Mthatha
18 April 2009
A R20 million Mthatha furniture incubation centre was launched on Saturday
18 April 2009, in Mthatha at King Sabata Dalindyebo Local Municipality in O R
Tambo District Municipality by the Minister of Trade and Industry (the dti),
Mandisi Mpahlwa.
The incubation centre will kick-start the redevelopment and growth of the
furniture and wood industries in the region and the province. The project is
envisaged to further diversify and expand the value chain of the forestry
sector in the region.
Speaking at the launch, Minister Mpahlwa said business incubation is one of
the many and important instruments that government utilises in its commitment
to tackle poverty and unemployment. According to him, the launch of the centre
is in line with the countryâs National Industrial Policy Framework (NIPF).
âIn that regard, this launch is an important milestone and achievement in
support of the NIPF, adopted in 2007 to set governmentâs approach to
industrialisation. Indeed, this launch, then gives us the proof that with
realistic ambition, good strategy and the requisite resources, we are capable
of promoting the further industrialisation of our economy.â
Nineteen local learners have completed training programme in wood machining
and upholstery and have established five small businesses after completing the
programme. Their businesses are currently undergoing incubation at the
centre.
Minister Mpahlwa said that he is confident that the forestry charter will
also facilitate greater support by forestry companies for enterprise
development in downstream industries.
He stated that the establishment of this furniture incubation centre is
another indication of the seriousness that the dti, in collaboration with other
stakeholders, place on supporting the increase of value adding activities in
the rural communities. âAlso, a rural manufacturer can produce furniture from
home and sell it on the local market and by so doing create employment for the
local people,â said Mpahlwa.
On Friday 17 April, the Minister also officially launched the ninth Small
Enterprise Development Agency (Seda) district office at Mount Ayliff in the Nzo
District Municipality. The purpose of the office is to bring services closer to
the people.
The Minister added that it is governmentâs view that the South African
furniture industry is an important sector in the economy because it is
labour-intensive and has potential to contribute quite significantly to the
reduction of unemployment, increase exports and develop Small, Medium
Micro-Economic (SMMEs). However, he said that government was aware of the
challenges that must be dealt with in order to help the sector to achieve its
full potential.
Enquiries:
Sidwell Medupe
Tel: 012 394 1650
Cell: 073 522 6801
E-mail: MSMedupe@thedti.gov.za
Issued by: Department of Trade and Industry
18 April 2009
