Addressing the media at Parliament yesterday in Cape Town, Minister
of Public Enterprises Alec Erwin said that development of an
employment-creating manufacturing and services economy is key to
achieving government's targets.
Government has set itself a stretch target of growing gross domestic product to between 6% and 7% by 2014, reaching investment growth of 10%, creating 500 000 new jobs and moving export growth up to 10%.
Erwin was speaking on progress made in the Economic, Investment and Employment Cluster on government's programme of action.
He outlined several focus areas that will receive attention from government. These include increasing investment in the public sector and the 'first economy'.
Cost structures will be lowered to enhance competition and key sectors will receive attention through development strategies.
Government also aims to enhance international economic relations and the economic inclusion of the 'second economy'.
Erwin stressed the importance of a labour force that is equipped with the skills that are needed by the economy and the importance of research and development.
It is also clear that these endeavours will be in provinces other than Gauteng, as he stressed the need to spread the benefit geographically.
Public sector spend
Eskom and government are already in talks over a framework for electricity tariffs that will facilitate investment, which is likely to be in force as early as April next year.
Towards 2010, Erwin indicated that Spoornet will be spending on refurbishing and upgrading commuter rail infrastructure and rolling stock.
“The Department of Transport has produced an interim passenger rail plan providing a vision for the long-term strategic direction of passenger rail over the next decades. A preliminary business plan that envisages a significant increase in investment has been developed and will be brought to cabinet for authorisation,” said Erwin.
Institutional arrangements for an Eskom-styled national water infrastructure have been approved by Cabinet and a R21-billion programme to expand the water resource management infrastructure has been 'identified'.
Already under way are projects to the tune of R8-billion and ongoing are projects in the Olifants river, where the infrastructure is ready to provide additional bulk water for domestic and mining purposes.
Commenting on the Vaal pipeline to provide Sasol and Eskom with additional water, Erwin said only that it was 'in progress'.
Adding to spend by government is spend by the private sector, which has been charged with proving 30% of South Africa's power as part of government's leveraging of State-owned enterprise investment plans to increase private sector investment.
Also on the go is a review of Nedlac's efficiency and a review report is due in November.
Enhancing competition
As part of government's work towards lowering costs of key resource-based inputs, a policy on import parity pricing will be submitted to Cabinet for decision soon.
In addition, a national freight logistics strategy to lower the cost in the freight logistics chain and transport has been completed and Cabinet has approved the final safety requirements for the taxi recapitalisation programme.
Encouraging tourists into South Africa, a recent priority as mining and manufacturing take up less of the limelight, has seen government complete phase two of the complete competitiveness study for tourism, which is in the implementation phase.
Some R4-million has been transferred to Tourism South Africa and a memorandum of understanding signed between the Department of Environmental Affairs and Tourism and Tourism South Africa, a first step in establishing the Tourism Satellite Account.
Sectors in decline due to competition mainly from China will be focused on, said Erwin.
“The textiles and clothing sector is an example of such a declining sector and proposals to support the sector are under way, including an interim arrangement to replace the duty credit certificate scheme in the industry.”
Economic enhancement
Other than enhancing South Africa's - and Africa's - inclusion on the radar screens of international players through Nedlac, Erwin is determined to bring the 'second economy' into the fold.
To this end, marginalised people will be brought “into the world of work through providing access to basic training and information about careers, as well as business opportunities and resources” as part of the Expanded Public Works Programme.
“In line with the Cabinet decision at the July 2005 Lekgotla the process of identification of opportunitie,s for expansion has been initiated.”
Government will be embarking on a mass communication plan to inform the public of opportunities and Erwin said that this “will include cooperation with the SABC”.
By the end of September, an integrated small business development strategy will be submitted to Cabinet for a decision.
The strategy “seeks to draw on the lessons of the last decade of government's efforts to stimulate this sector, including successes and shortcomings with the objective of enabling small business to contribute to employment growth and economic inclusion”.
Gazetting of the ICT, mining, financial services, petroleum and tourism charters will be done as soon as the codes of good practice are finalised, said erwin.
Other charters are in progress: wine, transport, construction, agriculture, auto and aerospace, property, pharmaceutical and health.
Skilling the country
Erwin indicated that government has made progress in developing the skills needed by the country.
These include that national skills funding windows have been developed, approved and a budget has been allocated.
Provincial workshops on the National Skills Development Strategy (NSDS) were conducted and 23 Seta establishments have received certification.
Seta grants and service-level agreement regulations were published in July, and the Labour and Education Departments has marketed learnership programmes to recruit more school leavers and graduates. New target have been set for March 31 next year with R21,9-billion set aside over five years for the National Skills Development Strategy.
Hand-in-hand with skills is the need to invest in research and development, which Erwin indicated must grow “almost two-fold over the next three years to achieve higher levels of competitiveness, meet sector growth targets through science, engineering and technology and develop appropriate human capital”.
To drive this growth, government has embarked on a process to develop options on incentive models and an interdepartmental committee is working on a draft plan that profiles these models to be submitted for Cabinet's consideration at the end of September 2005.
More than just Gauteng
Yet all of these endeavours have to reach the widest audience, which is why a comprehensive map of the South African economy is being developed.
StatsSA is developing spatial economic indicators including an integrated business register in cooperation with the South African Revenue Service, the Department of Trade and Industry and the Department of Labour.
Government has set itself a stretch target of growing gross domestic product to between 6% and 7% by 2014, reaching investment growth of 10%, creating 500 000 new jobs and moving export growth up to 10%.
Erwin was speaking on progress made in the Economic, Investment and Employment Cluster on government's programme of action.
He outlined several focus areas that will receive attention from government. These include increasing investment in the public sector and the 'first economy'.
Cost structures will be lowered to enhance competition and key sectors will receive attention through development strategies.
Government also aims to enhance international economic relations and the economic inclusion of the 'second economy'.
Erwin stressed the importance of a labour force that is equipped with the skills that are needed by the economy and the importance of research and development.
It is also clear that these endeavours will be in provinces other than Gauteng, as he stressed the need to spread the benefit geographically.
Public sector spend
Eskom and government are already in talks over a framework for electricity tariffs that will facilitate investment, which is likely to be in force as early as April next year.
Towards 2010, Erwin indicated that Spoornet will be spending on refurbishing and upgrading commuter rail infrastructure and rolling stock.
“The Department of Transport has produced an interim passenger rail plan providing a vision for the long-term strategic direction of passenger rail over the next decades. A preliminary business plan that envisages a significant increase in investment has been developed and will be brought to cabinet for authorisation,” said Erwin.
Institutional arrangements for an Eskom-styled national water infrastructure have been approved by Cabinet and a R21-billion programme to expand the water resource management infrastructure has been 'identified'.
Already under way are projects to the tune of R8-billion and ongoing are projects in the Olifants river, where the infrastructure is ready to provide additional bulk water for domestic and mining purposes.
Commenting on the Vaal pipeline to provide Sasol and Eskom with additional water, Erwin said only that it was 'in progress'.
Adding to spend by government is spend by the private sector, which has been charged with proving 30% of South Africa's power as part of government's leveraging of State-owned enterprise investment plans to increase private sector investment.
Also on the go is a review of Nedlac's efficiency and a review report is due in November.
Enhancing competition
As part of government's work towards lowering costs of key resource-based inputs, a policy on import parity pricing will be submitted to Cabinet for decision soon.
In addition, a national freight logistics strategy to lower the cost in the freight logistics chain and transport has been completed and Cabinet has approved the final safety requirements for the taxi recapitalisation programme.
Encouraging tourists into South Africa, a recent priority as mining and manufacturing take up less of the limelight, has seen government complete phase two of the complete competitiveness study for tourism, which is in the implementation phase.
Some R4-million has been transferred to Tourism South Africa and a memorandum of understanding signed between the Department of Environmental Affairs and Tourism and Tourism South Africa, a first step in establishing the Tourism Satellite Account.
Sectors in decline due to competition mainly from China will be focused on, said Erwin.
“The textiles and clothing sector is an example of such a declining sector and proposals to support the sector are under way, including an interim arrangement to replace the duty credit certificate scheme in the industry.”
Economic enhancement
Other than enhancing South Africa's - and Africa's - inclusion on the radar screens of international players through Nedlac, Erwin is determined to bring the 'second economy' into the fold.
To this end, marginalised people will be brought “into the world of work through providing access to basic training and information about careers, as well as business opportunities and resources” as part of the Expanded Public Works Programme.
“In line with the Cabinet decision at the July 2005 Lekgotla the process of identification of opportunitie,s for expansion has been initiated.”
Government will be embarking on a mass communication plan to inform the public of opportunities and Erwin said that this “will include cooperation with the SABC”.
By the end of September, an integrated small business development strategy will be submitted to Cabinet for a decision.
The strategy “seeks to draw on the lessons of the last decade of government's efforts to stimulate this sector, including successes and shortcomings with the objective of enabling small business to contribute to employment growth and economic inclusion”.
Gazetting of the ICT, mining, financial services, petroleum and tourism charters will be done as soon as the codes of good practice are finalised, said erwin.
Other charters are in progress: wine, transport, construction, agriculture, auto and aerospace, property, pharmaceutical and health.
Skilling the country
Erwin indicated that government has made progress in developing the skills needed by the country.
These include that national skills funding windows have been developed, approved and a budget has been allocated.
Provincial workshops on the National Skills Development Strategy (NSDS) were conducted and 23 Seta establishments have received certification.
Seta grants and service-level agreement regulations were published in July, and the Labour and Education Departments has marketed learnership programmes to recruit more school leavers and graduates. New target have been set for March 31 next year with R21,9-billion set aside over five years for the National Skills Development Strategy.
Hand-in-hand with skills is the need to invest in research and development, which Erwin indicated must grow “almost two-fold over the next three years to achieve higher levels of competitiveness, meet sector growth targets through science, engineering and technology and develop appropriate human capital”.
To drive this growth, government has embarked on a process to develop options on incentive models and an interdepartmental committee is working on a draft plan that profiles these models to be submitted for Cabinet's consideration at the end of September 2005.
More than just Gauteng
Yet all of these endeavours have to reach the widest audience, which is why a comprehensive map of the South African economy is being developed.
StatsSA is developing spatial economic indicators including an integrated business register in cooperation with the South African Revenue Service, the Department of Trade and Industry and the Department of Labour.
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