As he presented the Department of Trade and Industry's budget vote in the National Assembly yesterday, the Minister of Trade, Industry and Competition, Minister Parks Tau, blamed inadequate legislation for failing to create an inclusive economy.
"It has been 21 years since the promulgation of the BEE legislation and it has not fully achieved its intended outcome of fostering an inclusive economy," he said. Transformation is necessary and is not just a tool to redress the effects of apartheid, he explained.
"In order to reduce our dependence on our small domestic market, the DTIC will implement new export measures. In partnership with government, business, labour and civil society, we will work to expand our export footprint," Mr Tau said.
He committed to advancing transformation and said the triple BEEE legislation had achieved some success but concerns remain about its effectiveness as a comprehensive tool for transformation. "In the short term, the DTIC and the triple BEE Commission will engage organised business and other stakeholders to encourage firms to comply. The department will combine resources in order to strengthen the commission's capacity to monitor compliance and emerging trends."
He noted the Special Economic Zone's contribution to the economy and said government will work with the private sector to ensure effectiveness of the industrial parks.
Participating in the debate, the Chairperson of the Portfolio Committee on Trade and Industry, Mr Mzwandile Masina, said the committee supported the budget vote but it will not continue to be business as usual. "The industrial policy of the country should be anchored on the value addition and beneficiation. We cannot continue to do the same thing but expect different results. We emphasise the clear desire for South Africa to move from sourcing raw materials to higher-value activities in domestic processing and refining."
Mr Masina said the future of South Africa's economy rested on regional integration. "Our small economies are not competitive in the global market; a healthy internal Africa trade market will ensure value added," he said.
Inkatha Freedom Party committee member, Inkosi Russel Nsikayezwe Cebekhulu said the mandate of the department needed to be evaluated against the harsh realities of South Africa's economy. "With the staggering unemployment and diminishing trust in the government's ability to revitalise and rebrand the nation, the stakes are high," he said.
Freedom Front Plus committee member Dr Wynand Boshoff said it is true that the economy is unable to provide jobs for the population. "We have a growing unemployment and it's worse among young people. In this instance, the insistence on transformation is understandable and it is clear that the wealth should be spread more equitable. However, it is very difficult to transform a stagnant economy."
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Minister Tau said South Africans needed to work together and find each other. "The parties that constitute the GNU have engaged to ensure that we are able to advance this government's agenda," he added.
He said South Africa had the industrial capability in the country and thus needed to stop exporting jobs. "The DTIC needs to harness international relations with our partners such as the BRICS+, Africa Continental Free Trade Area, Africa Growth and Opportunity Act, and the economic partnership agreement with the European Union in order to grow the economy," he noted.
Sibongile Maputi
