Trade and Industry Minister Ebrahim Patel said on Wednesday that his department would press on with concessional trade with the US under programmes such as the Africa Growth and Opportunity Act (Agoa) and others to boost trade for the country “even under the current environment".
Addressing a mini-plenary session of Parliament on the department's budget vote, Patel said the government through the ministry had pressed hard to boost global and intra-Africa trade over the past year with a record R2 trillion exports, R800 billion in global manufacturing exports and R350bn exports to other African countries.
He said a target of R8bn worth of global business services had been set.
The emphasis on trade with the US comes in the midst of a quiet storm over a Russian ship allegedly loaded with weapons on South African waters which sparked talk of a trade conflict between two countries.
He said there was a need to open up the market for South Africa's produce ranging from citrus to horses to game meat and that all markets, including the UK and EU were fair targets.
"Given the importance of our relations with the US, we will set up a meeting with senior government officials to retain preferential trade under Agoa. This is an extraordinary opportunity to boost trade and jobs. South Africa is well positioned to benefit from these trade relationships and each of them brings a certain kind of value to our economy and to our people,' he said warning of the need to ensure these relationships were respected and nurtured appropriately.
He cited South Africa's presence on the African Continental Free Trade Area (AfCFTA) business forum, which provides a platform for public-private engagements to unlock trade and investment opportunities on the continent.
At least two trade protocols have been signed, one an agreement on 88 tariff lines of origin for goods, as well as the South African Customs Union (SACU) opening its markets under the AfCFTA preferences.
"Last year South Africa crossed the R2 trillion trade mark for the first time with exports of minerals, agricultural products and manufactured goods. The need for growth and transformation is what matters the most," Patel said.
He ticked off a number of value chains that he said were open for growth and transformation including the medical value chain for vaccines and medical devices, the solar value chain with the production of batteries and electric vehicles, there is digital with 3D printing and call centres to create jobs, there is food, meat and nuts.
He said the country had again surpassed a five-year investment target with about R1.5trl in investment pledges and had set a target of a further R400bn in keeping with President Cyril Ramaphosa's drive for a R2trl investment target.
"Last year we enabled R30bn in various industrial funding and incentives for South African firms, we are making efforts to beneficiating (sic) our raw materials," he said citing a Germiston steel mill that was being built which would employ 300 township workers turning iron ore into flat sheets, 10 new factories at the Tshwane SEZ and a deal with sports car manufacturer Stelantis for the assembly of their vehicles.
He said along with companies like Coca Cola, Air Liquide, Mercedes Benz, Ford, Nissan, Toyota, Shoprite and a host of others, R4bn to aid localisation had been established, while a R19bn supplier-development fund had been established for the green industry's equipment and materials as part of the localisation drive.
He conceded that the energy crises was extracting a high price from business, but said it needed to be put behind with vigour on opportunities from the Just Energy Transition, Green Hydrogen and the development of an electric vehicle industry
He said his department was waiting or the Treasury to finalise the strategy for the electric-vehicles industry by way of exemptions for users and suppliers to foster collaborations.
He said South Africa was taking up the battery manufacturing challenge and was in talks with partners in countries ranging from China, US, Zambia, the DRC, Belgium and Germany.
“We are doing our part in achieving a just energy transition ambitions, we will continue to serve the reform agenda to realise our full potential,” he said.
In response to a DA jibe on grandstanding through investment conferences that bore no fruit, Patel rattled off achievements in the past year, including a R1bn pledge by Ford to invest in the country, a Consol Glass consolidation in the manufacture of bottles and glasses, the establishment of a Sigma call centre in the Western Cape, expansion of a prominent tile maker, Sappi turning pulp into viscose in Kwazulu Natal, Defy expanding its KwaZulu-Natal plant, MetAir's KwaDukuza factory employing 4 000 workers, as well as Google's undersea cable that starts off in South Africa through West Africa to Europe.
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