Revitalising/growing manufacturing sector

ê1.​ Mr K M Mmoiemang (Northern Cape: ANC) to ask the Deputy President:

(1)​Whether the Government has developed any measures to (a) revitalise and (b) grow the manufacturing sector in the townships and rural economy; if not, why not; if so, what measures;

(2)​whether such measures include addressing underdevelopment, fragmentation, short value chain and isolation of the manufacturing sector in such economy; if not, why not; if so, what are the relevant details;

(3)​Whether the Government has developed a coherent policy framework to revitalise the manufacturing sector in such economy; if not, why not; if so,

(4)​Whether such a framework includes attracting private investment; if not, why not; if so, what are the relevant details?​​ CO312E
 
Reply:

Honourable Chairperson,

Thank you Honourable Mmoiemang for raising this important question on revitalising and growing the manufacturing sector in townships and rural areas in our country.

As Government, we are dedicated to transforming apartheid spatial planning by investing in critical industries such as manufacturing to revitalise and create jobs in the communities where people reside.

To this end, the Department of Trade, Industry and Competition has developed the Industrial Parks Revitalisation Programme (IPRP), aimed at resuscitating and reviving South Africa's old and abandoned industrial parks, and equipping them to drive job creation in the manufacturing sector in townships and rural economies.

The IPRP further aims at supporting state-owned Industrial Parks and identifying enabling opportunities for local manufacturing and value addition in marginalised communities.

Government has made significant progress in areas such as Nkowankowa Industrial Park in Tzaneen, Isithebe Industrial Park in Mandeni, KwaZulu-Natal, Matjhabeng Enterprise Industrial Park in Matjhabeng, and the Wild Coast Industrial Park in Mthatha.

The Nkowankowa Industrial Park, where Peppadew International is a major tenant, employs 66 emerging and commercial farmers for processing plant inputs. This initiative creates 6,000 seasonal workers for nine months, excluding 348 permanent employees and 5,000 indirect jobs created through contracted farmers.

The Industrial Parks Revitalisation Programme, led by DTIC in collaboration with the National Treasury's Cities Support Programme and Township Economic Development Framework are aimed at developing integrated city development strategies. These strategies are already under implementation in Tembisa, Ekurhuleni and New Brighton in the Eastern Cape.

In July 2024, during Minister Stella Ndabeni-Abrahams’ budget speech, for Small Business Development, she pronounced that through the Small Enterprise Finance Agency (SEFA), government has allocated an amount of R266.8 million to Small Enterprise Manufacturing Support Programme (SEMSP). This will strengthen the black industrialist programme, and ensure more participation of small enterprises in the manufacturing sector.  

When delivering the Budget Vote Speech in July this year, the Minister Trade, Industry and Competition briefed Parliament on government programmes to support Special Economic Zones (SEZs). The SEZs are aimed expanding economic activity in under-developed parts of South Africa. To date, there are eleven (11) designated SEZs of which nine (9) are being supported by the SEZ Fund. According to the Minister, the SEZs have generated investments amounting to R19.6 billion.

Government is committed to fostering collaboration with the private sector whilst building the capacity of the state to create a conducive environment for township and rural economy to thrive.

Thank you Honourable Chairperson.
 
 
Centralisation of SOEs

ê2.​Mr F J Badenhorst (Western Cape: DA) to ask the Deputy President:

With reference to the revival of the National State Enterprises Bill [B1-2024], how will instances of corruption at state-owned enterprises (SOEs) diminish when the said Bill centralises all existing SOEs under the control of a single SOE well within the reach of unscrupulous officials?​ CO320E

Reply:

Honourable Chairperson,

The question by Honourable Badenhorst, on the revival of the National State Owned Enterprise Bill is appreciated.

Honourable Chairperson, President Cyril Ramaphosa stated at the opening of the Seventh Parliament that government will finalise a new centralised ownership model for State Owned Enterprises in order to improve accountability, transparency, governance and oversight, while reducing inefficiencies and potential for corruption.

In this regard, the National State Enterprise Bill that lapsed in the Sixth Parliament has been revived by the Seventh Parliament. Among other matters, the National State Enterprise Bill, 2024, is aimed at developing a strategy for national state enterprises, to establish the State Asset Management SOC Ltd, provide for appropriate and effective monitoring and reporting mechanisms over state enterprises, and subsidiaries.
 
Honourable Chairperson,

I am pleased to report that President Ramaphosa has since assigned the Minister in The Presidency responsible for Planning, Monitoring and Evaluation the responsibility to finalise the processes towards the establishment of State Asset Management SOC Ltd; and associated matters. The state entities that were previously under the stewardship of the former Department of Public Enterprises will report to their respective line function departments in terms of policy and regulatory matters.

The National State Enterprise Bill, 2024, will play a critical role in the future governance of South Africa’s SOEs. In this regard, the centralised model will ensure that SOEs are insulated from political influence and interference. The Board of the holding company will have independence over State Owned Enterprises to provide oversight without undue influence.

To ensure we deliver to the third priority of the Government of National Unity, that of building a capable, ethical and developmental state,  government will pursue every action that will contribute to sustainable, rapid economic growth, and remove every obstacle that stands in the way of growth, including eliminating fraud, corruption and maladministration in the Public Service.

I thank you Honourable Chairperson.
 
 
Implementation of Capacity Development Strategy

ê3.​ Ms K R Molokomme (Limpopo: ANC) to ask the Deputy President:

Whether, in light of the disconcerting outcomes of the investigation into fraudulent medico-legal claims, the Government is considering any measures to expedite the implementation of the Capacity Development Strategy to strengthen state capacity to deal decisively with financial management capacity challenges in the public sector and the prevalence of maladministration and corruption; if not, why not; if so, what are the relevant details?​ CO313E

Reply:

Honourable Chairperson,

Let me thank Honourable Molokomme for raising this important question because it allows us to highlight government interventions to build ethical, developmental and capable state. The question further allows us to deal with financial management capacity challenges in the public sector, including the prevalence of maladministration and corruption.

In this regard, I have been in constant engagements with the Public Service Commission (PSC) and National School of Government (NSG) to ensure they implement programmes that are directed at strengthening the capacity of the state.

Cabinet has also directed the Ministers of Finance and Public Service and Administration to collaborate in assessing the capacity of the Chief Financial Officers in all spheres of government with a view to ensuring effective financial management.

Government continues to strengthen financial management capacity of our financial management officials through a number of interventions to prevent further occurrence of incidences similar to fraudulent medico-legal claims within the Department of Health.

We want to commend the good work done by law enforcement agencies, particularly the Special Investigating Unit (SIU), the National Prosecuting Authority and the Legal Practice Council for moving swiftly to prevent the fraudulent medico-legal claims amounting to over R3 billion.

As part of government interventions to address financial management capacity challenges in the public sector, the National Treasury is currently implementing the Capacity Development Strategy for financial management in the public sector that includes stakeholders like the Department of Public Service and Administration and the National School of Government (NSG).

Furthermore, government is currently implementing the National Anti-Corruption Strategy (2020 – 2030) which is a national blue print to prevent fraud and corruption in the Public Service. This strategy further acknowledges the Charter of Positive Values as developed by the Moral Regeneration Movement, and constitutional values as expressed in the National Development Plan.

Honourable Chairperson,

To further strengthen state capacity to deal decisively with financial management, President Cyril Ramaphosa signed into law the Public Procurement Bill, on 18 July 2024. The Public Procurement Act provides for a single national regulatory framework for procurement to promote integrity, transparency and strengthen measures to prevent abuse in procurement, wasteful expenditure and corruption.

Through these interventions, government will implement the whole-of-society approach to fight fraud and corruption in the public service. This approach encourages collaboration between government, the private sector and civil society as one of the fundamentals of the National Anti-Corruption Strategy.

I thank you Honourable Chairperson.
 
 
Service delivery challenges

ê4.​ Ms M Makesini (Free State: EFF) to ask the Deputy President:

Considering his assigned responsibility of coordinating the implementation of the Rapid Response Interventions on Service Delivery and Troubleshooting in hotspots, (a) what plans are in place to (i) intervene and (ii) improve the performance of dysfunctional municipalities to address service delivery challenges, (b) which municipalities were prioritised for intervention to resolve such challenges and (c) what are the relevant details regarding such interventions?​ CO327E

Reply:

Honourable Chairperson,

Honourable Makesini, the question you are raising has been emphasised by Honourable Members in the National Assembly on the urgent need for service delivery interventions at local government level.

On Tuesday, we had an Extended Joint Service Delivery and Water Task Meeting with Ministers, Deputy Ministers, Premiers of Provinces as well as SALGA, where we agreed on the need to ensure the speed of execution in the delivery of services. Together, we also agreed that we will be on the ground working with municipalities, in the context of District Development Model.

When delivering the Medium-Term Budget Policy Statement, the Minister of Finance announced that 50 of the 257 municipalities in the country have active financial recovery plans. The Minister also highlighted that three municipalities are under national intervention and these are Mangaung, Enoch Mgijima and Lekwa

I have had meetings with both the Minister of Cooperative Governance and Traditional Affairs, Hon Hlabisa and the Minister of Water and Sanitation,Hon Majodina to discuss how best we can ensure strengthened support to Municipalities, through the implementation of the District Development Model.

To this end, the Minsters have announced measures to address related challenges in various municipalities. Amongst others, these interventions include the completion of a R260 million project to upgrade the James Kleynhans Water Treatment Works in Makana Local Municipality.

Honourable Chairperson,

Some of the municipalities identified for prioritised intervention include Ditsobotla in the North West, Kopanong and Mafube in the Free State, Emfuleni in Gauteng, and Thabazimbi in Limpopo.

When delivering his Budget Vote Speech, the Minister of Cooperative Governance and Traditional Affairs announced the budget of R395.7 billion, with 95.9% (R379.61 billion) set aside for distribution to municipalities and related institutions. This budget will primarily fund the local government's Equitable Share, Disaster Relief Grants, and Municipal Infrastructure Projects.

Honourable Chairperson,

Through, the Municipal Infrastructure Support Agent (MISA), Government continues to support distressed municipalities with infrastructure investments to deliver essential municipal services.

I thank you Honourable Chairperson.

Land reform process
 
ê5.​ Ms S M Mokoena (KwaZulu-Natal: MKP) to ask the Deputy President:

Considering the time frame for land reform process and the recent meeting with the Minister of Agriculture (details furnished), (a) what new strategies are in place to fast-track land claims and (b) what measures are in place to ensure that land that is claimed increase agricultural production and improving food security? CO316E

Reply:

Honourable Chairperson,

Accelerating land reform remains the key priority of this government. Our interventions are focused on expediting the process of land claims for agricultural production to subsequently improve food security.

I have recently met both the Minister of Agriculture and the Minister of Land Reform and Rural Development, and the matter of fast-tracking land claims was at the top of agenda items we discussed.

As part of these Ministerial engagements, we have been able to structure the priorities of the Inter-Ministerial Committee on Land Reform and Agriculture in terms of its program of action. This has enabled us to agree on some of outstanding critical matters that require our immediate attention as we move forward with our land reform agenda.
 
Honourable Chairperson,

As part of ensuring that there is significant increase in agricultural production and improved food security, government continues to strengthen its post settlement support to those whose claims have already been settled in order for them to utilise land productively.

To this end, Cabinet has already approved the National Policy on Comprehensive Producer Support and Development. The Policy provides for the different categories of farmers, and the type of support to be provided to these farmers, especially those from disadvantaged communities, including women, youth and persons with disabilities who are involved in agricultural production.

Furthermore, the Department of Agriculture has entered into partnerships with development partners such as community organisations, and financial institutions to support farmers, many of whom are emerging producers.

* To improve accountability on the grants and support provided by government to the farmers;
* Build the credit profile of these farmers for future access to finance;
* Provide technical farming support to the farmers; and
* Provide farmers with an opportunity to market access.

A practical example of the above mentioned interventions relates to the establishment of a Blended Finance Scheme (BFS) in partnership with the Land and Agricultural Development Bank of South Africa to commercialise development farmers with the objective to facilitate meaningful participation of black producers and majority black owned enterprises owning and controlling the agricultural value chains.

These support measures will allow medium-scale producers to be linked to the necessary value chains as envisaged in the Agriculture and Agro-Processing Master Plan. Ultimately, this will enable our producers to supply the domestic and international market, as well as being equipped to become sustainable operations.

Honourable Chairperson,

According to the Department of Land Reform and Rural Development the Commission on Restitution of Land Rights had to adjust its targets downwards given funding pressures. In its latest assessment, the Commission indicated that an estimated R68 billion would be required for the next period of five years in order to fast-track the settlement of all old order claims lodged in 1998.

As we move forward, we will have continuous engagements with the National Treasury in an effort to secure the required funding to fast-track the settlement of outstanding land claims in our effort to strengthen our land reform programme, and ensure the food security for our country.

I thank you Honourable Chairperson.
 
 
Extortion of township economy
 
ê6.​ Ms S Nxumalo (Mpumalanga: ANC) to ask the Deputy President:

1. Whether the Government has any urgent decisive measures to prevent the township economy from turning into an extortion-based economy that is controlled by ruthless and cold-hearted gangsters that lead to (a) the closure of numerous businesses and (b) senseless murder of entrepreneurs and business owners (details furnished); if not, why not; if so, what are the relevant details;
 
2. Whether such measures include dealing decisively with sabotage of basic service delivery such as water and sanitation to the communities in the townships by unscrupulous water tankers (details furnished); if not, why not; if so, what are the relevant details?​​ CO314E

Reply:

Honourable Chairperson,

Honourable Nxumalo, the question of extortion-based economy that is controlled by ruthless gangsters, and extortionists poses a serious concern to us as government, and law abiding citizens. We have also responded to a related question in the National Assembly, highlighting the urgent need for government to take decisive action to deal with extortion related criminality.

When delivering his statement on threats posed by extortion in the National Assembly on 3 September 2024, the Minister of Police, mentioned four Provinces where township economic sabotage as a consequence of extortion is rife, these are mainly Gauteng, KwaZulu-Natal, Western Cape and Eastern Cape. According to the Minister of Police, these Provinces carry 73 percent of crime levels in South Africa, the gravity of these crimes alone, including extortions are of serious concern to government, and must be dealt with immediately.

In the context of the whole of government approach, the South African Police Service has initiated the signing of cooperative agreements with Provincial and Local Governments which include operational plans that will provide details on the integration of resources against crime.

In addition, Extortion and Kidnapping Task Force Forums have been established in all affected Provinces, which involve all relevant stakeholders, including private businesses.

Honourable Chairperson,

On the implementation of measures to deal with sabotage of basic service delivery such as water and sanitation by unscrupulous owners of water tankers. The Department of Water and Sanitation and COGTA are assisting struggling Municipalities with water tankers as a short term intervention, whilst bulk water infrastructure challenges are being resolved.

In addition to a challenge of construction mafias which is rife all over the country, we have received reports of unscrupulous owners of water tankers who are interfering with service delivery initiatives in Municipalities, thus extorting money to rent their services, and some selling water to vulnerable communities.

We are particularly encouraged by the work of Community Policing Forums, whistle blowers and community members who are actively involved in addressing service delivery-related acts of criminality and extortions across all Provinces that have been identified as hotspots; however, much more needs to be done to resolve this challenge.

I thank you Honourable Chairperson.