Parliament’s Portfolio Committee on Trade and Industry today heard that as soon as the United Kingdom (UK) signs off on Brexit and withdraws from the European Union, South Africa will start trade negotiations with the UK.

The Director-General of Trade and Industry, Mr Lionel October, told the Committee during a presentation on the Department of Trade and Industry’s (DTI) Annual Performance Plan that after Brexit the UK will no longer be part of Economic Partnership Agreements, a scheme to create free trade areas between the European Union and the African, Caribbean and Pacific group of states. As South Africa sees the UK as a critical trading partner, talks will start as soon as meetings can be arranged.

He further told the Committee that several key interventions have been addressed in the department, including the staff turnover rate, which is down to 6.8%, employment of people with disabilities now stands at 3.5% and employment of women in senior management positions is at 50%. Payments to all eligible creditors have also been made within 30 days.

The Committee heard that as the unemployment rate is highest amongst the youth aged 15 to 24 years, the DTI initiated Itukise, an internship programme for unemployed graduates. A total of 1 455 graduates have been taken into the pilot project to work between 12 and 18 months within 244 South African enterprises. 57% Itukise interns were then employed by the host company after the programme, 75% of the graduates found employment six months after completing the programme and 93% reported feeling more employable after the programme.

Committee Chairperson Ms Joanmariae Fubbs asked how the DTI had made provision to deal with a nearly R1 billion budget cut.

Committee member Mr Bheki Radebe expressed concern about state entities that abdicate responsibilities for industrialisation and stimulating local industry. He was referring to Transnet and the Passenger Rail Agency of South Africa, which appeared before the Committee last week. He further urged that the concessions made to the United States of America regarding the African Growth and Opportunity Act negotiations be revisited, as a new administration has since taken over “and we seem to be in trouble”.

Another Committee Member Mr Jan Esterhuizen, wanted to know who really benefits from the Special Economic Zones, whilst another member, Mr Nick Koornhof, was encouraged by the 88% of exports to Southern Africa Development Community countries, but urged the DTI to expand this further into the continent.

The Committee also had engagements with the National Metrology Institute of South Africa and the Export Credit Insurance Corporation of South Africa.

Rajaa Azzakani
28 March 2017