https://www.engineeringnews.co.za
Health|Industrial|Resources|SECURITY|supply-chain|Products
Health|Industrial|Resources|SECURITY|supply-chain|Products
health|industrial|resources|security|supply chain|products

Incentives to be recalibrated to maintaining SA’s industrial base post-Covid

DTIC director-general Lionel October

DTIC director-general Lionel October

Photo by Creamer Media

29th May 2020

By: Terence Creamer

Creamer Media Editor

     

Font size: - +

The Department of Trade, Industry and Competition (DTIC) indicated this month that a significant portion of its industrial-financing resources were likely to be redirected to firms and industries that were now in distress as a result of the country’s efforts to combat the Covid-19 pandemic.

Speaking during a virtual joint meeting of the portfolio and select committees on trade and industry, director-general Lionel October said the department’s priority was to sustain the country’s industrial base so that it was in a position to participate in any postpandemic economic recovery.

The meeting itself was delayed for over an hour after the Democratic Alliance objected to it proceeding at all, on the basis that the plans being presented would have to be entirely overhauled in light of an upcoming adjustments Budget in June or July that took account of government’s Covid-19 response.

When it eventually resumed, October reported that discussions were under way with the National Treasury to secure additional funding for companies in distress as part of the economic recovery package.

As things stand, a R500-billion economic package has been announced that includes various support arrangements for enterprises, the largest being a R200-billion credit guarantee scheme, whereby banks could extend soft loans backed by a government guarantee.

For its part, the DTIC aimed to reposition its industrial financing division, which administers its incentives schemes, to ensure that firms did not close during the period.

Under the department’s current plan, drafted ahead of the pandemic, the unit was aiming to assist 600 firms and support the creation of 10 000 jobs through the distribution of incentives valued at R6-billion a year.

“Obviously, a lot of this money will now have to be redirected into distressed funding to save our enterprises,” October said.

Earlier, Trade, Industry and Competition Minister Ebrahim Patel told committee members that the country was “in the middle of a storm” and that industries would need to be repaired and repositioned for new risks and opportunities that would arise as a result of the health crisis.

“Covid-19 has already shown how important it is to have a local supply chain for critical medicines and medical products,” Patel said.

It had also reaffirmed the “wisdom” of sustaining a strong local industry to support food security. “While we will import from time to time, we must be able to produce enough food locally to feed the nation.”

Patel said the crisis would impact on every aspect of government’s Medium-Term Strategic Framework and would necessitate a major revision to the DTIC’s own annual performance plan, which was the subject of the meeting.

Nevertheless, Parliamentary Speaker Thandi Modise had instructed committees to continue deliberating on departmental plans based on the Budget presented by Finance Minister Tito Mboweni on February 26 in order for that Budget to be adopted so as to facilitate an adjustments Budget that aligned with government’s Covid-19 response.

It is currently anticipated that Mboweni will present that adjustments Budget in either June or July.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Showroom

AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 
Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.07 0.12s - 139pq - 2rq
Subscribe Now