Chairperson
Honourable Members;
Minister Tau and Deputy Minister Godlimpi;
Acting Director-General and senior officials of the dtic,
As South Africa heralds a new and exciting era in her young democracy with the historic establishment of a Government of National Unity (GNU), the Department of Trade, Industry and Competition has a critical role to play in gearing for economic growth and job creation.
In the wake of stagnant economic growth, high unemployment and the increased cost of living, our people have sent us a clear message that we need to work together to find one another.
The GNU is committed to placing inclusive growth and job creation at the centre of government’s agenda to tackle the high levels of poverty and inequality that are denying too many of our citizens the dignity they deserve.
In pursuit of this objective the National Development Plan (NDP) remains the GNUs policy framework in our pursuit of growth and jobs, while the UN’s Sustainable Development Goals will help to guide our department, specifically Goal 8: “promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all”; and Goal 9: “build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation.”
The Minister has placed Industrial policy as a central theme of the 7th administration. Improving the effectiveness of this industrial policy will be key to this new administration’s success by focusing our interventions on growing exports, while targeting activities such as investment infrastructure and innovation.
However, this is not the job of DTIC alone. In the spirit of working together to find each other, the department will be bold in developing a more transversal relationship between government departments and other key partners while identifying ways to reduce the red tape that is holding us back. The department’s commitment to localisation will be supported by efforts to ensure that as a nation we invest in safety and security, build and maintain infrastructure, secure our energy supply and ensure quality education and training for citizens to bolster a skills revolution. This is how we will sustainably strengthen local industries and enhance South Africa’s competitiveness in global markets.
To succeed it is critical that we partner with the private sector to unlock deep pools of capital, benefit from their expertise, and ensure strong investment inflows into our economy. We will ensure open and transparent engagement with the private sector that builds trust and fosters investment and growth.
Ultimately, ensuring industrial policy remains consistent, will create a predictable business environment and certainty that encourages the private sector to increase its investment into the South African economy; in turn leading to real and sustainable job creation.
Chairperson, one of the department’s key focus areas will be a renewed export drive to lower the risk of slow domestic growth, while also identifying high growth opportunities. Bolstering our international
competitiveness and expanding export markets is key to South Africa’s economic recovery and growth trajectory.
South Africa’s exports in May this year totalled over R178 billion. In addition, we recorded a trade surplus of over R20 billion, significantly higher than forecasts and the widest trade surplus in six months. This is commendable and highlights, with dedicated and pragmatic focus, the important contribution that exports can make to our fiscus.
South Africa can become an export-oriented economy with the department’s dedicated focus on implementing measures to boost the competitiveness of local industries in global markets, streamlining export processes, lowering trade barriers, offering financial and technical assistance to exporters, and cultivating beneficial trade alliances with other nations.
Honourable Members, it is essential that South Africa’s economic growth is grounded in manufacturing-led growth as outlined by the Minister. We will support local industries by using evidence to build a supportive and competitive ecosystem to drive manufacturing growth. Key to this, will be identifying intermediate goods that could make our manufacturers more competitive; as well as identifying the products we produce competitively and the markets that consume those products in large and/or growing volumes.
Chairperson, in conclusion, I want to reiterate my commitment to working hand in glove with Minister Tau and Deputy Minister Godlimpi, as we dedicate ourselves to the bold and decisive actions that are required to place our economy on a high growth, high job creation trajectory towards an inclusive future for all.
I thank you.
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