23 MAY 2025

Hon. L Mkutu

Chairperson, the ANC supports the tabling and adoption of the report under consideration.

Whilst, of course, the DTIC could not achieve 27 of its 109 planned performance targets in the 4^th quarter of the 2023/24 financial year, it did in fact improve the achievement of its overall performance targets, from 58.2% in the 3^rd quarter to 75.2% in the 4^th quarter of the 2023/24 financial year.

This improvement in performance targets was realised irrespective of loadshedding that became more prominent and thus threatened the entire developmental agenda and economic recovery during the 4^th quarter.

Of course, the financial and non-financial performance of the DTIC in the 4^th quarter must be judged by their contribution to economic and social development. By the end of the 4^th quarter, the DTIC had spent 99% or R10.65 billion of the adjusted total budget of R10.7 billion for the 2023/24 financial year. This spending at the end of the 4^th quarter delivered value for money as it fundamentally strengthened the DTIC’s capacity to pursue developmentalist interventions aimed at responding to socio-economic issues that had placed considerable pressure on the Government, especially sluggish economic growth, unemployment, and low real productive investment.

The DTIC responded to unemployment crisis in the 4^th quarter, including by:

• Supporting the creation of 260 461 jobs against a target of 90 000 through DTIC programmes; 63 454 jobs against a target of 25 000 through Social Economic Fund (SEF) job opportunities; 122 459 jobs against a target 70 000 jobs through export initiatives; 15 099 jobs against a target of 6 500 jobs through supported Black Industrialist firms; 12 920 jobs against a target of 4 000 jobs through the Automotive Investment Scheme; 8 399 jobs against a target of 1000 jobs through the renewal of Liquor Licence Registrations; and 81 353 jobs against a target of 25 000 jobs through the implementation of the Global Business Services Masterplan.

Alongside responses to unemployment in the 4^th quarter, the DTIC also took immediate action to restore real productive investment in the economy, including by:

• Facilitating R20.9 billion in investment against a target of R7 billion through Industrial Financial Support; R5.3 billion against a target of R5.0 billion accessed by approved projects and/or enterprises; R4.7 billion against a target R3 billion by Black Industrialists supported by the DTIC Group; R3.9 billion against a target of R550 million from Transformation and Competition funds; and R371 million against a target of R204 million in labour-absorbing sectors of the economy not covered by Masterplans.

These responses to low real productive investment in the economy in the 4^th quarter took place against a challenging budget policy backdrop, with debt-to-GDP and budget-deficit-to-GDP ratios at their highest levels, resulting in the budget cut of R292 million to the DTIC’s allocated budget for the 2023/24 financial year.

The facilitation of investment by the DTIC in the 4^th quarter should not be considered in insolation from frequent instances by the DTIC to stimulate economic growth and structural change. More fundamentally, the DTIC went beyond supporting employment creation and facilitating investment to promoting economic growth, including by:

• Promoting exports in manufacturing sectors to Africa worth R406 billion against a target of R281 billion in Programme 7; exports worth R34.4 billion against a target of R5 billion in manufacturing sectors in Programme 3; a total of R20.4 billion against a target of R200 million in additional local output; and a total of R15.9 billion against a target of R10 billion in local output by Black Industrialist firms supported via export initiatives.

By the end of the 4^th quarter, South Africa’s exports in the manufacturing sectors were valued at R800 billion against a target of R445 billion, thanks to the DTIC’s concerted efforts aimed at promoting economic growth during the 4^th quarter of the 2023/24 financial year.

However, efforts to grow the economy were not limited to promoting exports and local output, but also included approximately 106 interventions against a target of 20 aimed at reducing barriers that created regulatory and investor uncertainty in the economy. This, in turn, contributed to modest economic growth in strategic sectors of the economy other than the manufacturing sector which witnessed a 1,4% contraction in production amidst loadshedding.

Despite the DTIC’s lauded achievements in the 4^th quarter, the Committee asserted that there was a need for the DTIC to fine tune its performance targets so that they could be progressive and aid impactful contributions to inclusive economic growth and job creation. Accordingly, the DTIC has fine tuned its performance targets to make them more impact rather than output oriented so that they can contribute directly to service delivery.

I thank you.