The Department of Trade, Industry and Competition (DTIC), led by Minister Parks Tau and Deputy Ministers Zuko Godlimpi and Andrew Whitfield appeared before the Portfolio Committee in Parliament recently to present the department's annual performance (APP) and budget for the 2024/25 financial year, in line with the 2019 - 2024 Medium-Term Strategic Framework (MTSF). However, the APP will be refined once the government of national unity adopts its new policy priorities for the seventh administration.
The Chairperson of the committee, Mr Mzwandile Masina, led the robust and fruitful discussions with the DTIC regarding its mandate and plans for the financial year. He clearly stated that "it cannot be business as usual if we want to grow the economy".
"Due to time constraints, the committee could not engage with the entities this time around. We have resolved to meet with all the entities in the next few months on their plans, how they intend to achieve them and their general usefulness in terms of what we want to achieve as a country. Things will have to be done differently." Mr Masina stressed that this was the consensus of members across all political parties.
In its report, the committee noted that the DTIC should evaluate the strategic needs of its entities, their performance and resource allocation to ensure that they are fit for purpose, and to rationalise resources and structures to enhance their efficiency and effectiveness. Mr Masina said the committee noted the cuts made by National Treasury to the department's budget due to fiscal constraints.
Notwithstanding the country's fiscal challenges, the committee was of the view that the protracted austerity measures are counterproductive, as they will reinforce slow economic growth. This, combined with other ongoing economic constraints, will curtail the department's objectives of deepening industrialisation and achieving higher economic growth, job creation, and reducing income inequality.
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Addressing the multiple constraints to the economy - such as low business confidence, port and rail infrastructure challenges, insecure energy and water supply, and high administered prices and port tariffs skewed in favour of the export of raw materials rather than value-added goods - will be critical in stimulating the economy and achieving sustained economic growth.
Mr Masina further said that deeper coordination among relevant departments is important to ensure that the drivers of industrialisation, such as skills development and logistics systems, are deployed effectively and support industrial policy.
The committee is also of the view that support for the film industry could yield significant job opportunities. It encouraged the DTIC to consider coordinating support for the industry through an industrial film incentive/strategy to fast-track the development and localisation of this sector, and consider the designation of special economic zones in this regard.
The majority of the committee supported the budget.
The African Christian Democratic Party indicated that it reserves its position. The Democratic Alliance supported the report as a true reflection of the engagement on the budget but reserved its position on the budget. uMkhonto weSizwe Party did not support the report or the budget. The committee adopted the budget vote report of the department and its entities.
