Industry, Elizabeth Thabethe
29 March 2006
Madam Speaker
Members of Parliament
Distinguished guests
Ladies and gentlemen
Empowering People at the Margin of the Economy
The attainment of human rights, at its essence, is related to what happens
in the economy. As much as anything else, it is about how people are related to
the process of production and distribution of the wealth of their country.
Madam Speaker, March is Human Rights Month and this gives us occasion to
reflect on what it is we have done, and what it is we still need to do to
advance human rights in South Africa.
Madam Speaker, I am sure that all present here today largely enjoy the
comfort and protection of a First Economy existence. Yet we know that there are
many millions of our people who live on the margins of the First Economy. They
are the inhabitants of what we refer to as the Second Economy. They are the
âentrepreneurs of necessityâ the marginally self-employed. They are the working
poor. Women and those living in rural areas are likely to be over represented
in their ranks.
The foundation of human rights is that they are universal. We are,
therefore, duty-bound to extend the attainment of these rights to those in our
midst who are too disempowered to attain these on their own. Women, the rural
and urban poor, and the working poor, are among the vulnerable constituencies
that, if afforded the protection and support to which they are entitled, can
contribute significantly to the countryâs economy.
To facilitate meaningful participation in the economy, the Department of
Trade and Industry (dti) is determined to leverage the First Economy in order
to integrate and support sustainable livelihoods in the Second Economy. One
obvious way is through the continued support of small, medium and micro
enterprises (SMMEs) via the Small Enterprise Development Agency (SEDA).
The role of SEDA
As indicated earlier, the SEDA will facilitate dedicated support to small
businesses in Accelerated and Shared Growth Initiative of South Africa (AsgiSA)
and priority sectors and provide crucial business development information to
small businesses in general. SEDA is in the formative stages of its roll-out.
The role of SEDA, as it relates to the Second Economy, is one of supporting and
growing entrepreneurship, particularly in historically disadvantaged and poor
communities.
As a first step, SEDA must raise public awareness as to the viability of
entrepreneurship as a strategy for a sustainable livelihood. To that end the
agency has been quite busy over the past year. Over and above all other
promotional activity, SEDA has been involved in regular timeslots on nine
community radio stations to promote entrepreneurship and to address both
specific and generic sectoral issues. As measured by reach and the response of
the listening public, the initiative appears to be responding to a dire need
for information. A further response to that need was the annual SEDA summit. By
all accounts, this yearâs summit in the North West Province on âBest practice
for Public Private Partnership in Small Enterprise Developmentâ offered
delegates from both sectors insight into building partnerships that empower
entrepreneurs.
The top priority for SEDA in the coming year is to roll out physical
infrastructure and establish a national network, in order to deliver its
various programmes to the people, wherever they may be.
Madam Speaker, SEDA is working hard with the Economic Cluster to ensure that
its roll-out gains as much leverage and coherence as possible from the work of
Economic Cluster of departments and the rest of government. This will be a
tough challenge for the young SEDA, though the pursuit of such a stretch target
will ultimately be to the benefit of SEDA and the growth of small enterprises
in South Africa.
Promoting Co-operatives
It is widely accepted that cooperatives are an important enterprise vehicle
in finance-constrained communities and, indeed, provide an important avenue to
the collective advancement of sustainable livelihoods at the community
level.
In this regard, the co-operative strategy has been presented to National
Economic Development and Labour Council (NEDLAC) and will undergo parliamentary
processes soon. I can report that the Co-operative Incentive Scheme (CIS)
became operational in January 2006. Administrative systems have been put in
place and so far ten co-operatives have been approved for funding.
A special project in the textiles sector has been approved to train women
across nine provinces in the AsgiSA targeted craft industry. The project,
focused on craft design, serves the ends of job creation, poverty alleviation
and skills transfer. While the half a million rand project is of a relatively
small scale, it could well serve as a model for future projects of this
sort.
Alignment of COTII support programmes is crucial to the success of the
co-operatives strategy. In this regard, SEDA and Khula are also working closely
with the dti on financial and non-financial support referrals. In addition, the
National Empowerment Fund (NEF) has developed three instruments for
co-operatives.
A cooperative advisory board will be established to advise the Minister on
the implementation of policy. This will support the department in seeking out
innovative ways of empowering co-operatives as an engine for development.
Supporting Women Entrepreneurship
At the heart of growing the South Africa economy, reducing unemployment, and
eradicating absolute poverty, lies the economic empowerment of women, who
continue to be over-represented amongst the poor. Supporting women
entrepreneurship is, therefore, an indispensable part of any serious programme
aimed at the second economy.
Madam speaker, the Department is planning to make 2006/07 the year of bold
steps forward for the participation of women in the South African economy. To
that end, this year will see the finalisation of the Strategy on Gender and
Womenâs Economic Empowerment. We shall also be rolling out a Women
Entrepreneurs Programme, and pilot implementation of the Young Women in
Entrepreneurship Programme.
The South African Women Entrepreneurs' Network (SAWEN) has been an important
vehicle for stimulating women entrepreneurship across the country. Through
SAWEN women have engaged with the department positively and we are convinced
that the emerging partnership South African women and the dti can grow and
support womenâs entrepreneurship. Through the support of SAWEN and the
international linkages that we have been forging with the assistance of the
Presidency, we are sure that South African womenâs products will access the
formal market in increased numbers.
Extending Consumer Protection
When considering protection for the marginalised and the extension of
rights, consumer rights is critical, full and proper consumer redress is long
overdue in this country. In fact, until recently, consumer legislation has been
fragmented and inconsistent, leaving the average consumer largely in the dark
and vulnerable to exploitation by unscrupulous operators. That state of affairs
is what has motivated the drafting of Consumer Protection Bill, which will be
introduced to Parliament this year.
The Bill gives statutory status and content to various consumer rights, some
of which derive from the United Nations (UN) guidelines on consumer rights.
Enforcement of the Bill will be ensured by means of a purpose-built
institution, namely the National Consumer Commission (NCC).
Addressing Regional Imbalances
Madam speaker, I have already spoken about the vulnerability of the rural
poor. Much of their plight is a function of the skewed spatial distribution of
economic activity in this country. As a counter measure, the dti is developing
a Regional Industrial Development Strategy (RIDS) aimed at extending the reach
of economic opportunity beyond established metropolitan areas. Informed by the
other relevant government spatial and Local Economic Development (LED)
policies, the RIDS is built around certain better practice principles that are
emerging in international regional development strategies. These include:
* a focus on enhancing physical and social infrastructure;
* a reliance on partnership formation and the driving of development from âthe
bottom-upâ; and,
* a multi-sectoral approach to development.
The RIDS is built around three prongs, namely the South African Industrial
Development Zone (IDZ) programme, supporting legislation for the IDZ programme,
and a system of incentives for regional industrial development.
Conclusion
Madam speaker, we support our President in his assessment of our country
entering its Age of Hope. We also recognise that much hard work and diligence
is needed to realise the potential of this Age of Hope.
This being Human Rights month we would like to take the opportunity to
recommit the dti to advancing the formal and substantive rights of the
economically disempowered. We believe that the work we are doing at the dti
will go a long way to doing just that.
I thank you.
Issued by: Department of Trade and Industry
29 March 2006
