The Department of Trade and Industry (DTI) has allocated R415-million to the revitalisation of 11 industrial parks, deputy director-general Lionel October said on Tuesday.
Presenting the DTI’s annual performance plan to the Portfolio Committee on Trade and Industry, in Parliament, he said the industrial parks revitalisation programme is one of the flagship programmes of the department.
“[The programme is] aimed at facilitating broad-based economic participation to achieve inclusive growth, as well as facilitating the transformation of the economy,” he said.
October added that the industrial parks will promote industrial development, investment, competitiveness and employment creation.
The industrial parks employ a total of 55 000 people.
The programme focuses on both the physical infrastructure and other support requirements with the key objective of enhancing industrialisation.
Parks that have already been renovated and launched as they have completed the first phase of the programme include Vulindlela and Komani, in the Eastern Cape, Botshabelo in the Free State, Seshego in Limpopo and Isithebe in KwaZulu-Natal.
The revitalisation programme will help to enhance the occupancy rate of the parks and drive retention and expansion. It will also contribute to economic growth and diversification of economic activity, attract investments and promote job creation as well as address inequality.
The programme is expected to accelerate economic development in the lagging regions by attracting business investments to locate in the areas remove barriers related to infrastructure and market access, and support firm level competitiveness. It is also aimed at providing new opportunities and supporting high growth in the township, rural and distressed areas.
October also said the department was on course to provide support to 100 black industrialists by the end of March, as per the target set by Minister of Trade and Industry Dr Rob Davies.
“Since its launch in November 2015, the black industrialists scheme has supported 78 projects owned by black industrialists, empowering them to leverage projected investment of R7.2-billion. These are estimated to result in the retention of almost 8 000 baseline jobs and the creation of 9 459 new jobs,” he said.
He added that the axis of the future work of the DTI will remain the Industrial Policy Action Plan (Ipap) which is implemented to grow the manufacturing sector to promote industrial development, job creation, investment and exports.
The tenth iteration of Ipap is expected to be launched soon.