The Chairperson of the Portfolio Committee on Trade, Industry and Competition has highlighted policy reform, industrialisation, and transformation as some of the key drivers of economic growth in the country, with a potential to address joblessness, poverty and inequality, writes Sakhile Mokoena.
Briefing the media in Parliament as part of the economic cluster committees, Mr Masina gave a brief overview of the committee’s work since its establishment in the 7th Parliament and highlighted some key issues, including industrialisation, transformation, and inclusive growth. He also reflected on the work of the committee in the 6th Parliament.
“The committee appreciates the work that has been done, but there is also a need to develop and refine policies and implementation strategies to achieve the required economic growth, job creation, and equality in our society,” he said.
On industrialisation, Mr Masina said the focus should be on facilitating upscale industrial growth, financing, and measures to provide market access. “But there is also a need to address barriers that inhibit the exportation of value-added goods, particularly the administered prices and inefficient transport logistics,” he said. Mr Masina also called for the improved beneficiation of natural resources by the manufacturing sector to help South Africa diversify its export basket. He said the success of this depends on the whole of government approach, with macroeconomic and other qualities actively supporting industrial policy.
Commenting on transformation, he said the committee will, in its oversight work, focus on demographic changes in ownership, management, and control of production to promote inclusivity and coordinate industrialisation efforts and job creation to foster inclusive economic growth. The committee will also consider the need for a comprehensive review and enhancement of special economic zones to ensure they contribute effectively to inclusive growth. It will also promote state procurement as a tool for redistributing wealth, driving inclusive economic transformation and encouraging the procurement of locally manufactured goods to support domestic industries and create jobs.
The committee has also scrutinised the banking sector. Mr Masina said in the next quarter, the committee plans to invite some of the country’s major banks to discuss key issues relating to their practices.
“Our assessment after we met as joint committees with the National Treasury, is that consumption credit is easily available in South Africa, but credit for creating a business or productive funding is not available. “The banks just make unilateral laws that do not make sense. We also have to hold them accountable, including on some of the [high service] charges that they charge individuals and institutions of government,” Mr Masina said.
The committee is also advocating for more support for the film and digital industries, which, the Chairperson believes, could create substantially more jobs in the country.
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