Date: 13/04/2005
Source: Ministry of Trade and Industry
Title: Hendricks: Trade and Industry Dept Budget Vote debate, NCOP
Budget Vote 32 National Council of Provinces Address by Deputy Minister of Trade and Industry Lindiwe Hendricks
Chairperson of the NCOP,
Honourable Members of Parliament,
Distinguished guests,
Ladies and gentlemen
The impact of Apartheid planning and the uneven concentration of resources in certain geographic areas have resulted in an imbalance of economic development amongst the nine provinces of our country. Through the efforts and resources of the dti and the Council of Trade and Industry institutions, and in partnership with provincial government and local government, we have the mandate to address these disparities.
The tendency in our country is for investments to be attracted to existing successful locations. Eighty percent of South Africa’s manufacturing output is still produced in six metropolitan areas and the 2004 Gross Domestic Product per Region estimates from Statistics South Africa indicate that the leading regional contributors to the national economy are Gauteng with 33 percent, followed by KwaZulu-Natal with 16.5 percent and the Western Cape with 14.5 percent. These provinces are also generally experiencing faster growth rates than the other provinces.
Chairperson, our approach must therefore be to make the underdeveloped regions of our country more attractive to investments, while continuing to support the growth in our economically stronger provinces. All of the regions of our country have potential for significantly faster levels of economic growth and we need to unlock this latent economic potential. In doing so we will be addressing some of the key challenges facing our country – that of reducing the high levels of unemployment and increasing the participation of people in our economy.
In order to attract investments we need to identify the economic potential in an area; this economic potential might be in tourism, mining, agriculture, telecommunication or manufacturing sectors. To this end the Department of Trade and Industry’s Geographic Spread unit, which was established to promote a more equitable spread of investments, has been conducting research and identifying opportunities in our economy. This has culminated in the establishment of a Geographic Information System that contains a range of economic data from across the country.
On the basis of this information we are better able to attract suitable investors. The dti through Trade and Investment South Africa, our foreign offices, and in partnership with provincial investment promotion agencies are working hard to attract international investors to our country. We must however ensure that own people are also able to take advantage of the opportunities available, and in this regard the dti offers a number of incentives to support domestic investors. The dti’s regional offices are also in place so that they can inform businesses in provinces about the incentives that we offer and advise them on how to access these opportunities.
An additional tool available to the government to attract investments and stimulate regional economies has been to increase infrastructure spending, for example, on roads, ports, telecommunications, electricity, etc. This spending, which will be dramatically increased by government in the next few years, often stimulates and crowds in private sector investors who are keen to take advantage of the improved access to new markets or inputs created by the infrastructure developments. This approach informs the Industrial Development Zones, which the Minister spoke about in his address.
A critical aspect of addressing the spatial underdevelopment of our country is ensuring that we are empowering and providing adequate support for small businesses. Small businesses and entrepreneurs are increasingly playing an important role in local economic development and the dti has been working with municipalities in supporting these developments.
Honourable members, to achieve the desired impact, we need to have high levels of co-operation and co-ordination between the different spheres of government and state owned enterprises. In an effort to ensure properly focused development planning for the future, the Cabinet has aligned the National Spatial Development Perspective with the Provincial Growth and Development Strategies and the municipal Integrated Development Plans (IDP). Importantly, the National Spatial Development Perspective provides a platform for engagement among the three spheres of government around critical issues of policy implementation, and strategies for growth and development. This has helped to facilitate dialogue between the spheres of government about the country’s spatial priorities, infrastructure investment, and development spending.
To achieve the desired impact, we need to direct the skills and support that exists in the dti agencies so that they are able to unlock the opportunities in our economy. Yesterday in my address to the National Assembly I spoke about the improved ability of the dti to direct and mobilise the efforts of our agencies. These agencies are working in the areas of development finance; regulatory issues; international trade issues; and specialised service institutions that deal with small business development, women in business, as well as quality, standards, technology and innovation. For those who are not aware, these agencies consume 41 percent of the department’s budget and the collective asset base of these institutions exceeds R30 billion and the group employs more than 5000 people.
The Small Enterprise Development Agency (Seda), as well the development finance institutions – IDC, NEF, Khula, and the soon to be launched, Micro Finance Apex Fund have a critical role to play in supporting our efforts to promote growth in the underdeveloped regions of our country.
Honourable members, our support programmes for women in business have also started to make a significant impact. The trend of assuming that young women from rural areas are unable to participate in the information age has been bucked by our Technology for Women in Business Programme (TWIB). TWIB in partnership with Cisco Systems has successfully established an IT Academy that is training young women from the Tombo region in the Eastern Cape in advanced computer networking skills. Furthermore, women in business from across the country have joined and are actively participating in the South African Women Entrepreneurs Network (SAWEN); we look forward to the upcoming AGM of this organisation.
Other dti agencies, such as the South African Quality Institute, the South African National Accreditation Society, the South African Bureau of Standards and the Technology and Human Resources for Industry Programme (THRIP) that are involved in areas of quality, standards, technology and innovation are also critical players in our efforts to improve the effectiveness and competitiveness of businesses across the country, including those in rural areas and in underdeveloped regions. The location of a business should not be a determinant of the quality of its products and its ability to innovate.
To conclude, chairperson, our country has enormous potential that remains untapped. The Department of Trade and Industry with the resources at our disposal and in partnership with all spheres of government and a range of institutions, will be working to ensure that we implement our vision of having a greater geographic spread of investments. These efforts are part of our broader mandate of making our economy more inclusive, attracting higher levels of investments, and becoming more competitive. I would like to extend my gratitude to the provincial MECs and the HODs for their co-operation with the dti and their support of our efforts to grow our economy and address the imbalances of the past.
Finally, I would like to thank the outgoing Director-General for the work that he has done; he has left behind a strong organisation that is able to implement this vision. I would also like to congratulate Mr Tshediso Matona, who was appointed as acting Director – General of the department.
Members, we table Vote 32 before you for endorsement.
I thank you.
Issued by: Ministry of Trade and Industry
13 April 2005
Source: Ministry of Trade and Industry
Title: Hendricks: Trade and Industry Dept Budget Vote debate, NCOP
Budget Vote 32 National Council of Provinces Address by Deputy Minister of Trade and Industry Lindiwe Hendricks
Chairperson of the NCOP,
Honourable Members of Parliament,
Distinguished guests,
Ladies and gentlemen
The impact of Apartheid planning and the uneven concentration of resources in certain geographic areas have resulted in an imbalance of economic development amongst the nine provinces of our country. Through the efforts and resources of the dti and the Council of Trade and Industry institutions, and in partnership with provincial government and local government, we have the mandate to address these disparities.
The tendency in our country is for investments to be attracted to existing successful locations. Eighty percent of South Africa’s manufacturing output is still produced in six metropolitan areas and the 2004 Gross Domestic Product per Region estimates from Statistics South Africa indicate that the leading regional contributors to the national economy are Gauteng with 33 percent, followed by KwaZulu-Natal with 16.5 percent and the Western Cape with 14.5 percent. These provinces are also generally experiencing faster growth rates than the other provinces.
Chairperson, our approach must therefore be to make the underdeveloped regions of our country more attractive to investments, while continuing to support the growth in our economically stronger provinces. All of the regions of our country have potential for significantly faster levels of economic growth and we need to unlock this latent economic potential. In doing so we will be addressing some of the key challenges facing our country – that of reducing the high levels of unemployment and increasing the participation of people in our economy.
In order to attract investments we need to identify the economic potential in an area; this economic potential might be in tourism, mining, agriculture, telecommunication or manufacturing sectors. To this end the Department of Trade and Industry’s Geographic Spread unit, which was established to promote a more equitable spread of investments, has been conducting research and identifying opportunities in our economy. This has culminated in the establishment of a Geographic Information System that contains a range of economic data from across the country.
On the basis of this information we are better able to attract suitable investors. The dti through Trade and Investment South Africa, our foreign offices, and in partnership with provincial investment promotion agencies are working hard to attract international investors to our country. We must however ensure that own people are also able to take advantage of the opportunities available, and in this regard the dti offers a number of incentives to support domestic investors. The dti’s regional offices are also in place so that they can inform businesses in provinces about the incentives that we offer and advise them on how to access these opportunities.
An additional tool available to the government to attract investments and stimulate regional economies has been to increase infrastructure spending, for example, on roads, ports, telecommunications, electricity, etc. This spending, which will be dramatically increased by government in the next few years, often stimulates and crowds in private sector investors who are keen to take advantage of the improved access to new markets or inputs created by the infrastructure developments. This approach informs the Industrial Development Zones, which the Minister spoke about in his address.
A critical aspect of addressing the spatial underdevelopment of our country is ensuring that we are empowering and providing adequate support for small businesses. Small businesses and entrepreneurs are increasingly playing an important role in local economic development and the dti has been working with municipalities in supporting these developments.
Honourable members, to achieve the desired impact, we need to have high levels of co-operation and co-ordination between the different spheres of government and state owned enterprises. In an effort to ensure properly focused development planning for the future, the Cabinet has aligned the National Spatial Development Perspective with the Provincial Growth and Development Strategies and the municipal Integrated Development Plans (IDP). Importantly, the National Spatial Development Perspective provides a platform for engagement among the three spheres of government around critical issues of policy implementation, and strategies for growth and development. This has helped to facilitate dialogue between the spheres of government about the country’s spatial priorities, infrastructure investment, and development spending.
To achieve the desired impact, we need to direct the skills and support that exists in the dti agencies so that they are able to unlock the opportunities in our economy. Yesterday in my address to the National Assembly I spoke about the improved ability of the dti to direct and mobilise the efforts of our agencies. These agencies are working in the areas of development finance; regulatory issues; international trade issues; and specialised service institutions that deal with small business development, women in business, as well as quality, standards, technology and innovation. For those who are not aware, these agencies consume 41 percent of the department’s budget and the collective asset base of these institutions exceeds R30 billion and the group employs more than 5000 people.
The Small Enterprise Development Agency (Seda), as well the development finance institutions – IDC, NEF, Khula, and the soon to be launched, Micro Finance Apex Fund have a critical role to play in supporting our efforts to promote growth in the underdeveloped regions of our country.
Honourable members, our support programmes for women in business have also started to make a significant impact. The trend of assuming that young women from rural areas are unable to participate in the information age has been bucked by our Technology for Women in Business Programme (TWIB). TWIB in partnership with Cisco Systems has successfully established an IT Academy that is training young women from the Tombo region in the Eastern Cape in advanced computer networking skills. Furthermore, women in business from across the country have joined and are actively participating in the South African Women Entrepreneurs Network (SAWEN); we look forward to the upcoming AGM of this organisation.
Other dti agencies, such as the South African Quality Institute, the South African National Accreditation Society, the South African Bureau of Standards and the Technology and Human Resources for Industry Programme (THRIP) that are involved in areas of quality, standards, technology and innovation are also critical players in our efforts to improve the effectiveness and competitiveness of businesses across the country, including those in rural areas and in underdeveloped regions. The location of a business should not be a determinant of the quality of its products and its ability to innovate.
To conclude, chairperson, our country has enormous potential that remains untapped. The Department of Trade and Industry with the resources at our disposal and in partnership with all spheres of government and a range of institutions, will be working to ensure that we implement our vision of having a greater geographic spread of investments. These efforts are part of our broader mandate of making our economy more inclusive, attracting higher levels of investments, and becoming more competitive. I would like to extend my gratitude to the provincial MECs and the HODs for their co-operation with the dti and their support of our efforts to grow our economy and address the imbalances of the past.
Finally, I would like to thank the outgoing Director-General for the work that he has done; he has left behind a strong organisation that is able to implement this vision. I would also like to congratulate Mr Tshediso Matona, who was appointed as acting Director – General of the department.
Members, we table Vote 32 before you for endorsement.
I thank you.
Issued by: Ministry of Trade and Industry
13 April 2005
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