23 May 2025

1. The Portfolio Committee on Trade, Industry and Competition is tasked with overseeing the Department of Trade, Industry and Competition, and its entities.
2. One of the Committee’s roles is to assess how the financial and non-financial resources of the Department and its entities are utilised in achieving their mandates in relation to facilitating inclusive economic growth and job creation thus contributing to the reduction of inequality and poverty levels.
3. The Committee has engaged the Department of Trade, Industry and Competition on its allocated financial resources and how these have been utilised in the fourth quarter of the 2023/24 financial year to ensure that it achieves its mandates to facilitate inclusive growth and job creation.
4. During its engagement with the Department, the Committee scrutinised the use of the R10,7 billion annual budget allocation for the 2023/24 financial year.
5. For the fourth quarter of the 2023/23 financial year, the Department had achieved 75,2 percent of its non-financial performance targets and spent 99,5 percent of its projected budget.
6. The Committee was of the view that a holistic strategic framework and effective coordination and collaboration was essential to reverse the trend of deindustrialisation. This should include:

a. Resolving challenges to industry in relation to critical inputs;
b. Improving access to domestic and foreign markets, particularly in Africa;
c. Ensuring that inclusive economic growth, job creation, income equality, and poverty reduction was achieved; and
d. Aligning macroeconomic and industrial policies.

7. The Committee emphasised the importance of using public procurement and public infrastructure development to drive localisation. Given that these tools could drive domestic demand, if used appropriately. Furthermore, procurement considerations should factor in the negative impacts on the retention and creation of jobs and the relative competitiveness of these sectors when goods are imported rather than locally manufactured.
8. Therefore, acknowledging the job creation potential of small, medium and micro enterprises (SMMEs), it called on the DTIC and other relevant departments to ensure that regulatory red-tape did not hinder SMMEs, particularly in township and rural economies, from effectively participating in public procurement contracts and to strengthen their support to SMMEs to achieve the targets envisaged by the National Development Plan. This should include a focus on aggressive and expansive non-financial interventions to help small businesses to access markets to develop their businesses and create jobs
9. Notwithstanding the importance of existing industries in the economy, it urged government to support the development of new and labour-absorbing industries, particularly in the creative and e-commerce sectors, which have the potential for being major catalysts for economic growth and transformation.
10. Given slow progress in terms of economic transformation, particularly in terms of ownership, control and management patterns, it emphasised that structural transformation of the economy is central to achieving inclusive growth. It implored the DTIC to coordinate its work through all spheres of government to advance the transformation of the economy.
11. In terms of intra-African trade, the Committee implored the DTIC to progressively ensure the full implementation of the Agreement, such as trade facilitation initiatives and the elimination of non-tariff barriers, to maximise the opportunities offered through the Agreement, such as an increase in value-added exports.
12. In terms of the DTIC’s non-financial performance, the Committee was concerned by the relative number of targets that had not been achieved. This included targets related to procurement spend on businesses owned by people with disabilities and investment facilitation. It was of the view that the DTIC should consider reviewing its target setting process and the strategies being used in these underperforming areas to address any identified implementation challenges, as well as strengthening its quarterly performance monitoring system.
13. The DTIC should also ensure that its performance indicators and targets are aligned with the developmental goals of sustainable growth, and economic and spatial equality and significantly contribute towards structural change and job creation.
14. Informed by the Committee’s deliberations, the Committee recommends that the House requests that the Minister of Trade, Industry and Competition should consider engaging the Ministers of Finance and of Small Business Development, as well as other relevant ministries, to facilitate the streamlining of regulatory processes that hinder Small, Medium, and Micro Enterprises from effectively participating in public procurement contracts.
15. I present this Fourth Quarter Report for the 2023/24 financial year of the Portfolio Committee on Trade, Industry and Competition to the House for its consideration.