IDC ploughs billions into South African economy

The Industrial Development Corporation (IDC) has dedicated R25 billion to innovative opportunities within the country’s green economy over the up coming five years.

The statement was made by Economic Development Minister Ebrahim Patel in Parliament.

While addressing the National Assembly, Patel stated that Finance Minister Pravin Gordhan is going to declare additional monetary commitments which will be presented in the Budget to encourage business opportunities within this sector.

“We already have commenced with installation of solar water geysers in brand new low-cost households and to date, already have 25 000 units set up by way of a joint venture that also includes the IDC,” explained Patel.

Economic Development Minister Ebrahim Patel

“Together with an additional 170 000 units scheduled, this specific undertaking is going to play a role in employment creation along with strengthening the local manufacturing of components as we plan to enhance the sourcing of components to at the very least 85% local content in the near future.”

At the same time, Patel claims the New Growth Path is likely to expand the overall economy by way of improving infrastructure investments on a variety of projects, vamping up the agro-processing and farming market sectors, and taking advantage of trillions spent on the African continent – all in order to generate a great deal more work opportunities.

Aside from that, the IDC is going to make available R5 billion in funding over the up coming five years for the agro-processing sector.

The development finance institution has additionally been requested to examine its financial loans application procedures – particularly, extensive amounts of time it takes in order to grant finance to entrepreneurs as well as the cost of finance.

 

Jacob Zuma, Ebrahim Patel and Pravin Gordhan

Government is additionally focusing on a one-of-a-kind project, that might be a catalyst for thousands of jobs.

“We happen to be working on a venture to create the world’s very first integrated metals plant beneficiating titanium, zirconium, vanadium, magnesium and silicone. Should it be verified by way of the feasibility study being carried out, it is going to require a R15 billion financial commitment and can also generate in excess of 7 000 work opportunities in construction in addition to the operation of the plant,” said Minister Patel.

Patel’s department would definitely in addition seriously look into reducing bureaucracy in addition to assisting businesses within the informal economy, by among other things, combining the Small Enterprise Development Agency (Seda) – which gives business help and support to entrepreneurs – with small business funding agencies to create a single organization that can assist small businesses.

A brand new direct small business funding programme is going to be rolled out, with information and facts to be publicised in he upcoming weeks, Patel pointed out.

 


The DA’s Athol Trollip stated the party welcomed the R9 billion job opportunities fund, along with the R20 billion in tax breaks in order to incentivise investment within the manufacturing sector, revealed by President Jacob Zuma in the State of Nation Address.

Trollip, however, suggested similar tax breaks really should be extended to small and medium-sized businesses.

He pointed out that former president Thabo Mbeki made a variety of promises to assisting small business owners in the 2006 State of the Nation address – commitments that had been remarked upon by Zuma in his State of the Nation Address.

Trollip said he was hoping the New Growth Path will be adapted to the National Planning Commission’s conclusions regarding how to minimize poverty and create viable and practical economic options available for South Africans.


He called on the President to additionally create completely new innovative solutions, green industries, and additionally take action against climate change.

Congress of the People leader Mosiuoa Lekota pointed out it seemed to be “exciting” to hear of the billions earmarked by the government to promote job creation, however he appeared to be apprehensive that President Jacob Zuma did not provide “practical steps” regarding how these amounts will likely be utilized.

Lekota believed the increase of tenderpreneurs was really a “catastrophe” for South Africa: “Job creation can be described as function of entrepreneurship. There have been tenderpreneurs created, not entrepreneurs.”

He explained a lot more effort and hard work would have to be taken in educating and training skilled people who run businesses regarding how to obtain tenders.


Lekota said while civil servants would certainly continually be safe with monthly salaries, business owners had to be successful with contracts in order to place food on the table.

He explained there are clearly lessons to be learned from other countries – such as Japan – which accomplished economic growth as a result of technological innovation and know-how following on from the devastation of that country after World War Two.

Inkatha Freedom Party leader Mangosuthu Buthulezi mentioned the country should become serious with regards to taking on job creation, by way of a collaboration between political parties.

 

Source: BuaNews, thedailymaverick.co.za, thenewage.co.za, ecoinstitution.com,

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