Government has supported 27 black industrialists from the first quarter of 2015/16 to the third quarter of 2016/17 to advance economic transformation.
“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,” Minister in the Presidency for Planning, Monitoring and Evaluation Jeff Radebe said.
Briefing the media in Pretoria on Thursday on the outcomes of a Cabinet meeting which was held recently, Minister Radebe said government has committed to creating 100 black industrialists over the medium term.
“Government support resulted in a total projected private sector investment of R956 million, while 1 053 jobs are projected to be established.
“Additionally, the Industrial Development Corporation’s gross funding for black industrialists amounted to R4.575 billion, from quarter one of 2015/16 to quarter three of 2016/17,” he said.
According to the Minister, Cabinet deliberated on the third quarter outcomes performance update reports for the period October to December 2016, which monitor the implementation of government’s programme of action, in line with the provisions of the Medium Term Strategic Framework and the National Development Plan.
Minister Radebe said Foreign Direct Investment (FDI) confirms that South Africa remains a preferred investment destination.
“The quarter three 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 R34.89 billion,” he said.
Government has identified 40 high-impact projects, through Invest SA, that will be ready for implementation within the next two years. “Support from the Department of Trade and Industry attracted R4 billion 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 R1.3 billion of private sector investment, while the OR Tambo International Airport SEZ attracted R260 million in private sector investment,” he said.
Minister Radebe said the 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.
A total of 46 382 households were connected to the grid and 2116 households were connected to off-grid technology. “Furthermore, 141 191 rural indigent households gained access to free basic electricity. 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,” Minister Radebe said.
The construction of Ngwaabe Integrated Energy Centre has been completed.
Minister Radebe said the rollout of the Independent Power Producer (IPP) Programme has unlocked R201 billion from the Renewable IPP Programme and renewables are now supplying 3 175MW to the grid.
Furthermore, the project information memorandum for the gas IPP has been completed, with a Request for Proposal to be issued before the end of the new financial year and 900 MW was procured from the coal IPP.
In the reporting quarter, the Department of Small Business Development supported 1 388 township enterprises and 48 co-operatives, through incentives.
“National and provincial government are collaborating to revitalise local industrial parks so as to support existing businesses and to attract new businesses. 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,” Minister Radebe said.