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UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 1 TUESDAY, 18 MAY 2021 ____ PROCEEDINGS OF MINI-PLENARY SESSION OF THE NATIONAL ASSEMBLY ____ Members of the mini-plenary session met on the virtual platform at 10:00.

The House Chairperson Ms M G Boroto took the Chair and requested members to observe a moment of silence for prayer or meditation.
The Chairperson announced that the virtual mini-plenary sitting constituted a meeting of the National Assembly.

DEBATE ON VOTE 39 TRADE, INDUSTRY AND COMPETITON (Appropriation Bill) Vote No 39 – Trade, Industry and Competition.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 2 The MINISTER of TRADE, INDUSTRY and COMPETITION: Hon Boroto, hon members and fellow South Africans, the corona virus disease 2019, Covid-19, pandemic has deeply scarred the South African economy.

While the economic recovery is better than expected, it is still slow and its impact uneven, with larger job losses for lower paid workers, and severe damage caused to many small businesses.
To speed up economic recovery and build back better, we need a whole of government approach.

In my remarks today, I wish to set out the department’s future strategic focus, based on deeper integration of our efforts to galvanise inclusive growth and build local industrial capacity.

Deeper integration will enhance the connection between our policy vision and effective implementation.
We will achieve this by uniting growth with transformation, boosting local production, growing exports, increasing investment, and expanding the green economy.

I will speak about each of these strategic pillars in turn.
They form the basis for the department’s programme of work for the year ahead, which involves a bold set of measures covering greater worker ownership in the economy, higher levels of local industrialisation, a roadmap for producing electric vehicles and working on green hydrogen opportunities, boosting UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 3 investment levels, and building and strengthening export platforms through the African Continental Free Trade Area, AFCFTA, and other measures.
First, we must build a new model of growth and economic inclusion that unites South Africans in the economy and promotes transformation.

In other words, inclusive growth.

Growth that benefits everyone and not the few.

How do we achieve this “inclusive growth”, which is easy to speak of, but harder to achieve?

It is about sharing wealth and opportunity, breaking free from the shackles of the past, of a society divided between bosses on the one hand, and workers and servants on the other.
If we really are all in this together, then our patterns of ownership, power and control must be transformed.

Therefore, by building on our successes, we now need to step up policies that actively promote worker ownership of shares in firms and representation of workers on corporate boards, as well as support for broad-based ownership vehicles in the economy.
What is new in this approach is that worker ownership arrangements should not be in the form of passive dividend flow arrangements, but be accompanied by mechanisms for the voice of labour to be heard in the top decision-making structures in the corporate sector.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 4 This is an important way in which we can create meaningful economic inclusion.
This can be the new frontier of economic empowerment.

It is not a pipedream.

Our research has revealed the extent of worker ownership, more than 230 000 workers currently own shares in about 50 companies.

It is a vision of industrial democracy that is being executed by companies, who recognise the role that they can play in building an inclusive economy.
For example, the ground-breaking decision by Coca- Cola to appoint two-worker representatives – within the next four weeks there will be a ballot of the 8 000 workers to elect their representatives.

PepsiCo expects to have a worker representative on its board by September this year.
To advance this agenda further, our annual plan will cover the following actions: A Companies Amendment Bill will be prepared within the next three months to set out the modalities for improved representation of worker interests in company decision-making and company boards.
The outcome of the register of worker ownership in the South African economy will be published on an annual basis and we will work with unions and corporates to improve the funding arrangements to ensure that this model provides for real ownership and a greater share in decision-making, we also intend to work with tertiary UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 5 educational institutions to assist in the further education of worker directors and potential directors.
A practice note under the Broad-based Black Economic Empowerment Act will be gazetted today to provide guidance to regulators and clarity in the market on the treatment of broad-based empowerment vehicles, so that worker ownership schemes, community trusts and union investment vehicles are properly recognised for black economic empowerment, BEE, purposes.
Aside from worker representation, hon members, there are other significant steps that must be taken to achieve greater fairness, more opportunity, and deeper transformation in the economy.

Promoting black industrialists and small businesses is critical.

Though we have made progress with broad-based BEE, it is clear that we need to bring greater rigour and credibility to BEE statistics and practices and ensure that claims made by firms in their BEE reports are verified.
This may require adjustments to the reporting requirements.

I will appoint an expert panel to review the current BEE Framework in order to address these legitimate public concerns.
We recently released a report containing details of R32 billion made available by the Department of Trade, Industry and Competition, DTIC, institutions to nearly 800 black-owned UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 6 entities to grow their footprint in areas such as food processing, auto components, textiles, steel and film-making.
Master plan implementation of transformation measures, covering some R9 billion will begin rollout; and the first allocations from the Auto Industry’s Transformation Fund will be made, covering black component suppliers.

By November, the new J P Morgan Fund to support 500 local firms and small businesses, with R384 million of support through an equity equivalent agreement with the state will begin disbursing funds.
Tomorrow, the Competition Commission will launch a market inquiry into online platforms, like e-commerce market places, food delivery, short-term accommodation and travel e- platforms, the first such inquiry under the new legislation, and will later this year release a report on the state of economic concentration in South African industry.

I am pleased to announce that Deputy Commissioner, James Hodge, an eminent competition economist will Chair the market inquiry into online platforms.
A policy statement on competition policy for jobs will also be released tomorrow.

Hon members, a Green Paper on the Social and Solidarity Economy will be released for public comment within 60 days, which can assist with the UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 7 rebuilding of the economy in the wake of the number of formal businesses that have been devastated and to support township and rural enterprises.
A further amendment to company law is required to tackle the gross injustice of excessive pay.

A new Bill will be finalised within 60 days which will require disclosure of wage differentials in companies, stronger governance on excessive director pay, and enhanced transparency on ownership and financial records.

Our economy needs a production boost.


Therefore, hon members, the second pillar of our deeper integration strategy recognises that we must build local industrial capability, both for the domestic and export markets.

South Africa’s import to gross domestic product, GDP, ratio is too high for an economy that desperately needs more jobs.
We import goods worth 25% of our GDP – our propensity to import is out of line with peer countries and developed economies and more can sensibly and sustainably be produced locally.

Compare our 25% with China at 14%, India at 16%, Brazil 10%, the United States, US, at 12% and the European Union, EU, at 14%.
The local industrial effort, what we call localisation for shorthand, must be rooted in building both dynamic firms and UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 8 an inclusive economy.

Competitiveness and industrial agility are critical to longer-run localisation efforts.

Sector master plans developed and implemented in partnership with business and unions contain the details of how to do this.
We also need practical steps to promote, where sustainable, a greater level of beneficiation of our natural resources here in South Africa.

We have already made progress on this, proving that it can be done.

Pre-Covid, we imported R1,1 trillion of nonoil imports, which provides a useful marker of the potential for localisation.
In the past year, we built local production capacity, often from scratch, with more than R10 billion of local production of Covid-19 products, ranging from facemasks, hand sanitisers, ventilators and vaccines, and R2 billion of it was exported to other African countries.

South Africa’s first fuel cell factory started production in the Dube Trade Port, and a greater proportion of local scrap metal has been used in our foundries.
Further beneficiation actions include a vanadium electrolyte manufacturing plant in the East London Industrial Development Zone, IDZ, that will begin production later this year, using UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 9 South African mined vanadium oxide to create energy storage solutions, and a nickel sulphite facility has been established in North West using by-products of the platinum group metals, PGM, mining process to create components for lithium batteries used in electric vehicles.
A new edible oil refinery will be built in Richards Bay that will add half a billion rands of local content to the South African economy when it is completed.

We produce not only widgets and cars, but increasingly films and music.

During the lockdown last year, The Mauritanian, nominated for a few Oscars and British Academy of Film and Television Arts, Bafta, Awards, starring Jodie Foster and Benedict Cumberbatch, was shot in South Africa, helping to create local jobs.
A number of local films are currently being produced.

Last year we had three master plans in place, covering the auto, clothing and poultry industries.

Since then, hon members, we finalised three more, covering sugar, steel and furniture.

These master plans cover about 700 000 workers with a combined industrial output of about R300 billion.

We selected these industries because they promoted food security and rural development; and two of them are labour-intensive, especially in terms of jobs for women.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 10 For the future, we will be looking at master plans that support growth in new economic sectors as well as consolidating existing sectors.

In this coming year, our portfolio of new sector work covers, among others, global business services, film animation, the chemical and plastic sectors, green industry, medical products and capital goods.
To clarify overall approach to localisation we are releasing today a policy statement on localisation for jobs.

This will be complemented by integrated efforts with other Ministries to drive local vaccines development and use of local components in the National Infrastructure Plan.
Hon members, tariff adjustments and rebates are an important policy instrument available to the state to lower or increase import duties, but in future will need to be accompanied more clearly by binding commitments by applicants to improve their competitiveness, to create jobs and to exercise price restraint.

Our localisation strategy has the support of major corporate players.
Thirty chief executive officer champions have been nominated from the private sector, including Mamongae Mahlare from Illovo, Mark Cutifani from Anglo, Vikesh Ramsunder of Clicks, Fleetwood Grobler of Sasol and Fortune Majapelo of UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 11 Bushveld.

They, as much as government, are committed to achieving far greater localisation, recognising its wider benefit for the economy and society.
We now have an accord at National Economic Development and Labour Council, Nedlac, to drive progressive achievement of this, to localise up to R200 billion of additional production over an indicative five- year period.
An initial list of 42 products have been identified for localisation, and R240 million has been raised from the private sector to appoint technical experts to drive localisation, bringing together industrial engineers, supply chain managers, experts in dealing with illegal imports, and project managers.

Thirdly, hon members, we must address an increase our exports through trade with the rest of the world.
Last year, we secured a trade surplus of R270 billion, the largest on record, mainly due to a decrease in import levels, and exports to the United States increased in absolute terms.

Agricultural exports have grown, and so too the export of manufactured products such as catalytic converters used to reduce carbon emissions in cars and trucks, mining equipment, and cosmetics.

One of our key successes has been export of services.
Last month, South Africa was named as the most attractive UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 12 destination for global business services which includes call centres, and some 275 000 workers are now employed in the sector as a result of the DTIC incentives and active support to the sector during the pandemic lockdowns, when call centres were kept open safely while their competitors elsewhere were closed.
We made significant progress with the legal framework for the AFCFTA to enable African trading legally to commence during 2021, and in December last year, we gazetted regulations for the start of trading.

Trade policy is about jobs but it must also help to save lives during this pandemic.
For this reason, South Africa supported by India sponsored a formal request at the World Trade Organisation for a Waiver to enable vaccines, diagnostics and therapeutic products to be produced without some of the restrictions imposed by the Trade-Related Aspects of Intellectual Property Rights, Trips, agreement on intellectual property.

To date, more than 100 countries have supported this initiative, and the United States and New Zealand became the first developed countries to back the Waiver request.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 13 This is an extraordinary watershed achievement and this House should be proud of the leading role that South Africa played in building such a global alliance.

To clarify our trade policy stance, we are issuing a policy statement on trade policy for jobs and local industry on Thursday this week.
In the period ahead, we will build on these foundations, to take the AFCFTA forward, we aim to have rules of origin covering between 87% to 90% of products on our tariff book adopted by Heads of State; and to conclude bilateral offers with a number of countries.

To support local industry to export, the mandate of the Export Credit Insurance Corporation will be amended from 1 June this year to provide risk cover for a range of industrial products.
To support improved trade with the United States, we will within the next 30 days follow up discussions with the new US Trade Representative, Ambassador Katherine Tai, building on constructive meetings held in March and May this year.
To ensure that exports help the economy to transform, we will launch a new network bringing together black industrialists active in export markets; and to address widespread levels of illegal imports, we will finalise discussions with trading partners on measures to combat such activities.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 14 Hon members, investments are the lifeblood of growth.
Therefore, the fourth pillar is to complement the steps to expand our markets through localisation and exports by a renewed drive on investment.

At the Investment Conference seven months ago, new pledges of R110 billion were made.

The DTIC is now busy on implementation of the pledges and obtaining new ones.
One of the most significant was the R16 billion Ford car making expansion, that we expect will be matched by close to R4,3 billion investments by the component suppliers and further investment is expected to strengthen rail lines between Gauteng and the Eastern Cape Port of Coega.

Large new investment has been facilitated by the DTIC in the past 12 months, to build and expand factories across the country like fridge manufacturing in KwaZulu-Natal and a black-owned glass manufacturer in Gauteng.
We will now step up the drive to mobilise new investments in the economy, setting the DTIC a target of a R100 billion over the next year, which together with other efforts in the state, can help to achieve the goal for the next Investment Conference.

Fifth, hon members, we will expand our efforts on green industrialisation and the just transition.
Climate change will UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 15 impact on industrial development as well as human development and security, in a number of ways: through new opportunities for industrial processes and products, constraints to access to export markets and capital markets; and through disruptions to existing business models based on carbon intensive technologies.
Make no mistake, climate change represents a very real and grave threat to our future economic prospects, not least because of global markets that are changing fast.

We must recognise the urgency of the situation and take action accordingly.

We must not get left behind, with stranded assets and a carbon-dependent economic model.
We have made progress in some areas, with an increasing mix of renewable energy on our grid, assembly of hybrid vehicles using a combination of internal combustion engines and electric motors, work on battery storage technologies, and a new fridge freezer production in KwaZulu-Natal using solar energy, with more than 2 400 units produced already.
We must step up efforts to build full electric vehicles in South Africa, to maintain our capacity to export to key markets such as the EU and United Kingdom, UK, both of which have set new targets and deadlines to reduce the number of fossil fuel reliant vehicles on their roads.
We need charging UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 16 infrastructure, and must expand the existing 200 charging points for electric vehicles in South Africa using the agreed the SA Bureau of Standards, SABS, standard.

The big opportunity will be in the advancing technologies based on green hydrogen energy, with time projected to be the best solution to humanity’s energy needs.
If the 20th century becomes known as the century of crude oil and nuclear energy, the 21st century may be known as a century of renewable energy and green hydrogen.

South Africa is well-positioned to become a key player, with our reserves of platinum group metals used as a catalyst in green hydrogen fuel-cells as well as vanadium used in battery storage technologies.
Already, Sasol and one large carmaker have launched a partnership to explore fuel cell technologies across the National road, N3, corridor between Jo’burg and Durban.

As countries reconstruct their economies beyond Covid-19, renewable energies and renewable technologies will play a critical role.

Covid-19 reminded us that in a globalised world, if we get it wrong, the price all of us pay is huge.
And hence we must continue to ensure an economy that is congruent with international best practice in the field of energy production, that is climate friendly.

Climate change UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 17 demands that we rise to this challenge and seize the vast opportunity that it presents.
The technologies we’re talking about provide an opportunity and a solution, and it allows South Africa to play to its advantage.

To unlock the opportunities, our action plan will focus on the following: On electric vehicles, I have today issued a draft sector Green Paper containing a proposed roadmap to local production, setting out options being considered by automakers, unions and government, with steps and tentative timeframes required.
We now seek public comment on the document to finalise the strategy within 90 days.

On hybrid vehicles, Toyota plans its first production-run this year, providing consumers with greener cars assembled in South Africa.
On the green hydrogen economy, I have mandated the Industrial Development Corporation, IDC, to be the industry commercialisation agency to work with the Department of Science and Innovation, DSI, on achievement of its roadmap, and will appoint a panel led by Dr Johann van Zyl, an experienced global carmaker, to finalise a report on the practical actions to be taken to realise the opportunities for South Africa.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 18 To unlock the potential of these five strategic pillars, hon members, the state will need to integrate its own work and that of the private sector and labour into a more compelling growth and transformation story.

Deeper integration, enhanced state capability and more spatial development at district and metro levels and with special economic zones, SEZs, will be needed.
We will implement steps to boost state capacity and agility, improve the ease of doing business and cut bureaucracy and red tape, replacing them with smarter regulation.

Our focus is on clear and concrete actions.

This month, the first four black auto component manufacturers under the new Industry Transformation Fund will be supported, and rebate certificates for local clothing manufacturers will be issued, stimulating potentially R250 million local clothing manufacturing.
In June, we launch the fund for technical resources required to implement our localisation initiative, and Solar Africa Energy will open its solar carport manufacturing facility in Silverton in Pretoria.

In July, production of auto steering systems begins from the expanded ZF Lemfoerder factory in the Eastern Cape.
In August, black industrialist Dalisu begins commercial production from its UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 19 sodium sulphate plant in Piet Retief, to replace current imports, In September, PepsiCo launches its new Development Fund to bring more emerging farmers into its supply chain, and finalise a worker representative on its board.
In October, production of industrial helium commences from a new facility in Free State, making South Africa one of only eight countries globally to produce this vital gas; and the DTIC and IDC funded film, Happily Ever After will have its global release on Netflix.

In November, the first units of the new Toyota Corolla hybrid vehicle roll off the production line in South Africa, and the next South African Investment Conference is expected to be convened.
By December, Aspen Pharmacare based on capacity is expected to have produced its 100 millionth dose of the Covid- 19 vaccine in Gqeberha.

In January next year, Scaw Metals begins production of steel products from its expanded facility.

In February, a new aluminium packaging facility for the beverage industry starts production in Gauteng.

In March, our digital infrastructure will expand through establishment of a new data centre in Gauteng.
By April, the first building in the Tshwane SEZ for new Ford car component firms will be completed; and the Beijing Automotive Industry Holding Co, UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 20 BAIC, light vehicle assembly plant will start commercial production in the Coega SEZ.

Hon members, important steps are being taken.

There is real action on the ground-floor of our economy.
With deeper integration, and bolder ambition, the progress that we made will be a springboard for the inclusive growth this economy urgently needs and our people deserve.
In conclusion, I wish to thank Deputy Ministers Gina and Majola, as well as Lionel October who served for 10 years as the Director-General, DG, and the team led by Acting DG Malebo Mabitje-Thompson, for their invaluable contributions, to the boards and leadership of the DTIC agencies and our social partners for the works done this past year, and to members of the portfolio committee for their support.

It is my pleasure to table the budget of the department today before the National Assembly.

Thank you.
Thank you.

Mr D M NKOSI: Mme Boroto, Minister, hon members and fellow South Africans.

The Portfolio Committee on Trade, Industry and Competition adopted the 2021-22 Budget Vote 39 of the Department of Trade, Industry and Competition.

The Budget allocation allows the Department of Trade and Industry and Competition, DTIC to continue carrying out its mandate.
The UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 21 allocated budget for the DTIC of R9,7 billion in 2021-22, is in support of the operations of the department, incentives and transfers to its entities.

In this oversight the committee oversees the mandate of promoting the structural economic transformation, that will ensure economic growth and increase employment.
The next point will be the implementing programmes that broaden the participation of the previously disadvantaged particularly, facilitating the creation of opportunities for black people, women and youth to have opportunities to participate in the economy activities.

Finally, developing implementing legislation to a predictable, competitive, equitable and socially responsive environment conducive to investment, trade and enterprise development.
During its engagement with the DTIC, the committee learned how the department in the 2021-22 financial year, plans to do more with the reduced budget by co-ordinating activities of the department and using nonfinancial resources to achieve its mandate.
With the limited resources at its disposal, it has managed to develop initiatives that seek to address the main challenges of our country which are, economic growth, UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 22 unemployment by supporting the sectors that employ many people.

On 21 October 2020, the President of our country His Excellency Cyril Ramaphosa, in this House presented the Economic Reconstruction and Recovery Plan.
A plan to build a new economy, an inclusive economy, a growing economy and job creating economy.

Presenting the plan, the President said, I quote: We must work together to build this new inclusive economy and to build a South Africa that works.
Over the past few months since the introduction of the Economic Reconstruction and Recovery Plan in this Parliament, the Portfolio Committee on Trade and Industry and Competition has placed its oversight role on the implementation of this plan by the department and its entities, mainly focusing on development, finance, institutions, company regulations and customer protection.
The committee is satisfied with the progress that the department and its entities have made in implementing their interventions to achieve economic and reconstruction and recovery.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 23 The committee is further encouraged that the DTIC through the R9,7 billion allocated budget, continues to prioritise the Economic Reconstruction and Recovery Plan in the 2021-22 financial year.
Furthermore, the committee welcomes the diverse tools that the DTIC is using to implement the Economic Reconstruction and Recovery Plan.

The sectoral master plans, localisation and beneficiation, regional and global trade and the regulatory framework are some of the mechanisms that are being used by the DTIC to implement the Economic Reconstruction and Recovery Plan.
In addition, the committee supports the DTIC’s effort to maximise its reduced budget doing more with less given the fiscal constraints in the country by leveraging nonfinancial tools that is developing finance institutions, balance sheets to support inclusive economic growth.

Furthermore, delivering the state of the nation address on 11 February 2021, President Ramaphosa highlighted four priorities for the government for this financial year.
Priorities to address South Africa’s economic challenges of high unemployment, low level of economic growth and high level of inequality which have been exacerbated by the COVID-19 pandemic.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 24 The creation of the inclusive economic reform to drive inclusive growth is one of the priorities.
Looking at the DTIC’s plan and its ...[Inaudible]... for the financial year and the medium terms, the committee is encouraged by the measures that will be implemented to contribute to the inclusive economic growth.

To contribute to that inclusive economic growth, work towards the industrialisation for the inclusive growth in financial year through the industrial park and the economic zone, programmes.
To contribute to the broad and inclusive economy, the development of the DTIC continued to revitalise old industrial parks in rural and township areas, by building infrastructure that will make the area more attractive for investment.

Investment in these areas will lead to the creation of job opportunities.
The development of the special economic zone which the DTIC will continue through its budget, aims to promote trade, economic growth and industrialisation through the identification of opportunities and attracting of the investment into the designated areas, and designated sectors of the economy.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 25 These programmes will ensure that, people in the rural areas, townships and all provinces are not left behind in accessing job opportunities, where they live and need not have more of urban areas to access job opportunities.

All these programmes aim to build local manufacturing capacity while creating jobs.
The regional integration through the African Continent Free Trade Agreement as an instrument for driving industrial development in Africa, through its increasing trade among the African countries, the committee commends the DTIC implementation of the African Continent Free Trade Agreement.
In conclusion, the committee supports the 2021-22 Budget Vote 39 for the Department of Trade, Industry and Competition as it will be an enabler to inclusively grow the economy and job creation, which is envisaged by the Economic Reconstruction and Recovery Plan.

I was actually thinking it will be helpful to leave a few minutes for hon Mbuyane, to use as a time of finalizing our discussion.

Thank you very much ... IsiZulu: ... Mphathi, siyabonga kakhulu.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 26 The HOUSE CHAIRPERSON (Ms M G Boroto): Sibonge baba, usele nge-six seconds.

English: ... there is no minutes left, I am timing.

When you see my face- you see- you hear now, it is dismissing you.

When you see my face appearing, you must know, you have one minute left.

I will do that all the time, to all the speakers all the time.
When it is one minute left, I will bring my face on.

IsiZulu: Mr M D NKOSI: Siyabonga bengithi kushiyeke umzuzu.

Enkosi.

English: Thank you very much.

Mr D W MACPHERSON: House Chairperson, the Department of Trade, Industry and Competition has become the department of master plans.

It is a master plan of the prospects of masterplan for every economic problem that exists in South Africa.
They are hypnotic in their promise of prosperity and the Minister and his Deputies are the three-piece band playing a seductive tune UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 27 of vision and success but they can only last so long ...

[Inaudible.]

... Our country has seen it all.

Many as ...

[Inaudible.]


... has come before us with whizzy dreams and illusion; Reconstruction and Development Programme, RDP here, the Accelerated and Shared Growth Initiative for South Africa, AsgiSA, the Nine Point plan, Operation Phakisa, the National Development Plan, NDP, the Economic Reconstruction and Recovery Plan and now the Master Plan.
However, we are told that this formal plan is different, it is a plan of all plans, a plan so divine and inspired, it could only come of someone high and therefore it is the one that will finally work.

We just need to get a little more time and a lot more money because trillions of rands in the 27 years later haven’t quite been enough.

Let me tell you, hon members, it is a plan that leads to nowhere.

What does the ANC have to show for all of these plans?
Record unemployment, record inequality for black South Africans, record poverty levels for black South Africans, record malnutrition among black children.

If you want to understand what the net result for all these plans have been since 1994, it is the simple truth that life is getting worse for all UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 28 South Africans and black South Africans, particularly.

Don’t take my word for it.


Let me tell you a story of Sandile Mkhwanazi, a young black wine farmer in the Western Cape.

A year ago he ...

[Inaudible.]

... not because of Covid-19, but because of the ridiculous alcohol bans this government enforced because they stole all the money meant that was meant to build our health care system.

He simply could not get rid of the 35 000 bottles of wine that he was ready to sell.

Mkhwanazi along with other 25 black and coloured farm workers lost their jobs.
There was no plan to save Sandile.

Now, think about this, Black Economic Empowerment, BEE, and Broad-Based Black Economic Empowerment, BBBEE, have been around for decades.

Flagship plans of government which sort to reduce inequality and create jobs for black South Africans and it has done exactly the opposite.

It has made South Africans to be more unequal because BEE has only sort to put more money in the hands of the politically connected at the expense of ordinary black South Africans.
What has the ANC’ response been?

Well, President Ramaphosa said that we need to intensify BEE.

That should really ...

[Inaudible.]

...

He is also a big fan of the UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 29 black industrialist programme, another plan, of course, which will see money stifled to the ANC ...

[Inaudible.]

... Another plan is that of localisation much spoken about but little understood.
It is the new buzzword in abinet these days, much like the Fourth Industrial Revolution was in 2019.

Don’t you remember how ANC speaker after ANC speaker used to say the phrase in hope that it will magically bring it about.

Well, now we have localisation.

If we saved a little time and designate enough products it will surely just happen.
That is according to the Minister of Small Business Development who recommended to Minister Patel that he designate a thousand products for a 100% local content including wedding dresses, cat and dog food, electrical appliances, sexual enhancing boosters – am not sure why – and other bizarre things.

This is utterly madness in the type of logic which will only drive up costs through the roof.
Just yesterday, Tedelex released a report saying that localisation is only possible under certain conditions and they include most importantly, policy certainty to ensure production pipeline continuity, which is next to impossible with this government.

They further warned that this could lead to price increases of up to 20%.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 30 The last two years I have warned against the anti-competitive practice of tariff protection which is much loved by the Minister and which only lead to price increases.
The poultry industry is a great example because multibillion rands Johannesburg Stock Exchange, JSE, listed companies have managed to extract huge tariff increases on imported chicken, of which we have to import because we don’t produce enough and local chicken price have been rapidly increasing.

Just this morning ...

[Inaudible.]

... said, and I quote, I think there is some ...

[Inaudible.]

... to move up prices of the next few months.

More pains for most South Africans.


In any case our government will fix this, how do we get it right?

A masterplan, that’s what we need.

Steel prices have sold out the last few years while big monopolies continue to receive tariff protection because they are unwilling to modernise and compete with open markets.

What’s the solution?

Another plan, of course, the steel master plan.

...

[Inaudible.]

... the ANC to crook the country.

So, what’s the solution?


For starters we need the government to stop messing around and vaccinate the people.

It is not good enough to vaccinate 7 000 people a day.

Most of you in this Budget Vote will be long gone by the time your name get called up if we continue at this rate.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 31 We simply can’t afford to have an economy limping along because of the ANC state of incompetence.
Secondly, we need to stop picking winners and losers in this economy; whether it will be sugarcane, poultry, steel, autos, clothing and textiles.

We don’t need a master plan.

We need coherent government policy that drives competition lowest cost and broaden market access.

However, in order to do that we need this government to decide what it wants.

We either want to be an inward protection focussed economy or one that is outward focussed to compete internationally.
We need to be an economy that is for the many and not for the politically connected under the guise of BEE and black industrialists programme.

We don’t need economic reservation for those who are already fabulously rich.

We need government entities to treat everybody fairly and stop propping up state monopolies.

The Competition Commission has no problem with monopolies, but the SA Airways, SAA, Eskom and now the post office trying to sniff out competition in small packages.
Hon members, the choice really is ours.

We can continue on a plan to nowhere or we can choose a plan to prosperity but I assure you that the latter will not come out from this government or this Minister.

Thank you very much.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 32 Ms Y N YAKO: Thank you so much, hon House Chairperson.

I will be doing this speech on the Budget Vote.


The EFF rejects this Trade, Industry and Competition Budget Vote.

We do so knowing that South Africa has no industries.

We are nothing but a simple hub of other people’s products and exporters of mineral resources.

The current Minister of Trade, Industry and Competition, has spent the last 10 years as the Minister of Economic Development sending myths, fairy tales and wishful thinking about an economy that does not exist.
For the last 10 years he was the Minister of Economic Development, the economy declined from more than 3% annual growth to now just over 1%.

Even though much of this was a result of financials ...

[Inaudible.]

... wood and wood products, paper, rubber, plastic products, publishing and printing have all consistently experienced negative growth.
The Minister keeps on saying that there are industrial activities in South Africa, industrial activities that only exists in his or her imagination, nothing support this.

South Africa continues to export the majority of the finished products to Spar, Shoprite, Pick n Pay, Boxer and many other shelf space that exist in this country.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 33 We have premiers and member of the executive council, MECs, who thinks agro-processing is industries and manufacturing.

That is the level of incompetence we are subjected to while our people remain in abject poverty.

Our people are jobless, our people are landless and we continue to watch as the minerals are shipped to somewhere else to be processed.
We continue to have no creation of jobs and no finished products.

While we continue to export the very same finished products at a high price, we don’t feature anywhere in the global value chain.

South Africa continues to export the majority of finished products while manufacturing continues to collapse To blame Covid-19 is simply foolish and hiding behind clear curtains.
It was the EFF who said to the ruling party that there is no need to have a Department of Economic Development and under it the Industrial Development Co-operation separate from the Department of Trade and Industry.

We now know by reading the former Minister of Trade and Industry self-saving biography come explanation of his failures that the creation of this department was nothing but Cabinet’ squabbles.

You need to listen to the EFF and don’t wait another six years.
We need to turn all provinces into manufacturing hubs, we need to turn all townships into special economic zones and encourage UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 34 investors to build small, medium and large industries with meaningful participation of black people, not some BEEs schemes divorced from manufacturing of finished products and rare ownership.
Instead, here we have a Minister who is obsessed and has gone out of his way including ignoring legislation to want to manipulate the process to appoint a Chairperson to corruptly award the lottery licence to his friends in the Hosken Consolidated Investments, HCI, and Remgro who donated money to Cyril Ramaphosa 2017 campaign, CR17.

Minister Patel initially wanted to handpick and impose his preferred chairperson without involving Parliament.
On 16 November 2020, Mr Patel wrote to the Speaker of the National Assembly, hon Thandi Modise, to demand that the National Assembly recommend one name out of the three names he picked.

He had handpicked Thuli Madonsela, Frank Chikane and Barney Pitsane.

All of who are part of the CR17 faction and who would be willing to award the lottery licences corruptly to HCI and Remgro.

We have to stop this madness.


We will continue to oversee this process to ensure that no illegitimate chairperson is appointed to the National Lottery’s Board to UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 35 advance corruption.

Not under our watch.

Thank you very much, House Chairperson.


Mr M N NXUMALO: Chair, we meet under difficult circumstances brought on by economic decline as a result of the pandemic and other issues that affected the economy long before the outbreak of COVID-19.

As the IFP, we reiterate that sustainable economic growth will only come from growing our industries and giving them all a liberal environment to participate in the economy.
We need to give them the support that they need and the protection they require through this department.

We must take advantage of the African Continental Free Trade Area agreement to enhance our exports and global competitiveness.

We note that this budget provides for industrial and infrastructure financing.

It also seeks to enhance the regulation for competition for the benefit of our industries.
Our industries will strive only if we finance them and if we improve the infrastructure on which they depend.

They also need to protect ...

[Inaudible.]

... off of the robust legal framework for detecting the ending ... unlawful competition.

This requires a fine balance.


UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 36 We recognise that as part of the global community, we need to strengthen trade and also investment within our region, Africa and also globally.

However, this will not be done at the expense of our industries on which our youth depend for employment.
If we become a consumer nation, we will not only have industries but this department will be unnecessary.

As such, we need to be innovative and innovate strategies to drive economic transformation and increase youth participation in industrialisation.

Our economy must transform and empower our people.

For this to happen, we need innovative solutions to economic and financial exclusion.

We also need to create the right framework for business.
Among other things, we need to lower taxes to make doing business easier for South Africa and South Africans.

We should improve sectors that support industry and trade, such as the education sector and labour, to ensure that these sectors support reindustrialisation.

Meaningful growth can only come from diversifying our manufacturing sector.

We should ensure that we produce as much as we can and export as much as possible.
To do this, we must return to manufacturing which is the basis of reindustrialisation.

We must set up UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 37 industries for the goods that we need to deliver for the full potential of the Fourth Industrial Revolution, 4IR.

Thus, our manufacturing and industrialisation strategy must be driven by the technological needs of the day.
It must accommodate the needs of the future through innovation.

We do accept and support this budget.

Thank you, hon Chair.

Mr F J MULDER: Hon House Chair, the FF Plus welcomes the recognition by hon Minister Patel of the impact that poor governance, corruption and state capture has on industrialisation.
Besides the usual emphasis on the domestically inequitable economy due to former discriminatory policies and structural challenges to growth, which are always included in the reports of all state departments, the FF Plus inquired in the committee whether a third focus area should not be added with specific reference to poor governance, state capture and corruption as impediments in achieving its industrial goals.
As example, the research commissioned by the hon Minister in 2017, which had been presented to the government, on the impact of corruption in infrastructure development procurement, concluded that, based on an assumption of 10% of overpayment on infrastructure contracts UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 38 as a result of corruption, it would’ve cost the government R1 billion from the GDP per year.
Afrikaans: Die VF Plus verwelkom die departement se program om plaaslike en streeksproduksie te stimuleer om ook daardeur industrialisering in Suid-Afrika te bevorder.

Maar, hierdie streeksekonomie se ontwikkeling steun swaar op die veronderstelling dat distriksmunisipaliteite en plaaslike regering die departement se plan vir ekonomiese groei plaaslik moet kan ondersteun, terwyl dit in werklikheid nie gaan realiseer nie, doodgewoon omdat plaaslike regering in Suid- Afrika reeds gefaal het.
Die onvermoë van provinsiale en plaaslike regerings om padnetwerke, water ...

[Onhoorbaar.]

... en elektrisiteit te voorsien belemmer dus die beplanning van die departement om die plaaslike ekonomie se ontwikkeling van veral klein medium ondernemings te stimuleer en werksgeleenthede te skep.

Minder munisipaliteite onder ANC beheer na die Oktober 2021 plaaslike owerheidsverkiesing kan die situasie verbeter.
English: UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 39 The department, as custodian of the broad-based black economic empowerment, BBBEE, regulatory framework will not be able to build an inclusive economy and broaden participation where all South Africans are empowered as long as certain undesignated groups are being excluded by BBBEE, as well the exclusive Black Industrialist Programme.
Broad-based economic empowerment will only succeed if broad-based South African economic growth succeeds, and the mere redistribution of resources will result in a redistribution of poverty.

Any programme of the South African government in the Department of Trade, Industry and Competition to grow the South African economy that is not based on healthy business principles will most certainly result in a welfare programme heavily subsidised by already heavily burdened taxpayers.
Furthermore, it is a real concern that more now has to be achieved with the allocated budget for the department that merely increased by 0,7% in real terms and is expected to decrease in real terms in the next financial year as well.
The implementation of the COVID-19 regulations appears to have been overzealous, resulting in a negative impact on the UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 40 economy, especially for the liquor and tobacco industries, and the upstream and downstream value chains.

The department has 16 entities and of these entities only four are self-funded.
The SA Bureau of Standards has been under administration since 2018 and the three-year turnaround plan has failed.

The FF Plus cannot support Vote No 39.

Thank you.


The DEPUTY MINISTER of TRADE, INDUSTRY and COMPETITION (Ms N Gina): House Chair, Minister Patel, Deputy Minister Majola, hon Members of Parliament, more specifically of the portfolio committee, fellow South Africans, allow me to firstly quote one of the outstanding and renowned motivational speakers by the name of Megan Hillukka, who specialises in motivating grieving mothers.
She once said: It is understood that the beauty of a rainbow does not negate the ravages of any storm.

When a rainbow appears, it does not mean the storm never happened or that we are not still dealing with its aftermath.

It means that something beautiful and full of light has appeared in the midst of the darkness and clouds.
Storm clouds may still hover, but the UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 41 rainbow provides a counterbalance of colour, energy and hope.

We all know that 2020 was a challenging year for the world.

The massive losses of life through the pandemic and ... the economy almost grinding to a halt was the worst experience that the world had to navigate.
We are still grappling with the reality that many companies, and even worse, small, medium and micro enterprises, SMMEs, which were the hardest hit by the hard lockdown, are facing liquidity challenges, if not ... at the edge of insolvency.
The global headwinds associated with the disruptions of supply chains plunged our economy into an off balance, but its overall resilience from total collapse represents a glimmer of hope as we chart a path forward in the fixing of our economy within the context of the Economic Reconstruction and Recovery Plan, ERRP.

As I said, Hillukka would have said, when it refers to the ERRP, that the ERRP does not negate the ravages of any storm.
The appearance of the rainbow does not mean that the storm is over; that we are not dealing with its aftermath.

It still means something beautiful and full of light and hope will appear in the midst of the darkness of the clouds.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 42 We are here today to commit that we are geared towards the co- ordination of a reset button for our economy, to claw it back to a sustainable pedestal.
We commit ourselves that re- industrialisation, the protection of vulnerable sectors against global vicissitudes, whilst locating localisation at the core of our policy objectives, will inform our forward- looking approach.

We invite the nation to navigate this minefield with us and to travel with us on this path as we seek to reconstruct and make substantive recovery measures, from what has been lost as a result of COVID-19, throughout the economy.
Small medium enterprises, which represent the largest employer, experienced the devastating effects of COVID-19.

For those SMMEs that are 100% black owned, the picture is even worse because of their fragility.

The strategic implication of this is the fact that there is going to be a reversal of the strides that we had covered over the last 20 years as government in our deliberate efforts made to build black-owned companies.
Post-COVID, black-owned companies will be in a difficult conundrum because they have fragile balance sheets with no collateral to assist them in accessing credit, even in times where government had cut the base for lending rate.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 43 There is also a real danger that, because of liquidity challenges, more and more broad-based black economic empowerment, BBBEE, level 1 companies may face closures and/or be forced to sell their large percentage shareholdings to nonblack companies, thereby losing their BBBEE 100% ownership, to avoid insolvency.
We are concerned about this reality because it represents a fundamental reversal of the very foundations of the objectives of BBBEE and the transformation policy instrument for our economy.

Last year, the BBBEE Commission released a report, referred to as the national status report on BBBEE, on the state of women’s progress in ownership in enterprises.
It is absurd that, in terms of the report, management control and ownership scorecards for women are still far below the acceptable levels in terms of companies’ agenda for inclusion.

The majority of women still don’t sit on the boards of companies where decisions and votes are made, yet ... have shares.

This is evident, even where they have 50% or above shareholding.

We must make it our campaign as leaders ...

[Inaudible.]
[Inaudible.]

... campaign as Members of Parliament, to discourage this and to discourage the norm that women must accept silent control in their company’s decision-making.
Again, it must be our UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 44 campaign that, as women, we call upon everyone to say there must be nothing without us as we make sure that we put women up there when it comes to the ownership of companies and ... them playing a vital role in the economy of our country.
The policy of BBBEE remains a very critical policy instrument for redressing the racially imbalanced economy, and also on the basis of gender.

It is very hurtful to hear a member like hon Macpherson talking ill of BBBEE, not recognising the role that BBBEE is playing in making sure that, when it comes to blacks, we do put them at the core and centre of the growth of the economy in our country.
It makes me wonder, when it comes to the issues of blacks, if they are only good when it comes to votes but when it comes to putting them up there to play a vital role in the economy, that is where we look down upon the policies that are meant to do that.

President Cyril Ramaphosa directed us, through his announcement of a new approach on industrial policy, which is the reimagined industrial policy plan.

This policy plan is anchored on a sector-specific growth approach with clear measurable targets.
It is within this context that we must understand the Department of Trade, Industry and Competition’s UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 45 leadership, working with sectoral industries, in establishing sectoral plans.

Industries’ commitment to the imperatives of the master plans is critical for us as it is an important element for our approach when it comes to localisation.
Again, what is good about these master plans is the fact that they are mutually negotiated between the industry, government and labour.

The targets for the sector’s growth and reindustrialisation are made clear by all parties.
Everyone plays a role in making sure that, when it comes to the approach that these master plans come up with, they are there to ensure that they level the playing fields in these sectors, and ensure that all those companies that are still growing get the necessary assistance for them to strive in an economy that is as weak as we have.
Again, it is sad to hear the likes of hon Macpherson rubbishing the master plans without even giving an alternative policy option, in saying, with the good initiative that has been put in place ... what is it then ... if he rubbishes what is there, whereas we see all the role players and stakeholders making sure that when it comes to the master plans they play a vital role, and they make sure that when it comes to these industries, there is something they are doing to make sure that they revitalise, and they make sure UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 46 that when it comes to the economy, they build the economy within those sectors that they come from.
Allow me to give a very few examples of the master plans that we have.

Let me talk to the master plan on furniture.

We have seen that for about two decades now the furniture industry has been under severe strain as a result of the impact of deregulation and the opening up of the economy.

With the master plan in place and the commitments of all the role players, we see this sector being revitalised, and the economy is going to grow when it comes to that.
We have quite a number of master plans that I would have loved to talk to but I know that time will be totally against me.

Again, when it comes to the Special Economic Zones, SEZs, I totally agree that, as the government we are doing a lot when it comes to SEZs and also the revitalisation of industrial parks when it comes to our townships and rural areas ... of which the department is working very well when it comes to that.
There is so much work that is done, more especially on the building of digital hubs, where we see them as a central point of technology to promote innovation and to facilitate creative businesses around these regions.

The Department of UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 47 Trade, Industry and Competition is working sleeplessly when it comes to that.

[Inaudible.]

[Time expired.]


Mr W M THRING: Hon House Chairperson, the ACDP, noting that 50% of the Department of Trade, Industry and Competition’s budget for 2021-22 is allocated to industrial financing, calls for extra fiduciary and failsafe measures to be put in place to safeguard the disbursal and use of the R4,87 billion allocated in the DTIC budget.

Industrial development is a key driver of employment and economic growth.
This sector cannot be allowed to fail through fraud, corruption and incompetence.

South Africa has had one of the hardest lockdowns in the world.

The ACDP warned of the harsh economic price our citizens would have to pay through increased job losses and income declines.

The ACDP now calls for increased assistance to be given to small businesses and NPOs, particularly those NPOs linked to employment creation.
This need not be limited to financial assistance, but should, more importantly, be expanded to assist our SMMEs and NGOs to increase their skill and business acumen.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 48 High unemployment and scarce new job opportunities have already been identified as major impediments to economic growth before the advent of the pandemic.
At that stage, measures suggested by government departments were insufficient to stimulate the economy.

And so now, more than ever, the ACDP believes that it is necessary to protect property rights within existing constitutional provisions and reduce the unnecessary red tape to ensure the ease of starting businesses.

It is imperative that the department continues to innovate and to leverage on the African Continental Free Trade Area, AfCFTA, utilising our competitive and comparative advantages.
Clearly, our economy is in need of stimulation and so we must increase our level of industrialisation, incorporating the aspects of beneficiation and localisation and not just pay lip service to it.

If we do, we relegate South Africa in perpetuity to the status of consumers of imported finished goods and exporters of raw materials.
There is a need to stimulate the recovery of the industries such as travel and hospitality, hardest hit by the lockdown, UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 49 as well as the many SMMEs struggling to survive.
In this light, the ACDP suggests that we grow our domestic markets to support local manufacturing output, creating more beneficiary refining sites to maintain resource value chains within South Africa, so that we reduce our reliance on supply chains from vulnerable countries and revisit business models and risk strategies to improve resilience.

The ACDP also suggests that we give free data to all new start-ups and SMMEs for at least one year.
Finally, we must prioritise education and skills development ...

[Inaudible.]

...and offer training in new skills for people who have been retrenched.

Thank you.

[Time expired.]

Mr V ZUNGULA: Chairperson, I’d like to congratulate Ms Nthabeleng Likotsi and her partners on breaking barriers and being the first black women in South Africa to own a mutual bank.
In recent months, we’ve witnessed how competent black professionals like Ms Basanei Maluleke and Mr Daniel Mminele UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 50 have been systematically removed from the helm of South Africa’s banking institutions.
Twenty seven years into democracy, we still have racist banking practices, because black people, in particular, are charged higher interest rates, denied housing bonds and subjected to many financial atrocities, worse than the rand- fixing scandal for which no one was charged.

The South African banking sector is all mighty and powerful, it closes bank accounts at will and it is used as a tool to fight political battles.
The Competition Commission must reign the sector in and no consumer must be victimised by the banking sector because of their political views.

The closure of Democracy in Action’s bank account for no reason, while Markus Jooste’s bank accounts were never closed, displays the open racism in the sector.
It is a reality that the majority of our economic sectors are closed for a few players and there are barriers to entering the banking, construction, insurance, medical and many other sectors by laws and practices designed to keep the African majority away from the mainstream economy.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 51 The South African economy requires radical transformation.
The dominance of the mainstream economy and key industries by a few big businesses is regressive.

The reason data is expensive is because of the key main players who control 96% of the subscriber base.

This is the case with many other industries where there is a dominance of a few big companies.

There needs to be a clear program to break down the oligopolies by policy and legislative interventions.
Artisans in the rural areas must be enabled to produce goods for the local markets, tailors to supply uniforms for the local markets.

There are many other economic interventions that could be done to open up the economy in order to have more players and more people benefiting from local markets.

Instead, we have the dominance by a few big companies that breeds poverty, unemployment and inequality.
The fact that the National Empowerment Fund, NEF, is not receiving any funding from the government is the clearest sign that the government is paying lip service to the development of black entrepreneurs.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 52 The ATM calls for the revocation of the BEE accreditation of the Industrial Development Corporation of SA, IDC, because it cuts out black entrepreneurs in substantial deals and delays transformation.

Lastly, the Competition Commission must be given more power to charge and prosecute companies who collude and inflate prices, particularly during a pandemic.

Thank you.
Thank you.

Ms N E MOTAUNG: Thank you, House Chair.

As we are gathered here today, let me take this opportunity to recognise and affirm all women, youth and people with disabilities of this country, black people in particular, who carry us as a nation amidst the dire circumstances of poverty they find themselves in.

As the ANC, we recognise the immense difficulties faced by these marginalised groups in our country as a result of the past injustices perpetrated on the basis of race, class and gender.
The ANC supports the work of the department through its entities, the National Empowerment Fund, NEF, which seeks to facilitate economic participation of black people by providing financial and nonfinancial support to black women, small UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 53 black-owned enterprises, black industrialists, rural communities and townships.
The NEF’s mandate, which was developed by this government in support of its people, is meant to provide finance to businesses established and managed by black women and youth, invest in black empowered businesses that have a potential to create jobs, support township and rural economies in all provinces, and to promote a culture of saving, investment and meaningful economic participation by black people.
The NEF has specific programs to support targeted groups, such as the Woman Empowerment Fund which supports businesses that are more than 50% owned and managed by black women, and the Rural and Community Development Fund which supports the development and growth of the rural economy in rural communities.

Over R2,1 billion has been provided by the NEF to support entities in rural and township economies.

The ...

[Inaudible.]


...Fund is the support to new businesses and to provide capital for the expansion of small enterprises since its inception.

The NEF has provided funding of over R1,6 billion in support of 464 small and medium enterprises.

uMnotho provides capital for expansion of businesses, the buying of shares in white-owned businesses or for funding new ventures.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 54 In the 2018 state of the nation address, President Cyril Ramaphosa stated the following: Through measures like preferential procurement and the black industrialist program, we are developing a new generation of black and women producers that are able to ...

[Inaudible.]

... and, as a result, 3 600 jobs have been created.
The Covid-19 pandemic had made South African’s challenges of low economic growth, high unemployment, poverty and inequality worse.

Therefore, we need to rebuild our country and set it on a new growth path through implementing the measures set out in the Economic Reconstruction and Recovery Plan.

In the engagement with the department on the work it aims to do for 2021-2022 through its budget, the ANC was encouraged to learn that the department is developing a monitoring system of localisation.
The committee has dealt with this matter in the Fifth Parliament, buying locally produced goods ...

[Inaudible.]

...departments did not comply with the legislation to buy certain locally produced products.

Creating a monitoring mechanism is welcomed as is the renewed focused UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 55 on localisation which is evident.
Its focus on all programs through the joint key performance indicators is welcomed.

The ANC supports Budget Vote 39.

Thank you.

Mr A M SHAIK EMAM: Let me start off by saying, Minister, I must give credit to whoever prepared your speech because I think they are really good at what they do.

The question is, how do you convert what is in your speech to reality.
And yes, we’ve been hearing a hell of a lot in the last couple of years, and for a long time we’ve been blaming apartheid and now we are not sure how long more we are going to blame Covid-19 for the failures in the country.
South Africa is the only country in the world where, 27 years into democracy, we still have to promote measures like Black Economic Empowerment, BEE, and Broad-based Black Economic Empowerment, BBEEE, to ensure that those in this country who have been deprived for decades or centuries get an equal opportunity, but where the majority of the people are governing and the majority is looking to put forward additional measures of this nature.

So it is really a matter of concern.


UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 56 But having said that, the NFP will support the Budget Vote tabled here today.

We are not satisfied and do not believe that enough is being done to boost the economy.

We talk but localisation and yes, that will go a long way to boost the economy ...
However, if you continue with the cheap imports into the country and the negative impact it has, particularly on the manufacturing industry, then I’m not sure that we’re going to be able to achieve what we’re looking for in terms of the beautiful speech that you had read out.

Twenty seven years from now, you’ll find that a few people still own the economy in South Africa.
Prices in South Africa ... in the automotive industry, in the wholesale, retail, in the food sector, in the airline industry ... if one really looks deep into it, one would find how these prices are controlled to such an extent and the monopoly that some of these big businesses in South Africa ... Now, I know that many of ... the Deputy Minister and others are talking about the benefits of BEE.
It has only benefited about 17 000 millionaires who were created, but the 59,5 million other people in South Africa have not benefited.

So, clearly, we need to look at what we need to do differently so that it could ...

[Inaudible.]

... UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 57 But let’s talk very quickly about the banks.

If the bank and the loan system ... their system that is ...

[Inaudible.]
[Inaudible.]

... provided to small businesses, the conditions were so stringent, that people did not even take the offer up.

This is where I think the department could come in to give greater assistance to small businesses because this is the life blood of the economy, and this is where you can create most of the jobs.

The NFP won’t support ...

[Inaudible.]

... [Time expired.]


The DEPUTY MINISTER OF TRADE, INDUSTRY AND COMPETITION (Mr F Z Majola): Hon House Chairperson, Minister Patel, Deputy Minister Gina, hon members, Leaders of Business and Labour, distinguished guests, today we have an opportunity to reflect on how far we have come since the onset of the COVID-19 pandemic, which forced us to declare a National State of Disaster in March 2020.
The pandemic has compelled us to constantly search for new ways to navigate the challenging circumstances confronting us in order to save lives and livelihoods.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 58 We have demonstrated our resilience as a nation.

Our collective efforts, as we continuously defy the consequences of the devastating pandemic, have shaped how our economy responds.
In this regard, we would like to acknowledge the sterling leadership of President Ramaphosa in our combined national effort against the pandemic.

Hon members, as I begin, I would like to borrow from the words of one of the greatest and true sons of our beloved continent, Kwame Nkrumah when he said: It is clear that we must find an African solution to our problems, and that this can only be found in African unity.
Divided we are weak; united, Africa could become one of the greatest forces for good in the world.

We recall these wise words because of the daunting task currently facing our continent, the creation of the African Continental Free Trade Area, AFCFTA, which I shall return to later.

The Economic Reconstruction and Recovery Plan, ERRP, driven by the Reimagined Industrial Strategy, places emphasis on master plans as key drivers to attract investment, build capable local industries and create jobs.
The completed and signed master plans signal the collective commitment of all UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 59 social partners in ensuring success in their respective industries.

The process to finalise more masterplans is currently underway.

The Steel and Metal Fabrication master plan is now completed.

This master plan will guide the stabilisation and the progress of the industry.
Guided by the objectives of the steel master plan, Deputy Minister Gina, and I have initiated a process to work with critical stakeholders in the West Coast to revive the industry.

The Automotive master plan commits to double production from 600 cars to 1,2 million cars and double employment in the automotive value chain from 112 000 in 2015 to 224 000.

Following the adoption of the Poultry master plan in 2019, we are seeing positive developments towards increasing localisation.
In this regard, additional one million birds were produced per week in 2020 - growth of 5% in volume.

We have seen the reduction of the total value of imports by 17% in 2020 compared to 2019.

The Tshwane Automotive Special Economic Zone, TASEZ, is a launch pad towards developing Tshwane as the first Automotive City in the African continent.
This project has surpassed government’s localisation policy imperatives and has empowered UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 60 45% local businesses in the construction phase, qualifying it as a model project for localisation.

Since 2014, localisation has been a key component of government’s economic policy to build and protect local industrial capacity.
Hon members, government continues to enhance its integrated approach through integrated planning and implementation at a local space, in order to achieve high-level impacts in line with the district development model.
As the Department of Trade, Industry and Competition, DTIC, we are working together with the Gauteng provincial government and Sedibeng District Municipality to integrate all the potential economic development activities that will underpin the sustainability of the new district economic development model and achieve the reversal of de-industrialisation.
We aim to achieve this through the collective efforts of the national government, the private sector, SOEs and universities to direct infrastructure initiatives and human capital development interventions.
Through these collaborative efforts of the three spheres of government in the Western Corridor, we are making progress in diversifying the West Rand economy from reliance on mining to include bus-manufacturing, agribusiness UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 61 and agro-processing, renewable energy and tourism.

Similar initiatives are underway in other provinces.
We are taking steps to raise the profile of the Black Industrialist Programme as part of our overall transformation objective.

The Black Industrialist Scheme, BIS, addresses the low representation of black industrialists with majority ownership, and provides the support they need to transform their organisations into viable, sustainable enterprises that address the twin national priorities of local economic development and economic inclusivity.
The BIS incentive invested more than R4 billion in projects owned by black industrialists, about 20% of which were accessed by black female industrialists.

To illustrate the success of this scheme, let me highlight one of the supported black industrialists by the DTIC over this period - the Toronto Group.

The group will manufacture charcoal for the export market and has also activated carbon for water treatment and purification.
Construction of the facility is 55% complete and the project is scheduled to go live by August-September 2021.

All procurement during construction has been 100% local, 30% from black suppliers.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 62 In terms of the need to advance the quest for inclusive growth across our economy, we acknowledge the catalytic role the National Empowerment Fund, NEF, has championed as the agency of government mandated to grow meaningful black economic participation.
Government is pleased with the strides the NEF has made in attracting over R8,8 billion in third party funding, demonstrating the entity’s capacity as a catalyst for unlocking economic value.

Hon members, let me focus on the achievements we have made on the negotiations and implementation of the African Continental Free Trade Area, AFCFTA, over the last 12 months.

I will also touch on what remains to be done.


The AFCFTA brings us a step closer to realise the historic vision of an integrated market in Africa, and creating a basis for increasing intra-African trade.

There is general concern that Africa’s share of world trade is small, estimated at 3%.

Intraregional trade is also relatively small, between 16% and 18% compared to intra-Asian trade at 52%, intra-North American trade at 50% and intra-EU trade at 70%.
The COVID-19 pandemic in March 2020 disrupted our work programme.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 63 However, negotiations restarted in September 2020, with South Africa chairing the meetings.

There was an intensive process leading to 5 December 2020 Summit.

The Summit took account that AU Members States are at different stages of readiness to operationalise preferential trade.
To date, an agreement on the rules of origin has reached 86% of all tariff lines.

On 5 December 2020, the Summit provided the legal framework to allow AU Members-Customs Unions, CUs, to agree to operationalise preferential trade, amongst them, in a somewhat flexible manner.

The process of assessing and verifying tariff offers is currently underway.

To date, 36 countries have submitted their instruments of ratification.
In parallel, negotiations are ongoing on rules of origin and working towards increasing the tariff offers - from the current level of 86% to 90%.

We hope to complete this work by June 2021.

Hon members, during 2020, South Africa exported R11,6 billion of goods to the rest of Africa.

A recent study by the World Bank estimates that when implemented effectively, by 2035 the AFCFTA is set to lift 20 million Africans out of extreme poverty and 70 million from moderate poverty.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 64 The remarkable progress would not have been achieved without the unwavering leadership and commitment of member states across the continent, including our own country.

South Africa chaired the African Ministers of Trade, AMOT, since September 2020 and was vice-chair of the Council of Ministers from November 2019, and chaired the structure since January 2021.
Very soon, we will be commemorating and acknowledging the successes of the African Union.

I would like to pay homage to one of Africa’s true sons, the man who was widely known as Mwalimu, Julius Nyerere.

As Africans, we should remember his words when he said: Unity will not make us rich, but it can make it difficult for Africa and the African peoples to be disregarded and humiliated…My generation led Africa to political freedom.
The current generation of leaders and peoples of Africa must pick up the flickering torch of African freedom, refuel it with their enthusiasm and determination, and carry it forward.
Hon Chairperson, as I conclude, let me join the Deputy Minister, Gina in appreciating the guidance of Minister Patel, the support of our team of officials and lastly, extend our UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 65 gratitude to the former Director-General, Mr Lionel October.

[Time expired.]

Thank you.


Prince P Z B NCAMASHE: Hon Chairperson, hon Minister, Deputy Ministers, hon members, and fellow South Africans, indeed as the ANC we support Budget Vote 39 of Trade, Industry and Competition.

In the state of the nation address in 2021, the President highlighted two pertinent key strategic focal areas, amongst other things.

They were, one, accelerating economic recovery and, two, inclusive economic reform to drive inclusive growth – some of the key priorities for the country.
The Portfolio Committee on Trade, Industry and Competition will oversee the contribution of the Department of Trade, Industry and Competition towards achieving these priorities, using tools such as master plans and international trade.
Firstly, in respect of master plans, the government is determined to implement the measures that it had put in place for the implementation of the industrial strategy that will fundamentally alter the economic structure and grow the South UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 66 African economy.

Secondly, the growth of the South African economy will result in a reduction in unemployment, inequality and poverty.
Thirdly, as the ANC, we have engaged the Department of Trade, Industry and Competition on the work it plans to do in the financial year, for which this budget is allocated with particular interest in the productive sectors of the economy.
These include, one, the sugar industry in which approximately 20 200 sugarcane growers of KwaZulu-Natal depend, 19 300 of whom are Black growers; and, two, the automotive industry which directly employs over 110 000 people mainly in the Eastern Cape – kuGompo naseGgeberha [formerly Port Elizabeth] - Gauteng and KwaZulu-Natal, and contributes to over 320 000 indirect jobs.
The last sector is the retail one - clothing, textiles, footwear and leather – which employs approximately 212 000 people across the country.

There are a few of the sectors which the committee, over this financial year, aims to oversee, particularly the implementation of measures that would ensure that jobs are retained and more job opportunities are created.

Siyaqhuba asimanga, Sihlalo.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 67 We are therefore encouraged by the department’s work which has led to the development and implementation of the master plans for the cane and sugar value chain; for retail clothing and textiles; for leather and footwear; and for automotive, steel and metal fabrication; and for the furniture and poultry sectors, in collaboration with the private sector and workers.
Through the sugar industry master plan, for example, the issue of transformation will be addressed.

The transformation target in this master plan is to ensure that ownership and participation by Black farmers, Black industrialists, Black- owned SMMEs and workers, include women, young people and the disabled in the sugarcane-based value chain.

In addition, jobs in the sugar industry will be retained because of this plan.
In a recent engagement with industry stakeholders, the committee was happy to learn that the implementation of the sugarcane industry master plan had started to bear fruit.

Local demand for sugarcane has improved.

All the stakeholders thanked this department for facilitating these master plans.

I hope the hon Macpherson is listening.


UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 68 In the master plans, the priorities are transformation to ensure that opportunities are created for the growth of small, medium and large enterprises alike, for job-creation and for the development of skills.
In the poultry sector master plan, the department has facilitated commitments by the private sector to increase jobs by over 4 500 by the year 2023, improve productivity and worker development through investment in skills and support small-scale farmers.

The ANC welcomes the department’s further prioritising of the development of master plans to assist the chemicals and plastics sectors, which are supported through the Budget Vote.
The ANC in the committee will continue its role of overseeing the implementation of these master plans, given their critical importance to the development of our economy and to job- creation.

[Time expired.]

Mr M J CUTHBERT: Hon House Chairperson, for the past 12 years Minister Ebrahim Patel has formed part of government’s economic brains’ trust, first as the Minister of Economic Development and now as the Minister of Trade, Industry and Competition.
To say that these 12 years have been both underwhelming and uninspiring is a crass understatement.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 69 However, the body politic’s collective standards have dropped so significantly that one is considered to be doing a good job if one has not been directly implicated in an act of corruption or maladministration.
For example, the Mail & Guardian in their annual Cabinet report card, have given Minister Patel subsequent B grades in both 2019 and 2020.

In an interview with the Financial Mail, during the middle of last year, his former union comrade Johnny Copeland described him: “Apart from being absolutely clean, he is hardworking, industrious and creative.
He is a good listener and carries no big ego.” In the same interview, editor of the Financial Mail Rob Rose stated that: “Clearly, the notion of Patel as a hard- line collectivist who would nationalise your wallet if you left it on the table for long enough is misplaced.” However, I agree with the view of the DA chairperson of the Federal Council, Helen Zille, who frames his persona more aptly.
“He is clever and he is not corrupt, which puts him in a very small league in the ANC, but he also believes in state control and state capacity.” The point that I am making is that it is simply not good enough for a Minister to not have his hand in the till or to UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 70 possess relatively greater smarts than his counterparts in government.
He needs to offer more than the same old rehashed statist economic world view that died with the fall of the Berlin Wall on 9 November 1989.

We need innovative solutions to the industrial and trade policy problems we face as a country and these are not forthcoming from the government benches.

Despite the rhetoric he espouses when discussing the African Continental Free Trade Area, AfCFTA, there is no true commitment to the market economy and to the liberalisation of trade and industry.
When the DA proposed that the department look into the feasibility of negotiating a free trade agreement with our Brics counterpart, China, Minister Patel rebuffed this idea by stating that it would not be in South Africa’s interest to have a free trade agreement with China as we do not possess the same level of competitiveness or economies of scale.

Then, three questions arise as a result of this view.

One, how do you become more competitive if you do not specialise and develop a comparative advantage?
Two, do you prefer for our trade relations to be governed by a series of memorandums of UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 71 understanding, subject to nondisclosure where there is no recourse mechanism in place?

And, three, what is the purpose of the Brics multilateral partnership if not to further our trade and economic interests?
Instead, we have sectoral master plans in the automotive, textile, poultry and sugar industries, which hark back to the 13 five-year plans produced by Gosplan in Stalin’s USSR.

Moreover, his department’s approach to the steel and scrap metal industry is quite literally an attempt to tax and tariff industries into profitability.
When I questioned the rationale behind this lunacy in a portfolio committee meeting earlier this year, I was promptly told by the then Director-General Lionel October that even Donald Trump thought it was important to retain a primary skill capability in his country and that therefore we should too.

How is that for irony - citing a rampant xenophobe to justify one’s trade policy?

The statist left using the statist right as a justification for a failed policy choice.
But it gets worse, hon House Chairperson.

There are 13 industries, sectors and subsectors that are designated for local production at specified levels of local content under the UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 72 Preferential Procurement Policy Framework Act.
While this may sound like a novel idea, it does not take into account price, product quality or manufacturing cost and can easily be subverted through malicious compliance, as we recently witnessed in the Karpowership deal.

Humanity’s greatest achievements have come off the back of liberal democracy and a market economy, not socialism and protectionism.

This is well documented in all major areas of developmental concern, such as poverty alleviation, health care and literacy.
Today we need to reject the failed policies of protectionism and choose prosperity instead.

History shows us that this is the right thing to do.

Minister Patel’s policies might have a rightful place in Mao Zedong’s ...

[Inaudible.]

... plan China or even in Verwoerd’s protectionist apartheid state but not here, not in a country that is an open and democratic society, based on the principles of dignity, equality and human rights.

I thank you, House Chair.


Mr S H MBUYANE: Chairperson, thank you very much for this opportunity.

I beg your indulgence, Chairperson, but my video UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 73 is not working very well.

I think it may cut me off in the process.

Oliver Tambo once said: We seek to create a united, democratic and nonracial society.
We have a vision of South Africa in which black and white shall live and work together as equals in conditions of peace and prosperity.

Using the power you derive from the discovery of the truth about racism in South Africa, you will help us to remake our part of the world into a corner of the globe on which all – of which all of humanity can be proud.

Creating inclusive economic reforms to drive inclusive growth is one of the priorities of the country, as outlined in the 2021 state of the nation address.
As a committee, we oversee the Department of Trade, Industry and Competition and its entities.

Our role is to ensure that the department and its entities have and implement programmes to support the achievement of inclusive growth in line with the mandate.

I want my comrade Macpherson of the DA to follow me on this one.
Economic inclusive growth means that everyone including Black people, women, youth and people living with disabilities UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 74 and the previously disadvantaged have the opportunity to participate in an economic ...

[Inaudible.]

... that propels the country to a higher level of economic growth.
The mandate of facilitating inclusive growth creates jobs through interventions and programmes, such as the Black Industrialist Programme which supports Black industrialists in the productive centre of the economy, and the funding from the National Empowerment Fund which facilitates Black economic participation by providing financial and nonfinancial support to Black-owned and managed businesses.
To the DA, the EFF and the ACDP: inclusive economic growth has further facilitated the implementation of the broad-based economic empowerment legislation, which aims to change the ownership and management structure of the South African economy to include Blacks who were previously excluded from economic activity.
The Competition Amendment Act is also one of the tools that the department uses to foster inclusive economic participation by requiring the competition authority to consider the impact UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 75 on worker ownership during ...

[Inaudible.]

... approval process.


Therefore, the ANC supports this programme as well as the Department of Trade, Industry and Competition’s processes that ensure equity and fairness in the provision of financial and nonfinancial support offered to businesses.

The ANC also supports the department’s progress on broadening participation through ownership, in particular the facilitation of design and implementation of ...

[Inaudible.]

... scheme by the private sector.


Hon Yako, furthermore at a recent engagement with the department the committee was informed of the impact that the COVID-19 pandemic has had on business and jobs, as well as the measures the department and its entities have taken to minimise the impact and revive the economy.

Among the interventions implemented was assisting business.
Consumer protection measures include the work of the Competition Commission and the National Consumer Commission which protect consumers and business from unfair, excessive pricing, particularly pricing of essential goods and ... UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 76 [Inaudible.]

... and masks during the pandemic.


The Industrial Development Corporation’s essential supply intervention programme supported business in the manufacturing of essential goods, including M95 masks, surgical masks, hand sanitisers.

The fund was allocated R800 million.


The National Empowerment Fund’s COVID-19 Black Business Fund financed funding for Black businesses to manufacture and supply essential goods – masks, gloves, COVID-19 test kits, hospital equipment and essential food for the COVID-19 Black Business Fund.

One thousand, four hundred and sixty-six jobs were created by that fund.

One of the many beneficiaries of the COVID-19 Black Business Fund is a Black woman-helmed company in Phillipi in Cape Town called Rise Uniforms.
The company was originally the manufacturer of school uniforms, but during the COVID-19 pandemic the company expanded and included masks in its production.

In February 2020, before the pandemic, the committee went on an oversight visit to the company and its entities.

The committee saw how well government can facilitate job-creation in the private sector.
The ANC applauds initiatives that support Black and small businesses that create jobs, particularly in townships and UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 77 rural areas.

A quote by Karl Marx, the philosopher, goes that they have only interpreted the world in various ways, but the point is to change it.

The ANC supports this budget.


I think I have to deal with the issue of hon Macpherson, the DA MP who is propagating right-wing neoliberal economic policies that seek to reverse the gains of our democracy and the country.

Secondly, the President and the Minister have provided a detailed report in replies in this House that names the companies that are involved in manufacturing ventilators and health facilities.

The EFF don’t have an economic plan that is transformative.
They only have chaos and mediocrity and those things are not based on any evident approach.

That position is not scientific.

Broad-based black economic empowerment, BBBEE, is the policy of the government of the ANC.

If anyone, including the DA, rejects this policy, they have to win elections before they come with their neoliberal agendas of policies.

Chairperson, thank you very much for the opportunity.
UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 78 The TEMPORARY CHAIRRPERSON (Ms R M M Lesoma): Thank you, hon member.

I now recognise the Minister.

Hon Minister, you had two minutes, so you will have six minutes for closing remarks.

The MINISTER OF TRADE, INDUSTRY and COMPETITION: Thank you very much, House Chair.
Let me first thank the speakers from the ANC, the IFP and the NFP for their support for the Department of Trade, Industry and Competition’s budget.

I also want to express appreciation for the support for industrialisation and localisation from the ANC, the IFP, the ATM, the ACDP and the NFP.

The hon Nkosi spoke about an investment environment conducive to driving localisation.

The hon Nxumalo, Thring and Shaik Emam spoke about how manufacturing is the basis of industrialisation.
The hon Burns-Ncamashe outlined the impact of the master plans on the lives of ordinary people who don’t have the luxury of being cynical.

The hon Mbuyane and Motaung spoke about the other parts of the economy, those occupied by women, youth and Black industrialists that require support.

They too are South Africans.

They too can help build this economy.


There are also UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 79 the steps taken by the department to strengthen them, including the example given on the production of face masks – part of R10 billion of new production created in South Africa last year to deal with COVID-19.
The opposition speakers from the DA and the EFF missed an opportunity today; a missed opportunity to join South Africa in mapping out a compelling vision of economic reconstruction and recovery; a missed opportunity to see the value of deeper levels of industrialisation and how a successful partnership to build localisation can create jobs and expand our economy; a missed opportunity to celebrate the successes of young South Africans and Black South Africans, and women.
The hon Macpherson laments the master plans without acknowledging that his own farming constituency in KwaZulu- Natal benefited from the agreement with retailers in 2020 to buy local sugar.
He paints the whole of BBBEE as simply a construct for politically connected persons, forgetting the hundreds of thousands of workers now benefiting from worker- ownership schemes through BBBEE, dismissing the hundreds of Black industrialists who sweat every day to keep their UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 80 businesses running in food production, in clothing, in steel, in filmmaking.
Hon Yako, taking her cue from the hon Macpherson, lashed out that South Africa had no industry and only assembled other people’s products.

I encourage the hon Yako to get out a bit more and visit our factories.

I have been to hundreds of factories that are real production centres.

She will find workers and industrialists hard at work in Africa’s most industrially diverse economy.
Hon Yako questions whether we have been able to produce ventilators and bemoans that we don’t say or ask, “Where are they manufactured, who manufactures them, and where are they being used?” Now, of course, the EFF posed parliamentary questions both to President Ramaphosa and to me last year.

I replied in November and the President replied in December, giving details of the seven cities where the components were made, the names of the 21 component manufacturers.
The President also recorded the 70 hospitals and health care facilities that had received the ventilators.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 81 Hon Cuthbert, on a lighter note, I think you can be secure that your wallet will not be nationalised.

But hon Cuthbert refers to the statist view of economic development that evaporated in the rubble of the Berlin Wall.
He forgets to add that market fundamentalism and extreme neoliberalism were fatally wounded in the 2008 global economic crisis and that mature policymakers occupy what economists call the heterodox space, combining both state and market in a new engine for development.

China, on whose behalf the hon Cuthbert seems to be lobbying for a free trade area, has significant state involvement, but so too do Germany, the United States and India.
Governments help with innovation; governments help to mobilise the resources required to deal not only with pandemics but also with other national crises.

Our national crises are that of jobs, of transformation, of economic inclusion, and of economic growth.

The hon Thring called for extra-fiduciary measures to ensure monies budgeted are properly spent.

I welcome that.
I welcome that.

I am sure he will be happy to hear that the department will do work to set up a new forensic unit able to probe and investigate any allegations of financial wrongdoing, and enhanced oversight over agencies will be introduced this year.

UNREVISED HANSARD MINI PLENARY - NATIONAL ASSEMBLY TUESDAY, 18 MAY 2021 VOTE NO 39 – TRADE, INDUSTRY AND COMPETITION Page: 82 Hon House Chair, there is a saying that all truth passes through three stages.
First, it is ridiculed; second, it is stoutly opposed; and, third, it is finally accepted as self- evident.

I can invite the members of the DA and the members of the EFF to walk with us on this journey.
I recognise that they are still in the ages of ridicule and opposition, but I look forward to when they are able to join us in the age in which we recognise that localisation, industrialisation, doing more things in South Africa, adding more value to our mineral and agricultural wealth, using the talent of South African workers, entrepreneurs and innovators – that all these form the path forward.

Deputy Minister Gina used the beautiful metaphor of a rainbow, symbolising colour, energy and hope.
That is what we seek to do: to have South Africa take on this tripple challenge of unemployment, poverty and inequality.

I look forward to working closely with the House in achieving the outcomes that we have set out today.

Thank you very much, hon Chair.

Debate concluded.

The mini-plenary rose at 12:02.