Trade, Industry and Competition (the dtic) Minister Parks Tau says his department’s mandate is clear in that it will work to support and enhance the programmes instructively outlined by President Cyril Ramaphosa during the Opening of Parliament Address in Cape Town on Thursday evening.

‘This is important, especially if we calculate the costs of poverty which constitutes 60 percent of the National Budget,’ Tau said.

Responding to the Opening of Parliament Address (OPA) on Friday, Tau said the reality is that government has to adopt a mission-oriented approach to industrial policy and strategy.

‘As such, we must implement with laser focus, the programme of priorities outlined in the Government of National Unity (GNU) to benefit all South Africans, most particularly, women, the youth majority and people with disabilities,’ Tau said.

He said if government does not implement the priorities of social justice, and poverty alleviation, then the nation-building and social cohesion projects will remain an elusive i
deal.

‘In line with what the President said when talking about smart industrial policy, the dtic group will implement sectoral plans building on the successes recorded in the automotive, clothing and textiles, retail and agro-processing sectors.

‘Smart industrial policy speaks to underlining beneficiation and export-led growth. It highlights the imperatives of the Public Procurement Act that will complement the essential legislative tools to unlock localisation and transformation.

‘Every year the South African economy spends 25% of the national wealth created on imported goods. Not only is this propensity to import much greater than our competitor countries, it is also out of sync with our developmental needs,’ Tau said.

Tau said government will reverse this in pharmaceuticals and medical devices, green industries, food products and manufactured goods, among others.

He said smart industrial policies and programmes are being implemented to respond to the global market trends towards electric vehicles.

‘
As you know, in February this year, the Minister of Finance announced that the government will introduce an investment allowance for new investments. This will see producers having the opportunity to claim 150 percent of qualifying investment expenditure on electric and hydrogen-powered vehicles within the initial year.

‘On structural transformation relating to B-BBEE, the dtic group will use the public procurement regime to advance B-BBEE and SMMEs. We will work with National Treasury to ensure that the Procurement Bill, under consideration by the President is implemented,’ Tau said.

The Minister said government is aware that the Enterprise and Supplier Development (ESD) elements of the B-BBEE Codes have the potential to raise several billions from the private sector.

‘Therefore, working closely with the B-BBEE Commission in monitoring the contributions of the ESD, black industrialists and SMMEs will benefit from such financial contributions.

‘Our common prosperity is contingent on building a better life
for all, and not for some. In line with what the President said, the DTIC group will refocus on industrialisation in a targeted manner using available policy instruments.

‘Our message to our SADC partners is a call-to-action for a united effort to promote regional industrialisation. This will leverage South Africa’s trade with Africa which has increased significantly, growing from just over R343 billion in 2019, to just under R547 billion in 2023,’ Tau said.

In his Opening of Parliament Address (OPA), President Cyril Ramaphosa said government had decided to place inclusive economic growth at the centre of the work of the Government of National Unity and at the top of the national agenda.

‘The Government of National Unity will pursue every action that contributes to sustainable, rapid economic growth and remove every obstacle that stands in the way of growth,’ President Ramaphosa said.

Source: South African Government News Agency