All contracts that were issued without complying with localisation regulations must be cancelled and re-issued in line with those regulations, Trade and Industry Minister Dr Rob Davies told members of the Trade and Industry Portfolio Committee, this week.

He was responding as part of the debate on the State of the Nation Address on issues relating to the Department of Trade and Industry (DTI).

Davies pointed out that, where the localisation regulations were applied, investments and job creation had increased; therefore, government was unapologetic for applying localisation tools.

“It is imperative not only to get the money back in some cases but to cancel and re-issue contracts according to the localisation regulations. We are pleased with the process of rectifying these import leakages as a result of non-implementation and corruption of the programme,” said Davies

The Minister said that, despite many challenges facing the localisation programme, considerable investments, new capacity and capabilities have been created.

He said that collaborative platforms with global original-equipment manufacturers have contributed to technology and skills transfers, the development of new products and new factories launched.

Davies also stated that 131 projects have been approved under the DTI’s Black Industrialists Scheme, which resulted in increased investments and job creation.

“The approval of these 131 projects of black entrepreneurs has leveraged over R13.2-billion of private-sector investment, about 9 500 new jobs created and 8 900 retained in a range of manufacturing subsectors.

“Going forward, the DTI will increase efforts to provide financial, market access, capacity building and technical support to approved black industrialists in collaboration with State-owned companies, other government departments and the private sector.”

Meanwhile, to revitalise industrial parks to enable them to serve as catalysts for broader economic and industrial development in their host regions (townships and rural areas), Davies said R300-million has been approved for the second phase of the industrial parks revitalisation programme.

To date, six industrial parks have been launched and funded to the value of R511-million, and four will be ready for launch this year.

The industrial parks revitalisation programme is one of the flagship programmes of government aimed at facilitating broad-based economic participation to achieve inclusive growth, as well as facilitating the transformation of the economy.