Pretoria – Trade and Industry Minister Rob Davies says his department will this year work on the Minerals Beneficiation Action Plan, which will be a component of the Industrial Policy Action Plan (IPAP).
Delivering the Department of Trade and Industry’s Budget Vote on Tuesday, Minister Davies said over the years, government has spoken about the beneficiation of the country’s mineral resources but that this has remained elusive for many years.
“As the platinum strike so clearly demonstrated, our current account deficit and the exchange rate are directly impacted by volatile global commodity prices,” said the minister of the five-month platinum strike.
However, he stressed that he was not suggesting that beneficiation would be simple to achieve.
“However, if we fail to decisively pursue beneficiation, we will relegate the SA economy to a place at the bottom end of the globalisation of labour, with serious consequences for our ability to generate income and employment.
“We do not have the luxury of debating whether to beneficiate our mineral wealth. We must harness the collective industrial capabilities of SA firms to map how to beneficiate and what enabling policies or support measures are required to ensure this happens successfully and for the benefit of all South Africans.
“We will therefore this year develop the Minerals Beneficiation Action Plan, as a component of the IPAP,” said Minister Davies.
Special Economic Zones (SEZ)
Earlier this year, President Jacob Zuma approved the Special Economic Zones Bill.
The bill, which supports a broader-based industrialisation growth path, also aims to support a balanced regional industrial growth and the development of more competitive and productive regional economies.
“Simultaneously with processing the legislation, we embarked on a process together with the provinces of conducting feasibility studies on potential SEZs, some IDZs [Industrial Development Zones] and the other forms provided in the Act,” said Minister Davies.
Public consultations are underway for the Harrismith Trade Port in the Free State to become an IDZ.
Meanwhile, President Zuma will in future hand over the operator permit allowing the Dube Trade Port to become an IDZ.
To date, five IDZs have been designated which are Coega, East London, Richards Bay, OR Tambo and the newly designated Saldanha Bay, in October 2013.
“Work is also well advanced on industrial sector SEZs, including two potential platinum value chain based SEZs, one in the North West and another in Limpopo.
“We have no doubt that the combination of support available through the SEZ programme will lead to an increase in productive investment by the private sector,” Minister Davies said.
Foreign Direct Investment (FDI)
The minister said he was aware of the importance of FDI.
“We are and will remain open to FDI. Openness is reflected in the stock of FDI in South Africa, whicht now accounts for around 42% of our GDP.”
Over the last five years, South Africa accounted for the bulk of new investment projects in Africa, with investment arriving from the USA, some member states of the EU and, increasingly, from China, India and other Asian countries.
“The reasons are not hard to find: South Africa offers many opportunities not only for access to a growing domestic market but also as a platform to the dynamically growing markets of the African continent. Investors enjoy robust protection in South Africa, comparable to the highest international standards.”
Some facts on investment in the country include the Global Financial Times Magazine of UK voting South Africa overall winner for best investment destination in Africa for 2013 and 2014, in August 2013.
The 2014 AT Kearney Foreign Direct Confidence Index ranks South Africa in position 13 amongst 25 leading economies, moving up two places from 2013. South Africa ranks better than countries such as Switzerland, Sweden and Netherlands.
B-BBEE Amendment Act
The dti will begin implementing the B-BBEE Amendment Act, which was signed into law in January.
The act and its accompanying Codes of Good Practice seek to increase alignment between B-BBEE activities and government’s objectives of localisation, skills development and job creation and industrialisation. - SAnews.gov.za
