SOCIO-ECONOMIC TRANSFORMATION MUST ENSURE INCLUSIVE GROWTH - DEPUTY MINISTER MASINA

SOCIO-ECONOMIC TRANSFORMATION MUST ENSURE INCLUSIVE GROWTH - DEPUTY MINISTER MASINA

Radical socio-economic transformation must ensure inclusive growth and sustainable jobs. This was said by the Deputy Minister of Trade and Industry, Mr Mzwandile Masina at the Taking the dti to the people outreach campaign held in Vereeniging, Gauteng today.

The outreach event, which was attended by more than six hundred people sought to strengthen government’s commitment to empowering peri-urban communities, accelerate job creation and sustainable economic development in the country. The outreach was also aimed at creating awareness about support products and services offered by the Department of Trade and Industry (the dti) agencies to businesses.

Deputy Minister Masina said for South Africans to be empowered, radical socio-economic interventions needed to be spread across the country so that all communities could benefit. He said the interventions would speak to all South Africans who were still struggling to form businesses and empower themselves.

“Our focus as government is to create a robust manufacturing sector that will allow black industrialists to expand and empower other entrepreneurs who will be able to take part in the mainstream economy,” he said.

            Masina committed the department to visit distressed factories in Sedibeng and      identify those who needed support in order to save jobs in the area.

The Executive Mayor of Sedibeng District Municipality, Mr Mahole Mofokeng welcomed the outreach campaign and encouraged the community to take full advantage of the services offered by the dti.

Mofokeng said for towns to flourish, small medium enterprises must be assisted and be efficient in order to reduce the 31,9% unemployment rate in the district.

South Africa and the United States Strengthens Bilateral Trade Relations

South Africa and the United States Strengthens Bilateral Trade Relations

South Africa and the United States have agreed to strengthen and deepen their bilateral trade and investment relations. This was agreed during the Trade and Investment Framework Agreement (TIFA) Council meeting that was held in Washington, US. The Council was co-chaired by Minister Rob Davies and the United States Trade Representative (USTR), Ambassador Michael Froman. The two countries signed the revised TIFA in 2012 and it is a key platform to address issues of bilateral concerns and boost our bilateral trade and investment relations

South Africa and the US continue to enjoy cordial and growing trade and investment relationship. Minister Davies and Ambassador Froman had fruitful and constructive discussions on Africa Growth and Opportunity Act (AGOA), outstanding market access issues and the investment climate, as well as issues on the multilateral trade agenda.

Amongst market access issues discussed, Minister Davies committed that South Africa will work towards concluding the poultry discussions soon. The same message was communicated in his meeting with Senators Chris Coons and Johnny Isakson. The proposed deal would see US chicken bone-in cuts exports being restored to their value prior to 2000 with a growth factor that takes into account current dynamics in the South African market. The outstanding issue is for the poultry associations from both sides to agree on the quantity of US chicken in which anti-dumping duties would be excluded. The Minister appealed to the US to engage its poultry industry to also show flexibility in the negotiations so that the outcome is reasonable and is a volume that both parties can leave with.

The South African and US poultry associations met earlier this week on the margins of International Egg and Poultry meetings in Europe. We expect the South African Poultry Association (SAPA) to table an improved offer that would likely lead to a deal being finalised. Both Minister Davies and Ambassador Froman agreed to continue to encourage their respective poultry industries to find the sweet spot. Minister Davies and Ambassador Froman committed to resolving other outstanding issues of concern from both sides in the shortest possible time.

The TIFA Council meeting also noted growth in investment relations and committed to work together in continuing to improve the business and investment climate in the two countries. The private sector associations from both South Africa and the United States following their roundtable engagement had an opportunity to present their outcomes to the TIFA meeting. South African business delegation led by the CEO of Business Unity South Africa, Ms Kanyisile Kweyama participated in the business roundtable. Scott Eisner, Vice President of US Chamber of Commerce and Stephan Hayes, President of Corporate Council on Africa led the US business delegation.

Following the conclusion of the TIFA Council meeting, later, the Senate Finance Committee and the House Ways and Means Committee, introduced AGOA Extension and Enhancement Act of 2015 proposing reauthorisation of AGOA, including South Africa. It also proposes the extension of the third country fabric provision for 10 years.  The bill is not final as it still needs to be taken through Congress for approval and then signature by President Obama. The bill also introduced some conditionality that, amongst others, would allow the United States to review the country’s eligibility at any time.

South Africa together with Sub-Saharan Africa countries will continue reaching out to members of congress for timely renewal of AGOA for all eligible countries, including South Africa without any conditionali

SOUTH AFRICA-USA BILATERAL TRADE AND INVESTMENT RELATIONS, WASHINGTON

SOUTH AFRICA-USA BILATERAL TRADE AND INVESTMENT RELATIONS, WASHINGTON

United States is South Africa’s 3^rd largest trading partner and our bilateral trade and investment relations are guided by the Trade and Investment Framework Agreement (TIFA). TIFA was signed in 1999 and in 2012 myself and the then United States Trade Representative, Ambassador Ron Kirk signed the amended version.

Myself and the then Deputy United States Trade Representative (USTR) Demetrios Marantis co-chaired the first TIFA Council meeting under the new agreement. TIFA is a vehicle to address issues of bilateral concerns and boost our bilateral trade and investment relations.

We came to the US to participate in the TIFA Council meeting with the USTR and to advocate for the renewal of the African Growth and Opportunity Act (Agoa) with        South Africa included. The South African delegation comprises of senior government officials, business, and labour.

AGOA is the cornerstone of bilateral relations between the United States and Sub-Saharan Africa (SSA), as it provides the sole platform between the US and SSA to discuss ways and means to deepen trade and investment relations. It is for this that South Africa together with SSA countries have been calling for 15 year renewal of AGOA for all eligible countries without any conditionalities. The Africa Growth and Opportunities Act (AGOA) is a non- reciprocal preferential scheme.

We are of the view that AGOA played a role in promoting bilateral trade and investment amongst South Africa, United States, and Sub-Saharan Africa (SSA). The benefits of AGOA are two-way and that is why it is important to renew the programme for all eligible countries with South Africa included as a beneficiary country.

US President Barack Obama, during his state visit to South Africa, offered his endorsement, saying that it represented good business for both Africa and America. Even congress members they all believe that AGOA should be extended; it is the only programme that continues to enjoys bipartisan support. For us as the African continent we believe the programme should be extended for 15 year renewal for the following reasons:

AGOA’s achievements amongst others include the following:

•            Total two-way trade between South Africa and the United States increased from R56, 7 billion in 2001 to R141 billion in 2014. Bilateral trade recovered beyond the pre-crisis figure of R127 billion in 2008 (which declined to R83 billion 2009). 

•            South Africa’s exports to the US grew from R30 billion in 2001 to R69, 8 billion in 2014. Similarly, the U.S. exports to South Africa grew from R26, 6 billion to R71 billion in 2014. Both exports and imports have recovered beyond their pre-crisis level.

•            South Africa’s top exports were vehicles & associated transport equipment (representing 27% of total SA exports to the US), precious metal (23%), base metals (11%), mineral products (9%), and chemical or allied industries (16%). These sectors jointly accounted for about 86% of South Africa’s total exports to the US in 2014. However, metal and mineral exports accounted for 43% of total South Africa’s exports to USA.

•            USA’s top exports to South Africa were machinery and mechanical appliances; vehicles, vessels and aircrafts; chemical products; plastics and optical and medical equipment.

•            Sub-Saharan Africa AGOA exports increased from US$12.4 billion in 2000 to the highest peak of US$79.7 billion in 2008. However, in 2012, exports declined to US$43 billion and again to US$34 billion in 2013. This is largely due to significant decline in oil exports.

Our message is that AGOA has generated enormous good will for the US in the continent and if renewed more can still be done. The attitude of the South African Government remains one of constructive engagement on all the concerns raised by the US constituencies including on the chicken issue. Our Deputy President Cyril Ramaphosa has also indicated to US Vice President Joe Biden, during a teleconference call on 13 April 2015, that SA is serious about reaching an agreement to grant some market access for US chicken bone-in cuts and remains committed to the process.

Our industries are engaging on this issue and we are of a view that a settlement will be reached soon. While I’m in Washington I will also be meeting with Senators Chris Coon and Johnny Isakson, who continues to advocate for an amicable solution on the chicken issue.

The South African delegation has also met with AGOA civil society and Think Tanks, to share views on the renewal of AGOA and there was an overwhelming support for the timely renewal of AGOA for all eligible countries.

ECONOMIC DEVELOPMENT IS A NATIONAL IMPERATIVE – DEPUTY MINISTER MASINA

ECONOMIC DEVELOPMENT IS A NATIONAL IMPERATIVE – DEPUTY MINISTER MASINA

The Deputy Minister of Trade and Industry, Mr Mzwandile Masina says economic and youth development issues are national imperatives that government is currently prioritising. Deputy Minister Masina was addressing the community of Oudtshoorn in the Western Cape yesterday as part of Taking Parliament to the People.

Initiated in 2002, Taking Parliament to the People enables the National Council of Provinces to exercise its constitutional obligation of overseeing the executive and gives ordinary citizens an opportunity to engage their elected public representatives on issues affecting them.

Deputy Minister Masina together with the Deputy Minister in the Presidency, Mr Buti Manamela and Deputy Minister of Economic Development, Mr Madala Masuku formed part of a panel that addressed issues of economic advancement and youth development.

“Government is working very hard to address issues of unemployment and poverty and this is why we want employment opportunities to be created everywhere including the Western Cape,” said Masina.

He stressed that radical social economic transformation must benefit the poor and address issues of youth unemployment. He said it was for this reason that as government leaders they would consider the proposal made by the community to establish a regional economic office in the Karoo.

The unemployment rate and poverty levels are said to be high in the Oudtshoorn area, with the community especially young people unable to find jobs or establish businesses.

COMPANIES AND INTELLECTUAL PROPERTY COMMISSION TO CELEBRATE WORLD INTELLECTUAL PROPERTY DAY

COMPANIES AND INTELLECTUAL PROPERTY COMMISSION TO CELEBRATE WORLD INTELLECTUAL PROPERTY DAY

The Companies and Intellectual Property Commission (CIPC) in partnership with the Department of Trade and Industry (the dti), the National Intellectual Property Management Office (NIPMO) and the South African State Theatre will celebrate World Intellectual Property Day at the State Theatre Precinct in Pretoria, on 24 April 2015.

The Intellectual Property (IP) Day will be celebrated under the theme, Get Up, Stand Up For Your Rights.

According to the Commissioner of Companies and Intellectual Property Commission, Ms Astrid Ludin, the objective of the World Intellectual Property Day celebration, is to celebrate human creativity and acknowledge the socio-economic importance of intellectual property.

Commissioner Ludin adds that the celebration is also aimed at creating awareness about intellectual property rights and to encourage creativity and innovation by citizens.

“The celebration is targeted at the general public, youth, academics, businesses, the legal fraternity, government departments involved in the field of IP and the creative industry. It offers us an opportunity to highlight the work that is done by the dti and CIPC with regards to IP,” says Commissioner Ludin.

The celebration will include exhibitions by the South African Music Rights Organisation, South African Music Performers Rights Association, National Films and Publications Board, Proudly South Africa, Department of Arts and Culture, Technology Innovation Agency, South African Federation Against Copyright Theft, Innovation Fund, Recording Industry of South Africa, Department of Science and Technology, Dramatic, Artistic and Literacy Rights Organisation; and the National Film and Video Foundation.

The Intellectual Property Day is an annual event that is celebrated worldwide and this year will mark the 14th celebration of the day.

Sappi welcomes Deputy Minister Mzwandile Masina on visit to Specialised Cellulose Plant at Ngodwana Mil

Sappi welcomes Deputy Minister Mzwandile Masina on visit to Specialised Cellulose Plant at Ngodwana Mill

Sappi today welcomed Deputy Minister for Trade and Industry, Mr Mzwandile Masina, MP, to the Sappi Ngodwana Mill to give the minister and a delegation from the dti (Department of Trade and Industry) a first-hand look into the recently commissioned R3.3 billion Specialised Cellulose (dissolving wood pulp) upgrade undertaken at the mill. Sappi received support for the project from the dti through its Industrial Policy Action Plan (IPAP).

Sappi Southern Africa’s Chief Executive Officer (CEO), Alex Thiel, stated that the company is proud to share the successes that have been achieved by the new plant, and welcomes the opportunity to further exchange ideas with government. “We are grateful for the support of the dti. The successful upgrade and modernisation of the mill is part of Sappi’s strategy to invest in fast growing, high margin businesses that is offsetting the decline of coated paper consumption in mature markets. It further strengthens Sappi’s position as a global leader in this fast growing market segment.” 

Speaking at the event today, Deputy Minister Masina expressed his satisfaction at Sappi’s contribution to the economy of South Africa, as well as job creation. He encouraged the company to work closely with the dti in achieving Sappi’s transformation targets. ‘The Department sees many opportunities at Sappi that can be explored as part of the black industrialist programme. We are happy to see that the financial assistance that we provided to Sappi is making a positive and a lasting difference in driving South Africa’s economy’ he said.

The expansion and modernisation of Ngodwana Mill commenced in 2011 as part of Project GoCell which converted a fibre line at the mill to produce 210,000 tons a year of specialised cellulose (dissolving wood pulp), in addition to its existing newsprint and linerboard (packaging paper) production.

Specialised cellulose is a sought-after natural, renewable fibre with a wide range of uses in the textiles, consumer goods, foodstuffs and pharmaceutical industries.  The expansion has helped to increase Sappi’s total global production of this beneficiated wood fibre to 1.3 million tons per year, with 1 million tons being exported from South Africa to customers in Asia and around the world. Specialised cellulose is also produced at Sappi Saiccor Mill in KwaZulu-Natal and Cloquet Mill in North America.

Locally, this venture is a vote of confidence in South Africa as a good place for manufacturers to invest for the future. Sappi is the first multinational with manufacturing operations in the Lowveld region. As such, the expansion does not only reposition the company for sustained growth, but also strengthens economic development in the province. Alex Thiel: “As a long term investment, the expanded operation will help generate more export revenue and boost the local economy by securing jobs in an area where unemployment is rife. Over 40,000 people benefit directly and indirectly from Sappi’s presence in the province.”

A key desired outcome of the project was that, during the civil and construction phase, it should benefit the local community through skills training and development. This has been successfully achieved. Project GoCell’s community training initiatives were recognised in the BHP Billiton Achiever Awards competition (2012). Sappi won first place in the categories ‘Re-skilling and Empowerment’ and ‘Best Training Programme for large companies’. Over 700 previously unskilled and unemployed community members were up-skilled with many working on the project.

Another important benefit of the expansion has been the improvements made to the mill's environmental footprint. The bleach plant has been replaced by a new process that is chemically more efficient and that generates less effluent. In addition, Ngodwana Mill will burn 61,000 fewer tons of coal per year, which equates to 120,000 tons less carbon dioxide emissions. As the world’s population is growing, so is demand for specialised cellulose.

Sappi has undertaken extensive research and interactions with our customers which have convinced us that this is one of the best markets in which to invest for the future. The growing global demand for this raw material is approximately 6% a year. The demand for Viscose Staple Fibre (VSF), which is Sappi’s focus, is expected to grow by around 8% per year.

R1 BILLION INJECTED INTO THE EQUITY EQUIVALENT PROGRAMME

R1 BILLION INJECTED INTO THE EQUITY EQUIVALENT PROGRAMME

The launch of the multi-million rand Dell Equity Equivalent in Johannesburg today brings the total investment amount to date of all the approved Equity Equivalent Investment Programmes (EEIP) to just over R1 billion. This is according to the Deputy Director-General of Incentives Administration at the Department of Trade and Industry (the dti), Ms Malebo Mabitje-Thompson.

Mabitje-Thompson was speaking at the announcement ceremony of the Dell Broad-Based Black Economic Empowerment (B-BBEE) Equity Equivalent Programme with the establishment of an Information and Communication Technology (ICT) academy in Bryanston today.

“Today’s event marks another milestone for the evolution of the B-BBEE policy and in particular the EEIP. We are glad that we are launching the seventh B-BBEE Equity Equivalent project in the history of B-BBEE that will be running for the next ten years,” said Mabitje-Thompson.

She added that out of the seven approved Equity Equivalent projects to date, four of them were in the (ICT) sector. She emphasised that it was evident that the ICT sector was important and has a potential to put the country on a global map in terms of technological advancement.

According to Mabitje-Thompson, the EEIP programme was created to enable multinationals that are willing to participate and contribute positively towards BEE to do so under the ownership element.

Mabitje-Thompson congratulated Dell for such an innovative initiative which has an element of both skills development and enterprise development. She reminded delegates that the 1st of May 2015 marks the implementation of the Amended BEE Codes of Good Practices.  

The Managing Director of Dell Enterprise Solutions Group, Mr Stewart van Graan, said the academy would focus on developing leading high performance computing (HPC) skills, complemented by business management and entrepreneurial and life skills.

According to Van Graan, the establishment of the academy has been informed by many interventions.   

“Firstly, Dell’s history of transformation is aligned to the B-BBEE Codes of Good Practice and the organisation’s holistic approach to all elements of the codes has had a meaningful impact on the lives of many in South Africa. Secondly, a strategic partnership with the Council for Scientific and Industrial Research, and particularly the Centre for High Performance Computing, has provided a proven track record of the impact that technology has on the lives of the youth in South Africa,” said Van Graan.

He added that as an equity equivalent investment, the initiative met government objectives on multiple levels with regards to multinational organisations operating in South Africa to actively participate in the economy, fast-track the growth of previously disadvantaged youth, contribute towards new venture creation, as well as skills and infrastructure development.

The Khulisa Academy will be 100% owned by an educational trust and managed as a separate entity to the Dell subsidiary. The academy, which has been approved by the dti as an economic programme, will focus on promoting the inclusion of blacks into mainstream technological economic activity with relevant and critical ICT skills and knowledge, leading-edge skills, centred on HPC, and the design of technology infrastructure solutions.  

Equity Equivalent is a programme that government created to enable multinationals that are willing to participate and contribute positively towards BEE to do so under the ownership element. The programme is not open for all multinational to participate but rather those that are precluded to give out direct equity in the country due to their global practice. The view of government is that all companies operating in country whether foreign owned or local based should be compliant with the 25% ownership target.