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.]