Minister Ebrahim Patel addresses inaugural Worker Share Ownership Conference

There is a great need for the Small, Medium and Micro Enterprises (SMMEs) Grading system in the South African market. This is according to the Acting Chief Executive Officer of the National Empowerment Fund (NEF), Mr Mziwabantu Dayimani. Dayimani expressed optimism for the SMME Grading system concept that has been geared to not only improve the ability of SMMEs to access credit but to also increase their global competitiveness and boost exports.

Dayimani was speaking during a webinar on the SMME grading that was hosted by the Department of Trade, Industry and Competition (the dtic) under the theme: Changing the landscape of South Africa’s Township Economy with the SMME Grading Concept.

According to Dayimani, the tool will greatly assist with due diligence purposes. He said a lot of businesses that the NEF supports do not have the necessary background information and intelligence on products that have been proposed, that are being included in the tool.

“We are encouraged by the fact that the tool has been tested in other continents and we are watching closely the work that is being done in Nigeria. We believe that this is something that can work in the South African context. This tool will go a long way in ensuring that SMMEs receive financial support timeously. 80% of the funding applications that the NEF receives get declined because applicants are not ready for funding and not in a position to provide all the needed information. We therefore anticipate that with the utilisation of the tool, the success rate of the applications in the South African market will triple, considering the results of other jurisdictions,” said Dayimani.

He added that the tool was catalytic and will certainly assist in vetting businesses and in terms of the governance processes. He said they would also be able to see the areas that need further improvement in businesses.  Dayimani also said the NEF was 100% aligned to the tool and the thinking behind it, and looking forward to test the tool with businesses.

While addressing the same session, the Director of Economic Infrastructure and Logistics at the dtic, Mr Thami Klassen said his department was excited about the opportunity to work with a team of experts and ensuring that the programme is implemented in South Africa.

“the dtic is currently conducting a probing survey to determine whether there is a demand for the creation of an SMME grading system. the dtic-led grading system will provide grading’s to SMMEs across South Africa and will have the primary objective of decreasing the information asymmetry inherent with these businesses. These grading’s will then open up business and funding opportunities for SMMEs, and the concept has been proven to be successful in this regard within the countries in which it is available. It is important to note that the concept is not currently available in South Africa but is available in countries such as France, where it is a public sector-led initiative,” said Klassen.

Assistant Professor at Harvard Business School, Anywhere Siko said a Public Sector Rating Agency could provide low-cost inclusive rating services to enterprises, this he said, could thrive and grow the economy.

The Managing Director of Credit Rating Analytics, Mr Saveshen Pillay, whose firm has previously advised the World Bank Group on the concept and formulated the emerging market public sector solution, believes that the grading system will be a game-changer within the South African SMME ecosystem. Credit Rating Analytics is currently advising the Nigerian government to create Africa’s first public sector SMME grading system and can use the expertise gained from that initiative to make this a reality in South Africa.

“In the Nigerian project, our modelling indicates that these grading’s can conservatively add $28 billion to Nigerian economy over the first five years. If we can successfully implement this in South Africa, it will proliferate the country’s economic trajectory and address key socio-economic challenges such as unemployment,” said Pillay.

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Issued by: The Department of Trade, Industry and Competition (the dtic)
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The Deputy Minister of Trade, Industry and Competition, Mr Fikile Majola is delighted that the critical infrastructure at the Tshwane Automotive City (TAC) and Rosslyn Hub Precinct based in Tshwane has been completed and has pledged continuous support from government to make sure the hub is a success in order contribute to the economy and create much needed jobs.

Majola was speaking at an Infrastructure Ribbon Cutting Ceremony which celebrated the completion of the critical infrastructure for the Rosslyn Hub development, a catalytic development for the Tshwane Automotive City (TAC) located in Rosslyn, Tshwane. Majola said he was delighted to experience first-hand, the investment project that has already been realised after funding support for the infrastructure from the Department of Trade, Industry and Competitions’ (the dtic) Critical Infrastructure Programme.  This programme aims to leverage investment by supporting infrastructure that is deemed to be critical, thus lowering the cost of doing business.

“We have enabled access to the proposed inland port and assisted in the provincial road intersection upgrades in preparation for the new K217 dual carriage-way road,” said Majola.

The K217 road will connect Rosslyn and Soshanguve to the N4 highway. This will help connect Rosslyn to Silverton and BMW and Nissan to Ford, in line with the TAC Masterplan. Importantly, this road will enable the logistics hub and inland port required for the auto industry to be linked directly to the N4 Highway and then the N1 highway for efficient road transport into Africa. This will assist in positioning Tshwane as the automotive manufacturing capital for Africa, in support of BMW, Nissan and Ford’s export ambitions. In addition, the inland port will connect to  Transnet’s freight line in Rosslyn, which will link to Ford in Silverton, and then to either the Port of Durban or Port of Gqeberha, to assist in moving additional automotive freight from road to rail, a key component in achieving export efficiencies,” said Majola.

According to Majola, Rosslyn Hub’s approved infrastructure projects, facilitated by the Critical Infrastructure Programme, represent a strategic investment in the region’s economic development, industrial growth and job creation. Additionally, Majola confirmed that this critical infrastructure played a pivotal role in supporting a brand new investment within Rosslyn Hub and the Logistics Node, by YFPO.

YFPO, a French-Chinese company, is a key BMW supplier and one of the largest automotive components suppliers in the world. The company currently operates 22 facilities, but this is their first investment outside of mainland China. It is therefore a real achievement for the TAC and Rosslyn Hub to secure a R670-milion Greenfield investment from YFPO for a new factory, as the anchor tenant for the logistics node, one of three priority nodes for the TAC.

The Director of Rosslyn Hub, Mr Brendan Falkson, said the investment value for these three priority nodes, in the TAC, is expected to attract around R42 billion worth of investment and to create about 59 513 jobs, over of the next 10-15 years. This will result in a significant change in the landscape of Rosslyn and provide the focus for the development of the Tshwane Automotive City, in the region. He said it was extremely rewarding after 10 years of planning 12 months of construction, to see the realisation of the TAC Master Plan, with such a significant investment, by one of the world’s leading automotive component suppliers, as the anchor tenant for Rosslyn Hub, within the Logistics Node.

Falkson also confirmed, that the completed infrastructure, has also unlocked additional development phases in Rosslyn Hub, including opportunities for additional industrial buildings, a retail shopping centre, rental housing units and a private hospital.

He went on to say: “I am excited about the future of our Rosslyn Hub development, as a catalytic project for the TAC, and look forward to seeing these projects completed in the near future.”

Rosslyn Hub is a 700 000m2 mixed use development, covering 100ha of prime land at the heart of the Tshwane Automotive City. It will integrate residential, retail and logistics nodes with a shopping centre, school, hospital and solar park, in a safe-secure, pedestrian friendly environment.  (www.rosslynhub.co.za)

The Deputy Minister of Trade, Industry and Competition, Mr Fikile Majola and the Chief Director Infrastructure at the dtic Mr Justice Ngwenya during the Infrastructure Ribbon Cutting Ceremony which celebrated the completion of the critical infrastructure for the Rosslyn Hub development, a catalytic development for the Tshwane Automotive City (TAC) located in Rosslyn, Tshwane.

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Issued by: The Department of Trade, Industry and Competition (the dtic)
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The Minister of Trade, Industry and Competition, Minister Ebrahim Patel, has welcomed a new R4 billion investment by Volkswagen South Africa (VWSA) in their assembly plant in Kariega, Eastern Cape. This investment will be used to add a new model to the production line – a brand new SUV built off the Polo platform; and position the facility as the sole manufacturer of the Polo brand globally. The new SUV model is expected to be exported to global markets.

Speaking at the announcement event held at VWSA’s facility in Kariega, Minister Patel remarked:

“This investment builds upon a legacy of commitment and exemplifies the success of our industrial policy, fortifying not only the assembly plant but also the livelihoods of about 3 500 individuals directly employed by VWSA. Moreover, this investment has rippled through this part of the Eastern Cape, fostering an ecosystem of prosperity and industrialisation, supporting an estimated 50,000 indirect jobs and livelihoods.”

In the last five years, Government has undertaken significant work in order to bolster automotive production in South Africa. Minister Patel highlighted ten actions which have been taken in the Sixth Administration to support the industry:

• A New Automotive Masterplan crafted together with industry, was implemented in July 2021, setting the policy framework for the next decade;
• The modalities for the African Continental Free Trade Agreement have been concluded, including a start made with rules of origin for a first list of auto products and the opening up of a potentially vast market;
• A free-trade agreement with the UK after Brexit was concluded and implemented, which enabled SA to retain access on preferential terms in the UK market;
• The R6 billion Auto Industry Transformation Fund was established – in which VWSA and other OEMs contribute to bringing black component manufacturers into the supply-chain;
• A major agreement with Tier 1 auto component manufacturers has been concluded that will ensure greater opportunities for black manufacturers in Tier 2 or Tier 3 level;
• R50 billion in investment commitments in the auto sector have been secured;
• A landmark agreement with Stellantis for the construction of a new R3 billion plant in the Coega Special Economic Zone has been reached;
• Semi-knocked down (SKD) production by BAIC, also in the Coega Special Economic Zone, has commenced as a first phase toward more value-additive complete knocked down (CKD) production;
• A new Tshwane Automotive Special Economic Zone has been established, with 10 factories for Ford suppliers already built by March 2024, providing employment to 3 300 workers; and
• The Electric Vehicle Policy was finalised by the dtic; and a new incentive package to assist the transition was announced by the Minister of Finance in the 2024 Budget.

The automotive industry plays a crucial role in our economy, contributing significantly to GDP and employment. The manufacturing component of the auto industry contributed 2.9% of South Africa’s GDP in 2022. With over 115,000 direct employees and an additional 240,000 indirect jobs, the auto industry remains a cornerstone of South Africa’s manufacturing sector.

Despite global challenges such as the COVID-19 pandemic and supply chain disruptions, South Africa’s automotive industry has continued to grow. Over the past five calendar years, South African OEMs produced 2.7 million vehicles and exported 1.7 million vehicles.

In 2023, a record number of vehicles were exported – 399,594 – marking a milestone in South Africa’s industrial resilience and global competitiveness. Notably, in 2023 South Africa exported its 6 millionth vehicle since the start of the democratic era.

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The Deputy Minister of Trade, Industry and Competition, Mr Fikile Majola, yesterday addressed a delegation of Turkish business leaders at the Turkish Embassy in Pretoria. The delegation arrived in South Africa to participate in meetings of the South Africa-Türkiye Business Council, aimed at exploring and promoting reciprocally beneficial trade and investment opportunities.

In his keynote address, Majola emphasised the strategic importance of Türkiye as a trading partner for South Africa, particularly within the context of regional trade dynamics.
“Türkiye serves as a critical gateway for South Africa into Eastern Europe, offering access to a vast market with significant potential. We are committed to strengthening our economic ties with Türkiye and believe that this Business Council can play a pivotal role in fostering this collaboration,” he stated.

In highlighting the existing trade ties between the two countries, Majola noted that there are currently around 70 Turkish companies with investments in South Africa. He expressed a desire to see this number grow even further.

“We encourage even greater investment by Turkish companies in South Africa, particularly in our key growth sectors such as manufacturing and infrastructure development. These sectors present numerous opportunities for collaboration, technology transfer and job creation,” he said.

Beyond manufacturing and infrastructure, Majola emphasised the diverse economic landscape of South Africa, pointing out a multitude of additional sectors ripe for Turkish investment and partnership.

“South Africa boasts a vibrant economy with immense potential across a range of industries, including agriculture and agro-processing, mining, services, energy, the green economy, and infrastructure. We urge Turkish businesses to explore these opportunities and consider partnerships with local companies to leverage their expertise and market access,”

He concluded his address by commending the efforts of the Black Business Council (BBC) and the Turkish Foreign Economic Relations Board (DEIK) in reviving the SA-Türkiye Business Council.

“We applaud the dedication of both the BBC and the DEIK and in reigniting this important platform for bilateral trade cooperation. Through continued collaboration and a focus on identifying win-win partnerships, we can significantly strengthen commercial relations between South Africa and Türkiye,” he said.

The Deputy Minister of Trade, Industry and Competition, Mr Fikile Majola addressing the Turkish business leaders at the Turkish Embassy in Pretoria.

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Issued by: The Department of Trade, Industry and Competition (the dtic)
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The Department of Agriculture, Land Reform and Rural Development (DALRRD) and the Department of Trade, Industry and Competition (the dtic) have announced that SA has requested consultations with the European Union in the World Trade Organisation in relation to phytosanitary trade regulations imposed on South African citrus by the European Union (EU).

This action was initiated to find a lasting solution to the EU’s phytosanitary regulations on Citrus Black Spot (CBS), in order to protect the livelihoods of tens of thousands of people in the local citrus industry. The steps taken by the SA Government has the support of the Citrus Growers’ Association of Southern Africa (CGA).

CBS is a fungal infection that can result in cosmetic blemishes on the affected fruit. Despite the world’s leading scientists proving that CBS cannot be transmitted through the actual fruit as a pathway, the EU has continued to enforce measures on South African citrus growers. These involve a detailed spray programme and inspections at orchard and packhouse level with significant financial burden and other unintended consequences for the South African industry.

Thoko Didiza, Minister of Agriculture, Land Reform and Rural Development highlighted the importance of jobs in the citrus industry. “Rural economies throughout the country depend on the export of citrus for their income. Currently, the industry cannot afford the almost R2 billion that is needed to comply with the EU’s trade restrictive regulations.”

Ebrahim Patel, Minister of Trade, Industry and Competition stressed that “the EU market makes up one third of all citrus exports from South Africa and is central to the profitability of the citrus industry. The EU’s volumes cannot be absorbed by other markets. The consultations are a critical step in the WTO towards effective resolution of South Africa’s concerns. This follows many years of attempts by South Africa, through good faith engagement, to find a solution to trade-restrictive measures by the EU against South African products. It is our view that the measures by the EU are not justified, proportionate or appropriate”.

Justin Chadwick, the CEO of the CGA stated that “the industry welcomes government’s actions and the industry is hoping for efficient resolution of the matter in view that the consultations are initiated as this year’s citrus export season commences”. Projections show that if all industry stakeholders come together, the industry will be able to produce an additional 100 million 15kg cartons over the next eight years. “This can create 100 000 more jobs and generate an additional R20 billion in annual revenue, but this potential will surely be lost if the EU market narrows,” he said.

The action by the South African government seeks to safeguard an agricultural sector that contributes significantly to the economy. The South African government looks forward to constructive consultations with the EU to find an amicable solution.

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The Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina says the new R300 million state-of-the-art Peanut Butter Manufacturing plant by Tiger Brands is a sign of confidence by the company in the South African economy.

She was speaking during the official launch of the facility in Chamdor, Krugersdorp.

The new plant is located on more than 8000 square meters of land within Mogale City, with 62 full time employees.

The company says up to 70% of the peanuts used in the production process are procured locally and the remaining 30% from markets outside South African due to local farmers not be able to meet the actual need.

Gina also praised Tiger Brands for their commitment to the economic transformation agenda and growing Small Micro and Medium Enterprises (SMME) through the Enterprise Supplier Development (ESD).

“As government, we insist on this policy direction because we know that Small Micro and Medium Enterprises (SMMEs) contribute 34% to the national GDP and they are a largest employer. As the country, we are under pressure to maximize employment in this country as we are pursuing re-industrialization of the economy, SMMEs will remain an important aspect of growing our economic base. Big corporates have an obligation to use the ESD model effectively through empowerment measures such as ESD mechanisms,” she said.

Gina further urged Tiger Brands and more South African based companies to fully utilise the benefits of the AfCTA to ensure their own advancement and those of the South African and African economies.

Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina with Tiger Brands, CEO, Mr Tjaart Kruger on the left and Mr Dumo Mfini Director: Culinary at Tiger Brands.

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Issued by: The Department of Trade, Industry and Competition (the dtic)
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Beside showcasing their products and services at the second Black Industrialists and Exporters Conference in Sandton last month, the Chief Executive Officer of APCoat, Mr Livhuwani Tshipuke says the biggest achievements so far is that they pride themselves on is providing employment to fourteen people and sponsoring schools within communities they operate in. Eight  of those permanently employed are youth.

APCoat is a proudly South African, 100% black and youth-owned paint manufacturer and retailer operating from various locations across South Africa, primarily Gauteng and Limpopo, where you will find a modern and colourful retail concepts, offering various paint products

According to Tshipuke (31), the other achievement the company is proud of is developing a new product called APCoat sports field line marking paint which saw a rise in demand in the market. He says they are the first black-owned company to manufacture this kind of special product in the country. The sports field line marking paint is environmentally friendly and can be diluted with water.

“We are driven by the motive of creating value for our customers through the durability, aesthetics, weather resistance and improvement of the thermal performance of buildings. Through innovation and technology, we produce quality coatings, best decorative coatings and performance coatings designed to meet our customer needs and improve customer satisfaction,” says Tshipuke.

Tshipuke adds that the company aspires to be the most preferred paint brand in Africa by 2032.

The company has received an International Organisation for Standardisation System Certification, and the South African Bureau of Standards (SABS) product certification vouchers from the Small Enterprise Development Agency (Seda).

The APCoat team during the exhibition hosted by the Department of Trade, Industry and Competition (the dtic) in Sandton, Gauteng recently as part of the  Black Industrialists and Exporters Conference.

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Issued by: The Department of Trade, Industry and Competition (the dtic)
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