Chairperson, hon Ministers and Deputy Ministers, and hon members, co-operatives have a long and successful tradition of promoting inclusive economic growth in many developed countries and developing countries. They are enterprises through which jobs can be created to eradicate poverty and inequality. In many countries where co-operative movements have grown over many years, they have proven to be able to provide a wide variety of goods and services to the consumers, including institutions of state.
Inhlangano kaKhongolose nayo iphokophekelele ukuthi igqugquzele ukwakheka kwezinhlangano ezincane ezisebenza ngokubambisana kanye nosomabhizinisi abancane, ikakhulukazi phakathi kwabantu bakithi abakade bengavumelekile ukuthi babe yingxenye yomnotho waleli lizwe esikhathini esiphambili. (Translation of isiZulu paragraph follows.)
[The ANC government is also aiming to promote the establishment of co- operatives and SMMEs, especially amongst our people who were previously not allowed to be part of the country's economy.]
Therefore, I want to turn my attention to the policy frameworks which allow the ANC government to attend to this important matter of mobilising co- operatives and small, medium and micro enterprises, SMMEs, as a way of allowing the majority of our people active participation in the mainstream economy. I refer particularly to the Co-operatives Amendment Bill, the Broad-Based Black Economic Empowerment Amendment Bill, which is in process here in Parliament currently, and the Preferential Procurement Policy Framework Act, 2000: Preferential Procurement Regulations, 2011. These policy frameworks all recognise that co-operatives are independent enterprises owned by their own members. Because government acknowledges the need to promote growing, sustainable and competitive co-operatives, it seeks to use the Preferential Procurement Policy Framework Act and the other pieces of legislation that I have mentioned to form strong partnerships with co-operatives.
The Preferential Procurement Policy Framework Act allows the organs of state to buy goods and services from co-operatives and SMMEs so that the institutions of state provide a ready market for the co-operatives. These pieces of legislation open up opportunities for the historically disadvantaged individuals, the unemployed youth, rural communities and persons with disabilities. These opportunities allow the beneficiaries to begin to play an active role in the mainstream of the economy.
Isahluko 13(1) soMthethosisekelo sikhuluma ngemigomo yokwaba amaphuzu uma uMnyango kahulumeni ukhipha ithenda, sithi kufanele kubhekelelwe lezo zinkampani ezincane ezisebenza ngokubambisana eziphethwe yilabo bantu ababebandlululiwe kwezomnotho ngesikhathi sikahulumeni wobandlululo. Lesi sahluko siqhubeka sithi kufanele kuqikelelwe ukuthi lezi zinkampani ezincane kanye nezinkampani ezisebenza ngokubambisana ziphethwe yibo uqobo, nokuthi amasheya abo kulezi nkampani abanikeza igunya lokuzilawula lezi nkampani. (Translation of isiZulu paragraph follows.)
[Chapter 13(1) of the Constitution stipulates the procedures to be followed in allocating points when a government department is awarding a tender; it stipulates that preference should be given to co-operatives that are managed by historically disadvantaged individuals who were excluded in the economy during the time of the apartheid government. This Chapter further states that these co-operatives and SMMEs should be managed by them, and that their shares in these companies give them a right to manage these companies.] Section 13(12) goes further to stipulate that -
... a person awarded a contract as a result of preference for contracting with, or providing equity ownership to, an historically disadvantaged individual, may not subcontract more than 25% of the value of the contract to a person who is not an historically disadvantaged individual or does not qualify for such preference.
It makes it imperative that members of the co-operatives acquire skills and knowledge in management as it promotes active involvement in management, ownership and control. Of significanc, too, is that the emphasis on active involvement in ownership, control and management as tools to justify preferential procurement will effectively prevent and punish fronting.
Kuzovimbeleka laba abathanda ukuveza ubuso obumnyama ezinkampanini kanti bona bahleli ngemuva. Lokhu kuzosiza ngokuthi bangakwazi ukwenza lokho nokuthi uma bezama ukwenza njalo bathole isijeziso. Lokhu kuqikelela ukuthi abantu bakithi bayaziphathela izinkampani bazilawule futhi. (Translation of isiZulu paragraph follows.)
[This will prevent fronting in companies. This will assist in preventing people from doing this, and if they try to do this, punitive measures will be taken. This will ensure that our people manage and control their companies.] The Preferential Procurement Policy Framework Act demands of state institutions to award contracts to co-operatives that manufacture products locally. These locally manufactured products must have local content.
Ukuze kuvikeleke ukuthi abantu bangathi bayizinkampani ezincane ezisebenza ngokubambisana ezihlinzeka ngezimpahla nezinsiza kanti nabo bathenga lezi zinto emazweni angaphandle bazozidayisa la ngaphakathi. Lokho-ke kugcina kwehlula imigomo ye-Industrial Policy Action Plan kanye ne-New Growth Path ... (Translation of isiZulu paragraph follows.)
[This is to ensure that people do not say that they are co-operatives and SMMEs that manufacture and provide goods and services when in fact they are buying these goods from other countries and selling them locally. This defeats the principles of the Industrial Policy Action Plan and the New Growth Path ...]
... which seeks to encourage that manufacturing, beneficiation and value addition take place domestically and that value addition is ensured. The Preferential Procurement Policy Framework Act therefore creates a legislative environment for co-operatives which is conducive to their being competitive and becoming exporters of locally manufactured value-added goods.
The ANC government will mobilise our people to take advantage of the Co- operatives Amendment Bill, the Preferential Procurement Policy Framework Act and the Broad-Based Black Economic Empowerment Amendment Bill and establish SMMEs and co-operatives in order to become active participants and role-players in inclusive economic growth.
Sithi-ke kubantu bakithi mabagqugquzeleke, basukume bazibambele ukuze nabo balwe ngokwabo nobubha, ukuntula imisebenzi, nokungalingani ngokwezomnotho kuze kuthi abantu bakithi ekugcineni baziphathele izimboni ngokwabo. Ngalokhu asisho ukuthi sebeyohlala bencike ezinkontilekeni abazithola kuhulumeni kuphela. Sizogqugquzela ukuthi ngemuva kokuthi sebesebenze nohulumeni babe ngosomabhizinisi abazimele ngokwabo, bakwazi ukuzakhela imisebenzi baphinde baqashe abantu. Banganciki noma beyame emisebenzini abayithola kuhulumeni.
Le mithetho iyisiqalo salolu hambo olude lokuthi abantu bakithi basebenzise izinkampani ezincane ezisebenza ngokubambisana ukuze bangene ngokugcwele kwezomnotho. Ngiyabonga. [Ihlombe.] (Translation of isiZulu paragraphs follows.)
[Therefore we are saying to our people they must be encouraged, they must stand up and take charge so that they fight poverty, lack of employment and economic inequality so that at the end of the day our people manage their own companies. By this we are not saying that they must only depend on contracts they receive from government. We will encourage them, after they have worked with government, to become independent entrepreneurs, who are able to create job opportunities and employ people and not to depend on government contracts.
These policies are the foundation of a long journey that will allow our people to use the small co-operative enterprises to be fully included in the economy. Thank you. [Applause.]]