The Minister of Trade, Industry and Competition, Mr Parks Tau says pragmatic economic interventions need to be implemented in order to disrupt the status quo. Minister Tau was addressing Parliament during the debate on President Cyril Ramaphosa’s Opening of Parliament address last night.
Minister Tau highlighted the critical juncture at which South Africa currently stands, emphasising the need for proactive and pragmatic interventions to disrupt the status quo and unlock the nation’s full potential.
“Quite clearly our country is standing at a crossroads. On the one hand, we face a tipping point if we maintain the status quo responsible for South Africa not realising its full potential. On the other hand, we can positively disrupt this status quo with pragmatic interventions that yield positive outcomes,” said Minister Tau.
Minister Tau underscored the dtic’s commitment to supporting and enhancing the programmes outlined by the President Ramaphosa. He stressed the importance of addressing poverty, through a mission-oriented approach to industrial strategy. This approach focuses on co-creating markets and designing reciprocal partnerships around shared goals.
Minister Tau outlined the dtic’s programme of priorities, aimed at benefiting women, the youth, and people with disabilities. He emphasised that the implementation of these priorities was crucial for achieving social justice, redress, and poverty alleviation, which are essential for nation-building and social cohesion.
According to Minister Tau, in alignment with the President Ramaphosa’s vision of smart industrial policy, the dtic will implement sectoral plans building on successes in the automotive, clothing and textiles, retail, and agro-processing sectors. This policy will focus on beneficiation and export-led growth, as well as the Public Procurement Act to promote localisation in state procurement.
Minister Tau clarified the government’s approach to localisation and exports, stating that both are essential and must be pursued in tandem. He highlighted government’s investment allowance for new investments in electric and hydrogen-powered vehicles, announced by the Minister of Finance, Mr Enoch Godongwana, which allows producers to claim 150 percent of qualifying investment expenditure within the initial year.
Regarding structural transformation and Broad-Based Black Economic Empowerment ( B-BBEE), the dtic will leverage public procurement to advance B-BBEE and small and medium enterprises. The department will work closely with the National Treasury to implement the Procurement Bill after it has been signed into an Act, and monitor enterprise and supplier development contributions from the private sector.
He emphasised the importance of transformation and redress for the unity and prosperity of South Africa. He detailed the dtic’s focus on industrialisation, policy certainty, and reducing compliance costs to enhance the ease of doing business.
Minister Tau also stressed that public-private partnerships would play a critical role in the dtic’s smart industrial programmes and localisation initiatives. The private sector is seen as an invaluable partner in financing inclusive economic growth and enhancing export capacities.
“Public-private partnerships are a critical component of our smart industrial programmes and localisation initiatives. The private sector is an invaluable partner in financing and in driving inclusive economic growth and enhancing our export capacities,” added Minister Tau.
He also highlighted the importance of regional industrial development and market integration through the Southern African Customs Union and the African Continental Free Trade Agreement. He noted the significant increase in trade with Africa, from just over R343 billion in 2019 to just under R547 billion in 2023, and the potential of growing a green economy within Southern African Development Community.
For media enquiries and interviews:
Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
Mobile: 079 5083 457
WhatsApp: 074 2998 512
E-mail: BLukhele@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
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