With the right ideas, policies and budget, DTIC can help build a prosperous nation
Note to Editors: The following remarks were delivered by RISE Mzansi National Leader, Songezo Zibi MP, during the debate on Budget Vote 39 (Trade, Industry and Competition).
House Chair
Honourable Ministers and Deputy Minister
DTIC Committee Chair
Honourable Members
Minister, one of the many abiding concerns and fears of millions of South Africans is whether they will be able to find permanent employment that pays decent wages. This is so they can uplift themselves and their families. Yet more South Africans are looking to start or grow their businesses – to build wealth and create jobs.
Yet the outlook is grim. Unemployment remains high, with millions battling to have three decent meals per day, every day. Economic growth is nowhere near the 5.4% the NDP said was needed to cut unemployment in half by 2030.
Earlier Minister you said there will be an all of government approach – which is trite, but the proof will be in the actions of all three spheres of government. I believe there are several things that need to be done so that DTIC policy choices do not amount to a merely interesting conversation that has no real, tangible or lasting benefits for the South African people.
I will limit my comments to the idea of an all of government approach.
First, every business in South Africa is in a municipality, many of which are mismanaged and financially unviable. It is difficult for small businesses to grow when they must carry additional costs resulting from failing and failed municipalities. They are in a death spiral, and unless a fiscal and administrative rescue package is put together, they will continue to undermine all efforts through industrial policy to build a thriving economy.
Second, we need a specific effort to reduce input costs in the long term, in particular energy and logistics. The government must make it possible for small and medium enterprises to derive their daytime energy needs from renewable energy sources such as solar – which will on its own drive growth in local renewable energy manufacturing and production. We also need a concerted effort to reverse the expensive trend from rail to road freight.
Third, we need strong, efficient regulation in major industries like mining. In successive spikes in the demand for commodities we have tended to benefit from price increases rather than growth in production capacity as well. Exploration, prospecting, mining and integrated water use licenses need special focus to unlock investment.
Finally, we must complete South Africa’s nation building project. Opportunities in exploration for new minerals, hydrocarbons and renewable energies, among others, must go to predominantly black and woman owned firms. That is how we are going to transform the ownership patterns of our economy.
It is your job, Minister, to convince Cabinet to show commitment to our industrial growth by approving an increased DTIC budget in the next financial year – bring it to Parliament and I have no doubt, that fiscal commitment will meet the approval of Parliament.
Ndiyabulela!