COMMITTEES: Let take this opportunity to remind our special delegates, our Ministers, and Deputy Ministers, that at the podium if you are going for the first time there is a digital watch doing the count down. So, there is no need for me to disturb you. The digital watch is there and it will be doing the count down. You are not even recognised.
Hon House Chairperson, Ministr Patel and our Deputy Ministers, hon members of the House, officials from both the department of Small Business Development and of Trade and Industry, ndimasiare, during our Budget Vote address, Vote No 31 of Small Business Development, we announced measures to support small, medium and micro enterprises, SMMEs, and co-
operatives. These measures are a response to the priorities of the sixth administration as set out by the President in his state of the nation address.
Our work is cut out. Our work in this term of office will be directed at ensuring that SMMEs and co-operatives contribute to two of the goals that were announced by the President in the state of the nation address. These goals are our economy growing at a much faster rate than our population, and two million more young people being in employment over the next 10 years.
We are fully aware that to achieve these, SMMEs and co-operatives must have access to strategic resources such as skills, knowledge networks, finance, and access to facilities and platforms, amongst others, that will enable them to nurture their innovative ideas and business. Our focus on improved access to finance includes initiatives to make SMME finance more affordable and inclusive. Inclusivity means development finance institutions that foster economic activity, productivity and prosperity for a broad section of our society.
The plan is to make the cost of money less expensive, starting with the cost of Small Enterprise Finance Agency, Sefa, financing. In
this regard, the President announced during his response to the state of the nation address debate, that we will introduce a blended financing model. This model will be introduced over the next three years, commencing in the current financial year. Small Enterprise Finance Agency is collaborating with the department and other government funding entities in utilising grant incentive offerings to offer a blended funding model that will directly benefit SMMEs across funding facilities. We have announced that the Land Bank has joined this partnership. Since our Budget Vote, we have received expression of interests from the private sector as well, and we are inviting more private sector players to join hands with us.
The blended finance model should be of interest to delegates of the NCOP because its initial execution will be funding 100 000 young entrepreneurs across all provinces. The 100 000 young entrepreneurs will be funded through the Small Business and Innovation Fund, SBIF, commencing this financial year. Qualifying start-ups, innovators and SMMEs will be able to access matched grant funding. That grant portion will be up to a maximum of R2,5 million per enterprise.
The SBIF aims to promote and facilitate funding of innovation in key industry sectors, and enhance financial inclusion by increasing access to finance for enterprises owned by targeted groups, which
are women, youth, townships, and in particular black townships and rural communities. The process for entrepreneurs, innovators and SMMEs to access this funding will be announced in the first week of August but at a minimum they must have the potential to create at least 10 jobs. This will translate into at least one million jobs when the programme is successful.
Access to finance will not be a panacea to challenges facing SMMEs and co- operatives. Strategic-public sector decision-making can redirect market failure and actively shape new markets while regulating existing ones. In this regard, Seda will adopt a standard incubator model based on best practice that will be a minimum framework for incubation in South Africa.
In the meantime, Seda will increase the incubation network, deliberately targeting rural areas and townships as part of government's commitment to grow rural and township enterprises. For this purpose, Seda will establish during this current financial year an additional eight incubation centres in the rural and underserviced provinces of Free State, Mpumalanga, Limpopo, Northern Cape and North West.
This is our response to the directive of our President during the state of the nation address, when he committed that we are going to roll out small business incubation centres to provide youth-driven start-ups with financial and technical advice as they begin their journeys. Our commitment to increase the incubation period to a maximum of five years remains. We are also committed to optimise the utilization of our already existing facilities, not only to expand our reach but to increase the return on government's investment. In the previous financial years, we established 13 Centres for Entrepreneurship and Rapid Incubation in TVET colleges. We will upgrade these centres into full incubators for the benefit of small businesses and start-ups that are adjacent to the TVET colleges. An additional, nine centres with full incubation services will be established in all our provinces. We will also coordinate with the private sector to establish incubators in underserviced areas as we ensure improved support to rural and township enterprises.
Within the next six months, we will adopt an SMME business index that track economic health of SMMEs. We will do this so that we can measure the impact of various SMME support programmes and interventions, be they by government or the private sector. We will explore integrated models of impact measurements that provide comprehensive assessments throughout the life cycle of SMMEs.
The President announced spatial interventions to bring economic development in local areas. During my Budget Vote speech, I announced a partnership with Vodacom on the roll-out of digital hubs. This partnership piggybacks on the already existing partnership between Vodacom and the Department of Basic Education for the establishment of youth centres using former teacher training colleges. The plan is to expand the youth centres to become digital hubs Where our young rural and township based entrepreneurs can have access to technology platforms and resources for ideation, experimentation, testing, and end-user computing.
To cover the areas where there are no former teacher training colleges, we have planned for the establishment of at least four digital hubs for geographic inclusivity. We are planning for the gig economy and our SMMEs will transform us into a gig nation. This will push the innovation frontier by further developing state-funded or enabled technologies and crucially contribute to the transition towards the Fourth Industrial Revolution.
In order to improve co-ordination and traceability of support provided to SMMEs and co-operatives, we will shortly commence a process of establishing the SMME and co-operatives database categorised by sector, geographic location, size and product or
service - for we are not only going to be definitive about the number of SMMEs and co-operatives in our country, but we are going to ensure effective and traceable support as we strive for their business sustainability. I must point out that the reference to our support, does not mean government only but it refers to private sector support as well. We will work with the National Treasury to ensure the intercommunication of this database to already existing critical databases and business systems of government. At a minimum, this database must access information about any payment made by government to an SMME or co-operative.
To enable seamless access to support, we plan to establish a one- stop SMME platform for businesses to access both financial and nonfinancial support. The one-stop SMME platform will include walk- in option, online access and call-centre access; this will include social media. The platform will be linked to the SMME database as we firmly believe that our ability to trace assistance provided to SMMEs and co-operatives is critical to improving the effectiveness of the support. Ours is a vision wherein an SMME that is assisted to develop a business by Seda, will exit with funding from either Sefa, National Empowerment Fund, NEF, Land Bank and even the Industrial Development Corporation, IDC, at a minimum.
To enable this, within the 2019-20 financial year, Seda will adopt business templates that are currently used by NEF as we co-ordinate the development of common templates with the IDC, Land Bank, and NEF. The intention is to lobby private banks to adopt same templates as a way of opening access to the much needed but currently elusive private bank financing of small businesses. We also believe that when these templates are known and available, Development Finance Institutions, DFIs, will improve the turnaround time in the approval of funding applications.
For us, the ease of doing business for SMMEs is linked to the eradication of red tape that confronts and inhibits the success and sustainability of SMMes and co-operatives. In this regard, there are three urgent interventions that will be done within this financial year. In consultation with SA Local Government Association, Salga, and the Department of Co-operative Governance and Traditional Affairs, we will review and develop generic by-laws to enable conducive environment for SMMEs and informal traders to conduct their businesses in municipalities. Our view is that streets are economic spaces. We subscribe to a view that streets and public spaces are assets for the livelihoods of the poor and resources for the urban economy as advocated by Mendelsohn. Therefore,
municipalities must start including SMMEs and informal trading in their spatial planning frameworks.
We would engage National Treasury on the cost of tender documents that have become prohibitive, and the requirement for compulsory briefing sessions, as they have become an elimination factor for small businesses. We will table the SMME Ombudsman Services Bill to provide a less costly dispute resolution mechanism. We will also commence with a process of registering informal businesses so that we can offer them co-ordinated support including bulk buying opportunities.
For us co-operatives are businesses and we are going to support them as businesses. The Deputy Minister, hon Zoleka Capa will soon announce tightened mechanisms for registration of co-operatives. Fundamental to that is the fact that co-operatives must not be a forced collaboration of people, in particular women and other vulnerable groups.
To facilitate the change in perspective, the funding model for co- operatives will be changed to blended financing in line with the blended financing model we articulated earlier. We are for a co- operative sense of purpose, co-operative vision, co-operative ideas,
co-perative business and co-operative success. Access to markets is another key determinant to the success of any business. Therefore, we have a non-negotiable responsibility to ensure that products and services from our SMMES and co-operatives have markets, as the Minister of Trade and Industry has alluded earlier.
Our plan for market access is three pronged and based on availing technical support to address challenges of scale and quality where necessary. We will establish trade markets for our SMMEs and co- operatives. In this financial year, we will establish at least four trade markets in Ehlanzeni in Mpumalanga province, Musina in Limpopo province, Mthatha in the Eastern Cape and Mahikeng in the North West
We also accept that government is the largest consumer of goods and services and therefore, it must put its money where its mouth is. With the guidance of our Deputy President, we will finalise the list of goods and services that the SMMEs and co-operatives ecosystem will provide to government as a minimum.
As part of government's programme to open markets for SMMEs, we will finalise agreements with big business on the SMMEs procurement spend and supply value chains, as alluded to by Minister Patel. We are also in the process of establishing the Small Business Advisory
Council which is a structure that will report to the Minister and dedicated towards providing critical information on the sector and advise on the interventions that need to be introduced to ensure that we have competitive and growth SMMEs, and this will include provincial representation. Our budget is based on a stronger Seda and Sefa as our implementing agents and a department that is able to co-ordinate and direct SMME and co-operatives support work of not only the two agencies and government, but across all sectors of our country.
At present, Sefa is struggling to obtain cession agreements with the different spheres of government due to provisions within the National Treasury and regulations relating to the payment of suppliers by contracting departments. This provision places Sefa's bridging loan or revolving credit portfolio at serious risk. Small Enterprise Finance Agency is experiencing high levels of arrears in this portion of its book. To be precise, almost 90% of Sefa's impairments are due to debts owed by govemment to SMMEs. We are facilitating through National Treasury a process which all government entities are directed to accept cession agreements to Sefa through a regulatory regime by the Minister of Finance.
The prohibition of cession agreements for Sefa, has indirectly pointed to the fact that SMMEs predominantly rely on government for business and funding. The private sector has not really come to the party to support mainly black businesses which are predominantly SMMEs. This situation must be changed if the economy of South Africa is to grow and be inclusive.
Secondly, the nonpayment of SMMEs and co-operatives by government is not only destroying the sector but it is a major contributor to the sustainability or lack thereof, of DFIs. Therefore, their nonpayment is not only a travesty of justice but a threat to the economic wellbeing of our country. The Deputy Minister will soon announce concrete measures to address the nonpayment of SMMEs.
I am honoured to present the Budget Vote for Small Business Development to this House. Thank you. [Applause.]
Hon Chairperson, hon Ministers of Small Business Development and Trade and Industry, Deputy Minister the Department of Trade and Industry, hon members, special delegates, the director- generals of the three departments and senior management, distinguished guests, fellow South Africans, we have inherited a country whose philosophy was premised on separate development. This
narrow world outlook privileged the few and impoverished the majority of our people who are in the main Africans in particular and blacks in general.
The consequences of this ideology of rapture, was a society of the rich minority and the poor majority. The majority of the South African population was excluded from participating in the economic life of our country. Today, because of this ugly past, we face a reality of high unemployment, high inequality and poverty.
Since the dawn of democracy, the ANC-led government has played a critical role in the promotion of Small, Micro and Medium Enterprises, SMMEs. In 1995, the government formulated the White Paper on National Strategy for the Development and Promotion of Small Business. The main objective of the White Paper was to create an enabling environment for small businesses to thrive. It was the first step at establishing an integrated approach towards the development of small businesses.
As the ANC, our struggle has been, is and will always be an antithesis of any aspiration to separate the people of South Africa on the basis of how they look. Our commitment to create a nonracist,
nonsexist, united, democratic and prosperous South Africa is a commitment to which we will never betray.
The 54th National Conference of the African National Congress, resolved that the ANC government must provide support for women and youth owned small businesses and co-operatives. Also, to scale-up support to SMMEs and co-operatives to ensure that their impact is felt across the economy.
In 2014, the Department of Small Business Development, DSBD, conducted a review of small business in South Africa. The review made interesting observations. These relates to the fact that small and expanding firms will become more prominent, and generate the majority of new jobs created. They will also contribute to changing apartheid legacy patterns of business ownership. They will be stimulated through public and private procurement, improved access to debt and equity finance, and a simplified regulatory environment. Small and medium sized enterprises will play an important role in employment creation.
In many developing countries, it is these activities that provide shock absorbers for extreme poverty and platforms for self-
employment, with the potential to serve as rungs on the ladder of economic advancement.
According to Trade and Industrial Policy Strategies in 2015, about 50% of the owners of small formal business were white, and most entrepreneurs in the informal sector were black. Black people owned 49% of small formal businesses in 2015, but 94% of informal enterprises.
Globally, men are more likely than women to be involved in early- stage entrepreneurial activity, according to Global Entrepreneurship Monitor. The report also highlights that youth entrepreneurship; figures were not as impressive in our country.
It is also highlighted that only 25% of adult population was aware of Small Enterprise Development Agency, SEDA, and that SEDA is known mostly in urban areas than rural areas. We therefore urge the department to prioritise public awareness of their products and services, especially among young people and in rural areas.
However, the review also identified the challenge posed by large firms to small businesses in that - because they have supply chains
across the country - large firms are able to sell their products at prices smaller companies cannot match.
There are a number of challenges identified by the Department of Planning, Monitoring and Evaluation, DPME, in conducting performance assessment of the Department Of Small Business Development. These challenges include, the formal small business is growing more slowly than large-scale companies, which contributes to slower job creation and likely limits diversification and innovation. Informal business has grown more rapidly, but remains low income, precarious and mainly survivalist.
As an emerging economy, South Africa has not increased overall participation of SMMEs in mainstream economic activity. Multi- faceted challenges, emerging entrepreneurs need skills, supportive market institutions, serviced sites and finance. Scale of intervention remains small and disjointed - not addressing systemic factors or ensuring holistic support on a large scale.
Therefore, a strategy to promote small business needs to address access to established supply chains and the facilitation of buyer- supplier relations and the challenges identified in the DPME performance assessment of the DSBD.
The commitment by the Minister that she will ensure that SEDA and Small Enterprise Finance Agency, SEFA, function in a co-ordinated and collaborative manner, is very encouraging for us as the select committee.
We welcome the undertaking by the department that it will expand incubation centres to 44 districts and eight metropoles to support village and township enterprises and the extension of incubation period to a maximum of five years. We believe this will go a long way in supporting and encourage entrepreneurship in our rural areas, and supporting SMMEs, both formal and informal.
As of 2017, according to the World Co-operatives Monitor report, at least 12% of people on earth are a co-operator of any of the 3 million co-operatives on earth. Co-operatives provides jobs or work opportunities to 10%, which is 280 million of the world's employed population, and that 300 top co-operatives or co-operative group generate 2,1 trillion US dollars in turnover.
One of the challenges facing the co-operatives is the issue of high mortality rate of co-operatives. This is a concerning matter. We are pleased that as part of intervention, the department intends to walk the journey with both SMMEs and co-operatives. The sustainability of
our SMMEs and co-operatives require aftercare measures to ensure that there is a continuous support.
We welcome and commend the signing of the Competition Amendment Act 2018 into law by the President earlier this year. As the ANC, we have been consistent in saying that the enemy of the National Democratic Revolution is monopoly capital. This law will ensure that dominance in the markets is curbed. The Competition Commission has done a tremendous work for the past many years. It has been aggressive in dealing with cartels, abuse of dominance and other uncompetitive behaviour in the market. We believe that the implementation of the Competition Amendment Act will further advance our agenda of building an inclusive economic growth.
In the past ten years of Industrial Policy Action Plan, IPAP, the Department of Trade and Industry has recorded achievements in the automotive sector, clothing, textile leather and footwear, business processing services, film production and boat building, and many other sectors.
Our industrialisation strategy is enhanced by incentive instruments that encourage investment and industrialisation in our economy. According to the Incentives Report of 2017-18 financial year, the
Automotive Incentive Scheme has attracted R8,4 billion from foreign investors, entrenching the South African automotive industry's place as a resilient global competitor, while the 12I has supported investments linked to key sectors in the IPAP. More than R60 billion of significant investments are expected from Special Economic Zones, SEZs, and Critical Infrastructure Programme which include industrial parks, approvals and these will ensure that the required infrastructure will be in place to attract more foreign and local investment.
Building on the success of the automotive industry and the lessons learned, we undertook in our Lekgotla to implement a reimagined industrial strategy which will be a central pillar of economic strategy, to diversify economy, develop and invest in targeted sectors, create jobs, export orientation, also target labour intensive sectors and small business and co-operative development, stakeholder involvement at the centre.
This will be implemented through identified sectors such as the industrial sector, which covers automotives, clothing textile leather and footwear, gas, chemicals and plastics, renewable, steel and metal fabrication, pharmaceuticals.
Tourism through the visa reforms, high tech sectors, information and communications technology, ICT, and software production, digital economy, health economy, defence economy, mining through mineral beneficiation, agriculture and agro-processing, creative industry, oceans economy as well as the generic support to sectors outside of priorities.
We conclude by saying that to create a better life for all in South Africans, we must address the triple challenges of unemployment, inequality and poverty. And to do that, we must acknowledge the disparities of the past. Therefore, our interventions must move from the premise that we have inherited an unequal society.
It therefore stands to reason that we must provide support to our SMMEs and co-operatives, to provide incentives for industrialisation, attract investment, and provide an environment for ease of doing business. These we shall do, in line with our transformative legislations such as the Broad-Based Black Economic Empowerment, BBBEE, Preferential Procurement Policy Framework Act, PPPFA, and ensure that localisation become everyone's business. We therefore support all the three budget votes. I thank you.
Hon House Chair, hon Ministers, hon Deputy Ministers, hon members and fellow South Africans, over the past few months I have had numerous conversations and engagements with businessmen and businesswomen around the country who have been left with no other choice than to cut staff or cut working hours just to keep their businesses afloat.
What is most concerning about these conversations and engagements is that these entrepreneurs are actively looking at the possibility of leaving South Africa. They are aged between the ages of 25 and 45, cross race, gender and class barriers and are the foundation for future growth of this country. How can we, Minister, simply sit by and watch them go?
There are a few things they have in common: They all started successful businesses that survived the high mortality rate of small, medium and micro enterprises, SMMEs. Their businesses were all started post 1994. They are proudly South African and they all believed in the enormous potential we have as a country. They are highly skilled, driven intelligent individuals who have overcome numerous obstacles to create a better life for themselves, their families, those that work for them and have added value to their
communities. However, across the board, they are worried sick about the direction we have taken as a country over the past few years.
The statistics of youth unemployment in South Africa is wretched, to say the least. Of the youth between the ages of 15 and 24, 55% of them are unemployed. For the youth of ages between 25 and 34, 34% of these South Africans cannot find a job. These statistics are a clear indication of an economy that does not work for the youth of South Africa. This is a further indictment on this national government that has so evidently failed our youth.
Hon Minister, we need economic growth to create jobs and we will only get economic growth if government is willing and able to change the way it is currently operating. What was done by this government over the past 10 years caused the crisis we face in South Africa - insanity is doing the same thing repeatedly and expecting a different result.
Pushing forward populist, quick-fix policies during national conferences will most definitely not get our economy working again.
However, fellow South Africans, what the DA is advocating is definitely not fiction - it has proven results where we govern and
it ensures that the Western Cape remains the best run province with the lowest unemployment rate in South Africa, the least red tape and the highest investment confidence.
We can and we must have the same for the entire South Africa. In most countries across the world, small businesses form the backbone of their economies. In emerging countries and economies, the percentage contribution by small business is climbing significantly, not only in driving the economy but also in addressing unemployment.
We need the same in South Africa, because as you all know - our unemployment rate has increased yet again and now sits at an unacceptably high and frightening rate of 27,6%. This does not really tell the true story as the measurement is only done on those still actively looking for employment. Since 2010, just fewer than 40% of new entrants to the job market couldn't find work.
Big government, big business and big unions dominate the debate, policy formation and defend the status quo. The 1O million unemployed and the millions at risk employed South Africans need brave and bold leadership to kick-start our economy. We need to guarantee private property rights, attract and ensure investors know
that their money is safe by setting clear policy with leaders who do not continually contradict each other.
Small business should be exempt from certain black economic empowerment, BEE, and labour regulations; although this will cause unhappiness amongst the current insiders - this can exponentially help the 10 million outsiders that need us to be proactive and get them into the job market.
In the Select Committee, the Deputy Minister raised the concern of the Small Enterprise Development Agency, Seda, and the Small Enterprise Finance Agency, Sefa, who do not seem to talk to one another. Deputy Minister how is this then a problem and how is it that it cannot be addressed by the Ministry since both entities report to the Minister?
Considering that almost 91% of the Budget goes to transfers and subsidies, 5,9% to staff - the question that begs to be answered is what actual value has and does the department add?
Another example to rise is the question on the effectiveness of the department in respect of the red tape reduction workshops being rolled out by the Department of Small Business Development. In the
previous financial year, only 12 municipalities participated and received such training - whilst in the current financial year, the aim is to cover another 16 municipalities. If we look at the projected 20 for the 2020-21 financial year and consider that we have 278 municipalities in South Africa - it will take this department 17 years to be completed.
Surely this is not good enough, with the department itself saying that SMMEs are at the centre of government's economic growth and development agenda. Therefore, entrepreneurship and business development are an important building block for a growing, sustainable economy. It is apparent that the actions and the words do not speak to one another.
It is also important to ensure that the rollout of such workshops translate into a real difference in the communities it is supposed to serve. It will be a terrible waste of time and money if we do not firstly, monitor to see if the workshops that have been completed by SMMEs are at the centre of government's economic growth and development agenda. Less red tape can result in more businesses starting up, surviving and contributing to the reduction of unemployment. We have asked the Deputy Minister in the Select
Committee that we need feedback on this and look forward to engaging the department on it.
Historically, the survival rate of SMME's have not been promising with a whole range of factors such as access to funding, knowledge of legislation and late payments for services rendered contributing to this.
One aspect that the department is trying to help address is the timeous payment of such businesses. This is commendable and it seems that government departments are improving, however there are still some defaulters, whether this is at a national, provincial or local level, these culprits should be exposed. In light of this, will the Minister ensure that the platform created to report defaulters are open to the public, for all to see and thereby putting extra pressure on all departments to support SMME's in actions?
Since 2005, new ministries, departments and all that goes with it have failed to address the high unemployment and the economic challenges facing South Africa. In fact, all it did was to bloat the Civil Service Bill to the detriment of the millions who remain locked out of opportunities in an economy that contributes to favour only a very few.
In the previous term, we often questioned the feasibility of the Economic Development Department - we, in fact said that it is time this department is disbanded and have its functions delegated to other departments. It seems that the Presidency listened to us and we are glad that government is moving in the right direction by cutting the massive Civil Service Wage Bill.
Hon Minister, this is the reality that you, the President and the rest of Cabinet need to face - our economy is simply no longer working for South Africans. People do not have access to jobs or opportunities for growth. South Africans are being locked out because this government over the past 10 years failed to hear their pleas and their cries. You put them into poverty by allowing a corrupt ex-President to build his state capture network of corruption and theft.
The newly elected President, President Cyril Ramaphosa, has promised a new era of a corruption-free government that will respond to the plight and the grievances of the people. The elections are over. The promises have been made.
Therefore, hon Minister, it is now time for action. It is time for a government that will steer away from quick-fix populist policies
like land expropriation without compensation, the nationalisation of the Reserve Bank and the National Health Insurance.
In conclusion, it is time for a government that will provide policies, legislation and solutions that will create a friendly environment for small businesses to thrive that can result in a job creating economy.
It's time for an economy that works for every time. The time is now. Thank you. [Applause.]
House Chairperson, Ministers, Deputy Ministers, Deputy Minister Majola, chairperson of the select committee, the hon members, director-generals ...
Order, hon
members! The land debate is tomorrow.
... and the staff of the two departments, I greet you, hon Chairperson, let me quote Amilcar Cabral, when he says:
Always bear in mind that the people are not fighting for ideas, for things in anyone's head. They are fighting to win material benefit, to live better and in peace, to see their lives go forward, to guarantee the future of their children.
It is along these lines that our government through the Department of Trade and Industry, DTI, and other departments that are there must respond to the fresh mandate given by the people of South Africa during 2019 national and provincial elections to defeat unemployment, poverty and inequality. They trusted us to transform the economy and grow the township and village economies, amongst others, as we committed in our manifesto.
We cannot disappoint, we have to implement our industrial strategy, including the implementation of the industrial parks revitalisation programme; the implementation of the special economic zones programme; digital hubs, and the black industrialist programme, amongst others. Through these interventions, we are undoing the injustices of the past apartheid-era spatial planning.
The industrial parks revitalisation programme is one of the programmes introduced by this government in an effort to revive townships and rural economies by attracting investment and creating
jobs. The government invests in upgrading security and building infrastructure to make these industrial parks safer and more conducive for business activities to attract investors. As we are all aware, security is a critical factor that investors consider when making their investment decisions.
IsiZulu:
Yikho nje siyohlala njalo sisebenzisana, sikhale emiphakathini yakithi ukuthi ngaso sonke isikhathi lezi zindawo uhulumeni azilethayo asizame ngazo zonke izindlela ukuthi sizivikele. Uma mhlawumbe sinezikhalo sidixilela phansi lezi zakhiwo yilapho abatshalizimali bezobaleka futhi umnotho wezwe lethu ungakwazi ukukhula.
English:
To demonstrate the importance of the revitalisation programme, I would like to share with the House the impact of this programme in one of the areas where we completed phase 1, namely the Botshabelo Industrial Park in Bloemfontein. Upon completion of the phase 1 in June 2016, the occupancy rate improved, reaching from 75% in 2015 to 81% in 2018. The park provides employment to over 10 000 people who live in the adjacent townships and opportunities for township entrepreneurs to access various services and land spaces.
Lebohang is one of the employees working in a company called Manhood Clothing. When interviewed he said: "I am so glad that I can be working closer to home, I save a lot on transport costs and I get home to the family earlier." He further stated that he is grateful for a safer working environment. Thank you to this caring government for making sure that such services are brought closer to the people where they live. [Applause.]
Hon members, this government took a long-term view on the future prospects of the South African economy and decided to introduce the special economic zones programme. This programme is designed to accelerate industrialisation in the country; attract foreign direct investors and investments; facilitate the creation of decent jobs; facilitate the development and improvement of existing infrastructure; promote exports; and spread economic activity to underdeveloped parts of our country.
Some of the investment pledges that were made during the Presidential Investment Summit in October last year 2018 have started to put the actual investments on the ground. These investments include MaraPhone, which is investing R1,3 billion at Dube TradePort in KwaZulu Natal. The investment is estimated to create more or less 1 500 jobs over a long term. It is expected that
this MaraPhone will start its cellphone manufacturing - the first of its kind in South Africa - in the next few months. As highlighted by the President in his state of the nation address, Sona, our focus will be on expanding the SEZ programme to reach other provinces. Our aim is to establish at least one SEZ per province.
President Ramaphosa also highlighted in his state of the nation address, that government will prioritise, amongst other things, the creation of digital hubs. Youth unemployment remains high and requires concerted efforts. The digital hubs seek to provide young people with skills and access to e-learning opportunities, basic business development support and business intelligence to encourage them to pursue entrepreneurship. The development of business plans for 10 digital hubs are at an advanced stage and will be finalised by the end of the third quarter, so that implementation can commence before the end of the financial year.
We have set ourselves an objective to create a fair regulatory environment that enables investment, trade and enterprise development. In this regard, we developed various legislations and policies such as broad-based black economic empowerment, Consumer Protection, Gambling and Liquor Act, amongst others. We will extend our efforts to educate and raise awareness to our citizens so that
they can have knowledge and understand these policies. To achieve this, we are rolling out over 90 advocacies, consumer protection and BBBEE educational campaigns across all provinces. We will collaborate with the provincial departments and corporate, to showcase business opportunities, access to finance and consumer rights.
Hon members, as I speak, the department is in the Free State sharing information with the communities of the Setsoto, Matjhabeng and Mangaung Municipalities. This information sharing campaign seeks to educate the public about the Liquor Act and the socioeconomic impact of alcohol abuse, legal and illegal gambling activities, how copyright can assist creative persons, debt relief measures to reduce the impact of high levels of overindebtedness, credit affordability and fundamental rights on our consumers. We believe that these education surgeons will help will help our communities know exactly what is there. What is it that the government is providing so that they can grow to be the entrepreneurs as they wish to be?
We are pleased with the work of the BBBEE Commission in confronting noncompliance whether by private or state-owned entities. This Commission's findings on Eskom for example for noncompliance with
the Act are a clear indication of our commitment to zero tolerance for this type of behaviour. We are really serious about it.
In conclusion, we are saying that despite important achievements, the challenges facing the domestic economy are still immense - we are aware of that. Low levels of economic growth and investment; high levels of inequality; and high rates of unemployment continue to hold back our vision of an inclusive South Africa.
We acknowledge these structural weaknesses and know that the magnitude of the economic challenges we face requires a new and stronger approach. We need to take extraordinary measures in order to realise the lofty aspirations outlined in the National Development Plan. It is for these reasons that the new approach and the implementation of the industrial strategy Minister Patel spoke about at length, needs to be prioritised by all government agencies supported by all social partners. That is why we are even calling upon all the provincial governments and the municipalities if we can come together to work with all other departments so that we face this challenge of unemployment head on. Thank you very much, hon Chairperson.
Presiding officer, let me take this opportunity to greet the officials of the EFF, commissars, fighters and the supporters in nine provinces at large. Deputy Minister of Trade and Industry, Amilcar Cabral also says:
Hide nothing from the masses of our people. Tell no lies. Expose lies whenever they are told. Mask no difficulties, mistakes, failures. Claim no easy victories.
That is what he says; don't quote him when it suits you. Minister Patel, in fact, for the last 25 years the ANC government has dismally failed to develop and industrialise our economy. Instead, the economy is shrinking and jobs are being lost. Yet, you continue to believe that if we encourage Foreign Direct Investment, FDI, our economy will strengthen.
I am here to tell you that this will fail, as it has failed for a quarter of a century. The neo-liberal order on which this government has based its economic policy is failing, and the best example of this failure is your National Development Plan, NDP. The whole NDP idea was based on an annual Gross Domestic Product, GDP, of 5,4%, and during your decade of nothing, we barely grew the economy past the 1,5% mark.
You said to us by 2020, unemployment will be 14%, we are at a tipping point of 27,6% today. You promised to increase employment from 13 million in 2010 to 24 million in 2030. Yet, nine years later, only 3 million more South Africans are employed. We are not surprised by the failure of the NDP, because you Minister, as the communist should understand the basics of economics.
Opening the markets, privatisation and foreign investment have never developed an economy.
Setswana:
Wena le Blade lo makomonisi a a bokoa.
English:
These policies only fatten the pockets of white monopoly capital at their stooges in government. That is why despite all the promises capital made to the President last year at the Job Summit, we are seeing a blood bath of job losses across all sectors of the economy, with Multichoice, mines, banks, retail shops, and restaurants retrenching workers who are the poor masses of this country. To give you an idea of why the economy is so underdeveloped you have to understand the colonial economy.
Colonies were designed for the extraction of raw materials and the exploitation of labour, with those materials being exported in the form of cheap raw goods, and then being imported as expensive finished products. So much of what this imports and consumes are produced somewhere else, if we had a proper industrial policy and plan, not this useless NDP, South Africans would be consuming and exporting finished industrial products.
We import billions of rands worth of smart phones, laptops, tabs, and computers, but none of the parts are produced in our beloved South Africa. We import machinery parts, rubber tyres, medical equipment, printing machines, sugar, shoes and coins, to name a few. We are one of the few countries in possession of rare earths which are critical to the production of microchips and other high-end technologies.
Why are we not processing these minerals and turning them into finished products? Why are we still importing things as simple as toothpicks?
Setswana:
Gompieno jaana. re itukula ka seitukulo se se tlodileng melapo e le mentsi.
English:
The answer is, because your government does the bidding of white monopoly capital. We need to change our industrial policy strategy and focus on decentralised industrial strategy with the capacity to produce enough imports and take advantage of existing technology.
We must establish multiple Special Economic Zones, SEZs, in various regions of South Africa with tax benefits on a strict condition that investors create real sustainable and decent jobs.
Government must also use state procurement to ensure that a minimum of 80% of all the goods and services procured by the state including all state- owned companies like Eskom, Transnet, SA Airways, SAA, Passenger Rail Agency of South Africa, PRASA, municipalities, hospitals, and schools are produced locally. As the EFF we are also going to table a Private Member's Bill to amend the Mineral and Petroleum Resources Development Act to ensure that a minimum of 50% of all South Africa's mineral resources are beneficiated locally, processed and add value to the economy.
Minerals extracted in South Africa must be beneficiated. When it comes to shelf space, let us ensure that the majority of food in our retail shops are produced and processed locally. A certain
percentage of shelf-space must dedicated by locally produced products. Let us look at a rural development plan and priorities the growth in the industries in predominantly rural and neglected provinces such as the Northern Cape, where I come from and Limpopo, where my President comes from.
Our rural economy offers huge economic potential, but this government remains trapped by apartheid spatial development and planning. We also need industrial policy and programmes that integrate our economy with the rest of the African continent. There needs to be a continental wide exchange, of goods, services, ideas and peoples.
We also need to use our collective power for production and consumption to guarantee the development of the African continent. Finally, no industrial capacity can be built with unstable electricity supply. That is why Eskom needs to be strengthened and Jamnadas needs to be fired, that man is a constitutional delinquent and is purposefully collapsing Eskom so that it can be privatised.
Minister, the EFF rejects Budget 31 25 and 34, because the neoliberal economic policies and of this government have failed our people. Now with my two minutes left, I wish to take this
opportunity and wish the EFF a happy sixth anniversary that we will be celebrating this coming weekend in KaNyamazane in Mpumalanga where hon Jomo comes from. I thank you.
COMMITTEES: Hon Koni, you know that what you are doing is not in line with our Rules. You are smuggling two minutes that are not there.
Hon Chairperson, let me take this opportunity to also extend greetings to our hon Ministers, Deputy Ministers and hon members ...
Setswana:
Le ba agi ba Afrika Borwa kabophara.
English:
Hon Chairperson, my entry point is the referral to what President Ramaphosa said in His state of the nation address, as part of meeting our growth targets. The President said that for us to grow our targets there is a need to rebuild the foundations of our economy by broadening the productive sectors of our economy. He also asserted that the revisiting of our industrial strategy must be geared towards harnessing the support of private investment and
rally the state to mitigate the economic exclusion of the working class and the poor.
Hon Chairperson, what are these foundations and the economic fundamentals? These economic fundamentals are set out in the Reconstruction and Development Programmes' objectives and they are follows: Firstly, they aim towards ensuring that fiscal deficit targeting was adopted. Secondly, the independents of the Reserve Bank is guaranteed in the Constitution. Thirdly, the commitment to ensure that there is straight liberalisation as agreed to in terms of the General Agreement on Tariffs and Trade Act. The fourth one is that legislation is passed to open the banking sector and the Johannesburg Stock Exchange to foreign participation and capital controls on run residence to be scrapped and also ensuring that there is capital reforms that started in 1993.
I think these economic fundamentals are important given the assertion that the Minister made with regard to the size of our provincial economy, because, barred for these economic fundamentals, we would not be where we are. These economic fundamentals have its roots in the statement that was made by O R Tambo in 1981, in London in addressing the SA Communist Party's anniversary meeting and he cites that and I quote:
The objective of our struggle in South Africa, as set out in the Freedom Charter, encompasses economic emancipation. It is inconceivable for liberation to have meaning without a return of the wealth of the country to the people as a whole. To allow the existing economic forces to retain their interests intact is to feed the roots of racial supremacy and exploitation. This does not represent the view of our very democratic movement. It is therefore a fundamental feature of our strategy that victory must embrace more than formal political democracy; and our drive towards national emancipation must include economic emancipation.
Indeed, this is the legacy that was bequeathed to us by our two greatest icons of this congress alliance.
Hon Chair, it is important to know that indeed the obsession that we made that let us liberate on our constitutional provision to ensure that the unitary nature of our state is able to assist. This means that the inter- relatedness, the interdependence and the distinctness of the future of our state must be used to ensure that we are able to address the legacy of apartheid colonialism.
Hon Chairperson, it is within that context that the National Development Plan outlines the challenges in achieving the attributes of a developmental state. It says that these are caused primarily by the weaker forms of co-ordination and collaboration within and across the spheres of government.
I think it is important also to note that the ANC in its 54 National Conference resolutions, identified challenges, which as a country we may face in executing the developmental state agenda. I am raising this point precisely by virtue of the fact that small business and co-operatives play a critical role in creating jobs and alleviating poverty among our people. So, therefore we need all the three arms and the three spheres of government to be able to deliver in terms of redressing poverty amongst our people.
Correctly so, one of the examples that one would want to cite is what is happening in Kenya that one in five people, is a member of co-operatives and 20 million Kenyans directly or indirectly derive their livelihood from co-operatives.
In Singapore, 50% of the population constitute members of co- operatives.
Indeed the Minister of Small Business Development the Minister of Small Business Development in her Budget Vote Speech echoed these reports when she said most of the developed countries economies are driven by small businesses and to which we may add the role of co- operatives in growing the economy.
The work of government to revitalise township economy is also important and it also present opportunities and challenges. According to the 2014 Global Entrepreneurship Monitor, Gem, report, township enterprises are diverse, with high rate of informality and are also survivalist, and 70% do not last beyond three years. However, it is important that we are able to deal with that.
How do we mitigate that? We mitigate that by ensuring that we establish, appropriate legal and regulatory framework that suit the needs of township enterprises and village enterprises; promotion of productive activities; invest on appropriate economic and social infrastructure; build logistics for emerging business promotion of entrepreneurship and; open access to funding and financing; including market access.
In the interaction that one had with the leadership of Gamagara Corridor Chamber of Commerce and Industry which is a forum that is
existing within the iron ore and the manganese belt around Kathu, I am happy that the Kathu Industrial Park is one of the projects that was referred to by the leadership of the Department of Trade and Industry, DTI, in the interaction that we had with them yesterday, hon Minister and Deputy Minister. So, one of the issues that they raised is this challenge. Therefore what is critical is for us to be able to ensure that we assist them to foster partnership with established businesses. Also ensure that we support innovation, research and development.
Hon Chairperson, we also appreciate and support the government policy direction to create a single policy co-ordinating body based on the existing institutional structure for small businesses and co- operatives. We believe that the renewed mandate of the department will improve and enhance the co-ordination of small businesses and co-operatives support programmes. Further to strengthen allocation and spending of budget earmarked for the small businesses and co- operative across government, and further work as ladder for small businesses and co-operatives to access finance and business support from the private sector.
If we are to ensure a better life for all our people, the transformation of our economy becomes our central focus. Small
businesses and co-operatives require such support as financial and nonfinancial.
On this note, we are encouraged by the commitment made by the department that in response to the goals set by the President in the state of the nation address, the department will ensure that small businesses and co- operatives contribute to growing our economy at a much faster rate than our population and ensure that two million more young people find employment in the next 10 years.
Consequently, Small Enterprise Finance Agency, Sefa and Small Enterprise Development Agency, Seda, becomes critical for the development and sustainability of small businesses. However, the collaboration and co- ordination of these entities is important and has to be attended to. It would not make sense that Seda support aspiring small business entrepreneurs with development of their business plans, and that these businesses receive no financial support from, Sefa. The right hand must know what the left hand is doing.
Earlier, we highlighted the need for an integrated and co-ordinated government system, premised on the principles of distinctive, interdependent and inter-related spheres of government. The issue of
double dipping by some of the beneficiaries, both small businesses and co- operatives, can be curbed through a co-operative government system.
The effective and efficient allocation of resources is critical for economic development. Therefore it is important that we are able to address poor policy co-ordination in particular between national department and local municipalities regarding small businesses.
There are bylaws that bar small businesses from operating in certain areas, especially informal businesses. This is a matter has to be attended to.
Also critical to this programme of small business hon Chairperson is black farmers in rural areas and villages which can also be tapped to contribute to economic growth in job creation. The Land Bank gross loan booking amount to R5,4 billion which is aimed at realising the transformative objectives in the agricultural industry has helped many young people, women and people residing in rural areas. We take note of number of black farmers that were supported both male and female, all these initiatives hon Chairperson, can contribute to transformation financing programme that also covers
Small, Medium and Micro-sized Enterprises, SMMEs. This initiative further enhances social inclusion.
According to the University of the Western Cape, Institute for Poverty, Land and Agrarian Studies UWC-PLAAS, approximately 30% of South African population reside in these areas. These areas are characterised by High Deprivation Index. However, the rural areas do have vast tracks of land, which present an agricultural potential. There is a great opportunity for agricultural co-operatives to be established. This is the area that the department need to link up with the Department of Agriculture, Land Reform and Rural Development to ensure that they are also supported.
All policy hindrance should be clear. That also means the security of tenure needs to be improved to support our agenda for transformation, particularly for women and youth residing in rural areas.
Hon Chairperson, our manifesto for 2019 elections is premised on the theme that says "Let us grow South Africa together." In my province they talk about a modern growing province. So, this theme calls for social compact. The rallying call for all South Africans, private businesses and civil society formations to come together to grow our
economy. This social compact will help us to address monopolies in our economy, to address excessive concentration and the growth inhibiting structures.
We take note of announcements made by both Ministers with regard to the Special Economic Zones, SEZs, but coming from the Northern Cape province, I take a particular interest in the announcement made by the Minister with regard to Upington, the Special Economic Zones and I am mindful of the fact that the Minister has put a timeline of six months; this process properly would have been finalised.
However, I think it is important to also note that this programme also coming from a region called John Tale Hayitsbee, I have also noted Kathu Industrial Park - I made reference to this - however there is a clarion call from our province to say the Special Economic Zones, must be reconfigured. In the reconfiguration of the SEZs of the Northern Cape the expectation is that the Gamagara Corridor Chamber of Commerce and Industry because it hosts 80% of world manganese resource, it also has emerging black manganese players and also black emerging iron ore players. So, our proposal is that this region must also be included in the reconfigured SEZs, but also mindful of the fact that both in Namaqua the President went to Vedanta to open a Vedanta Mine. So, Namaqua as a zinc potential
has to also be included in the SEZ. However, also taking note of the fact that in Priska, there is a new mine that has a potential oriented as just listed. So, the message from the province is that let us have a reconfigured SEZs to ensure that all our five regions are also included.
In conclusion, it is important also to say that the commitments made by the Minister are welcomed. As representatives of our various provinces we must ensure that there is a policy co-ordination and co-operation implementing these commitments. The silo approach must be averted. We are confident that these Special Economic Zones will go a long way in creating job opportunities in the located provinces. As part of the transformation the agenda of our economy and the creation of inclusive economic growth, we welcome again the commitment by the Department of Trade and Industry to support an additional 400 black industrialists projects with financial support of R40 billion over the next five years. We therefore support this Budget Vote No 31, 25 and 34. Kea leboga. I thank you. [Applause.]
Chairperson, with all due respect, hon Minister of Small Business Development, I don't know you. We have never met. You are probably a nice lady, but this department is unnecessary and
senseless. How stall does the ANC think and dream by keeping this department.
Afrikaans:
Natuurlik is ons ten gunste van kleinsakeontwikkeling, maar as die President regtig daartoe verbind was om sy Kabinet meer vaartbelyn te maak, kon hy dit saam met Ekonomiese Ontwikkeling gevoeg het. In plaas daarvan, om seker te maak dat werk geskep word vir sy mense, kry mense eerder poste in die ANC-regering. Die ANC se beleid van werkskepping binne die regering beteken niks vir ons kleinsake nie.
Waar dit die rol van die Presidensie is om 'n oorsigrol in die ontwikkeling van ons ekonomie te speel en aanpassings te moet maak waar nodig, skep die ANC net nog 'n departement wat niks gaan doen nie.
English:
Honestly, all the functions and programmes that this department will be responsible for could have been merged with another.
Afrikaans:
Die VF Plus bly by sy beleid dat dit nie die regering se verantwoordelikheid is om werk te skep nie, maar om 'n gunstige
omgewing te skep - en ons hoor dit van die Minister - waar kleinsake en groot industri wil en kan ontwikkel.
English:
To the Minister of Trade and Industry, thank you. We have heard about maize milling plant. We take notice of it, but please don't let this become another Estina. We cannot have a Magashule maize milling plant.
Afrikaans:
Kleinsake is een van die belangrikste komponente van ons ekonomie. Ons wil h dat kleinsake moet groei. Ons wil h dat iemand met 'n idee om 'n behoefte te vervul, daardie idee kan uitbrei na 'n produk of diens.
Ons wil egter h dat daardie besighede moet werk en werk moet skep vir ander. Ons wil ons idees sonder regeringsinmenging implementeer. Die kleinsakeman wil net daarvan seker wees dat die regering alles in sy vermo doen om die omgewing te skep waar sy besigheid sal floreer; dat munisipaliteite hulle verantwoordelikhede nakom om dienste te lewer en infrastruktuur te bou en instand te hou; dat die polisie funksioneer en veiligheid in ons gemeenskappe verseker; dat
mense geld in hulle sakke het om te kan koop, want dan kan ons ekonomie groei en ons kleinsake kan ondersteun word.
Minister Ntshaveni, you have mentioned the private sector. They stay away from the party because of policy problems within the ANC.
Afrikaans:
Werkloosheid moet daadwerklik aangespreek word. Ons almal stem saam. Geen regering kan egter werk volhoubaar skep nie. Werkloosheid kan slegs oorkom kan word as regeringsbeleid verander word om 'n gunstige omgewing te skep waar beleggings sal plaasvind.
Werk kan ook nie deur wetgewing geskep word nie. Wetgewing wat poog om meer werkloosheid te beperk, sal lei tot verdere oorregulering wat ongunstig vir volhoubare werkskepping is.
Die VF Plus s dat arbeidswetgewing aangepas moet word om werkskepping te bevorder, terwyl billike arbeidspraktyke steeds in stand gehou moet word.
Die VF Plus is ook ten gunste van 'n jeugloonsubsidie, veral vir kleinsake, wat, indien dit korrek en billik geimplementeer word, daadwerklik hierdie uitdagings kan behandel.
Die subsidie moet egter nie aan regstellende aksie en swart ekonomiese bemagtiging, SEB-maatrels onderwerp word nie. Werkloosheid strek oor rassegrense heen.
Daar moet ook 'n balans tussen die fondse vir hierdie subsidies en fondse vir beurse en opleiding wees. Die jeugsubsidie moet ook voorsiening maak vir die bevordering van indiensopleiding. Hiermee kan die Suid-Afrikaanse bevolking omskep word vanaf een wat van welsynstoelae afhanklik is, tot een wat die land se dryfkrag vir ekonomiese groei is.
Ons land, asook die hele Afrika-kontinent, beskik oor 'n demografiese dividend in die volgende paar jaar, weens ons jong bevolking wat aangewend kan word om grootskaalse groei te bewerkstellig.
English:
But this department is senseless and the FF Plus cannot support this department or its budget.
Xitsonga:
Mutshamaxitulu, Xosungula ndzi rhandza ku xeweta Maafrika-Dzonga etindhawini hinkwato laha va hi yingiselaka va ri kona.
English:
Minister, when the President announced the reduction in his Cabinet size, we were hoping that this department would be reduced to a programme or office under the current Ministry of Economic Development. We don't need a Minister, a Deputy Minister and a director-general for a department that can exist as a programme within an existing department. This will save R230 million, and will also allow for more co-ordinated and efficient bureaucratic economic policy.
In where small businesses are successful, sustainable and create jobs, it is when they are linked with manufacturing of things that local people consume with the capacity to export. In Germany for example small businesses are foundational to the economy more particularly manufacturing. South Africa's small businesses must be a pathway to raising incomes and living standards for millions of South Africans who live in poverty. For this to happen small businesses in the country need proper support. This support must be
in the form of regulations, infrastructure, protection from cheaper imports, access to the market and access to finance.
Since the existence of the EFF small businesses have come to the EFF offices asking for assistance in accessing a loan, because the Small Enterprise Finance Agency only gives loans to those who have a government connection. We need to clean up the funding process for small businesses.
A single agency needs to be developed where small businesses can submit applications for support, whether it be in the form of finance or access to markets. Qualified people must be appointed to understand the role of small business and how best small businesses can be supported. Government must also use its procurement policy to support small businesses.
In 2015, there was a promise that government will set aside 30% of appropriate categories of state procurement for purchasing from small, medium & micro enterprise businesses, SMMEs, co-operatives as well as townships and rural enterprises. This promise was repeated again in the ruling party manifesto during the elections. But we still have not seen this happen. This process of using government procurement has been corrupted. Contracts are not being given to
small businesses that offer goods and services at the best price. It is being given to small businesses linked to the ANC and white monopoly capital. This is why the EFF will be tabling a private member Bill to amend the Public Finance Management Act and Municipal Finance Management Act to ensure that a minimum of 80% of the goods and services procured by the state must be procured by local producers, with 50% of that 80 coming from small businesses owned by black people, women in particular. Government must legislate that all big corporates and companies must source their key industrial inputs from SMMEs.
The state also needs to build state-owned trading and retail platforms in communities so that small businesses can get their products on the shelves.
Minister, it is extremely disturbing and worrying that in major central business districts, especially in Cape Town, Johannesburg, Durban and Port Elizabeth, the city policy goes around confiscating the goods of informal traders' harasses them. These informal traders do not do what they do because they want to, but they are informal traders because they have no land, and because there are no jobs. Government is punishing these informal traders for its own failures. We cannot continue to have municipal by-laws that discriminate
against informal traders. It is racist, antipoor and takes food out of the mouths of the families of informal traders who do not have any other income to survive.
If we protect small businesses and provide them support as we have outlined here, they can produce jobs and improve the living conditions of our people. In our townships and in the rural the establishment of properly planned special tax-free economic zones will further stimulate small businesses growth. This development and industrial activity will come with demand for service inputs and the provision of goods and services for newly employed workers which small businesses can provide. But this government does not have the political will, capacity or vision to realise the true potential of small businesses in this country.
Xitsonga:
Tanihi vandla ra EFF a hi pfumelelani na yona Budget Vote leyi. Ndza khensa.
Hon House
Chairperson, Minister Patel, Minister Ntshavheni, Deputy Minister Gina, officials of the three departments and distinguished guests, this debate takes place when our country is confronted by severe
challenges and our people continue to endure the persistent triple challenges of inequality, poverty and unemployment. In the midst of these challenges, we want to reiterate our message of hope that as resilient patriots, we shall overcome.
Hon members, the elections are over now and the ANC has won those elections decisively. [Applause.] Our immediate task is to grow the economy and create jobs. In order to realise this remarkable accomplishment, we must extend our focus beyond the South African market of 57 million population and expand to the African market with a projected population of 1,2 billion people.
In this regard, one of the major milestones towards achieving economic sustainability for the continent is the establishment of the African Continental Free Trade Area, AfCFTA, which Minister Patel referred to.
The AfCFTA is one of the AU's Agenda 2063 flagship projects which are aimed at enabling Africa to significantly boost intra-Africa trade. It is intended to improve economies of scale, promote regional integration and place Africa on a sustainable industrialization trajectory.
The AfCFTA was unveiled in March 2018, in Kigali Rwanda. In June 2019, the 8th African Union Ministers of Trade, AMOT, meeting took place in Addis Ababa Ethiopia as part of the road map for the completion of the negotiations on the AfCFTA.
This meeting was followed by the Extraordinary Summit of the African heads of state and government. The summit took place in July 2019, in Niamey, Niger, to witness the historic moment of the official launch of the operational phase of the AfCFTA.
These remarkable events marked Africa's commitment to the creation of an integrated and diversified market of approximately US$2,5 trillion.
To date, 54 countries have signed the agreement. All member states are required to submit their initial tariff offers by September 2019 as alluded to by Minister Patel. The effective date of trade of the AfCFTA is July 2020.
The establishment of the AfCFTA can be a game-changer for our economy, providing a massive market for South African goods and services. South Africa is the largest contributor to intra-Africa trade, accounting for approximately a quarter of intra-Africa trade
in 2018 with a value of half a trillion rand in goods traded with other African countries.
Hon members, the survival of the South African economy is dependent on the consolidation of the African integration to forge ahead to a new way of thinking, the beginning of a new dawn and a step closer to the Africa we want.
Another significant milestone worth mentioning is the recent signing of 93 trade agreements between South Africa and China valued at an estimated R27 billion. This marks a realisation of our economic development objectives in line with the existing comprehensive strategic partnership agreement of 2010, signed by Forum on China- Africa Co-operation, Focac.
Hon Chairperson, galvanised by the vision of President Cyril Ramaphosa and our manifesto, we will continue to strengthen our work with our provinces to achieve our mission to grow the economy and create jobs.
The Special Economic Zones, SEZs, programme is one of the strategic tools that will help us realise our economic objectives through industrialization. The purpose of this programme is to, amongst
others, focus on a comprehensive long-term planning that is co- ordinated across and within the various spheres of government and key agencies; creation of new industrial hubs and to attract foreign direct and domestic investments.
To this end, government has designated 10 SEZs in seven provinces. Some of these were designated as Industrial Development Zones, IDZs, and are as such presently in the process of transitioning their institutional governance and ownership structures in compliance with the requirements of the Special Economic Zones Act.
In Gauteng, the OR Tambo Industrial Development Zone aims to develop land around the OR Tambo International Airport in order to stimulate economic development. This multisite development consists of several industry- specific precincts and will be developed in phases over a 10 to 15-year period.
The Coega Industrial Development Zone in Eastern Cape is the largest in Southern Africa. It is strategically located on the east-west trade route to service both the world and African markets. The IDZ has attracted investment in the agroprocessing, automotive, aquaculture, energy, metals logistics and business process services sectors.
The East London Industrial Development Zone, ELIDZ, remains one of the country's leading specialised industrial park characterised by innovation, efficiency, growth and sustainability. The ELIDZ offers growth oriented companies a specialised manufacturing platform, innovative industrial and business solutions and access to new markets.
The Musina-Makhado SEZ in Limpopo comprises two geographical locations that address unique industrial clusters. The site in Musina targets the light industrial and agroprocessing clusters and the Makhado site is a mineral beneficiation complex. A third site has been identified to target the petro-chemical industries.
This SEZ is strategically located along the N1 North-South route into the Southern African Development Community, SADC; very close to the border between South Africa and Zimbabwe. This makes it the location of choice for investment in the mineral beneficiation, agroprocessing and petro- chemical industries.
It forms part of the Trans-Limpopo Spatial Development Initiative and has been developed as part of a greater regional plan to unlock investment and economic growth and address the development of skills and employment.
The Nkomazi SEZ in Mpumalanga is conceptualized as an agroprocessing hub that will be supported by mixed services such as warehousing and logistics. The targeted value chains that will underpin economic activity within the proposed Nkomazi SEZ include secondary and tertiary stages of processing, amongst others, citrus fruits; sub- tropical fruits; aromatic plants; ground and tree nuts and sugar cane.
Complementing the SEZs programme is the structured programme for the revitalisation of the industrial parks located in old industrial areas across the country. These parks are recognised as catalysts for broader economic and industrial development.
Going forward, we will focus on the following identified future industrial parks; in Gauteng, we have identified Orlando West industrial park, Eldorado industrial park, Pennyville industrial park and Winterveld industrial park. In Eastern Cape, we have identified Fort Jackson industrial park and Butterworth industrial park. In Mpumalanga, we have identified Kabokweni industrial park and Siyabuswa industrial park.
Hon members, informed by our immediate task, working with the Gauteng province, we shall focus our energies on the finalization of
the business case for the proposed science and high-tech SEZ in Ekandustria in Bronkhorstspruit; designation of the Automotive SEZ in Tshwane and investment promotion for the OR Tambo SEZ.
In Limpopo, the focus will be on finalising the planning for bulk infrastructure and consolidation of the signed investments for the Musina SEZ and the finalisation of the business case for the proposed Tubatse SEZ in Burgersfort.
We shall continue to ensure that the incentive package offered by the government is continued.
As I conclude, I quote Madiba: "Sometimes, it falls upon a generation to be great. You be that great generation. Let your greatness blossom." I thank you. [Applause.]
Madam Chairperson, inequality in South Africa remains a runaway train. We have an overspending Gini-coefficient and no clear way in sight to address some. This together with our very weak economy translates into a growth restrictive environment in which small businesses in South Africa must grapple with as a challenge and overcome if it wishes to flourish.
The IFP finds it very disconcerting that this department which was established in 2014 is still preoccupied with making plans when one would expect it to be implementing plans.
The President himself in his Sona said that the time of rhetoric is over. So, it can only be an embarrassment that the organizational structure of this department remains to be yet approved.
Chairperson, our thinking must be youth-centred regarding employment. They are the one whoa re encouraged to strive at school and university, only to find that when they are finished with their studies no jobs are to be found.
This government speaks continually about radical economic transformation that will not only create jobs but also eliminate poverty and reduce inequality.
Our rural economies are where we should be concentrating with the Small Medium and Micro-sized Enterprises, SMMEs, development. Agriculture, agribusiness and agritourism are readily available models that can be rolled out in this regard.
A highly unequal society suffers from fragility which will not assist us in any way, shape or form in building the resilience that is required in today's economic development arena.
Our economy rests upon the shoulders of few economic giants and its fragility fosters contestation over poor resources. Our tax base is small and our social welfare base severely financially strained.
Critical infrastructure must be in place for economic development, yet we still see our current rail and ports system which was developed mainly to cater to large international mining conglomerates still excluding other kinds of enabling transport framework for smaller businesses.
The IFP supports getting South Africa working. Self-help and self- reliance within a supportive legislative and logistical infrastructure are essential if we are to create a one South Africa for all and it is this spirit that the IFP will support this Budget Vote debate. [Applause.]
Is my time correct? It says I only got 18 seconds. Okay, wonderful.
Hon Chairperson, hon Ministers, hon members and fellow South Africans. South Africa is on the brink of total economic collapse. The Gross Domestic Product, GDP, figures released for the first quarter of 2019 show that the South African economy has contracted by 3,2%; its worst performance in 10 years.
The most depressing statistic is the fact that the fastest growing expenditure item in the budget is debt servicing costs, with the country spending R182,2 billion in fiscal 2019 and that will rise to R247 billion by 2022. In fact, according to the hon Tito Mboweni South Africa is borrowing about R1,2 billion a day, assuming that we don't borrow money on the weekend.
Now, my friends in the ANC have an interesting approach. Their last approach to economic development was the Seven Point Plan in former President Jacob Zuma's Nine Point Plan. We know the former President wasn't very good with numbers.
So, let's hope that the new Eight Point Plan under President Ramaphosa will yield more fruit.
And my friends from the EFF have a very interesting theory on personal economic development. They believe that stems from
donations from cigarette smugglers, loans from VBS Mutual Bank and of course, the odd conversation with white monopoly in Stellenbosch. That's their idea of economic development. [Interjections.]
Who's going to take me on? Come on!
Ya [Yes], the Whip is taking it.
Chairperson,
Setswana:
... ga re tle go dumale go tla go rogakakiwa ke magodu a lefatshe mo teng ga Ntlo eno, a bua dilo tse di sa siamang ka maloko a lekoko la EFF.
Ke kopa gore sebui se se mo phodiamong se busetse mafoko a gagwe morago ka gonne ga a na bopaki jwa dilo tse a buang ka tsona. Go fitlha a tla ka bopaki jwa dilo tseo a di buang, a ka nna a tswelela ka go di bua. Ke a leboga.
English:
The HOUSE CHAIRPERSON OF OVERSIGHT AND INSTITUTIONAL SUPPORT (Ms W
Ngwenya): Hon member, that's not a point of order. [Interjections.] Yes. Continue hon member.
Chairperson, I'm sure my friends from the EFF have realised we just having a bit of fun, anyway.
So, the fact is there's a lot of doom and gloom in South Africa. The point is, "How do we go forward?"
I would like to take the opportunity to come up with a couple of practical steps that we can take to get out of the muck, the rubbish, the poo that we are in:
The public sector, let's start there, does not need to reform, does need to reform. But the problem with the public sector is not just that it's bloated, it's that we don't get value for money from the public sector. The country needs a productivity-enhancing pact with the public sector. We need to ensure that there are moderate wage increases but improved management and a set of agreed output measures that will improve the levels of productivity and service delivery.
Land reform should seek not only to address a political legacy but should be part of a strategy to unlock the economic potential of land and assets in the rural economy. In addition, to redress in the commercial farming sector; the potential of land and rural assets under traditional authorities must be unlocked. Land reform must be accompanied by support measures for agricultural development and food security to ensure the potential of freed-up land is realised.
Energy is a key driver of economic growth, and the problem is that the narrow interests of Eskom are a barrier to unlocking the potential of energy to foster economic growth. Eskom's business model is just hopelessly out of touch with the needs of the economy. The government should act decisively to unbundle Eskom and allow new entrants into the energy sector to promote competition.
State-owned enterprises, SOEs, should be reformed on the basis of strategic purposes rather than ideological. Some, such as SA Airways, SAA, are failed businesses models and are based on outdated notions of what the public sector should be. There is no need for South Africa to continue to pour billions of rand into a state-owned airline. SAA and others like it should be sold off or closed. Other SOEs, on the other hand such as Transnet, are of huge strategic importance for solving critical constraints in the economic
infrastructure, such as transport. These should be strengthened, given a clear mandate and be effectively managed.
The manufacturing sector should also find new markets. Two initiatives - and I' m glad to see Minister Patel touched on this - is we urgently implement a free trade area for Africa and manufactured export growth to China.
SA must tackle inequality urgently. Policies such as sectoral minimum wages need to be speedily implemented to increase the income of the poor, while earnings of the top executives should be checked. Most importantly, however, are policies that will create a larger middle-class, and here we very clear, precise education policies.
SA should address the fact that also half the economy is dominated by men. Half of the population must compete in a patriarchal and hostile economy. Policies that address women's economic empowerment, to promote women's participation in both the formal and informal economy, will contribute significant new resources to the economy and boost growth.
There is also great potential for the green economy to boost economic growth. A key part of this is renewable energy, and South
Africa should promote policies that recognise the full environmental costs of investments and that promote investments in environmentally sustainable production in mining, industry and agriculture.
Just this week we learnt that Kenya are about to open the largest wind farm in Africa with 365 turbines, years ahead of where we are. It's absolutely insane that us as the giant of Africa are behind Kenya on this.
Finally, everybody is talking about the digital economy and all the jobs that could be lost. But we've got to realise that the Fourth Industrial Revolution, coming with the digital economy, could be the game breaker, it could be the opening up for so many small enterprises to allow them to make a massive, massive difference in our economy and we must welcome it and embrace it. We should probably also understand what it means.
Hon Chairperson and specifically the Ministers, we all know that talk is cheap. And I issue a warning, unless South Africa implements measures such the ones above, and quickly implements them, we are on a one-way road to a punitive date with the International Monetary Fund, IMF.
There are three types of politicians in the world:
Those that make things happen; Those that watch things happen; And those who wonder what happened. I know which category I belong to, which one are you?
Siyabangena!! [We are on top of things.] [Laughter.] [Applause.] [Interjections.]
Chairperson, Ministers, Deputy Ministers and officials from all departments, our policy is premised on building a better Africa, a better South Africa and a better world. We are advocating for building south-south relations and advancing north-south relations. This will be carried out in the rule-based international system.
South Africa is a member of various international intergovernmental organisations which include the Southern African Customs Union, Sacu, Southern African Development Community, SADC, African Union, AU, UN, World Trade Organisation, WTO, and Brazil, Russia, India, China and South Africa, Brics, to mention just a few. The
participation of South Africa in these international bodies is guided by our policies as highlighted.
We advocating for an international system in which international disputes can be resolved within multilateral fora. In the recent past, the world has witnessed a shift from multilateralism to unilateralism. The big economies are imposing tariffs measures against each other outside the agreed rule-based international system. To illustrate this point, the US has imposed section 232 measures on the basis of national security. This has affected South Africa exports of steel, aluminium, autos and components. This will inevitably impact negatively on our steel industry and global productivity.
The tit-for-tat trade war between the US and China also put a burden on global productivity and worsens the commodity-based economies in the developing countries. Our view is that deviation from rule-based international system may lead to chaos in the international system.
Our trade policy is part of broad developmental strategies of government that aims to promote and accelerate economic growth along a path that generates sustainable decent jobs in order to reduce
poverty and extreme inequalities that characterise the present South African society and economy.
The integration of Africa was further intensified by the African Continental Free Trade Agreement, AfCFTA, by South Africa earlier this year. The former Minister of Trade and Industry commented that the coming together of Africa comprises 55 African countries, and once entered into force, will constitute the largest free trade area globally. As a flagship project of the African Union's Agenda 2063, the AfCFTA aims to build an integrated market in Africa that will see a market that will cover one billion people with a combined GDP of approximately $3,3 trillion. It will create a single market for goods and services in Africa envisaged and it will be unlocked by 2022.
In advancing the south-south relations, South Africa participates in the Brics group. We have witnessed the signing of the Southern African Customs Union-India Preferential Trade Agreement, India- Sacu, and the Southern African Customs Union, and the Southern Common Market, Sacu-Mercusor Preferential Trade Area. These agreements create a legal basis for further integration and co- operation including through possible further exchange of tariff preference as well as co-operation in other areas.
We also commend our government for the pre-emptive steps is undertaking in the face of the Britain exit, Brexit, matter. The discussions around the roll-over of the economic partnership between Sacu and Mozambique and the UK is a step in the right direction that will ensure that in the event of the finalisation of Brexit, the partnership agreement will be rolled over. These discussions aim to maintain the effects of the existing Economic Partnership Agreement, EPA, provisions, focusing on technical amendments without necessarily amending the substance of the current agreement and to avoid trade disruption once the UK leaves the European Union, EU.
Coming closer to home, we all know that the economy can only grow and flourish in an environment of peace and the rule of law. Crime and corruption are impediments to our economic growth. We comment the steps taken by our government and other state institutions in dealing with corruption and crime. Violence has led to loss of lives of our people in various parts of our country and is a cause for concern. The intervention by the military to curb gangsterism in the areas of Cape Town is a welcomed move.
It should be concerning for the City of Cape Town and the Western Cape provincial government as to why there is such a high level of gangsterism and crime in the Cape Town metro. Is gangsterism and
crime not linked to the failure of the socioeconomic policies? And it is all our responsibility, and not only the Western Cape. Every one of our citizens is responsible for resolving this problem. We need a comprehensive approach to deal with crime in our country, and Cape Town in particular. These young people who are involved in crime might have lost hope. We need to revive their hopes for the future. We must in the context of social compact, as outlined by the President, call upon all role- players - government, civil society organisation and our people in general - to engage in a dialogue to find a lasting solution to the problems in our crime in our country. Young people cannot lie idle on our streets. We must use initiatives and programmes of our government, especially Small Business Development and Trade and Industry together with communities to find ways of supporting young entrepreneurs.
I cannot conclude without commenting on what some of the other people have said here. Minister, you spoke about changing the narrative in the country on the DTI. In fact, it is important that we change the negative narrative. Part of my past job was to invite people to invest in South Africa. The difficulty is the kind of perceptions that are created by some of the opposition people. They create a negative perception when they talk about the rand about investment. Fortunately, more investors look at the facts, they look
at the fundamentals and I not scared by the perceptions that are created.
The Minister of Small Business spoke about the cutting of the red tape and a less expensive way. The chairperson of the committee presented the view of this committee very successfully in supporting Vote 31, Vote 25 and Vote 34.
Hon member Boshoff spoke about the loss of jobs and people wanting to leave the country. I think I just need remind her that the Agricultural Revolution created jobs, the Industrial Revolution created jobs and gave rise to trade unions, and the Technological Revolution has made unemployment systemic throughout the world - whether you are in London, New York or Paris. All of these are because of the technological revolution. Have we dealt with the policy issues? We have to deal with that. Actually, the north is now considering a four-day working week to deal with this kind of issues because they are looking at the policy issues.
I want to say to my young fighters that there was an author who wrote that no person is an island; no country is an island; for whom the bell tolls; it tolls for thee. South Africa is not by itself; South Africa is small and its economy is small. You must realise
that we are part of the larger world and we have to look at what the larger world is doing. Sometimes we compromise and look at how we actually fit into that. [Applause.]
The President said he buy his suits in Salt River. But some of the supermarkets buy tomatoes and cherries from somewhere in the Middle East and sell them to us. I think we should all become proudly South Africans and buy South Africans. And together with the trade union movements, we must go on a campaign and persuade the business community to buy South African. With those few words thank you very much, Madam Chair. [Aplause.]
House Chairperson, maybe let me start with hon Boshoff, I thought you were present during the Sona debate when we explained the things that we are repeating again today. I think it is not worth it to repeat.
There is one point I want to address. You say we must follow the Western Cape. We live in Khayelitsha, Nyanga, Gugulethu and the cape flats and there is no change. I am sure the youth of Gugulethu, Nyanga and Khayelitsha will tell you that the braai cafs, which we needed to support them to do a franchise, has taken five years for the Western Cape to remove the red tape. That would not have
happened ... [Applause.] ... if those young people were in Constantia and related areas.
We shouldn't be selective and claim easy victories. You then said Small Enterprise Development Agency, Seda, and Small Enterprise Finance Agency, Sefa, are not working together. We articulated here measures for Sefa and Seda to work together. We mentioned that at a minimum, we are going to use common templates to apply for businesses. I thought it was a problem of the fighters. Maybe, I should have said 'same application forms' so that approval is easier. [Applause.]
When we throw around statistics, we must be factual. We said something about municipalities ... and you said we did what? It will take us 20 years ... we have done 133 municipalities with regard to training because we accept the responsibility that businesses and small businesses in particular operate at a local level.
You are saying to us that we ... Maybe, I should also ask the question, hon Cloete. Hon Cloete, you said the department is not necessary. Contradictory to that, you said small businesses are the engine of the economy. Then somebody goes into detail about the how the German economy is driven by manufacturing and all that. It's
like you never listened to Minister Patel when he was presenting the focused areas of this administration where he spoke about manufacturing, agriculture ... I don't need to list them. The President has also done the same. I think we shouldn't be opposition for the sake of opposition. We should be opposition that builds because we are loyal to South Africa.
Maybe I must ask. Beneath the overalls, what are we wearing because I am wearing Ara Emporium from 27 Boxes, in Melville, Johannesburg. It is made by a black young woman.
Xitsonga:
... wena Mathevula, tshama kahle ehansi u miyela, u yingisela. Ku va u tekela ehansi mabindzu lamatsongo a swi vuli leswaku a ya na nkoka. Loko a wu langutile u tlhela yingiserile, a wu ta swi twisisa leswaku mabindzu lamatsongo hi wona ya pfunetaka eka ikhonomi ya hina. Hambi ku ri eGermany laha u vulavulaka hi kona, BMW, Audi na Mercedes Benz a va kurisi hi ikhonomi ya Germany kambe va langutisisa eka mabindzu ya misava hinkwayo. Ikhonomi ya le ndzeni ka tiko yi kurisiwa hi mabindzu lamatsongo ni ya le xikarhi. Hikwalaho ke, hi fanele hi dyondza ku yingiselana.
English:
Hon Mfayela, we are not talking about plans; we have articulated to you the exact measures we are doing to implement the plans. We have spoken about eight incubators across the provinces, the TVET colleges having the rapid incubators and digital hubs. Maybe we didn't give you details on the digital hubs.
Already, the Department of Education and Vodacom have worked on 72 youth centres and those are the ones that we are expanding on. We are not talking about starting anew; we are renewing those that were there. They are in all your provinces, hon members. There is one in Makhado, Alexandra ... I won't list them as they will take my time. I need to deal with your ...
Hon Cloete, you said private sector is staying away. You should have listened to the complete speech because we also said the private sector is coming to the party. It has offered to partner with us on the blended financing model and to engage us and we signed agreements on the Small, Medium and Micro-sized Enterprises, SMMEs, supplying the value chains of their businesses. So, they are not staying away anymore. They are responding to the thuma mina and khawuleza message of our President. [Applause.]
Hon Boshoff, let me come back to you. You said to us SMMEs must be exempted from Broad-Based Black Economic Empowerment, BBBEE. Those exemptions are there. We committed in the Budget Speech that we are going to assist them to ensure that they access them easily because we have spoken about one-stop shop of supporting SMMEs to say ... and we said we are not the co-ordinator of small businesses for government, we are the co- ordinator of small businesses for South Africa.
Our part is to ensure that wherever a small business, it must be supported whether in the private sector or government, they will find it from us. [Time expired.] It is actually Minister, ma'am. [Applause.]
OVERSIGHT AND INSTITUTIONAL SUPPORT (Ms w
Ngwenya): Order members. Hon members, hon member Koni, listen, the time you spoke here, I was sitting there. All of us were listening to you because what we are doing here is serious to us. I am asking you hon members, can we behave like hon members? At home our children and our parents are listening to us. Hon Koni ... Order comrades! Order! Hon members, we are all from home and the whole country is looking at us and watching us. Can we behave as hon members?
I think you have heard what I am saying even if you make noise.
House Chair, may I acknowledge the presence and excellent work of directors-general, October and Tom and their team that have helped to put all of the hard work that we have publicised together.
There is much to welcome in the debate that took place today. Hon Rayi's comment about the role of competition policy cuts to exactly what we need.
Hon Mmoiemang's call for a social compact echoes what this government is about. Hon Dangor reminded us about the change in the global political economy and its implications for South Africa must inform our policy right now. But of course those are ANC members of the NCOP but it is also for opposition members, today, that I think ... I want to express my appreciation; appreciation to hon Mfayela, who reminds us of the interplay between infrastructure and growth; something that this government has embraced.
Hon Cloete, recognising the enabling environment that government needs to create is something that is been echoed in so much of what we are doing.
Hon Koni, I wish to thank you for supporting the policies of government on SEZs with tax benefits for supporting government's calls for greater localisation by state-owned companies and for supporting government's call for more competitive energy prices. [Applause.] That's really great.
I would also like to thank hon Brauteseth for the support for the African Continental Free Trade Area and women's empowerment and also crucially, land reform that help to unlock economic assets. When I listened to him, I thought, my word! That's the 54th national conference resolution that is coming out there. I think that's great.
Hon Boshoff's focus on action; she has picked up on the theme that the President has made - the major theme of his administration - implement - khawuleza [hurry up.].
And so, I say, the day after Sona ... so, the President in the state of the nation address said this is what we will do. The day thereafter, we signed an agreement involving R27 billion worth of purchasing by Chinese companies from South African companies. [Applause.]
Seventeen days after Sona, the President gets together with heads of state across the African continent to give effect to Kwame Nkrumah's dream of a united Africa when, in fact, that summit endorsed that an African Continental Free Trade Area will be put in place.
Let's just look at the last week, Ford Motor Company says 12 000 new jobs will be created out of R3 billion investment in expanding their plant. A day later, BFG Africa Rail composite says we are going to put R50 million in a plant in Germiston so that we can expand capacity. Tomorrow, Aberdare Cables, in Nelson Mandela Bay will be opening up a new high voltage power cable plant that will receive an investment of R135 million extra. That's action, that's not talk, that's doing, that's not saying, that says let's get the country working, lets get moving on these things.
I do think that there are some areas in the debate that we should not overstate the differences amongst us but identify what is common as South Africans and work across the different political parties in building this great nation. I listened, for example, to what hon Boshoff said about the importance of provincial growth. I am very proud every time there is growth in the Western Cape. Every job that is created in Cape Town is a job for South Africans in South Africa and should be celebrated, like we celebrate the fact that in the
year 2015, North West was the fastest growing province in South Africa. In 2016, Gauteng was the fastest growing province in South Africa. In 2017, Limpopo was the fastest growing province in South. We only have provincial data until 2017.
In the last 10 years, Gauteng, for the decade 2007-17 was the fastest growing. But let's celebrate every bit of growth, every job that's created, whether in Western Cape, Limpopo, Free Sate, KwaZulu-Natal or Eastern Cape; this is one South Africa in which we must celebrate all of that. [Applause.]
I want to say one last thing and that is the work that my colleague, Minister Ntshavheni does is very important. What she does is in every programme that we do in different departments. She asks us a sharp question ... as I conclude, how are you promoting small business? How are you promoting township enterprises and that helps to ensure that we don't have only growth but it is inclusive growth.
So, thank you very much. We are really looking forward to working very closely with the NCOP and with the members who are here today. Thank you very much. [Applause.]
Debate concluded.
----------------------- Hon Deputy Chairperson, I wish to echo the mandate of the National Youth Policy, which highlights a comprehensive approach that provides space opportunities and support for young people to maximise their individual talents.
The Budget Vote by the Minister, pronounced on making strategic
As I conclude, hon Deputy Chairperson I want to assure the people of the Eastern Cape that my department including its agencies and stakeholders will continue to strive for the betterment of their lives and the realisation of a Caring Society. I thank you. [Applause.]
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