Radical Economic Transformation Could Address Poverty, Inequality and Unemployment

Davies also mentioned that South Africa needs a higher level of growth and inclusivity and this can be done through radical economic transformation

JOHANNESBURG, South Africa, June 5, 2017/APO/ -- 

The Minister of Trade and Industry, Dr Rob Davies says radical economic transformation is fundamental changes in the structure of the economy as well as patterns of ownership, leadership and management control in the favour of the majority of the people and women in particular. He was speaking at the launch of the Kwa-Zulu Natal Black Industrialists Programme. 

According to Minister Davies, Radical Economic Transformation could address poverty, inequality and unemployment. Davies also mentioned that South Africa needs a higher level of growth and inclusivity and this can be done through radical economic transformation.

Davies added that South Africa and the rest of the continent must break out of the colonial legacy of being exporters of commodities as this lead to country’s economies being at the bottom of the value chain, which is least valuable.

Smaller enterprises and more South African companies must occupy more space in the industrial space which will add more dynamism to the efforts of industrialising our country

“If we are going to prosper and develop, we need to move into the space of greater value addition and industrialise. We need greater inclusivity in the production itself not just on sharing the benefits. Smaller enterprises and more South African companies must occupy more space in the industrial space which will add more dynamism to the efforts of industrialising our country,” said Minister Davies.

The KwaZulu-Natal MEC for Economic Development, Tourism and Environmental Affairs, Sihle Zikalala, applauded the launch of the Black Industrialist Programme as a timely intervention that would lend further impetus to the province’s plans of empowering Black Africans.

“As a province we have said that all our economic empowerment programmes must benefit Black Africans in general and women and the youth in particular.The true measure of the Black Industrial Programme therefore will be the participation of more Black people in the ownership and control of large industrial concerns in the province,”

In this regard, Zikalala said, plans were afoot to ensure that the province procured certain goods and services exclusively from Black owned and controlled businesses.

“As KwaZulu-Natal we will soon be launching Operation Vula, an initiative centred on using state buying power to support emerging enterprises. Under this programme we will source certain commodities from small entrepreneurs and co-operatives. We are unrelenting on the question of the empowerment of Africans in particular. We must, as government, do more to invest in the empowerment of Africans,” said Zikalala.

Minister Davies and MEC Zikalala signed a Memorandum of Understanding between the dti and the Economic Development, Tourism and Environmental Affairs Department of the Kwa-Zulu Natal Provincial government.  The memorandum states that the two will amongst others establish a framework that will promote and ensure meaningful participation in the advancement of the Black Industrialists in KZN.

Prior to the launch, Minister Davies and MEC Zikalala conducted a site visit to the premises of Mthembu Tissue Converting, a successful Black Industrialist based in Phoenix, north of Durban, who is a beneficiary of the national Black Industrialists Programme.

Distributed by APO on behalf of The Department of Trade and Industry, South Africa.