The Minister of Trade, Industry and Competition, Mr Parks Tau, says the department is driving a R700 billion investment pipeline into the economy to unlock reform.
This, he says is being done through credible, investable projects spanning critical sectors; among them transformative energy projects worth R339 billion, that will finally end energy insecurity and catalyse industrial revival.
The Minister said this while delivering his Budget Vote Speech in Parliament.
He emphasised the importance of the Transformation Fund announced by the President earlier in the year, in driving a structural economic shift which he says is rooted in the Freedom Charter’s enduring call for transformation and shared prosperity in South Africa.
“For too long, Enterprise and Supplier Development (ESD) efforts have fallen short of their potential. Despite regulations requiring companies to allocate 3% of their net profit after tax towards ESD, only 61% of these funds reach their intended beneficiaries. This leaves an estimated R26 billion untapped each year. The Transformation Fund changes this. By ring-fencing, aggregating, and centrally managing these contributions, we will ensure that they are deployed with scale, discipline, and impact.” – he said.
He added that parallel to the work on finalising the Transformation Fund concept document, the department and its entities are mobilising commitment through existing structures, with the intention of aggregation.
The Minister presented a new path towards industrialisation and emphasised that: “Our industrial policy promotes local economic activity, and its review will be guided by opportunities in diversification, decarbonisation and digitalisation. In order to turn constraints into opportunities we are:
- Convening investors, industry and regulators in strategic platforms;
- Co‑investing as equity partners in priority sectors;
- Catalysing credit guarantees, policy‑certainty bonds and concessional infrastructure finance; and
- Enabling Fast‑track licensing, streamline visas for scarce skills, and digitise permits through an Omnibus Fast‑tracking Act.”
He further placed the African Continental Free Trade Agreement (AfCFTA) at the centre of efforts to propel the African continent to greater economic heights through the Butterfly Strategy aimed at a vision where Africa is not a periphery to global trade, but it’s beating heart.
The Minister of Trade, Industry and Competition, Mr Parks Tau, delivering the department’s Budget Vote 2025 – 2026 in Parliament.
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