Cape Town - The provision of infrastructure to support the exploitation of mineral wealth was not an invitation to increase raw materials at the expense of beneficiation, the Minister of Rural Development and Land Reform Gugile Nkwinti said today.
"On the contrary, we see the potential to both increase our mineral exports receipts and local beneficiation of South Africa's minerals," he said.
The beneficiation strategy identifies five priority value chains: iron-ore and steel, energy commodities, autocatalytic converters and diesel particulates, titanium and jewellery.
The government is also looking to strengthen the Black Economic Empowerment (BEE) codes by providing stronger incentives for employment creation, enterprise development, collective ownership and broad-based employment equity and skills development.
The Director General of the Department of Trade and Industry Lionel October said his department had received about 40 submissions on amendments to the BEE Act.
His department planned to release the draft amendment in May.
Nkwinti said 28 preferred independent renewable power producers had been announced, 18 for solar photo-voltaic projects, eight onshore wind projects and two concentrated solar power projects
The Integrated Resources Plan (IRP2), which was approved by Cabinet in March last year, reserves up to 42% of all new energy capacity for sourcing from renewable sources - and 9% of all installed capacity by 2030.
The projects make up 1 415MW of phase one of a total of 3 725MW to be procured by 2016.
"All the projects must be generating power by mid-2014," he said, pointing out that the plan makes a "significant contribution" to the country's transition to a lower carbon economy.
The Department of Trade and Industry, through the Automotive Investment Scheme (AIS) has approved 92 projects - seven to car producers and 85 to component manufacturers.
Nkwinti said the R2.5 billion in incentives would create about R9 billion in investment and 7 000 jobs.
The government would procure more locally-manufactured goods rather than imports.
In December last year, new regulations were introduced which stipulated that all state entities buy locally when purchasing specified products including clothing, buses, rolling stock and canned foods.
"In this context Prasa [Passenger Rail Agency of South Africa] has committed a minimum of 65% for its rolling stock," said Nkwinti, adding that Eskom and Transnet were about to launch the second phase of their local-procurement plans.
The government is also vamping up efforts to set up more business incubators to support small businesses.
While the Department of Trade and Industry is in the process of setting up 450 incubators, through partnerships with the private sector, the Department of Economic Development is working with the University of Johannesburg to set up a virtual incubator for social enterprises, said Nkwinti.
Tourism operators are also being targeted and SA Tourism's grading of guesthouses, hotels and other accommodation for tourists, is expected to reach 7 000 accommodation establishments, he said.
The grading would help these establishments gain more international standing and attract more foreign tourists to the country.
The Minister of Water and Environmental Affairs Edna Molewa said the department's policy on waste management, released last year to the cabinet, would help create opportunities for business owners, while cleaning up the country.
The waste policy looks at reducing, reusing and recycling, Molewa said.
By the end of December last year the Environment and Culture Sector of the Expanded Public Works Programme (EPWP) had created a cumulative 307 731 work opportunities across the country since 2009.
The aquaculture and inland fisheries programmes, which will be launched this year, would also improve employment opportunities.
The Community Work Programme and the Expanded Public Works Programme (EPWP) is aiming to reach over two million people by 2014/15.
Nkosinathi Nhleko, the Director General in the Department of Labour, said discussions at Nedlac around the Employment Services Bill - which deals with labour brokers - were still ongoing.
