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China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
CABINET DECISIONS
Cabinet deliberated on the Third Quarter Outcomes Performance Update Reports for the period October to December 2016, which monitor implementation of Government’s Programme of Action in line with the provisions of the Medium Term Strategic Framework and the National Development Plan.
Respective Cluster Ministers, through the GCIS, will coordinate cluster media briefings to present departmental milestones reached in the period.
The following highlights relates to some economic areas.
ECONOMIC TRANSFORMATION
1.Economic Transformation requires radical change in the productive base of the South African economy; it also requires changing the patterns of participation by previously disadvantaged individuals in the economy.
2.Following Government’s announcement that it would create 100 black industrialists over the medium term to bring about economic transformation, 27 Black Industrialists have been supported since the inception of the programme, 9 of which were supported in this quarter.
3.Government support resulted in a total projected private-sector investment of R956m while 1 053 jobs are projected to be established. Additionally, the Industrial Development Corporations’ (IDC) gross funding for black industrialists amounted to R4, 575 billion, from quarter one of 2015/16 to quarter three of 2016/17.(The Industrial Development Corporations’ (IDC),established in 1940,it is a national development finance institution set up to promote economic growth and industrial development. It is owned by the South African government under the supervision of the Economic Development Department. It aims to be the primary source of commercially sustainable industrial development and innovation to benefit both South Africa and the rest of Africa.
Its mandate is to contribute to the creation of balanced, sustainable economic growth in South Africa and on the rest of the continent.
It promotes entrepreneurship through the building of competitive industries and enterprises based on sound business principles.)
INVESTMENT
1.In an effort to boost confidence levels, Government through Invest SA has identified 40 high-impact projects that are ready for implementation within the next two years. Support from the Department of Trade and Industry attracted R4bn in private-sector investment, with the potential to save and create approximately 3 614 jobs in the September-December 2017 quarter. The Dube Trade-Port attracted R1.3bn of private-sector investment while the OR Tambo International Airport SEZ attracted R260m in private sector investment.
2.Economic diplomacy initiatives undertaken yielded increased sales of manufactured value-added exports by R247 million which brings the cumulative total for the year to R4. 105 billion.
3.Foreign Direct Investment (FDI) confirms that South Africa remains a preferred investment destination.(FDI is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company. Foreign direct investments are distinguished from portfolio investments in which an investor merely purchases equities of foreign-based companies. The key feature of foreign direct investment is that it is an investment made that establishes either effective control of, or at least substantial influence over, the decision making of a foreign business.)
The Q3 additions to the Pipeline represent potential FDI of R4.55 billion particularly in the energy and chemicals sector. This brings the total potential FDI to R34.892 billion. Officials are working extensively to move these potential investments from the pipeline to actual in.
4.President Jacob Zuma will launch the Invest SA National One Stop Shop tomorrow Friday 17 March 2017 at the dti Campus in Pretoria, Sunnyside.
SMALL BUSINESS DEVELOPMENT
1.As part of implementing the 30% ‘set aside’ of total procurement expenditure for SMMEs, National Treasury has reviewed the Preferential Procurement Policy Framework Act Regulations and gazetted amendments in January 2017.
2.In the reporting quarter – The Department of Small Business Development supported 1,388 township enterprises and 48 co-operatives, through incentives.
3.National and provincial Government are collaborating to revitalise local industrial parks, so as to support existing businesses and to attract new businesses. as Already, the Komani Industrial Park (Eastern Cape) accommodates 30 companies and employs 555 people, while Botshabelo Park (Free State) supports the livelihoods of about 10 000 people.
ENERGY
1. 46 382 households were connected to grid or micro scheme electricity and 2116 households were connected to off grid technology. Furthermore 141 191 rural indigent households gained access to free basic electricity. Construction of Nwaabe Integrated Energy Centre has been completed.
2. The Department of Energy finalised the procurement of 31 100 solar home systems for installation (planned annual target of 20 000). Installation will commence in the fourth quarter.
3. Government has continued the rollout of the Independent Power Producer (IPP) Programme with the following achievements: (i) unlocking of R201bn from the Renewable IPP Programme; (ii) The Renewables are now supplying 3 175MW to the Grid; (iii) the project information memorandum for the gas IPP has been completed with the Request For Proposal to be issued before the end of the new financial year; and (iv) 900MW was procured from the coal IPP.
