The new steel price agreement, brokered between the Department of
Trade and Industry (DTI) and Anglo-Dutch steel group LNM, will
unlock opportunities for downstream, and especially
labour-intensive, activities in the metals sector, said Minister of
Trade and Industry Mandisi Mpahlwa at an economic, employment and
investment cluster media briefing yesterday.
In a bid to boost its stake in South African steel manufacturer Iscor from 49,9%, LNM has agreed to the deal, which includes developing a competitive pricing model for the South African steel industry.
“The agreement is an important step in implementing the Growth and Development Summit (GDS) agreements, in respect of import parity pricing and administered prices,” said Mpahlwa.
However, he did not provide details on the so-called new steel price model, which steel producer Iscor has said does not exist.
Iscor has stated that its pricing formula will remain in tact as one shareholder cannot conclude a deal on behalf of all shareholders. It has indicated a willingness, though, to extend it rebate support system and enter into industry-specific arrangements.
Meanwhile, government has also been looking at administered prices more broadly in order to ensure that prices of telecoms, water, energy and transport services are affordable and accessible to the poor, as well as enhancing the competitiveness of enterprises, and an extensive report on this by National Treasury is to be considered by Cabinet shortly.
Mpahlwa said that extensive work in the area of human resources development and addressing critical skills shortages in the economy would continue over the next three to five years.
In particular, government is on track to meet its target of 80 000 learnerships.
Research has been completed into critical skills shortages and sector education and training authorities have been redirected to focus on these scarce skills.
Bursaries to students studying science and related disciplines have been increased by R400-million, which covers an additional 105 000 students.
“We are also going to be aggressively marketing learnerhsip opportunities to school leavers and graduates,” said Mpahlwa.
Government will also be working closely with enterprises to encourage them to enroll and recruit more learnerships by easing the administrative burden on the private sector. Mpahlwa said that several sectors of the economy have been identified that have considerable potential for increased output, value addition, exports and employment creation.
These are agriculture and agri-processing, tourism, ICTs, cultural industries including film, music, craft and design, minerals and metals, clothing and textiles, automobiles and components and chemicals.
A new Enterprise Bill, which will be introduced into Parliament this year, is aimed at streamlining financial support to enterprises in manufacturing and services sectors.
The services sector has been added to this list and an integrated services strategy will look at the potential to create employment through expanding delivery of basic services and services oriented public works programmes such as child care and care for the aged, as well as developing high value added services, such as software development, project management and design.
Within the services sector, the film, business process outsourcing and call centres will be receiving incentives to promote investments in this area.
In the ‘second’ economy, the economic, employment and investment cluster will focus on human resource development, especially artisan and entrepreneurial training; improving labour and market opportunities intelligence; the expanded public works programme (EPWP) and acceleration of land and agricultural reforms (to which R1,5-billion has been allocated).
Transport Minister Jeff Radebe said that, although the government is going to be spending about R15-billion over the next five years on the EPWP, there is also a lot of money in the hands of the private sector.
“We believe that the labour intensive technologies that are being promoted by Public Works can be assimilated by the private sector, which can play a critical role in enhancing labour intensity in construction projects,” he said.
Outlining Environment and Tourism’s role in the EPWP Minister Marthinus van Schalkwyk said it has set aside R1-billion for the EPWP and to date 34 000 jobs have been created.
“The target is to create 67 000 temporary jobs with that additional R1-billion,” he said.
“Enterprise development support and broad-based black economic empowerment, including accelerating farmer support and the tourism enterprise programme to increase the participation of black people in these sectors is also a key task,” said Mpahlwa.
The DTI has set aside over R1-billion to support small and medium enterprises this year.
New financial support measures are going to be launched by the National Empowerment Fund to promote BEE initiatives; R1-billion has been allocated this financial year.
Several charters are being concluded or are under discussion, which are aimed at enhancing broad-based BEE.
These are in the ICT, transport (aviation, taxi, freight forwarder service) and wine sectors.
Charters have been completed in the maritime, mining, agriculture, tourism, financial services and petroleum sectors.
In a bid to boost its stake in South African steel manufacturer Iscor from 49,9%, LNM has agreed to the deal, which includes developing a competitive pricing model for the South African steel industry.
“The agreement is an important step in implementing the Growth and Development Summit (GDS) agreements, in respect of import parity pricing and administered prices,” said Mpahlwa.
However, he did not provide details on the so-called new steel price model, which steel producer Iscor has said does not exist.
Iscor has stated that its pricing formula will remain in tact as one shareholder cannot conclude a deal on behalf of all shareholders. It has indicated a willingness, though, to extend it rebate support system and enter into industry-specific arrangements.
Meanwhile, government has also been looking at administered prices more broadly in order to ensure that prices of telecoms, water, energy and transport services are affordable and accessible to the poor, as well as enhancing the competitiveness of enterprises, and an extensive report on this by National Treasury is to be considered by Cabinet shortly.
Mpahlwa said that extensive work in the area of human resources development and addressing critical skills shortages in the economy would continue over the next three to five years.
In particular, government is on track to meet its target of 80 000 learnerships.
Research has been completed into critical skills shortages and sector education and training authorities have been redirected to focus on these scarce skills.
Bursaries to students studying science and related disciplines have been increased by R400-million, which covers an additional 105 000 students.
“We are also going to be aggressively marketing learnerhsip opportunities to school leavers and graduates,” said Mpahlwa.
Government will also be working closely with enterprises to encourage them to enroll and recruit more learnerships by easing the administrative burden on the private sector. Mpahlwa said that several sectors of the economy have been identified that have considerable potential for increased output, value addition, exports and employment creation.
These are agriculture and agri-processing, tourism, ICTs, cultural industries including film, music, craft and design, minerals and metals, clothing and textiles, automobiles and components and chemicals.
A new Enterprise Bill, which will be introduced into Parliament this year, is aimed at streamlining financial support to enterprises in manufacturing and services sectors.
The services sector has been added to this list and an integrated services strategy will look at the potential to create employment through expanding delivery of basic services and services oriented public works programmes such as child care and care for the aged, as well as developing high value added services, such as software development, project management and design.
Within the services sector, the film, business process outsourcing and call centres will be receiving incentives to promote investments in this area.
In the ‘second’ economy, the economic, employment and investment cluster will focus on human resource development, especially artisan and entrepreneurial training; improving labour and market opportunities intelligence; the expanded public works programme (EPWP) and acceleration of land and agricultural reforms (to which R1,5-billion has been allocated).
Transport Minister Jeff Radebe said that, although the government is going to be spending about R15-billion over the next five years on the EPWP, there is also a lot of money in the hands of the private sector.
“We believe that the labour intensive technologies that are being promoted by Public Works can be assimilated by the private sector, which can play a critical role in enhancing labour intensity in construction projects,” he said.
Outlining Environment and Tourism’s role in the EPWP Minister Marthinus van Schalkwyk said it has set aside R1-billion for the EPWP and to date 34 000 jobs have been created.
“The target is to create 67 000 temporary jobs with that additional R1-billion,” he said.
“Enterprise development support and broad-based black economic empowerment, including accelerating farmer support and the tourism enterprise programme to increase the participation of black people in these sectors is also a key task,” said Mpahlwa.
The DTI has set aside over R1-billion to support small and medium enterprises this year.
New financial support measures are going to be launched by the National Empowerment Fund to promote BEE initiatives; R1-billion has been allocated this financial year.
Several charters are being concluded or are under discussion, which are aimed at enhancing broad-based BEE.
These are in the ICT, transport (aviation, taxi, freight forwarder service) and wine sectors.
Charters have been completed in the maritime, mining, agriculture, tourism, financial services and petroleum sectors.
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