Posted: March 14, 2023
This morning, Minister Ebrahim Patel presented the Department of Trade, Industry and Competition’s (the dtic) quarter three report to the Parliamentary Portfolio Committee on Trade, Industry and Competition. The report highlighted the work of the Department and illustrated how this work impacts on the lives of South Africans, sharing fifty case studies of government interventions that have positively shaped a more prosperous and inclusive economy.
The presentation took note of global economic pressures such as inflation and commodity price fluctuations while providing insight into South Africa’s own economic position. The Minister particularly noted the impact of loadshedding and outlined efforts made by the dtic to address this urgent and important issue. the dtic’s efforts include a 1.3 billion rand energy resilience scheme facility to support companies affected by load shedding, promoting investment, cutting red tape and establishing an Energy One-Stop Shop managed by InvestSA. the dtic has also made interventions to improve energy efficiency and to implement an energy resilience scheme, among other interventions.
Minister Patel welcomed investments enabled by the dtic which benefited communities and created new jobs. To this effect, government has secured private sector pledges to invest more than R1 trillion in the economy, resulting in the opening, expansion, and continued operations of several projects across the country. These contributed to R188 billion in manufactured exports during the third quarter, according to provisional SARS data.
Notable investments included:
- R11.5 billion on a solar thermal power plant in the Northern Cape
- R1.1 billion on a data centre and solar power project in Ekhuruleni
- R3.3 billion on a new flat steel plant
- R3.62 billion on new automotive manufacturing in Tshwane
- R300 million on a business services centre in Durban and the rescue of a major industrial park in Gauteng.
These investments by the private sector are testament to the effectiveness of incentives and support provided by the dtic, as well as the confidence that the business community has in the South African economy and its growth potential.
Minister Patel welcomed a 26% increase in vehicle production compared to the previous year’s quarter three and a 15% increase for the first three quarters of the year, bringing production up to 408 135 vehicles. The Minister also welcomed a 31% increase in vehicle exports compared to the same quarter of the previous year and a 26% increase in exports for the three quarters bringing total exports of vehicles to 263 422. The total value of automotive exports and domestic sales came to R87 billion in quarter three.
During quarter three, employment in manufacturing grew by 26 000 jobs, and more than 650 000 jobs were retained in sectors protected under masterplans. The report provided an update on the Social Employment fund, administered by the Industrial Development Corporation (IDC). The Fund created 44 300 jobs by the end of quarter three, giving opportunities to young people like Mahlatsi Glenrose Ngwenya, who found her first job after matriculating as a participant in the Fund.
In one of the fifty case studies, Minister Patel spoke about how Miss Agnes Khabonina Mogale, a 47-year-old mother of two from Tshwane, started as a cleaner and is now a thermoforming operator. She is employed by a company manufacturing components for the Next Generation Ford Ranger in the Tshwane Special Economic Zone. She reflected on a few years back, when she could not save money and was living from hand to mouth, but now she is able to buy a stand and save to build her own house.
The full presentation is available on Parliament’s YouTube channel.
Bongani Lukhele – Director: Media Relations
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