Government investment of tens of billions of rand through industrial and infrastructure finance, to promote industrialisation and the manufacturing capacity of South Africa, are set to also create over 7 800 new jobs.
Speaking during his Budget Vote Debate in the National Council of Provinces (NCOP) today, Economic Development Minister Ebrahim Patel lauded efforts by the Industrial Development Corporation (IDC) to accelerate plans by Government to increase job opportunities and create new industries, particularly in provinces most affected by poverty and unemployment.
Minister Patel says government has improved the level of industrial funding that the IDC is making available to support local factories, farms and mines. “The IDC has scaled up its levels of industrial funding, committing R27 billion over the past two years, an increase of 48% compared to the previous two years. The Small Enterprise Finance Agency (SEFA) and the IDC will together make close to R3 billion available for youth employment and youth entrepreneurship over the next five years,” added Minister Patel.
Government continues to provide strategic investments across provinces through the work of the IDC and the newly formed Small Enterprise Finance Agency (sefa) to strengthen the industrialisation, manufacturing and economic development capacity of South Africa, with the Economic Development Department (EDD) coordinating these interventions.
Minister Patel pointed to examples the interventions made through the National Infrastructure Build Programme, as well as the IDC and sefa, as public entities of the Economic Development Department. These interventions are set to reshape the economic outlook of even the poorer provinces.
These include:
- Co-funding of the construction of what has been described as the world's largest manganese sinter plant that produces 2MegaTons per annum in the Northern Cape. The plant is set to create at least 1 600 permanent jobs. In addition IDC’s funding of the expansion of a grape production and processing plant that is set to reach R430 million in export earnings annually by 2019 while continuing to improve the country’s share of the world market and create over 1 100 jobs.
- Funding a number of green economy and manufacturing projects, which together are set to create over 200 jobs in the Eastern Cape. These include the manufacturing of Solar PV panels that are able to generate 85MW of electricity per annum at the East London IDZ, as well as the establishment of a factory for manufacturing towers for wind turbines in the Coega IDZ.
- Co-funding by IDC of the new Film Studio with plans to construct a water tank facility and beach reservoir at the studio to attract big budget film productions that require ocean scenes and is set to create 513 jobs. The facility has already been utilised for productions including Mad Max 4 where Charlize Theron starred.
- Construction of a state of the art oilseed crushing facility in Mpumalanga -Standerton that will support black farmers to growth capacity for providing soya beans to the plant. The project is currently employing 12 700 people and will create additional 3 000 jobs over the next two years as government continues to accelerate the construction of the R118.5 billion Kusile Coal-Fired Power Station in Mpumalanga.
- Funding of a new factory in KZN-Durban for manufacturing plastic moulded components for motor vehicles which is set to create 450 jobs, while continuing to support the local manufacturing of minibus taxis.
- Funding the upgrading of a saw mill near Tzaneen in Limpopo by IDC will improve its competitiveness and will help retain 449 existing jobs. Sefa has also funded a young entrepreneur who manufactures conveyor belt components for the mines.
- Funding of a woman owned and run financial intermediary by sefa to provide bridging finance, working capital and asset finance to small and micro businesses across the Free State province. The beneficiaries include farmers buying new equipment, small construction firms building roads and entrepreneurs buying a guest house.
- Funding of a semi-automated material recycling facility able to process over 6 000 tons of waste per month, the expansion of a sweets manufacturing company, as well as a Biogas Plant in Bronkhortspruit will improve the greening of the country, the competitiveness of the companies and create over 350 jobs in Gauteng.
Enquiries:
Manelisi Wolela, Spokesperson
Cell: 071 313 4192
E-mail: mwolela@economic.gov.za
