Pretoria - Economic Development Minister Ebrahim Patel says the Industrial Development Corporation (IDC) has created over 18 000 new jobs, while it saved a further 4 000 jobs.
Presenting the Economic Development Department's Annual Report to Parliament, for the period 1 April 2012 to 31 March 2013, Patel said industrial funding disbursements by the IDC and actions against market abuse by the competition authorities were at a record high during the 12 months.
"In difficult global and domestic economic circumstances, government was able to invest strongly in infrastructure, with about R200 billion invested in energy, transport and other key infrastructure.
“The economy created 199 000 new jobs. The GDP reached R3.2 trillion in value. These achievements are significant, when many of our key trading partners were still languishing in recessions or weak economic recoveries," he said on Tuesday.
Patel also highlighted a number of gains made in the past year, in both the economy and the performance of the Economic Development Department and public entities reporting to it.
These included the R16 billion worth of disbursements by the IDC to partner companies in the economy, which were approved and transferred to investor partners. This is an increase of 87 percent compared to the previous year.
Small business funding approvals also doubled to R432 million, compared to the previous period.
The Small Enterprise Finance Agency (Sefa) completed its first year of operation and extended its footprint across the country.
Fines and penalties totalling to R731 million were also imposed by the competition authorities for actions against cartels and price-fixing in the economy.
These exclude the large penalties imposed on the construction industry, which was finalised after the end of the financial year.
Action against cartels was critical in order to open the economy to new entrants and to ensure consumers and tax payers received value for money, said Patel.
Patel also reported that there was sustained increase in the capacity of the state to spend voted and allocated finds for infrastructure development.
About R820 billion was spent on economic and social infrastructure since the start of the current administration in 2009.
The Presidential Infrastructure Coordinating Commission (PICC) is co-ordinating the roll out of 18 strategic integrated projects (SIPs) in infrastructure, which has sustained 180 000 jobs, according to the report.
Positive gains
Addressing Parliament on the focus of government, Minister Patel cited the successes within the industrialisation sector.
"When the current administration came into office, all mini-bus taxis and large buses used in metros were imported. Today, 38 percent of new minibus taxis sold in SA is assembled locally, and all new buses used by Joburg and Cape Town's public transport systems are now being assembled in local factories.
“This is the start of a determined effort in partnership with the private sector to reclaim the domestic market,” he said.
Other efforts include the opening of a new television and fridge manufacturer in Atlantis on the West Coast and construction of a soya crushing plant in Standerton, Mpumalanga.
"I am pleased that the IDC co-funded Long Walk to Freedom, the biography of ex-President Nelson Mandela, and in the process it helped to ensure a world-class movie was made locally, creating jobs in South Africa. This is part of creating new industries that can complement the focus on manufacturing, mining and agriculture," he said.
Minister Patel pointed to a big increase in farming jobs in the period, with agricultural employment up by 83 000 new jobs.
The IDC also invested R3.8 billion in 40 green energy projects, which is helping to create a large solar and wind energy generating capacity as a contribution to reducing carbon emissions and protecting the environment.
This was in line with government's strategy to mitigate the effects of the coal-industry on climate change and is now Africa's largest green energy programme.
The Report to Parliament indicated that the department achieved 98 percent of its annual targets using less than 90 percent of its budget.
The savings, according to the report have been redirected to expanding a partnership to train young black finance graduates to be work ready for small businesses.
This programme was done with the South African Institute of Chartered Accountants (SAICA) for the training of accounting graduates and the establishment of a business hub to provide strategic and in-kind business support to SMMEs, with R10 million allocated for training 170 graduates in 2013.
Overall challenges
While the function of an annual report is to provide details of what was achieved against set targeta, Patel said there was also a need to acknowledge that the overall challenges of unemployment, poverty and inequality remain high and require further urgent interventions.
“We cannot be complacent in the midst of an unemployment rate that results in a quarter of the labour force being without jobs, yet willing and able to work. Trade unions and businesses must be more focused on creating new jobs. Government must step up actions to increase the labour absorption capacity of the economy," Minister Patel said.
He told Parliament that support for African regional development was the key to long-term growth of markets and was one of the best investments that South Africa's private and public sectors could undertake.
"We have made solid progress on regional diplomacy and now need to strengthen the hard elements of regional economic integration, including logistics, trade regulations and supply-chain development in and with neighbouring countries.”
This, as well as investment in the country’s infrastructure, education and skills development and support for small businesses were key ways in which government could scale up jobs in South Africa, Patel said. – SAnews.gov.za
