Chairperson, the major cause of unemployment is a structural distortion of the economy which favours capital-intensive industries due to the monetary and industrial policies of the apartheid years. An economy that grows without creating sustainable employment opportunities for the majority of her citizens is not sustainable. An economy that relies on exporting raw materials without beneficiation is also not sustainable. The question is: What does this Ipap seek to achieve? Who are the intended beneficiaries? What distortions does it want to rectify? How does it achieve a balance between the primary and secondary sectors of the economy?
Ipap2 has been welcomed by business and labour as well as other stakeholders to bring structural changes through skills upgrading, agroprocessing and standards, quality assurance, accreditation and metrology, SQAM. Ipap2 recognises the critical need for skills upgrading to reach sustainable industrialisation, and it has listed a number of areas where specific skills development is required, namely: SQAM; standards writers; laboratory personnel and compulsory specification practitioners; metal fabrication and tooling industry skills; solar water heating; forestry, timber, paper and pulp furniture; business management; and efficiency skills for new forest growers and beneficiaries of land reform.
Ipap2 includes a number of interventions that focus on development plans relevant to certain sectors and improving such facilities. In terms of the advanced manufacturing sector, one of the interventions is to revive and upgrade existing training centres at state-owned enterprises and reduce bottlenecks of up to 18 months at testing facilities. This should assist in addressing the five-year gap with regard to 14 500 scientists, engineers and other technical skills.
A coherent and integrated skills development strategy must be developed and implemented to ensure that institutions of higher education appropriately align their academic programmes to meet the skills demanded by the industry. Government should ensure that institutions and sector education and training authorities, Setas, are adequately funded. Furthermore, they should partner with business to develop relevant on-the-job training experiences for the unemployed and for the youth to improve their employment possibilities and to promote continued learning for their existing employees.
Agroprocessing is an identified intervention sector that will contribute to rural development. The key reason for this is that the sector mainly uses primary agricultural products as an input. Some parts of this sector, such as packaging, are often situated in or near rural areas where the agricultural products are grown.
Agroprocessing also feeds into a number of downstream industries such as wholesale outlets, retail chains, restaurants, pubs, shebeens and fast-food franchises, as well as the hotel industry. Therefore, the prevalence of agroprocessing has a huge impact on both direct and indirect jobs as well as on food security because it comprises a highly diverse group of subsectors and industries, namely food processing, beverages, aquaculture, horticulture, medicines, aromatics and flavourings. The following subsectors have also been identified to focus on: the aquaculture and organic food sector, small-scale maize milling, fruit and vegetable canning and rooibos and honeybush products.
Small and medium enterprises and co-operatives should be direct beneficiaries of the agroprocessing sector development. However, the following issues are critical to ensure that they reap the benefits of such development: access to affordable financial support for capital and operating expenses; access to markets; knowledge of supply and demand; affordability of telecommunications; reliability of transport; and skills development support.
SQAM institutions are reliable institutions that ensure the integrity of new manufacturing industries and existing manufacturing industries. The SQAM institutions ensure that South Africa's standards are adhered to and that the market is not subjected to poor quality and cheap imports. They provide protection to consumers by ensuring the quality and safety of products, including with regard to health and environmental aspects, and ensure that they themselves are recognised domestically and internationally. Therefore, certified products are accepted.
Through the process of achieving international quality assurance standards, the development of the small, medium and micro enterprises, SMMEs, and co- operatives can be stimulated, which could lead to an increased demand for their products by larger enterprises that must meet standards and promote preferential procurement. The cost of being assessed for certification is a concern. The government should consider the cost implications for SMMEs and co-operatives and provide support to assist their development. Furthermore, standardisation with the SADC region can promote regional integration and broaden markets for South Africa.
For Ipap2 to be a success, the government should develop the necessary technical and managerial capacity in the fields of economics, accounting, engineering and, in general, management science. I thank you. [Applause.]