Mr Ron MacLarty-Afrimold managing Director;
Mr Bob Williamson- Chairperson of Tooling Association of South Africa;
Mr Dirk van Dyk- CEO of National Tooling Initiative;
Mr Henk Snyman-CEO of Gauteng Tooling Initiative;
Representative of the Tolling and Associated industries;
Invited guest;
Ladies and gentlemen.
I am immensely honoured that you granted me the opportunity to open this second AfriMold Exhibition and Conference. In this province, we believe that AfriMold is a platform to showcase Gauteng and South Africa’s manufacturing capabilities.
It provides networking opportunities to advance business and technology in tooling, mold-making, design and development. This initiative is aimed at creating supply and demand linkages for the tooling industry and this will in the end reduce import penetration of tooling products.
We believe that this exhibition and conference will in the end be on par with EuroMold, which is held annually in Germany. This is a true example of a successful Public Private Partnership between government and private sector that is beneficial to all.
Ladies and gentlemen, this event underlines the importance of our re-industralisation agenda, which is meant to revive and promote the manufacturing sector, which is suffering from decreased global demand of its products as well as the flooding of cheap imports.
Last week when we tabled the Budget Vote for the Department of Economic Development in Gauteng, we were unequivocal on the need to foster a more equitable distribution of the benefits of economic growth and the reduction of inequality, poverty and unemployment in South Africa and in Gauteng.
Needless to say, increased and sustainable investment from the private sector is crucial if we are to realise the strategic objective of creating decent jobs and inclusively growing Gauteng’s economy.
This investment from the private sector is of paramount importance, especially in the context where our country continues to be rocked by the reality of an “investment strike” from big business.
We agree with Finance Minister Pravin Gordhan that “a significant increase in private sector investment and competitiveness is needed in the wider economy: agriculture, manufacturing, tourism, communications [and that] every sector has to play its part in expanding trade, investment and job creation.”
Our objective is to make giant leaps and propel South Africa’s manufacturing capabilities to greater heights. This means that we have to take a bold stance to protect manufacturing, which employs about 600 000 people in Gauteng province alone.
We have seen a declining trend of the manufacturing industry over the years from around 18% of GDP in 2007 to 14% in 2013. This decline has a negative impact on employment and the country’s competitiveness.
As the backbone of our manufacturing sector, the tooling industry has been prioritised through initiatives of both the provincial and national spheres of government.
Ladies and gentlemen, youth unemployment is the biggest political question facing us today. Young people continue to be at the receiving end of the unemployment crisis in South Africa.
This situation is not a unique feature of the South African economy. Since 2008, the numbers of unemployed youth has increased throughout the world. This is the case even in countries that were previously considered the crown jewels of capitalism. The International Labour Organisation (ILO) report published in May this year noted that there are 73.4 million young people unemployed throughout the world in 2013, an increase of 3.5 million since 2007.
Statistics also confirm that the African continent has a young face. Young people between 15-25 years represent more than 60% of Africa’s population and account for 45 % of the total labour force.
Sub-Saharan Africa is experiencing a youth bulge, with youth as a proportion of the total population projected at over 75 per cent by 2015. Over and above this, the Census 2011 results showed that indeed Gauteng is a young province.
This means that we must always consider the youth impact of every initiative that we that we undertake as government and the private sector. This cannot be achieved by government alone. Joint commitment and participation by all social partners to expand opportunities for greater employment is a necessity.
The crisis of youth unemployment points to the need to accelerate mass employment creation. Our youth employment strategy rests on four pillars: youth entrepreneurship development and training; township enterprise hubs; youth placement and skills development.
Although youth unemployment is a pressing challenge in our society, it also presents an opportunity for the private sector to assume the steering position and redirect our economy.
It gives me great pride to observe that the tooling and mold-making industry has been equal to the task and has grabbed the bull by the horns when it comes to addressing the youth unemployment and skills development challenges in our country.
In a bid to impart artisan skills on the youth, we have, working with our private sector partners embarked on a tooling training programme offered by four FETs located in various areas of Gauteng, such as Kempton Park, KwaThema and Tshwane. There are currently over 200 young people participating in this training and will graduate in June 2014.
We are also working with the National Institute of Foundrymen to enlist 20 students for the foundry-training programme at Ekurhuleni East College in September 2013. We are also accelerating our youth placement programme which will see 3000 young people matched into job opportunities in 2013.
An example of the private sector partnerships we are cultivating is South African Breweries’ commitment to take 60 young people from Gauteng on board for its apprenticeship programme targeting instrument mechanics, electricians, fitters and turners and millwrights.
Twenty (20) young enterprenuers will also be absorbed into the SAB’s Kickstart programme for mentoring and training. Upon completion, succesful enterprenuers will be awarded seed funding to make their businesses a reality. In addition to this, SAB has also committed R3 million for funding of cooperatives in the province.
With other government partners, such as the Department of Trade and Industry, Gauteng City Regional Academy, Gauteng Department of Economic Development has been supporting the Tooling Artisan programme since 2009 and we are looking forward to see the first intake graduating from this programme in June 2014.
We will continue to provide support through cluster programmes to those who wish to start business around tooling design and manufacturing. But I must hasten to say that government efforts can only be successful if the industry commits to ensuring that there is mentoring and incubation for new enterprises and provision of financial support to complement government financial commitment.
It is my sincere hope that over the next few days you will apply your minds and craft possible solutions to the challenges facing our economy. Unemployment, poverty and inequality must be the keywords in every discussion that you will hold in the next few days.
Judging from the state of things at present, I have no doubt that this edition of the Conference and Exhibition will be more successful than the 2010 leg and attract many qualified trade visitors as well as local and international exhibitors.
I am also confident that the exhibition will fulfill its aim to create a strategic platform to highlight mold making and tooling industries to enhance product development and advance business, technology and design throughout the African continent. With these words, I now declare the 2013 AfriMold Conference and Exhibition open and wish you well in your deliberations for the next three days.
I thank you.
