Government is dedicated to transforming apartheid spatial planning by investing in critical industries, such as manufacturing, to revitalise and create much-needed jobs in the communities where people reside.
This is according to Deputy President Paul Mashatile, who responded to questions in the National Council of Provinces (NCOP) relating to several critical issues impacting South Africa’s township and rural economies.
The Deputy President on Thursday said the Department of Trade, Industry and Competition (dtic) has developed the Industrial Parks Revitalisation Programme (IPRP), which is aimed at renewing and reviving South Africa’s old and abandoned industrial parks, and driving employment in the manufacturing sector in townships and rural economies.
This programme aims to support State-owned industrial parks and identify enabling opportunities for local manufacturing and value addition in marginalised communities.
Mashatile is of the view that government has made significant progress, citing the Nkowankowa Industrial Park in Tzaneen, Isithebe Industrial Park in Mandeni, Matjhabeng Enterprise Industrial Park in Matjhabeng and the Wild Coast Industrial Park in Mthatha.
The Nkowankowa Industrial Park, where Peppadew International is a major tenant, employs 66 emerging and commercial farmers for processing plant inputs.
This initiative also employs 6 000 seasonal workers for nine months, excluding 348 permanent employees. Five thousand indirect jobs are also created through contracted farmers.
The Industrial Parks Revitalisation Programme, led by the dtic - in collaboration with National Treasury’s Cities Support Programme and the Township Economic Development Framework - is aimed at developing integrated city development strategies.
Mashatile announced that these strategies are already being implemented in Tembisa and Ekurhuleni in Gauteng, and New Brighton in the Eastern Cape.
The Minister of Small Business Development, Stella Ndabeni-Abrahams, announced during her Budget Speech earlier this year that government has allocated R266.8 million to the Small Enterprise Manufacturing Support Programme (SEMSP).
Mashatile believes that this will strengthen the Black Industrialist Programme and ensure more participation of small enterprises in the manufacturing sector.
He also highlighted the State’s programmes to support Special Economic Zones (SEZs), which are aimed at expanding economic activity in underdeveloped parts of South Africa.
To date, he said there are 11 designated SEZs, nine of which are being supported by the SEZ Fund, which have generated investments amounting to R19.6 billion.
“Government is committed to fostering collaboration with the private sector, whilst building the capacity of the State to create a conducive environment for the township and rural economy to thrive,” Mashatile said.
National State Enterprises Bill
On the question of the revival of the National State Enterprises Bill, the Deputy President cited President Cyril Ramaphosa, who announced during the opening of the seventh Parliament that government will finalise a new centralised ownership model for State-owned enterprises (SOEs).
According to the President, this is aimed at improving accountability, transparency, governance and oversight, while reducing inefficiencies and potential for corruption.
“In this regard, the National State Enterprise Bill that lapsed in the sixth Parliament has been revived by the seventh Parliament,” said the Deputy President.
The Bill will develop a strategy for national State enterprises, establish the State Asset Management SOC Ltd, and provide appropriate and effective monitoring and reporting mechanisms for SOEs and subsidiaries.
“I am pleased to report that President Ramaphosa has since assigned the Minister in the Presidency responsible for Planning, Monitoring and Evaluation the responsibility to finalise the processes towards the establishment of the State Asset Management SOC Ltd and associated matters.”
This means that the State entities that were previously under the stewardship of the former Department of Public Enterprises will now report to their respective line function departments in terms of policy and regulatory matters.
Mashatile said the Bill will play a critical role in the future governance of South Africa’s SOEs.
“In this regard, the centralised model will ensure that SOEs are insulated from political influence and interference. The Board of the [envisaged] holding company will have independence over SOEs to provide oversight without undue influence.”
To ensure the State delivers in building a capable, ethical and developmental State, Mashatile said government will pursue every action that will contribute to sustainable, rapid economic growth, and remove every obstacle that stands in the way of growth, including eliminating fraud, corruption and maladministration in the public service. – SAnews.gov.za
