Sihlalo, Ngqongqoshe uPatel, Ngqongqoshe mama uNaledi, Sekela Ngqongqoshe mama uMahlangu-Nkabinde, bahlonishwa, nabahlonishwakazi, nezihambeli, nezikhulu zoMnyango ngiyanibingelela.
Ngithatha leli thuba ngesikhathi esihle impela njengoba besigubha Usuku Lwamalungelo Abantu. Umbuzo uthi, Ngabe lingabonakala yini ilungelo eliphelele uma kungaqinisiwe izinsika zomnotho na? Ngabe izikhungo ezisingethe ukunikezelwa nokulondolozwa kwezimali zingabasebenzela yini abantu uma zingaguqulwanga ngendlela ezisebenza ngayo njengamanje.
Izimpendulo zithi akufakwe izimali ezithe xaxa ukuze kukhuthazwe intuthuko nezinguquko kuzo zonke izikhungo zezimali ukuze abantu bonke abaswele bakwazi ukufinyelela kuzo. Lokhu kuyinto esiyikhuthaza ngazo zonke izikhathi ukuze silwe nendlala kumele kube khona izinhlelo zokwenza ukuthi kube lula ukufinyelela kubantu emnothweni nengcebo yezwe labo - ngokuthi senze ukuthi izimboni ezizimele, uhulumeni namabhizinisi akhe nemiphakathi basebenzisane ukuze kunikezelwe ngezidingo kubantu. (Translation of isiZulu paragraphs follows.)
[Mr Z C NTULI: Chairperson, Minister Patel, Minister Ms Naledi, Deputy Minister Ms Mahlangu-Nkabinde, ladies and gentlemen, visitors and the departmental officials, I greet you.
I take this opportunity at a very good time as we were celebrating Human Rights Day. The question is, can a full right be observed if the pillars of the economy are not strengthened? Can the development finance institutions work for the people if they are not re-structured from the way in which they are working presently?
The answers are that more money should be put in, in order for progress and change to be encouraged in all these development finance institutions so that all poor people are able to have access to them. This is what we are encouraging at all times. In order to fight poverty there must be some programmes in place which will make it easy for the people to access the economy and the riches of their country - by allowing private companies, the government and its businesses and the communities to collaborate in order to deliver services to the people.]
I want to agree with hon Singh that together we can do more if we change the workings of development finance institutions, DFIs. Chairperson, the 52nd ANC National Conference at Polokwane gave a mandate to build and strengthen development finance institutions, as well as, and I quote:
... nonfinancial institutions, which are accessible to the people, and which are able to effectively channel financial and institutional resources towards a variety of economic transformation objectives, including industrial diversification and development, small businesses and co-operatives, small-scale agriculture, micro-enterprises and local and regional economic development, and the empowerment of youth and women.
This indicates a major reorientation and transformation of the DFIs to focus more on the development agenda, placing high priority on infrastructure development not only in the areas of water, sanitation, health and education but also transport and irrigation. This is in line with our agrarian reform and rural development strategy.
Sihlalo, kuphinde kulindeleke ukuthi lezi zikhungo zidlale indima ebalulekile ukuvala igebe lezinsiza ekunikezelweni kwezimali kosomabhizinisi abancane nalaba abasafufusa uma kuwukuthi izikhungo ezinkulu zihlulekile ukubasiza ngezimali.
Okunye okuqaphelekayo ukuthi lesi simo esikhona sokuwa komnotho kanye nezinkinga ezikhona emabhange amakhulu, kuzoza nomthwalo osinda kakhudlwana ophoqa ama-DFI ukuthi axhase amabhizinisi antengayo futhi adlale indima enkulu yokubuyisela umnotho ezingeni elifanele. Sithi akabe ngomafika kuqala ekuvuselelweni komnotho wezwe lakithi. (Translation of isiZulu paragraphs follows.)
[Chairperson, it is also expected that these institutions should play an important role in closing the gap in terms of resources in that it should provide money to small and upcoming businesses if the major institutions failed to assist them financially.
What has also been observed is that the present economic decline and the problems in major banks will come with a heavier load which will compel the DFIs to fund the unstable businesses and to play a big role in bringing back the economy to the right level. We say they should be the first to revive our country's economy.]
South African DFIs have been correctly criticised for gravitating towards traditional norms and standards of commercial banks. Their lending standards and requirements have been seen to be restrictive, using criteria that support businesses that are already formalised and meet the criteria for commercial lending.
Thus, DFIs have simply become about cheaper lending rates instead of being critical drivers of development. Lending rates of DFIs have remained unsustainable for small and upcoming businesses, and the focus has been on DFIs making returns while receiving significant government injections. Further, the mandates of the various DFIs have not been properly co- ordinated, which led to duplication of roles and, in some cases, loss of opportunities.
Kunesidingo esikhulu sokwenza uhlelo lokudidiyela kanye nokuhlanganisa ekuthuthukiseni izikhungo zemali. Ngaleyo ndlela kudingeka ukuthi ama-DFI ahlelwe kabusha ukuze ahambisane nezidingongqangi zabantu bezwe lakithi.
Iqhaza lemboni yezimali yaseNingizimu Afrika likhulu futhi lemboni yezimali ibonakala kuyiyo enkulu nethuthuka masinyane e-Afrika yonkana. (Translation of isiZulu paragraph follows.)
[There is a great need to put in place a programme that will integrate and combine the development of the finance institutions. In a way what is required is that the DFIs should be restructured in order to bring them in line with the basic needs of the people of our country.]
Currently, the financial services sector accounts for 20% of our gross domestic product, GDP, an increase from 12,4% in 1991. However, this sector remains largely untransformed, not strongly regulated and exploitative in its practices.
This means that South African DFIs have to take responsibility for transforming the financial sector and the lack of finance for development. This should not be done only by providing cheaper and competitive lending rates but by collaborating with commercial banks in creating unique financial packages for development. For example, research shows that linkages between formal and informal financial institution systems create new opportunities for delivering microfinance to the rural poor. Therefore, DFIs must play a significant role in helping to facilitate formalised banks in rural areas where commercial banking has fallen short.
Ake sibuke indlela ama-DFI asiza ngayo ngezimali kuma co-operatives kanye namanye amabhizinisi amancane. UKhongolose uyakholelwa emnothweni oxubile ozolawula uhulumeni. (Translation of isiZulu paragraph follows.)
[Let us look at the way in which the DFIs financially help the co- operatives and other small businesses. The ANC believes in a mixed economy that will control the government.]
A mixed economy requires a sizable portion of entrepreneurships, co- operatives and small businesses to diversify the large monopolised corporate environment.
Therefore, DFIs must play a critical role in the augmentation of risk and reducing the cost and time of starting a business in this country. The risk aversion patterns and lending rates of our DFIs must therefore be significantly lowered for them to successfully achieve this mandate.
Izindawo ezinamahhovisi alama-DFI kumele zifinyeleleke kalula, futhi kubhekwe nendawo ezakhiwa kuyona. Amahhovisi ama-DFI siwathola emadolobheni amakhulu, ezifundazweni kanti ayadingeka abe khona nakuma-ditrict kanye nakwezinye izindawo zomasipala, nasemakhaya ukuze osomabhizinisi basemakhaya basizakale. (Translation of isiZulu paragraph follows.)
[These DFIs should be easily accessible, hence we should also look at where they are built. We find DFI offices in major cities but in fact they need to be available even in the districts and in other municipal areas, as well as in rural areas in order for the rural businesses to receive assistance.] Apart from entrepreneurship and small business development, DFIs must re- orientate themselves to fund infrastructure and developmental projects in the main. This will shift their focus from mere business development funding towards more of a developmental philosophy.
Therefore, there must be a dedicated infrastructure and development fund in DFIs, allowing funding for municipalities and nongovernmental organisations, NGOs, to assist the national government in addressing the service delivery and infrastructure backlogs. Funding must also encourage business to employ large numbers of people and use labour-productive methods.
This is also why broad-based black economic empowerment must remain the focus. Anomalies that have been noted, such as looking only at ownership structures and not at the entire component of black management and the number of staff, window dressing, former beneficiaries and consortiums using DFIs for cheaper financing when not benefitting a broad base, will need to be addressed.
To run quickly over the competencies of the three DFIs, I will start with the Industrial Development Corporation, IDC. Based on its extensive investment and involvement in various sectors, the IDC has detailed knowledge of the real economy, capacity to assist in promoting sector development strategies and considerable research and technical ability ... Sengivala Sihlalo, bengithanda ukuphonsela inselelo kubaholi bonke bala-DFI ukuthi akebeze kuma constituencies amalungu ePhalamende siwabone. Ngiyabonga. [Isikhathi Siphelile.] (Translation of isiZulu paragraph follows.)
[In closing Chairperson, I would like to challenge all the DFI leaders to come to the constituency offices of the MPs so that we can see them. Thank you. [Time expired.]]