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There are many other initiatives that government, working with a plethora of social partners,
has introduced to deal with the challenge of poverty, unemployment and inequality (some
already covered in 3.2.1.3). They are as follows:
The Department of Trade and Industry’s (DTI) provides financial support to qualifying
companies in various sectors of the economy, which is offered for various economic
activities, including manufacturing, business competitiveness, export development
and market access, as well as foreign direct investment;
The Finance for Small Businesses and Small Medium Enterprise Development
programme, a grant programme offering financial help to tourism-related projects;
The Department of Agriculture, Forestry and Fisheries (DAFF) introduced a
complementary agro-processing strategy;
The Department of Science and Technology (DST) supports a range of
demonstration agronomy and aquaculture projects that utilise new knowledge or
technologies in supporting the development of sustainable livelihoods;
Assistance is provided to small and micro enterprises and communities that require
support for a simplified Environment Impact Analysis (EIA) process as part of
Industrial Policy Action Plan 2;
The introductions of Special Economic Zones (SEZ) Bill which will help address
socio-economic problems like unemployment among the country’s youth. Underlying
the Bill is the assumption, based on the experiences of the world's fastest growing
economies like China, India and Brazil, that industrial development is key to growing
the country's economy and creating employment opportunities, as well as generally
bettering the lives of people.
The re-industrialisation of the South African economy is central to long-term growth and
development strategy to curb poverty, inequality and unemployment. A host of sectoral and
cross-cutting initiatives are being implemented under Industrial Policy Action Plan 2 (IPAP
2). IPAP 2011/12-2013/14 was introduced in February 2011 and is being systematically
implemented. To support IPAP II, the new Manufacturing Competitiveness Enhancement
Programme (MCEP) was introduced in 2012. The programme provides R25 billion over the
six years for a variety of programmes. In addition, the Automotive Investment Scheme (AIS)
has seen the approval of 92 projects (seven final car producers and 85 component
manufactures). The projected investment resulting from these approvals is close to about R9
billion based on incentives of R2, 5 billion, creating over 7000 jobs both directly and
indirectly.
To deal more effectively with poverty, better coordination between civil society organisations,
on the one hand, and between national, provincial and local spheres of government, on the
other, is needed. This relates to interventions dealing with poverty and unemployment.
Innovative interventions have been made in certain provinces such as KwaZulu-Natal to
identify and reach the poorest of the poor so that services are more accessible to them. In
KwaZulu-Natal, a Provincial Index of Multiple Deprivation is used to rank wards according to
levels of disadvantage scored. This then informs strategies of tackling access to service
provision. This kind of evidence-based policy innovation still needs to be widely shared
among provinces.
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