Chairperson, thank you for the promotion, but I am still deputising Dr Rob Davies, who is sitting next to me. [Interjections.] Hon Chair, Minister Davies, other Ministers present, Deputy Ministers, members of the NA, MECs - if they are here - heads of departments, officials from the Department of Trade and Industry, Council of Trade and Industry institutions, Techno Girls in the gallery, leaders of organised business and labour, the leadership of the South African Women Entrepreneurs Network, including the Western Cape province, Technology for Women in Business, Techno Girls adjudicators, distinguished guests, ladies and gentlemen, good morning.
The economic success and sustenance of many economies is anchored by the increased participation of small, medium and micro enterprises in the mainstream economy. SMMEs are principal driving forces of economic growth and development. As the ANC-led government, we are resolute in increasing the uptake of SMMEs, as their dynamism and ability to innovate will assist us in creating much-needed jobs in our economy. They are critical in generating employment, and they also help diversifying economic activity and are making a significant contribution to export and trade.
We need to recognise that this Budget Vote is taking place just after our midterm. Therefore, we are able to talk about the systemic challenges that we inherited as a legacy of our past - in particular the apartheid space economy. We also have some successes, which we are going to talk about later on. However, the legacy continues to manifest itself as many SMMEs are not connected to the mainstream economy. This remains a challenge to government's efforts of creating interconnectedness in business activities that will usher in the creation of value chains across sectors.
As the DTI, we are trying to create a value chain across sectors to connect SMMEs and big corporations in the production of a plethora of goods and services. This is the revolution that the department is leading and we are conscious of the fact that our SMMEs are a vehicle of ensuring economic inclusivity and increased participation by South Africans in the mainstream economy. Yes, of course, hon James, small business has been taken up as one of those drivers by many successful countries that we mentioned, like India and China. I am not sure whether they went through an apartheid era, which I think your party was part of at some time. [Interjections.]
Hon Ferguson, to improve our entrepreneurial capacity, the DTI has begun scaling-up small business incubation, as the Minister has already indicated. I would like to add by saying that by the end of 2011, we managed to produce a lot of them. In this regard, we are proud to announce our partnership with SmartXchange in Durban, KwaZulu-Natal. In our midst, in the gallery, we have a young entrepreneur, Mr Zibuko Mchunu, whose company is incubated in SmartXchange. Mr Mchunu is a pioneering and successful young information and communications technology entrepreneur and a role model for our youth. We should talk about the good things we do and not only about the challenges. [Applause.] He is sitting up there in the gallery. We don't make up stories; we are talking about the things we do under the leadership of this Minister, and we will continue doing so. Our partnership with agencies such as the National Youth Development Agency, NYDA, seeks to ensure that we stimulate the entrepreneurial shift in our youth. Ms Ferguson, we agree with your points, but try to do research and get the latest information. Don't talk about the old points. The department is doing exactly that. That is why we partnered with the NYDA, in particular the Gauteng Chapter, with its visionary chairperson, Simon Molefe, as well as the Eastern Cape, with its activist chairperson, Mr Ayanda Matiti. We have done a lot of work focusing on the youth with regard to "Taking DTI to the People". We intend to strengthen that and make sure that we invest in our youth. We believe the youth can come up with creative and innovative ways to create business. They must be job creators and not job seekers. As I have already indicated, Mr Mchunu, who is in the gallery today, is one of those. [Applause.]
With NYDA Gauteng, we will soon be launching a substantial number of youth- owned co-operatives, so watch this space. These co-ops will be rolled out across Gauteng and other provinces. To spice it up further, on Monday, 14 May 2012, through the National Empowerment Fund, one of our agencies, ably led by Philisiwe Buthelezi, has entered into a partnership with UK Trade and Investment for the benefit of our SMMEs. Talk about those good things, Mr James. Don't ignore them.
We want to get our SMMEs ready to export and make sure that they are able to access markets through Trade and Investment SA, Tisa. Our young and dynamic deputy director-general, Pumla Ncapayi, is heading this division. Yes, some officials might resign when they find greener pastures. That is fine. However, regarding complaints, I think those can be challenged on the basis of what the Minister is going to say. She is doing a good job. She is running this division and she is making sure that she sees our department making it through. We are looking at the national export strategy and other investment strategies. We have taken a lot of our investment and trade initiatives under her leadership - under the very same Trade and Investment SA - to make sure that we can enter these markets.
In our attempt to expose SMMEs to international market, we have participated in a number of international trade fairs, including - listen, Mr James - the India International Trade Fair in November. Our participation was organised by Trade and Investment SA. We won a gold award for the best overall foreign stall. How can you say that Tisa is not working when it's part of export promotion? That's part of export promotion.
Secondly, in January this year we participated in a handicrafts exhibition in Cameroon, where one of our exhibitors, Mr Robert Tshimungwa, won a gold award for best exhibitor. This was organised by Tisa. [Applause.] Thirdly, three weeks ago we were part of the Zimbabwe International Trade Fair, ZITF, organised by Tisa, in Bulawayo, Zimbabwe. We won another gold award for the best overall foreign stand. [Interjections.] I didn't miss your point; I listened to you very carefully. I am saying, yes, if you have genuine points, raise them. However, regarding export promotion by Tisa: yes, I know there are some staff members who are not answering calls and things like that, but it is not the entire division that's not working well. We need to make sure that we talk about it when the division is doing well. We could not have won these awards if Tisa was not working. Okay, maybe we have challenges, but it's through this that we are able to do what we must do. Listen again. It must be noted that our participation in these international trade fairs creates business opportunities for South African businesses.
As a result of our participation in the ZITF, Unika Plastic Moulders, a South African company, has secured a deal to supply their products to 133 shops in Bulawayo, Zimbabwe. That will mean job creation and that is what we do to ensure that we have access to markets.
To buttress our intention of making strategic interventions in women's economic empowerment, the DTI has been utilising vehicles such as Isivande Women's Fund, SA Women's Entrepreneurs, Bavumile and Technology for Women in Business. Overall, we are saying that we need to deal with our strategy for women's economic empowerment and make sure that we strengthen this.
We need to recognise female pioneers in technology. Last year's winner was Dr Moretlo Molefi, a young woman who runs a telemedicine unit. Through these units, doctors are able to work in rural areas and make sure that people do not have to walk long distances to clinics but can be treated where they are. This is a breakthrough for our country and an innovation that we should talk about. [Applause.] Those are the things being done by this department, under the leadership of Dr Rob Davies.
We are also nurturing our young women. That is why we have girls in the gallery today. We want to make sure that we nurture them while they are in grades 10, 11 and 12, so that they can become the businesswomen of tomorrow. This will help the nation to ensure that ultimately we are not only building a viable and value-added industry but are also adding value to our locally produced "home brand" goods. We need to make sure that we create the required jobs, let alone transforming our economic structure away from its extractive nature.
We have in our midst the Techno Girls from Sefoloko Secondary School in Ramokgopa village, a deep rural area of Limpopo. These are our future business leaders, future chief executive officers, and future entrepreneurs who will create jobs and make sure that we go forward. [Applause.] Thank you, Minister, for your leadership and for ensuring that we can nurture them.
Hon Ferguson, it should be noted that work on the review of existing SMME programmes, policies and institutions - initiated as a result of the presidential directive - has been completed and the final report will soon be presented to the economic sectors and employment cluster. We are taking into account what you said, but we are working on it and making sure that we are able to address the issue.
Showing its resolve, the DTI has beefed up its capacity to specifically focus on the informal sector, townships and peri-urban enterprises, to make sure that we try to formalise our people's initiatives.
The UN declared this year the International Year of Co-operatives, and we should celebrate that. We will be doing that in the Northern Cape during the first week of July. It must also be noted that South Africa's significance in the co-operative movement will be highlighted through the hosting of the International Co-operatives Body in June 2012, here in Cape Town, South Africa. This is the first time that we are hosting an event of such magnitude. It shows that the Minister is running the department well and that we are now being recognised in the international space. Thanks to co-operative bodies like the South African National Apex Co-operative, Sanaco, and other federations that are working with us, we can see the difference and that co-operatives can be a vehicle.
Member Mabasa, I agree with you with regard to co-operatives. That is why we are talking about the amendment to the Co-operatives Act, where we will get a tribunal and a training academy - because we realise that there are challenges - in order to train the co-operatives to work, as well as to make sure that they are able to create the jobs that they want. They are successful in other countries because of the systems such as the value chain, and we hope that we will be able to do that.
In order to improve the networking opportunities for SMMEs and enhance market opportunities, as well as exchange information, the International Small Business Congress will be hosted in Sandton, South Africa, from 15 to 18 September 2012, with delegates from the continent and other parts of the world expected to attend. This is another breakthrough and a notable activity to take place in South Africa, because of the good policies that we drive to ensure that we link up with other countries in our space.
Our development as a country remains locked in decentralised economic activity with serious spatial challenges, which have disarticulated the logic of shared economic activity and benefits. This is why we need to make technology investments now, and what better way to do that than to recognise women who are already at the forefront of innovative technology leadership. Of course, in empowering women, you empower the nation. Women are nurturing in nature, but I'm sure there are men, like the Minister and others, who are very progressive and gender sensitive and support activities initiated by women. Keep up the good work, Minister. [Applause.]
We believe that our current programmes and different incentives are redirected to support the small business sector, and we make sure that we have integrated systems so that we are able to work with our sister state- owned entities and thereby ensure that we can make a difference. I believe that, with what we have, we are geared up to face the challenges and ensure that we can have a better DTI family, thanks to the leadership of the director-general and the deputy directors-general, who are here. Most of them are hard-working. They come to the committee and spend many days in discussion with us. Keep up the good work. It is within this good family that we will be able to take our work forward. Again, we thank the leadership of Dr Rob Davies, who's making sure that we have a better department contributing to a better global space. [Applause.]