NATIONAL ASSEMBLY
WRITTEN REPLY
PARLIAMENTARY QUESTION NO 516
Interdepartmental Transfer from Finance: 6 August 2014
516. Dr D T George (DA) to ask the Minister of Economic Development:
[Interdepartmental transfer from Finance on 06 August 2014]
With regard to the development of the Mamba cement factory in Limpopo,
(a) what were the (i) reasons and (ii) legal basis for the import
duties being waived on machinery imported for the initial construction
of the factory and for its later cement production activities and (b)
what was the (i) loss to the fiscus as a result of this waiver and
(ii) National Treasuryâs role in this development? NW598E
REPLY:
A similar question was put to the Minister of Trade and Industry on the
Mamba Cement Factory.
Please find the attached response as submitted by the Minister of Trade and
Industry, to which I am not able to add any further information.
THE NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
514. Mr G Hill-Lewis (DA) to ask the Minister of Trade and Industry:
With regard to the development of the Mamba cement factory in
Limpopo, (a) what were the (i) reasons and (ii) legal basis for the
import duties being waived on machinery imported for the initial
construction of the factory and for its later cement production
activities, (b) what were the (i) reasons and (ii) legal basis for
workers from other countries being allowed into South Africa to work
on the construction of this factory, (c) how many permanent jobs for
South African citizens will be created in this factory, (d) how does
this transaction fit within his department's (i) industrialisation
and (ii) localisation policies and (e) what was his department's role
in this development? NW596E
Reply
(a)(i) ITAC did not provide any waivers on import duties on machinery
or any other products to Mamba cement, as ITAC did not receive any
request by Mamba for the duty-free importation of plant or machinery
used for the construction of the cement factory in Limpopo.
(a)(ii) Rebates of duties are specifically in terms of rebate items
490.40 and 490.90 of Schedule 4 of the Customs & Excise Act, 91 of
1964 which provides for a full rebate of duty on temporary importation
of machinery or plant (excluding tower cranes) for use on contract in
civil engineering or construction work.
(b) The issuing of work permits and company transfers is the
responsibility of the Department of Home Affairs.Kindly refer this
question to Department of Home Affairs official responsible for this
project â Mr Ben Makhalemele Ben.Makhalemele@dha.gov.za, Tel: 072 891
3263.
(c) According to the information received from Mamba Cement (Pty) Ltd,
196 permanent jobs will be created. During the construction phase 513
temporary jobs will be created.
(d) The Mamba cement project will lead to economic development in Limpopo
and it will spur economic growth in the surrounding areas that can
lead to the creation of a number of direct and indirect jobs. South
Africaâs infrastructure spend will require inputs such as cement in
large quantities. In order for companies to participate in these
projects they need to localise their production. The localisation of
productive capacity leads to the transfer of technology, efficiency,
competition which lowers prices and job creation. Industrialisation
characterised by the manufacturing of value added products forms the
foundation of the departments Industrial Policy Action Plan (IPAP).
(e) The Department of Trade and Industry through its Trade and Investment
South Africa (TISA) division is responsible for the facilitation of
foreign direct investment into South Africa. Mamba cement is one of
the projects that were facilitated through the involvement of TISA.
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