of the challenges cited above, Government through initiatives such as Operation Vulindlela, the National Logistics Crisis Committee, and the National Electricity Crisis Committee has embarked on stabilising the supply of electricity and address the country’s logistical challenges. As a result strong growth in fixed investment has been registered with gross fixed capital formation as a share of GDP improving from its lows of 13.2% in 2021 to 15.2% in 2023.
Further, the Department is in the process of developing an industrial policy strategy that is predicated on the importance of the manufacturing sector as a core element. The Industrial Policy will seek to bring higher levels of employment. The Industrial Policy will anchor targeted sectoral interventions to drive economic growth, jobs and inclusion through expansive projects focusing on new drivers of growth. It will also focus on building long term competitiveness in new sectors such as the digital and green economy. Interventions will focus on actions to support new investment, new product development, or industrial processes that support the digital transformation and green transition.
A suite of interlocking and cross-cutting tools will be deployed across the economy such as:
- A system of industrial finance and incentives to promote competitiveness, attract investments; support and create jobs and infuse technology and innovation.
- Leveraging Spatial and Industrial Infrastructure in order to decentralise economic activities. This points to the critical role of SEZs and Industrial Parks (IPs) programme and investment facilitation programme.
- Leveraging B-BBEE legislation to deepen transformation, broaden economic participation through enterprise and skills development programmes.
- Leveraging procurement to raise aggregate domestic demand and boost production for both local and export opportunities, creating jobs in the associated supply chains. Localisation is one of the identified strategic policy instrument to drive industrial development through induced demand.
- Regional integration and export led industrialisation to foster upward movement in global value chains, leveraging on the African Continental Free Trade Area (AfCFTA) and Preferential Trade Agreements.
(2) The Department provides support measures aimed at enhancing export readiness and creating market access opportunities, which also focusses on smaller manufacturing firms accessing global markets. In support of the South African economy transitioning to an export-oriented economy, the Department will expand and improve the effectiveness of current export support measures, as well as implement new export initiatives to facilitate the entry of additional exporters and further grow existing exports.
In the area of export development, the Department currently hosts awareness seminars in cooperation with provinces, aimed at profiling the opportunities linked to exporting and the support measures available to companies. The Department further undertakes training sessions as part of the Global Exporter Passport Programme (GEPP), aimed at upskilling exporters on international standards, compliance, and effective market entry strategies. Building on training initiatives, the department also selects qualifying companies to participate in the Partnering in Business with Germany mentoring programme. This programme, which is hosted in partnership with the German Federal Ministry for Economic Affairs and Climate Change, is designed to train and mentor emerging exporters from South Africa to access the German market.
In order to promote South African exports, the Department funds the participation of South African exporters in select international exhibitions and missions through the Export Marketing and Investment Assistance (EMIA) scheme. In this regard, companies receive financial support related to air tickets, subsistence, space rental, stand building, freight forwarding and marketing. These companies participate in international and local exhibitions with the aim of unlocking export opportunities in sectors such as Aerospace and Defence; Agro-Processing; Automotive; Boat Building; Cosmetics; Mining and Capital Equipment; Oil and Gas; Pharmaceuticals and Medical Devices; as well as Textiles, Clothing, Footwear and Leather to name a few.
The Department will in future implement export champions and export bridges programmes to facilitate greater participation of small firms in the export value chain.
-END-
05 December 2024 - NW1903
Zondo, Mr S S to ask the Minister of Trade, Industry and Competition
Whether, given that the amended regulations are aimed at protecting consumers from intrusive marketing, there has been any studies and/or data collected on the effectiveness of similar registries in other countries that could inform the strategy for implementing the National Opt-Out Registry; if not, why not; if so, (a) what penalties are being proposed for noncompliance by direct marketers and (b) how will his department ensure that the specified penalties are enforced?
Reply:
The National Consumer Commission (Commission) is charged with the responsibility to implement and enforce the Consumer Protection Act, 2008 (‘the Act’). In 2018, the Commission outsourced a feasibility study to inform the regulations and benchmarks were conducted in the following jurisdictions that have similar mechanisms such as Australia, Canada, European Union and United Kingdom.
a) Any person affected by intrusive marketing in terms of the amended regulations must in the prescribed manner and form, lodge a complaint with the Commission specifying the inconsistent manner of the direct marketer in terms of the Act. The Commission will on its own accord on receipt of the complaint, initiate an investigation into the alleged contravention of the Act and its regulations. The undue conduct if found after investigation, will constitute prohibited conduct in terms of the Act and the National Consumer Tribunal (Tribunal) may impose appropriate administrative fine.
The Tribunal may impose an administrative fine that may not exceed the greater of 10% of the supplier annual turnover or R 1 000 000.00.
b) The Ministers’ powers in terms of the Act are limited to policy direction and the Act provides for competent creatures of statute that enforce the provisions of the Act. Therefore, the orders issued by the Tribunal enjoy the same status as the High Court and failure on the part of the supplier to comply with such an order constitutes an offence. An offence attracts a fine or imprisonment for a period not exceeding 12 months or both a fine and imprisonment imposed by a Magistrate Court that has jurisdiction.
-END-
05 December 2024 - NW1885
James, Ms DE to ask the Minister of Trade, Industry and Competition
Whether he will furnish Ms D E James with a complete breakdown of all official travel for (a) him and (b) the Deputy Ministers since they assumed office, including the (i) purpose and justification for each trip, (ii) destination details, (iii) costs incurred, including but not limited to transport, accommodation, meals and other related incidental expenses, (iv) names and roles of all accompanying support staff and their respective costs and (v) additional costs associated with each specified trip; if not, why not, in each case; if so, what are the relevant details in each case?
Reply:
(a), (b), (i)
(1) The Ministry undertakes international travel to carry out the core mandate on Trade, Industry and Competition. Travel is either at the request of the President, particularly for State Visits, or through our membership of global structures where South Africa’s interests have to be defended or advanced (for example in the World Trade Organisation), or meetings with investors.
In the period under question, the travel undertaken focused on the following four categories:
- Promoting African trade, investment and industrialisation.
- Meeting with major trading partners, including State Visits.
- Meetings where South Africa is a member of the International Organisations.
- Travel to set out the case for investment in South Africa.
Total expenditure international and domestic travel for the Minister, Deputy Ministers, and support staff amounts to R7 023 175, 88 and R2 543 404, 07, respectively, as detailed below:
- Minister Parks Tau’s international and domestic travel since assuming office total R2 573 973, 06 and R135 341, 83 respectively.
- Deputy Minister Whitfield’s international travel since assuming office total R673 339, 55 and R369 147, 45 respectively.
- Deputy Minister Godlimpi’s international and domestic travel since assuming office total R852 228, 25 and R639 426, 47 respectively.
- Total international and domestic travel cost for support staff during the review period is R2 923 635, 02 and R1 399 488, 22 respectively.
-END-
05 December 2024 - NW1576
Maimane, Mr MA to ask the Minister of Trade, Industry and Competition
What process and/or processes were followed in appointing the seven-person panel that will adjudicate and ultimately choose the next National Lottery Operator? NW1218E
Reply:
I have been advised by the National Lotteries Commission (NLC) as follows.
- The NLC engaged four large auditing and accounting firms together with at least three medium-sized transaction advisory firms. Due to the risk exposure of the NLC at the time, resulting from the SIU investigation and allegations of financial mismanagement against former NLC Board Members, Executives and Management, none of the large auditing and accounting firms wanted to do business with the NLC. Only one mid-sized transaction advisory firm complied with the issued Request For Proposal, however, the firm did not have the skills and resources to execute the scope of work for the Evaluation Committee. The only option available for the NLC at the time was to appoint individuals to constitute the Evaluation Committee.
- In appointing the panel, specifications were developed, which identified skills and experience of resources required to form part of the Evaluation Committee. The skills and experience required included candidates who have experience in the four areas of competency, namely, - Finance; Legal; Gaming and Information Technology.
- Curriculum Vitae were sourced from two recruitment agencies that were appointed by the NLC. Shortlisting was undertaken by the NLC and candidates were interviewed to assess their competency and eligibility for appointment.
- Probity was undertaken by verifying work experience, qualifications, credit and criminal checks of the candidates that were recommended for appointment to the Evaluation Committee. All seven candidates that were ultimately appointed passed the probity.
-END-
05 December 2024 - NW2041
Chance, Mr T to ask the Minister of Trade, Industry and CompetitionCompetition
(1) What criteria does his department use in support of businesses applying to participate in trade exhibitions overseas; (2) whether there have been instances where his department declined support applications to participate in international trade exhibitions due to the applicants’ broad-based black economic empowerment scorecard; if not, what is the position in this regard; if so, what are the names of the companies whose applications were declined, including copies of their applications? NW3437E
Reply:
(1) The Department of Trade, Industry and Competition (the dtic) funds, through the Export Marketing and Investment Assistance (EMIA) Group scheme, the participation of businesses in select trade exhibitions identified by the department. In order to be considered for EMIA Group funding, companies have to submit within permissible timelines an application form with the required documentation and must meet set criterion. The criteria used for companies applying to participate in international trade exhibitions include:
- Export readiness of applicant;
- Export / production performance of the entity;
- Available / accessible production / export product capacity;
- Type of product for export and local sales performance;
- Level of labour absorption and technological requirements;
- Submission of general and specific qualifying documentation and adherence to general and specific criteria as stipulated per each EMIA offering; and
- Financial performance of the entity.
(2) In compliance with the Broad-Based Black Economic Empowerment, 2003 (Act of 53 of 2003) section 10(1)(e), EMIA Group funding applications require proof of Black Owned Entity (BOE) identity or company registrations reflecting shareholding percentages. This includes providing a B-BBEE Certificate (Level 1 to 8) or an Affidavit as per the B-BBEE Act for entities with a turnover of less than R10 million per annum.
Based on available information since the 2022/23 FY, an indicative list of non-compliant companies that did not provide valid B-BBEE certificates or affidavits, with their applications declined, is attached in Annexure A. Due to the Protection of Personal Information Act (POPIA), the department is not in a position to share their application forms as they contain confidential and sensitive company information.
Annexure A
Export Marketing and Investment Assistance (EMIA) Group Scheme
List of Companies
B-BBEE Document Non-Compliance
No. |
Company Name |
Event Name |
2022/23 Financial Year |
||
Brace Able Manufacturing (Pty) Ltd |
Feira Internacional de Luanda (FILDA) 2022 |
|
Creative Graphics International (Pty) Ltd - CGI |
||
Universal Clips Pty Ltd |
||
Eastern Cape Development Corporation |
||
Winelands Pork Pty Ltd |
||
Hydraform SA Pty Ltd |
||
Rotrix Africa Industries cc |
||
JB Furniture Manufacturers CC t/a JB Custom |
||
Mayfield Enterprise Pty Ltd |
||
Gauteng Growth & Development Agency Soc Ltd |
||
C-FRUIT (Pty) Ltd |
Fruit Logistica Asia 2022 & Berlin 2023 |
|
Icon Fruit (Pty) Ltd |
||
South African Fruit Promoters (Pty) Ltd |
||
Stems Fruit (Pty) Ltd |
||
The Grape Company Pty Ltd |
||
Xtreme International Trade (Pty) Ltd |
||
Zest Fruit (Pty) Ltd |
||
EXSA (Pty) Ltd |
||
Fruitworks (Pty) Ltd |
||
Hermes Capital (Pty) Ltd |
||
Ideafruit Export (Pty) Ltd |
||
Western Cape & Trade Promotion Agency (WESGRO) |
||
In2fruit (Pty) Ltd |
||
Berryworld SA (Pty)Ltd |
||
Blow Fish Investment (Pty) Ltd |
||
Agricultural Research Council (ARC) |
||
DCD Group (Pty) Ltd |
International Defence Exhibition and Conference (IDEX) 2023 |
|
Hiconnex Pty Ltd |
||
Rapid Mobile (Pty) Ltd |
||
Shelhurst Components (Pty) Ltd |
||
SA Rooibos Tea Supplies CC |
Malaysia International Halal Showcase (MIHAS) 2022 |
|
Burncrete-A Division of Brandcorp |
DRC Mining 2022 |
|
Latex Threats of SA (Pty) Ltd t/a Hose Manufacturers |
||
Victor Industrial Equipment (Pty) Ltd |
||
Atkins Steel and Alloys CC |
||
Legacy Marine (Pty) Ltd |
Feira Internacional de Maputo (FACIM) 2022 |
|
SA Rooibos Tea Suppliers CC |
||
Little Genius (Pty) Ltd |
||
Cherry Moss Trade and Invest 83 (Pty) Ltd |
||
Trade and Investment KwaZulu (TIKZN) |
||
Philcorn Group (Pty) Ltd |
Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) 2022 |
|
South African Geophysical Association |
||
Valsar Petroleum (Pty)Ltd |
||
Incasa Foods (Pty) Ltd |
Gulfood 2023 |
|
The Raisin Company (Pty) Ltd |
||
Energy Supplement CC |
||
Sadia Foods (Pty) Ltd |
||
Pura Soda Beverage Company (Pty)Ltd |
||
Flamingo Moon Trading 146 (Pty) Ltd |
||
Southern Foods (Pty) Ltd |
||
WESGRO |
||
SA Rooibos Tea Supplies CC |
Africa Big 7 2022 |
|
Africa Sun Oil Refineries (Pty) Ltd |
||
Richards Bay Industrial Development Zone |
Offshore Technology Conference (OTC) 2022 |
|
Kama Industries (Pty) Ltd |
||
Southey Holdings (Pty) Ltd |
||
Victor Industrial Equipment (Pty) Ltd |
West African Mining & Power Expo (WAMPEX) 2022 |
|
Sound Mining Solution (Pty) Ltd |
||
Hydraform SA Pty Ltd |
||
AZMET Technology & Projects (PTY) Ltd |
||
Eastern Cape Development Corporation |
Automechanika Germany 2022 |
|
CGI Creative Graphics International (Pty) Ltd |
||
Cape Foods (Pty) Ltd |
SIAL Paris 2022 |
|
Western Cape & Trade Promotion Agency (WESGRO) |
||
SA Rooibos Tea Supplies CC |
||
Redsun Dried Fruits & Nuts (Pty) Ltd |
||
Libstar Operations Pty Ltd |
||
Carpe Diem Raisins Pty Ltd |
||
Cape Dried Fruits Packers (Pty) Ltd |
||
Promasidor South Africa (Pty) Ltd |
||
Peppadew International (Pty) Ltd |
||
Dynamic Commodities (Pty) Ltd |
||
Good Hope International Beverage (Pty) Ltd |
||
Medical Plant Africa Pty Ltd |
Africa Health 2022 |
|
Central University of Technology, Free State |
||
Lodox Systems (Pty) Ltd |
||
C Fruit (Pty) Ltd |
Foodex 2023 |
|
Easter Cape Development Corporation (ECDC) |
||
2023/2024 Financial Year |
||
Mellowcabs Pty Ltd |
Automechanika Middle East 2023 |
|
Eastern Cape Development Corporation |
||
Arc Optics (Pty) Ltd |
BME Symposium Purchasing & Logistics Exhibition 2023 |
|
Mpumalanga Economic Growth Agency |
China International Import and Export (CIIE) 2023 |
|
Hornbill Group t/a Klein Goederust |
||
Cape Hot House Vegetables CC t/a Fynbos Fine Foods |
||
Fantastic Flavours (Pty)Ltd |
||
Vuttomi Liquids (Pty) Ltd |
||
WESGRO |
||
Aquajet Profiles Gauteng |
DRC Mining 2023 |
|
Kappa Engineering (Pty) Ltd |
||
Shelhurst Components Pty Ltd |
||
Shrike Marine cc |
Defence and Security Equipment International (DSEI) 2023 |
|
Saldanha Bay IDZ Licencing Company SOC |
Offshore Technology Conference (OTC) 2023 |
|
SSG Khulisa Consulting |
||
Bergendal Rooibos (Pty) Ltd - Carmien Tea |
World Food Moscow 2023 |
|
Eastern Cape Development Cooperation |
||
Munch Innovations (Pty) Ltd |
||
Sunbird Rooibos (Pty) Ltd |
||
Tweeter Quail Products (Pty) Ltd |
||
Reba Chemicals (Pty) Ltd |
Copperbelt Agricultural, Mining and Industrial Trade Expo (CAMINEX) 2023 |
|
Kappa Engineering (Pty) Ltd |
||
Western Cape & Trade Promotion Agency (WESGRO) |
La Rochelle Boat 2023 |
|
Eastern Cape Development Corporation (ECDC) |
||
Nexus Yachts CC |
Annapolis Boat Show 2023 |
|
Suzi Products (Pty) Ltd |
Footwear and Leather Show 2023 |
|
Aquajet (Pty) Ltd |
Expomin 2023 |
|
Victor Industrial Equipment (Pty)Ltd |
||
Supergrid Manufacturing (Pty)Ltd |
||
Prosperitas Foods (Pty) Ltd t/a Farmers Pride Raisins |
Gulfood 2024 |
|
2024/2025 Financial Year |
||
Rooibos Ltd |
China International Import Expo |
|
Sundale Schreieber (Pty) Ltd |
Gulfood 2025 |
|
Grown4U (Pty) Ltd |
Fruit Logistica 2025 |
-END-
05 December 2024 - NW1990
Zondo, Mr S S to ask the Minister of Trade, Industry and Competition
What are the full details of the Republic’s (a) priorities and (b) expected outcomes in respect of the opportunity of assuming G20 presidency on 01 December 2024, considering that the G20 is a critical forum for global economic cooperation, influencing trade, investment and addressing pressing global issues such as sustainable development and economic recovery?
Reply:
South Africa assumes the G20 Presidency at a time of escalating geopolitical tensions, worsening climate-related challenges, fragmenting global supply chains, and growing economic disparities between developed and developing nations. Within this global context, many regions and localities are increasingly vulnerable to the adverse distributive impacts of globalisation and trade. Rising inequalities and unemployment have exacerbated feelings of exclusion and discontent, making it harder to build consensus around policies that promote global integration. In response, many countries have turned to trade-restrictive measures aimed at addressing domestic vulnerabilities.
a) South Africa has adopted as the theme for its G20 Presidency: ‘Solidarity, Equality and Sustainable Development’. We aim to mobilise the G20 towards taking practical steps that will resolve global challenges, while strengthening international cooperation within a rules-based system.
In an interconnected world, the global challenges require a coordinated response. Through solidarity we seek to advance a unified effort and mutual support among member nations. SA will use the G20 Presidency to advocate for issues of interest to the African Continent and the global South and mobilise support for Africa’s development priorities. In doing so, we will build on the efforts and successes of previous G20 Presidencies, in particular, the Indonesian, Indian and Brazilian G20 Presidencies. South Africa’s G20 Presidency will place Africa’s developmental priorities at the top of its agenda and we will be guided by the priorities contained in the AU’s Agenda 2063: The Africa We Want.
b) Accordingly, SA’s G20 presidency will be leveraged to encourage Members to strengthen their concerted effort to promote inclusivity in trade for growth, develop principles to ensure a responsive trade agenda to address challenges of the global commons, develop a common G20 framework to promoting inclusive green industrialisation and climate resilience, and to continue dialogue on reform at the WTO, including how the WTO can advance the development dimension to ensure that the multilateral trading system contributes to sustainable development.
With these proposed key priorities areas, SA’s presidency can strategically assist the G20 in shifting focus from firefighting against successive shocks to a medium-term agenda that supports resilient, sustainable, balanced and inclusive growth and development.
-END-
05 December 2024 - NW2185
Tambo, Mr S to ask the Minister of Trade, Industry and Competition
What (a) total number of jobs have been lost in the steel industry in the past five years due to the closure of steel plants and (b) is the turnaround strategy to (i) re-open steel factories and (ii) protect the local steel industry from excessive imports of steel from abroad?
Reply:
a) In the past 5 years, due to the global steel overcapacity and the domestic pressures (inclusive of raising input costs; sluggish growth; and subdued demand), South Africa has seen the closure/ mothballing of the Vereeniging works; Saldanha works and SA Steel mini-mill (which is currently under business rescue. According to the South African Iron and Steel Institute (SAISI), the total number of jobs lost at primary steel plants in South Africa over the past 5 years are 7 876. The total direct employment at steel mills in 2019 was 26 504; jobs declining to 18 628 currently in 2024. The decrease is due to closure of the Arcelormittal South Africa’s Saldanha and Vereeniging plants and the Evraz Highveld Steel plant. In addition, rationalisation across the industry has also contributed to the decline in jobs with current plant capacity utilisation averaging at 55%.
b) Turnaround strategy -
- The global primary steel industry remains fragile, as a result, the global steel overcapacity; growing geo-political tensions; and protectionist measures, are continuously being deployed. A key aspect of the turnaround strategy, is the Steel Master Plan, as approved in June 2021. This is an action-oriented plan, based on identified competitiveness improvements in firms, measures to support localisation and initiatives to reposition the industry to be resilient under intense local and global pressures. The plan is being implemented through a social compact between the steel industry, labour and government. Some of the measures implemented over the past few years, include:
- 25 trade support measures implemented to support local industry;
- Total investment by the IDC into the steel value chain includes approvals of R20bn and with total investment facilitated of R45bn;
- The acquisition of Highveld Steel and CISCO steel mills from the business rescue processes, with investments of R1.6bn and R290 million, respectively;
- Localisation interventions; supporting Black Industrialists; and deepening of SA manufacturing capabilities in the value chain. Areas where impact is visible, include the space of transmission, distribution and rail infrastructure programmes; and
- Extension of the Price Preference System and implementation of an export tax on scrap metals to ensure better availability of the input material for the local market.
These interventions have, however, not been adequate to improve the long-term viability and sustainability of the value chain and the primary production in particular. On 20 November 2024, the Department convened an industry-wide engagement to discuss a new form of partnership to address the binding constraints that hold-back the full potential of the value chain. In that engagement, we agreed on formulating a new strategy anchored on a few critical interventions; with clear medium to long-term targets; and measurable outcomes. It is envisaged that a fully consulted and consolidated strategy will be ready in the first half of 2025.
(ii) Protect the local industry from imports:
Owing to the issues of global overcapacity of steel, as well as most economies imposing protectionist measures in support of their industries, the trade measures implemented to-date have not effectively closed the gap in the surge of imports, especially from China. Therefore, a concerted effort amongst various Organs of the State, comprising - the dtic, South African Revenue Service (SARS- inter agency working groups), ITAC as well as the industry, is critical in addressing import leakage including illegal trade issues in the steel value chain. Ongoing collaborative work with industry, SARS and ITAC; in an effort towards dealing with illicit trade, includes:
-
- A Preference Price System for steel products, a risk engine (trigger mechanism) was established in 2018 to address imported low-priced steel products.
- As part of the Steel Master Plan, a Local Content and Compliance Unit (LCCU), was also established as a source of improved data analysis on illicit trade and collaboration with SARS through reporting.
- A Metals Specialist Training, a collaboration with the dtic, industry and SARS, facilitated by the ISTraining Consultants, host training sessions for SARS Customs officials to identify illicit traded goods.
- A Ministerial Directive to ITAC to conduct a review of the tariff structure for steel products classifiable under Chapters, 72, 73, 82 and 83 in terms of section 16(1)(d)(i) and section 18 of the ITA Act. It is envisaged that first set recommendations will be ready for implementation by June 2025.
-END-
05 December 2024 - NW2101
Zondo, Mr S S to ask the Minister of Trade, Industry and Competition
In what manner is funding from the Khoebo Innovation Promotion Programme allocated across different economic sectors; (b) Whether specific funding is reserved for high-impact sectors in underserved areas, such as (a) rural regions and (b) townships; if not, what is the position in this regard; if so, what are the relevant details? NW3447E
Reply:
I have been advised by the IDC as follows -
a) The Khoebo Innovation Promotion Programme funds across all sectors. The current portfolio distribution is shown in the table below.
Sector |
Distribution |
Agro Industries |
9% |
Automotive |
4% |
Chemicals |
21% |
Financial Services |
2% |
ICT |
34% |
Manufacturing |
23% |
Pharmaceuticals |
4% |
Textiles |
2% |
b) KIPP funds all economic sectors, with a particular focus on rural and township businesses. Based on current active portfolio, 47% of clients are in rural or township areas and 36% are outside Gauteng and Western Cape.
The Grassroots Innovator Facilitation Scheme (GIFS), one of two schemes under KIPP, provides grant funding of up to R1 million per applicant to support the commercialisation of Grassroot Innovators solving social problems, particularly in rural and township communities.
KIPP also provides additional incentives in the form of concessionary funding for rural and township businesses under the second scheme, the Small and Medium Enterprise Growth (SMEG) scheme. Applicants from designated groups using government facilities to commercialise their innovations can qualify for up to 11% of total funding as a grant.
Debt Funding Incentive Grant Allocation:
Company ownership |
0% |
1% - 25% |
25,1% - 50% |
50,1% - 100% |
Black Ownership |
0 |
0,5 |
1 |
2 |
Women Ownership |
0 |
0,5 |
1 |
2 |
People with Disability Ownership |
0 |
0,5 |
1 |
2 |
Youth Ownership |
0 |
0,5 |
1 |
2 |
Use of Government Infrastructure |
No |
0 |
Yes |
1 |
Rural / Township Development |
No |
0 |
Yes |
2 |
|
||||
Total Score |
Minimum |
0 |
|
|
|
Maximum |
11 |
|
|
-END-
05 December 2024 - NW1544
Mdluli, Mr MM to ask the Minister of Trade, Industry and Competition
Whether, with reference to his reply to question 711 on 10 October 2024, he will furnish Mr M M Mdluli with (a) copies of reciprocal agreements that are redacted with regard to the number of jobs and values of investment, (b) copies of impact assessments, with confidential information redacted, (c) confirmation from the International Trade Administration Commission of South Africa that reciprocal agreements are not required for duty reductions and/or rebates, (d) details on the rationale, if required, and (e) a list of investigations for duty relief requested, outlining both locally made and international products; if not, why not; if so, what are the relevant details?
Reply:
I am informed by the International Trade Administration Commission (ITAC) of the following:
(a) The Commission (ITAC) indicates that it would not be in a position to share a non-confidential or redacted version. Should it be provided with an understanding of the purpose accessing such information would serve, it would then convey that to the respective applicants. In the absence of that, however, it cannot share firm-level information contained in these irrevocable undertakings.
(b) Impact assessments since 2019: Annexes A.1 to A.4, supplied by ITAC - refer to links below.
(c) This is not the case. The 21 April 2016 trade policy directive issued in line with section 5 of the International Trade Administration Act 71 of 2002, by the then Minister of Economic Development requires that the ‘Commission shall have regard to (reciprocal commitments)’ in relation to an application for the investigation of an amendment of customs duties in line with section 26(1)c of the Act. The directive further suggests that, ‘in appropriate cases, it is preferable that the Commission should consult with the applicant with regard to these matters before making its recommendation’. In this regard, arising from the use of these reciprocal commitments to improve firm-level competitiveness and to undertake structural change, the Commission will continue, where it deems it desirable, to expect an applicant to make an ‘objectively verifiable and binding commitment’. In this regard, the Commission will continue to have regard for job creation (and/or retention), industrial output, investments in plant, equipment, skills and research and development, economic investment in support of the participation in manufacturing and related activities by small business, black owned or black managed enterprises and SACU supply chains and the pricing of outputs. In so doing the Commission is expected to continue to exercise its discretion to decide to apply one or any more of these considerations with respect to any particular application.
The trade policy directive of 21 April 2016 is attached as Annex B - refer to link below.
(d) All applicants, when they apply to the Commission for an amendment to customs duties, ostensibly make the case for the desirability of such a change to the tariff schedule. Often applicants make the case that such changes may give rise to greater plant capacity utilisation, greater employment or any other similar benefit to customers or downstream users and so on. Reciprocal commitments in such instances seek to make these envisaged benefits an objectively verifiable element that the Commission may consider (along with other important elements of the case) in arriving at its recommendation. This is made more important by the ‘design’ of tariffs as policy instruments, with ‘concentrated benefits’ but often, very ‘diffuse costs’ spread among a wide array of economic actors, least of all those who can afford the ‘price adjustments’ associated with tariff support.
(e) It is assumed that the duty relief spoken of here is what is referred to in the Act as ‘rebates of customs duties’. These measures have been, at least since 1925 in South Africa been used to allow for the import (without paying the associated customs duty) for industrial policy reasons, of raw and manufactured materials and articles that are either not produced in South Africa, or whose cost constitutes a considerable portion of the ex-factory selling price of a good used in the manufacture or processing of output in priority sectors. Since 2010, around 70 such measures have been instituted covering a wide array of industrial sectors, as can be seen in Annex C - refer to link below.
LINKS:
Annexes A.1 to A.4: https://dtishare.thedti.gov.za/filr/public-link/file-download/8a8b4b7e92d1e3470193485a16ac4b79/25759/7782262780467476619/PQ%201544%20ANNEX%20A.zip
Annex B:
-END-
05 December 2024 - NW1430
Webster, Ms NL to ask the Minister of Trade, Industry and Competition
What is the full breakdown of all (a) line items of remuneration and (b) payments made by his department to each individual board member, including (i) board fees, (ii) consulting fees and (iii) any other category of payment?
Reply:
I would like to remind the honourable member that the responsibility of the remuneration of board members is the responsibility of the entity. The audited 2023/2024 Board remuneration is contained in the Annual Reports of the entities tabled in Parliament.
-END-
05 December 2024 - NW1726
Maimane, Mr MA to ask the Minister of Trade, Industry and Competition
(a) What was the rationale to extend the current National Lottery Licence Operator by two years until 31 May 2025 and (b) by what date will the announcement take place, given the implications of a delay?
Reply:
(a)
- The Licence to operate the National Lottery and the Sports Pools Licence was awarded to Ithuba Holdings by the Minister of Trade, Industry and Competition (“the Minister”) for a period of eight (8) years, from 01 June 2015 to 31 May 2023.
- Section 14(1) of the Lotteries Act 57 of 1997, as amended, states:
“A licence granted in terms of section 13 or 13A shall be in writing, shall specify the conditions attached to it and shall be granted for a period not exceeding eight years: Provided that the Minister may, after consultation with the board and at least one year before the expiry of that licence, extend that licence for a non-renewable period not exceeding 24 months: Provided further that the licensee shall have no rights or legitimate expectations in respect of an extension of the period of validity of the licence other than the rights afforded by this subsection.”.
3. The above section of the Lotteries Act requires consideration to extend the licence at least one year before the expiry of the current licence. It was on this basis that the Board of the National Lotteries Commission (“the NLC Board”) made the request to the Minister for the NLC Board to initiate negotiations with Ithuba Holdings, for the purpose of entering into an extension of the National Lottery and Sport Pools License with revised licence conditions effective from 01 June 2023 for a period of 24 months.
4. The NLC Board, in framing its request and advice to the Minister, had taken into account a number of factors, including the impact of COVID-19 on National Lottery and Sports Pools ticket sales and subsequent contributions to the National Lotteries Distribution Trust Fund (“the NLDTF”).
5. Following the request from the NLC Board to the Minister in May 2022, and following due consideration of the matter, the Minister resolved to extend the license of the National Lottery and Sports Pools operator, Ithuba Holdings, for a twenty-four-month period.
6. During the period of the extended license, 01 June 2023 to 31 May 2025, Ithuba Holdings was required to make contributions to the NLDTF to support good causes at a higher rate than provided for in the initial license.
(b) The Minister of Trade, Industry and Competition will announce the Fourth National Lottery and Sports Pools operator upon conclusion of the Request for Proposals process.
-END-
05 December 2024 - NW2089
Trollip, Mr A to ask the Minister of Trade, Industry and Competition
Considering the recent election of Mr Donald Trump as the President of the United States of America (USA) and his expressed intentions to end the African Growth and Opportunity Act (AGOA) and to impose a 10% tariff on all products imported into the USA, and in light of the fact that the Republic currently exports approximately R100 billion worth of goods to the USA, what (a) proactive measures is his department implementing to secure and maintain the Republic’s critical access to the trade benefits provided under AGOA and (b) strategies or interventions is his department pursuing to mitigate the potential imposition of an additional 10% tariff on South African exports to the USA, which could severely impact the Republic’s export economy?
Reply:
In June 2024, former United States President Donald Trump announced that if he is re-elected in November 2024, he plans to impose 10% across-the-board levies on all products imported into the US from overseas; while China may face 60% or more on its imports into the US.
South Africa currently exports products to the US under the following three trade regimes:
- The reciprocal ‘Most-Favoured Nation’ terms (MFN) of the World Trade Organisation (WTO), accounting for 75% of total SA exports to the US;
- Unilateral (or ‘non-reciprocal’) preferential market access under the African Growth and Opportunities Act (AGOA), accounting for 21% of total SA exports to the US; and
- Unilateral preferential market access under the Generalised System of Preferences (GSP) programme, accounting for 4% of total SA exports to the US.
(a) South Africa as part of the AGOA beneficiary efforts have been advocating for renewal of AGOA beyond September 2025 for a minimum of 16 years, with all countries retained in the programme. There has been bipartisan and bicameral support for renewal of AGOA. There have been questions on continued inclusion of South Africa in AGOA; in this regard, Africa Ministers of Trade have been clear and urged the US not to use non-trade conditions in the renewal of AGOA. In addition, South Africa remains critical to the regional value-chains that have developed in sub-Saharan Africa on the back of AGOA. There is also recognition in the US that AGOA must support the implementation of the African Continental FTA and the role of South Africa in this is well acknowledged. Given the recent election in the United States, South Africa will engage with the new Congress once sworn-in in January 2025 to continue advocating for early and long-term renewal of AGOA.
This advocacy efforts will be strengthened by the announcement of the new Ambassador of South Africa to the United States, Ambassador Ebrahim Rasool.
(b) Regarding the proposed 10% baseline tariff across the board, it is important to note that this is not yet law or officially proposed. South Africa will continue to engage the US to mitigate the effects of the application of the tariff should it be implemented in view of the supply-chains in key sectors that exist between the two countries. South Africa will also continue to advocate for the resuscitation of the Trade and Investment Framework Agreement (TIFA) that will provide an opportunity to engage at a high level on both sides and discuss all issues of interest or concern to strengthen bilateral relationship with the United States.
-END-
05 December 2024 - NW1666
Ndlozi, Dr MQ to ask the Minister of Trade, Industry and Competition
Whether, in light of the growing phenomenon of poisoned goods in tuck shops, his department will consider establishing a multi-disciplinary unit with the SA Bureau of Standards, National Regulator for Compulsory Specifications and the National Metrology Institute of South Africa working with the Border Management Authority to address the scourge of fake and dangerous goods, especially food in the Republic; if not, (a) why not and (b) how will his department contribute to addressing the problem; if so, what are the relevant details?
Reply:
(a) and (b)
Given the increase in contaminated food consumed by communities that has led to fatalities and hospitalisation, the dtic has taken the initiative to provide solutions to the national food safety crisis in-line with its mandate. This is done in collaboration with other government departments and public entities within the economic cluster; and through the National Joint Operational and Intelligent Structure (NATJOINTS), which is led by the Department of Health.
Entities reporting to the dtic such the National Consumer Commission (NCC), the National Regulator for Compulsory Specifications (NRCS), South African Bureau of Standards (SABS), and the National Metrology Institute of South Africa (NMISA) also participate in the NATJOINTS dealing with food poisoning and safety. The Border Management Authority (BMA) is also playing a critical role in amplifying cargo inspections at the ports of entry, particularly targeting fake and dangerous goods, especially food entering South Africa.
The above-mentioned regulatory institutions are equipped to render conformity assessment of food through inspections to detect the presence of pesticides (in liquid and solid format) and testing for bacteria in food items. The regulators scale up capacity in terms of equipment as well as the skilled personnel to carry out tests as and when it is required, including the provision of awareness and training for various stakeholders involved in the food value chain (from suppliers, distributors, sellers and consumers).
The work also includes collaboration with the Department of Small Business Development (DSBD) and municipalities to ensure the implementation of municipal business registration, which will encompass relevant information on shop owners and the nature of their businesses.
Both the dtic and DSBD have established a joint fund to the value of R500 million to support small businesses, including spaza shops in the townships and rural areas. Businesses will be supported through the fund to improve their infrastructure, regulatory compliance and capacity building. Through the interventions, the government aims to mitigate the challenges in foodborne illnesses and fatalities in the country.
-END-
28 November 2024 - NW1499
Montwedi, Mr Mk to ask the Minister of Trade, Industry and Competition
Question Whether there are positions of trade attachés vacant in our foreign missions; if not, what is the position in this regard; if so, what (a) total number of the foreign missions have not filled the vacant positions, (b) processes have been initiated to fill the specified positions so that the organogram becomes a true representation of the departmental structure and (c) for how long have the positions been vacant?
Reply:
The number of vacant Foreign Economic Representative (FER) posts are 30, with 4 officials currently deployed at the Geneva WTO Mission.
Key FER positions have been vacant since November 2023. The department is reviewing the approach to the FERs and the footprint of markets where they will be deployed.
-END-
28 November 2024 - NW1530
Mdluli, Mr MM to ask the Minister of Trade, Industry and Competition
With reference to applications to the International Trade Administration Commission, what total the number of applications (a) have been filed for trade and trade remedies pertaining to anti-dumping, safeguarding and countervailing since 1 January 2021, (b) were (i) processed and (ii) declined in the specified period and (c) are still under consideration since 2021?
Reply:
(a) ITAC has supplied Annex A, which summarises the trade remedy investigations undertaken by the Commission since 2021.
(b)(i) and (ii) Please see Annex A.
(c) ITAC also indicates that, because there is a statutory 18-month timeline for trade remedy investigations, it would not have any matters still under consideration from 2021.
.
-END-
28 November 2024 - NW1602
Zondo, Mr S S to ask the Minister of Trade, Industry and Competition
Given that the Manufacturing Indaba brings together various stakeholders each year, how does his department intend to engage with the stakeholders to ensure that the localisation framework is effectively implemented and addresses the needs of the manufacturing sector?
Reply:
The aim of the Manufacturing Indaba is to bring together business owners, industry leaders, government officials, capital providers and professional experts to explore opportunities and grow their manufacturing operations. the dtic has always collaborated and participated at the Manufacturing Indaba, where it has presented on industrialisation, localisation and the role of industrial finance to incentivise manufacturing entrepreneurs and businesspersons.
Localisation is at the heart of the Government’s strategy to build local industrial capacity for the domestic economy and export markets; and to create sustainable jobs for South Africa. Incentivising manufacturing entrepreneurs and industrialists is also one of the key priority areas to generate a positive economic and social impact for South Africa’s economic development.
These events assist to facilitate business connections and helps manufacturers in order to collaborate, innovate and grow their enterprises. the dtic group (i.e. the Department and its entities) participate and showcase its service offerings on investments, national standards and localisation opportunities at the indaba and exhibition arena. Collaboration by both the public and private stakeholders in the manufacturing sector is essential for strengthening partnerships, innovation and economic growth for South Africa.
-END-
28 November 2024 - NW1638
Chance, Mr T to ask the Minister of Trade, Industry and Competition
(1) Whether he had been informed that the agreement of the Price Preference System (PPS) will be withdrawn when export duties on scrap steel commences; if not, why not; if so, what are the relevant details; (2) whether he intends to reach an agreement with the Minister of Finance on whether export duties or the PPS will be withdrawn; if not, why not; if so, on what date; (3) whether he will outline the different purposes (a)(i) export duties and (ii) the PPS serve in the scrap steel value chain and (b) of the Government’s commitment to boosting exports and fast-tracking job creation; if not, why not; if so, what are the relevant details? NW2019E
Reply:
(1) The Preference Price System (PPS) is undergoing a public process of review conducted by ITAC in order to improve the efficiency and effectiveness of the system. Since 2021, the PPS and export tax have been working in tandem to boost domestic steel and foundry development by lowering the cost of key raw material – scrap metal. This review process should present Government with evidence on the performance of the systems and a view of what needs to be done through this intervention to realise the industrial development objectives of value addition, export and employment growth in the manufacturing sector.
Government will present the findings of the review once completed as well as the future policy pathway.
(2) The decision on what to do with PPS and export tax on scrap metal is undergoing rigorous evaluation within Government. It must be understood that any decision in this regard cannot be taken without due process and an assessment of impacts across industry. At this stage, consultations are conducted with all affected parties in the ecosystem to get their inputs and views. This matter is receiving priority attention in Government with the aim to finalise it in the shortest time possible in order to provide long term policy certainty for the Steel and Metal Fabrication as well as related value chains.
(3) a) The Preference Pricing System (PPS) for scrap metal is a government policy framework designed to regulate the export of scrap metal and prioritise local industries access to this resource at favourable prices. This is in line with South Africa's broader industrialisation strategy to sustain the domestic steel industry, which has faced significant challenges due to global competition, high production costs, and fluctuating demand. By ensuring local industries have access to affordable scrap metal, the PPS helps maintain production capacity, retain jobs, and support downstream manufacturing.
The Preference Pricing System PPS was introduced in 2013 and is implemented by the International Trade Administration Commission (ITAC). It has gone through number of review cycles including according to the following timeline:
- 10 May 2013- PPS introduced
- 24 May 2019- PPS extended for 8 months until 31 March 2020 to allow for export tax to be introduced
- 31 March 2020- extended until December 2020
- 23 November 2020- Extended for 7 months until 31 July 2021
- 28 July 2021- Extended for 2 years until 31 July 2023
- 26 June 2023- Extended for 5 years until 31 July 2027
The export tax on scrap metal was introduced in 2021 a levy on the export of certain types of scrap metals. This tax is part of South Africa’s effort to curb the export of valuable raw materials and ensure that local manufacturers have affordable access to scrap metal for production, particularly in the steel and foundry sectors. It was introduced to augment the Preference Pricing System (PPS). The export tax complements the PPS by creating an additional financial incentive for scrap to remain within South Africa.
b) By increasing the cost of exporting scrap, the policy (PPS and Export Tax) encourages local processing and supports South Africa’s downstream steel, foundry, and manufacturing industries. This is a global phenomenon as scrap demand has been greater than supply for the past two decades. Over 30 countries (including EU, China, India and Brazil) across the world have introduced export controls on scrap metal in order to secure raw materials supply for the development of their own manufacturing sectors. By supporting local industries, the export tax and PPS aims to protect jobs and promote economic growth within South Africa’s steel and metal processing sectors through value addition and the export of value-added products.
-END-
28 November 2024 - NW1486
Mathys, Ms L to ask the Minister of Trade, Industry and Competition
What are the (a) reasons that the option for amending the Broad-Based Black Economic Empowerment Act, Act 46 of 2013, is being considered and (b) are the details of the (i) discussions between his department and other relevant stakeholders, including other government departments, regarding the possibility of Starlink providing satellite internet services in the Republic and (ii) other optional service providers that offer services that are similar to those provided by Starlink?
Reply:
a) The year 2024 marked twenty-one years (21) since the Broad-Based Black Economic Empowerment (B-BBEE) Act, 2003 (Act No. 53 of 2003) was promulgated. Government acknowledges that efforts to transform our economy using B-BBEE as one of the instruments has resulted in more black South Africans and women meaningfully participating in the economy as owners and workers. However, even after 21 years, South Africa remains one of the most unequal countries globally, with many still marginalised from the economy. As a result, the Government is strengthening B-BBEE implementation, compliance and enforcement of transformation.
b) The relevant department that will be able to provide information about the Starlink matter is the Department of Communications and Digital Technologies. the dtic will provide its view on the matter once consulted about the details by the Department of Communications and Digital Technologies.
-END-
28 November 2024 - NW1469
Zondo, Mr S S to ask the Minister of Trade, Industry and Competition
(1) Given that his department plays a vital role in facilitating trade and ensuring market access for South African businesses, which are essential for driving economic growth and creating jobs, what strategies is his department pursuing to simplify trade processes and reduce red tape for South African businesses looking to export their products internationally; (2) how does his department intend to negotiate better trade agreements that will protect local industries, while expanding market access for South African products? NW1779E
Reply:
(1) In order to simplify trade processes and provide market access for South African exporters, the department funds the participation of exporters in international exhibitions and missions to profile their products and services through the Export Marketing and Investment Assistance (EMIA) scheme. The department also undertakes capacity building and export training initiatives to expand the country’s exporter base, including through the Global Exporter Passport Programme (GEPP), which trains companies to be export ready. Additionally, the department provides matching grants for Export Councils, established by groups of companies to improve communication and co-operation within different industrial sectors to enter international markets. The department is assessing improvements in these measures, as current initiatives to support export-led growth are inadequate.
Government to government engagements: South Africa, through the dtic or DIRCO, has a number of intergovernmental platforms that provide an opportunity to discuss challenges and/or opportunities for exporters. In this regard, prior to engagement in an intergovernmental platform with a foreign country, the dtic request inputs from export councils, industry associations and provinces, to ensure that issues of interest to our exporters are prioritised and attended to. This ensures that a lot of unnecessary barriers that affect and increase costs for SA companies to export their products are either reduced or eliminated.
(2) Legally binding trade agreements are reciprocal in nature. This implies that while preferential market access into another market is obtained, this is in exchange for preferential access into the home market. Therefore, the exchange of tariff concessions must be carefully calibrated to maximise export opportunities but also protect SA’s sectors that are sensitive for industrial development and employment. The pursuit is to obtain market access for products that are of export interest to South Africa, in which South Africa has production/manufacturing capacity, and can sell competitively into the partner’s market. This, however, has to be pursued while protecting South Africa’s sensitive sectors, particularly job rich sectors, in order not to expose them to threatening levels of tariff liberalization.
An important aspect of trade agreements is the development of trade rules. These should create a level playing field but also maintain policy space to implement national development policy.
The government obtains a mandate from Cabinet when a new trade agreement is being planned. This is informed by consultations with the constituencies in NEDLAC, and also continuous consultations with industries and stakeholders throughout the negotiating process.
It should be noted that SA is a member of Southern African Customs Union (SACU). SACU members are compelled to negotiate trade agreements as a bloc, by virtue of it being a customs union and therefore maintains a common external tariff vis-à-vis non-SACU members.
-END-
28 November 2024 - NW1679
Tambo, Mr S to ask the Minister of Trade, Industry and Competition
Question Whether the Republic has any trade relations in the agricultural sector with Russia; if not, what is the position in this regard; if so, (a) in which agricultural products and (b) what is the value of the trade on an annual basis?
Reply:
Yes, South Africa exports agricultural products to Russia. SA and Russia also have a Memorandum of Understanding in the Field of Agriculture, signed on 26 July 2018. The main objectives of the MOU are:
- To encourage regular exchange of information in Research and Development in Agriculture between the two countries.
- Work together in Agricultural Products marketing in each other`s markets.
- Encourage investment in agricultural projects in each other’s economies
(a) South Africa’s agricultural trade with Russia
South Africa`s exports to Russia are dominated by agricultural exports, accounting for over 80% to South Africa’s total exports to Russia. In 2023 the value of SA agricultural exports to Russia amounted to R4 545 491 000.
The following are the main products:
- Citrus fruit exports accounted for 53% of overall exports and a 59% share of agricultural exports. Exports grew by 18% in 2023.
- Exports of apples, pears and quinces accounted for 13% to overall exports and a 15% share of agricultural exports. Exports declined by 32% in 2023.
- Other nuts, fresh and dried exports accounted for 7% to overall exports and an 8% share of agricultural exports. Exports increased by 59% in 2023.
- Jams and fruit jellies accounted for 4% of overall exports and a 4% share of agricultural exports. Exports declined by 80% in 2023.
- Grapes fresh or dried exports accounted for 3% of overall exports and a 4% share of agricultural exports. Exports increased by 36% in 2023.
- Other products, holding a lower share, are listed in the table below.
(b) The value of agricultural exports to Russia reflect in the table below.
Table: SA agricultural Exports to Russia, 2023
Customs code |
Description |
% Share in Total SA Exports to Russia (R’000; 2023) |
% Share in SA Agricultural Exports to Russia (R’000; 2023) |
|
Total: all products from SA to Russia |
5 218 519 |
|||
Total SA agricultural exports to Russia |
4 545 491 |
|||
0805 |
Citrus fruit, fresh or dried |
2 695 924 |
52 |
59 |
0808 |
Apples, pears and quinces, fresh |
687 238 |
13 |
15 |
0802 |
Other nuts, fresh or dried, whether or not shelled or peeled (excl. coconuts, Brazil nuts and ... |
346 974 |
7 |
8 |
2007 |
Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, obtained by cooking, ... |
197 752 |
4 |
4 |
0806 |
Grapes, fresh or dried |
174 491 |
3 |
4 |
0804 |
Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried |
112 746 |
2 |
2 |
0809 |
Apricots, cherries, peaches incl. nectarines, plums and sloes, fresh |
110 405 |
2 |
2 |
2204 |
Wine of fresh grapes, incl. fortified wines; grape must, partly fermented and of an actual ... |
67 939 |
1 |
1 |
2009 |
Fruit juices, incl. grape must, and vegetable juices, unfermented, not containing added spirit, ... |
62 815 |
1 |
1 |
2008 |
Fruits, nuts and other edible parts of plants, prepared or preserved, whether or not containing ... |
58 188 |
1 |
1 |
0810 |
Fresh strawberries, raspberries, blackberries, back, white or red currants, gooseberries and ... |
7 981 |
0.2 |
0.2 |
1212 |
Locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh, chilled, frozen or ... |
5 382 |
0.1 |
0.1 |
0603 |
Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, ... |
4 811 |
0.1 |
0.1 |
0511 |
Animal products n.e.s.; dead animals of all types, unfit for human consumption |
4 755 |
0.1 |
0.1 |
2001 |
Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar ... |
2 544 |
0.05 |
0.1 |
1005 |
Maize or corn |
1 843 |
0.04 |
0.04 |
0709 |
Other vegetables, fresh or chilled (excl. potatoes, tomatoes, alliaceous vegetables, edible ... |
1 419 |
0.03 |
0.03 |
2308 |
Acorns, horse-chestnuts, marc and other vegetable materials and vegetable waste, vegetable ... |
424 |
0.01 |
0.01 |
1806 |
Chocolate and other food preparations containing cocoa |
405 |
0.01 |
0.01 |
1704 |
Sugar confectionery not containing cocoa, incl. white chocolate |
405 |
0.01 |
0.01 |
0813 |
Dried apricots, prunes, apples, peaches, pears, papaws "papayas", tamarinds and other edible ... |
387 |
0.01 |
0.01 |
0714 |
Roots and tubers of manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar |
332 |
0.01 |
0.01 |
0803 |
Bananas, incl. plantains, fresh or dried |
276 |
0.01 |
0.01 |
2203 |
Beer made from malt |
55 |
0.001 |
0.001 |
Data source: ITC TradeMap; author`s calculations. https://www.trademap.org/ , accessed on 4 November 2024.
In 2023, South Africa imported wheat to the value of R1 740 084 000 from Russia. This represented 18% of South Africa’s total imports from Russia. It represented 17% of South Africa’s total wheat imports from the world, and made Russia the 3rd largest supplier of SA imports of wheat.
-END-
15 November 2024 - NW1300
Gana, Mr M to ask the Minister of Trade, Industry and Competition
(1) Whether his department has forecast what the economic cost would be for every day that Gauteng is without water in respect of a Day Zero scenario, where the water supply in Gauteng is interrupted and/or demand outstrips supply; if not, what is the position in this regard; if so, what is the total figure; (2) what top five industries will be the most affected by water interruptions in Gauteng? NW1550E
Reply:
1. As you would appreciate, the dtic does not have an official forecast on the Day Zero scenario for the economy in the Gauteng province. However, the department is aware that South Africa is a water-scarce country as a result of inconsistent and insufficient rainfall. Therefore, the looming water crisis is a serious concern. The water which the Gauteng province receives is from the Lesotho Highlands Water Project (LHWP), which supplies 780 million m³ (cubic meters) to the Integrated Vaal River System (IVRS), from which Rand Water supplies bulk water to municipalities in Gauteng.
The planned maintenance of the LHWP from 1 October 2024 to 31 March 2025, will reasonably be disruptive to the South African economy, especially in Gauteng but the LHWP is necessary to ensure its long-term sustainability and integrity. Relying on the official updates from the Rand Water, the planned maintenance will result in 700 million m³ of water per annum being transferred in 2024, resulting in a shortfall of 80 million m³ from the normal annual transfer volume. The shortfall will be recovered after the maintenance period. The Department of Water and Sanitation, has assured Rand Water that the impact of the maintenance on the overall IVRS will be minimal considering that dams in the IVRS such as the Sterkfontein Dam and others are currently full. Rand Water projects that in the unlikelihood that the Vaal Dam drops to the minimum levels, there will be enough water to release from Sterkfontein Dam.
Rand Water has communicated to municipalities and other customers not to panic but to intensify their water conservation mechanisms and campaigns to curb the ongoing high consumption. the dtic also supports the National Cleaner Production Centre (NCPC) through the national support programme that drives the transition of South African industry towards a green economy through appropriate resource efficient and cleaner production interventions. This includes improving water efficiency through wastewater management (e.g. treating, recycling and purifying wastewater), rainwater harvesting, boreholes, transforming industrial water use practices in order to reduce water consumption and improving industrial water quality.
2. In case the LHWP maintenance programme does not go according to the planned schedule, water intensive industrial sectors such as agro-processing, beverage, chemical, metal, meat production, textiles and clothing, automotive manufacturing as well as agriculture and mining, will be negatively affected. Water is used in these industries to process, cool, and clean products.
3. The National Cleaner Production Centre (NCPC) Programme of the dtic has developed special tools to assist industry wishing to improve their resource and water efficiency. These tools are freely available to share and make use of them as a resource.
Specific to water use and consumption, the NCPC Industrial Water Efficiency (IWE) Project promotes the transformation of industrial water use practices, to reduce water consumption and improve industrial water effluent quality. Through the development of tools, guides and training courses, the NCPC-SA has built capacity in industry to improve its water efficiency, whilst water assessments and implementation support are available to companies at a plant level.
https://www.industrialefficiency.co.za/guides-and-reports/