Tag Archives: economic development

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,


More pilots to be trained for Africa

Transport Minister Sibusiso Ndebele

A new crop of aviation workers for South Africa and the continent will be trained, thanks to an agreement between the Department of Transport and International Civil Aviation Organisation (ICAO).

The agreement – signed on Friday by Transport Minister Sibusiso Ndebele and ICAO Secretary-General Raymond Benjamin in Montreal, Canada – is expected to produce much-needed new pilots, aircraft engineers, air navigation officers and all related aviation sector workers.

ICAO Secretary-General Raymond Benjamin

“It would also ensure that the training provided augments South Africa’s capabilities in building skills in Aviation Disciplines, which are conducive to the promotion of the safety, security and development of civil aviation. The training centres will, after completion of each training programme, file course reports to South Africa and to ICAO,” said Benjamin.

ICAO and the department have agreed to jointly develop and implement an aviation training plan for South Africa, which would be implemented from 1 October 2010 to 30 September 2015.

Ndebele said South Africa would pay for travel and the local expenses, including the training and course fees, living allowances and accommodation for the selected candidates. ICAO would provide the technical and expert support.

He said the agreement would benefit Africa and was important to economic development.

“Aviation in Africa or anywhere else cannot be developed in isolation from other regions. We are therefore called upon to provide and maintain world-class standards at every turn.

“We are here to promote Africa’s role as an integral part of the governance of aviation worldwide. We are already become global competitors, while our airport infrastructure meets the economic growth and socio-economic goals of our country and continent,” said Ndebele.

He welcomed the agreement, especially in light of October being Transport Month in South Africa.

Ndebele is part of a South African delegation to the 37th Assembly of ICAO being held in Montreal. He added how proud he was that South Africa was re-elected for a third term onto the ICAO Council.

Source: BuaNews, icao.int, cranfieldflyingschool.com, iml.jou.ufl.edu


Zuma calls for Investment in Education

President Jacob Zuma has called on world leaders to ensure that every child is in school by the next Fifa World Cup™, to be held in Brazil in 2014.

Speaking at the Sports for Peace Gala Dinner in Johannesburg on Tuesday night, Zuma said education was a key weapon in the government’s arsenal of strategies to halve poverty and unemployment by 2014.

Universal primary education by 2015

The purpose of the dinner, hosted by the Sports for Peace Foundation and the United Nations in South Africa, was to promote the United Millennium Development Goal (MDG) number two, which is education.

According to the United Nations, 72 million children are not in school with the majority who are denied education being girls.

Zuma said South Africa was committed to the objectives and goals of utilising sport as a tool for development and peace: “We believe sport can effectively contribute to the realisation of social and economic development, including the achievement of the MDGs,” he said.

Zuma said the MDGs enhanced the struggle for a just society, especially the second goal, which centres on achieving universal primary education by 2015.

“With just days to go before the start of the tournament, it is indeed commendable that we have been brought together to promote access to education for all,” he said. “Education is our government’s number one priority and has consistently received the lion’s share of the budget for a number of years.”

1 Goal campaign

Zuma said that the government was committed to the global education initiative, adding that it would on 7 July host the 1Goal education campaign summit on the sidelines of the semi finals of the World Cup in Cape Town.

During the summit, world leaders will draw up a roadmap to ensure that every child is in school by the next Fifa World Cup in Brazil in 2014.

United Nations Secretary General Ban Ki-Moon described the World Cup as a dream come true adding that scoring a goal for humanity was important.

“The World Cup is a symbol of South Africa’s achievement and hope for all people of the world that they can realise their dreams – we have to hit the target of MDGs by 2015,” Ban said, adding that the World Cup could be used as a uniting power and help developing countries.

Source: buanews