Parliament of South Africa
Parliament of South Africa
02/23/2024 | Press release | Distributed by Public on 02/23/2024 09:10
Media Statement: Trade, Industry and Competition Committee Commends DTIC for Ensuring Investment Growth
Parliament, Friday, 23 February 2024 - The Portfolio Committee on Trade, Industry and Competition today commended the Department of Trade, Industry and Competition (DTIC) on its excellent performance over the second and third quarters of the 2023/24 financial year, noting specifically the investments facilitated.
Committee Chairperson Ms Judy Hermans said the committee noted the investments secured and pledges received by the DTIC, which in turn led to job creation, bringing much-needed relief to South Africa's unemployment rate. "This will also lead to more employment being created in the future. This is what South Africa needs," she said.
During a comprehensive presentation by Minister Ebrahim Patel, the committee heard R157 billion in new investment pledges were secured during quarter two and quarter three; this is excluding the pledges subject to regulatory approval.
These investments included Stellantis, the world's fourth biggest automaker, signing a memorandum of understanding with the DTIC to consider building a new automobile factory with a R3 billion investment in the Coega Special Economic Zone. Once completed, this would bring the Peugeot vehicle production to the country. The Ford Motor Company announced a R5.2 billion investment to produce Ford Ranger plug-in hybrid electric vehicles in Tshwane. Sunelex pledged an investment of R10.2 billion towards energy projects, while Amazon announced an investment for data centre infrastructure and a solar project with an estimated 6 500 jobs to be created. The project commenced last month and is expected to be completed in December 2029.
In terms of expansions or key factory openings, the committee was informed of the Rainbow Chicken investment of R220 million in the Hammarsdale abattoir expansion, resulting in the construction of 78 new contract grower houses and the employment of 750 workers. Defy appliances announced the manufacturing of its new fridge and freezers with an off-grid power source that provides new refrigeration solutions for communities with limited grid connection or those who seek to "go green" at household level.
Regarding the opening of market access, the committee heard that the Saudi Food and Drug Authority (SAFDA) approved the acceptance of halaal certification from South Africa for red meat and the lifting of the ban for meat products from South Africa. There has also been a South African rooibos tea breakthrough in the Chinese market with China reducing duties on rooibos with new tariff classification and customs duty from the beginning of this year.
Furthermore, the government supported South African jobs by imposing anti-dumping duties on Pneumatic Tyres imported from China and activated anti-dumping duties on poultry from Brazil, Denmark, Ireland, Poland and Spain, and introduced a rebate on chickens in light of the prevalence of Avian flu.
The committee heard that the promotion of the green energy growth path is well on its way. Cabinet approved the final Green Hydrogen Commercialisation Strategy on 18 October 2023. The DTIC published the Electric Vehicle White Paper in December 2023 following Cabinet endorsement. It provides a clear roadmap for South Africa to produce electric vehicles, initially focused on the export market, while energy challenges are attended to. The DTIC also supported projects with the capacity to generate 2 255 MW of energy and approximately R1.6 billion of the DTIC-group's newly established Energy Resilience Fund was accessed by energy projects to reduce the impact of load shedding to support small, medium and micro enterprises.
Ms Hermans said the meeting was pleased with the DTIC's performance, as the department is clearly delivering on its mandate.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TRADE, INDUSTRY AND COMPETITION, MS JUDY HERMANS
For media enquiries or interviews with the Chairperson, please contact the committee's Media Officer:
Name: Rajaa Azzakani (Ms)
Tel: 021 403 8437
Cell: 081 703 9542
E-mail: [email protected]
Committee Chairperson Ms Judy Hermans said the committee noted the investments secured and pledges received by the DTIC, which in turn led to job creation, bringing much-needed relief to South Africa's unemployment rate. "This will also lead to more employment being created in the future. This is what South Africa needs," she said.
During a comprehensive presentation by Minister Ebrahim Patel, the committee heard R157 billion in new investment pledges were secured during quarter two and quarter three; this is excluding the pledges subject to regulatory approval.
These investments included Stellantis, the world's fourth biggest automaker, signing a memorandum of understanding with the DTIC to consider building a new automobile factory with a R3 billion investment in the Coega Special Economic Zone. Once completed, this would bring the Peugeot vehicle production to the country. The Ford Motor Company announced a R5.2 billion investment to produce Ford Ranger plug-in hybrid electric vehicles in Tshwane. Sunelex pledged an investment of R10.2 billion towards energy projects, while Amazon announced an investment for data centre infrastructure and a solar project with an estimated 6 500 jobs to be created. The project commenced last month and is expected to be completed in December 2029.
In terms of expansions or key factory openings, the committee was informed of the Rainbow Chicken investment of R220 million in the Hammarsdale abattoir expansion, resulting in the construction of 78 new contract grower houses and the employment of 750 workers. Defy appliances announced the manufacturing of its new fridge and freezers with an off-grid power source that provides new refrigeration solutions for communities with limited grid connection or those who seek to "go green" at household level.
Regarding the opening of market access, the committee heard that the Saudi Food and Drug Authority (SAFDA) approved the acceptance of halaal certification from South Africa for red meat and the lifting of the ban for meat products from South Africa. There has also been a South African rooibos tea breakthrough in the Chinese market with China reducing duties on rooibos with new tariff classification and customs duty from the beginning of this year.
Furthermore, the government supported South African jobs by imposing anti-dumping duties on Pneumatic Tyres imported from China and activated anti-dumping duties on poultry from Brazil, Denmark, Ireland, Poland and Spain, and introduced a rebate on chickens in light of the prevalence of Avian flu.
The committee heard that the promotion of the green energy growth path is well on its way. Cabinet approved the final Green Hydrogen Commercialisation Strategy on 18 October 2023. The DTIC published the Electric Vehicle White Paper in December 2023 following Cabinet endorsement. It provides a clear roadmap for South Africa to produce electric vehicles, initially focused on the export market, while energy challenges are attended to. The DTIC also supported projects with the capacity to generate 2 255 MW of energy and approximately R1.6 billion of the DTIC-group's newly established Energy Resilience Fund was accessed by energy projects to reduce the impact of load shedding to support small, medium and micro enterprises.
Ms Hermans said the meeting was pleased with the DTIC's performance, as the department is clearly delivering on its mandate.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TRADE, INDUSTRY AND COMPETITION, MS JUDY HERMANS
For media enquiries or interviews with the Chairperson, please contact the committee's Media Officer:
Name: Rajaa Azzakani (Ms)
Tel: 021 403 8437
Cell: 081 703 9542
E-mail: [email protected]