Questions and Replies

Reply:

The National Gambling Board (NGB) has informed the Department that no Executive level appointments were made during the period 1 January 2023 to 24 February 2024. However, an Acting Chief Technology Officer was appointed in September 2023. The NGB has advised that the vacant Executive position Chief Technology Officer has been advertised.

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Reply:

South Africa has made considerable progress in the past 30 years in rebuilding a society deeply damaged by apartheid and colonialism.

I am informed by the Department that the normal events of the Department, including end of Administration report-backs and meetings, will be an opportunity to also reflect on progress made during the 30 years of the democratic era. Accordingly, there is no separate budget as no events specific only to the celebrations are planned.

We will proudly carry the logo of 30 Years of Democracy in publications and presentations of the normal work of the Department and the story of progress made will be communicated in the messages of the Ministry and Department.

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Reply:

The following reply has been compiled by the Energy One Stop Shop, and Invest SA.

(1) The EOSS was launched on the 27th July 2023 at the dtic Campus.

The following have been actioned since the launch:

• Website launched and operational – www.energyoss.gov.za
• Registration Portal for Energy Projects live and operational.
• Tracking and Monitoring Database operational.
• Technical Working Group established (with all relevant Departments)
• Partnerships forged with Key Industry Stakeholders (e.g. MOU with Energy Council of SA).
• Linkages with Key Government Entities (Presidency, IDC, NEF, Infrastructure SA, IPPPP Office).
• Representation on various Working Groups (Legal and Regulatory Workstream, ESKOM Transmission Workstream and NECOM).
• Single Window Application Implementation Plan developed with the IFC (World Bank Group) and currently being reviewed by various Industry Bodies through the Energy Council of South Africa (ECSA). Support of the IFC is valued at approximately US 1,5 million. The envisaged implementation date is 1st quarter 2025.
• The first phase of Mapping of Municipal processes and standardised procedures conducted by UK Pact Consultants and will be concluded by the end of October. Support by the UK Pact programme is valued at R1,5 million.
• Escalation letters have been sent to Municipalities where applicable.
• EOSS participated in various Energy Related Events (Conferences, Indaba’s and Workshops, Energy Action Lab) Nationally and Provincially.
• As part of the EOSS task to develop processes and mechanisms to fast track and unlock challenges (licensing and permitting approvals) experienced by developers, it was determined that a Single Window Application approach should be followed to streamline the application process for developers of energy projects. This is also supported by the Energy Council of South Africa as one of the interventions and outlined in the proposed Omnibus Bill.
• As several Departments are the Competent Authorities in their areas of expertise (e.g. DFFE), the various processes at these Departments had to be mapped to determine the extent to which overlaps exists. Through the support of the International Finance Corporation (IFC) these processes have been mapped (approval processes, timelines and checklists), recommendations made and an implementation action plan proposed. This has been shared with Industry through the Energy Council of South Africa (ECSA) for review and comments. Once amended the implementation plan will be socialised with all the relevant Departments for adoption and execution. Currently the EOSS together with the Departments are looking into the harmonisation of all IT Systems to develop the streamlined Single Window Application System. The anticipated date for the pilot will be ready for testing by 3rd quarter of 2024 and full implementation by the 1^st quarter for 2025.
• A parallel process was embarked upon, of mapping approval and permitting processes for Energy Projects at municipal level and the impact of these on the implementation of Energy Projects. The workstream has been engaging with Municipalities, Developers, Departments and the Energy Industry to determine the effectiveness of the approval and permitting process at Municipal level. The first phase of the project came to an end in October 2023.

The EOSS received 114 projects from the Presidential Embedded Generation Task Team to track and unlock bottlenecks encountered by Energy Developers (mainly independent power producers IPPs). These projects are at various stages of development. Of the 114 projects, 26 were prioritised for immediate focus after consultations with developers and owners of projects. 2 projects were cancelled by developers and four (4) acquired SIP status, thus the EOSS is tracking 20 projects that have a few remaining challenges. The 114 projects upon receipt equated to 16 859MW and R109 billion in potential investment. In addition, besides IPP projects the EOSS unblocks for companies encountering challenges with municipalities and Eskom such as PG Bison, Teraco, Humtamaki amongst others.

 

The dashboard below outlines what the EOSS is currently tracking in terms of the Priority Projects:

EOSS DASHBOARD:

The dashboard below outlines what the EOSS is currently tracking in terms of the Priority Projects:

EOSS DASHBOARD:

Priority Projects Received: 26

Projects Cancelled: (2 by developers)

Projects Transferred to SIP: 4

Remaining Projects: 20 (1624,5MW)

Projects Unlocked: 6 = 517,5MW: (Damlaagte - 97,5MW; Sutherland 2

- 140MW; Cennergi - 80MW; Tronox - 200MW, Mogalakwena, PPC Sturdee are on hold because Developer uncertainty e.g. Grid Connections)

Projects Operational: 4 = 78,5MW: Harmony Gold (Eland, Nyala,

Tshepong), Gold Fields South Deep

Projects Tracked: 10

Current Challenges: 14 (Land Use, Mining rights, Water rights, ESKOM, Municipal approvals) Commercial Operational Date: 2023 – 2026 (10 Projects).

In the pipeline of remaining 88 projects are 20 updated projects (3136MW) with challenges across Departments and Municipalities. The 20 were prioritised by Developers after the EOSS engagement with them. The anticipated commercial operational dates are between 2024-2027. The EOSS in conjunction with the Departmental Technical Working Group (TWG) is working towards unblocking all challenges encountered.

In addition, through the EOSS live portal, 44 project leads have been identified covering wind, solar, gas and hybrid technologies. Of these the EOSS are tracking 17 projects of 5576 MW.

(2) Whether there is any level of authority for expediting the licensing process; if not who is responsible if so, what are the relevant details;

• Yes, a Technical Work Group, consisting of all the relevant Departments that are Competent Authorities. The EOSS TWG was established with the support of NECOM (National Energy Crisis Committee). Memorandums of Understanding (MOUs) between EOSS and the Departments are in the final stage of being signed – it is envisaged that it would be concluded in the first half of 2024.
• Competent Authorities have given undertakings at NECOM to shorten approval process within the legislated time frames e.g. DFFE are now able to process application with decisions within 57 days for a Basic Assessment if in a Renewable Energy Development Zone (REDZ) and the EOSS are tracking projects based on these.
• The EOSS reports to two NECOM Workstreams (Legal and Regulatory WS2) and Transmission (WS10). These structures meet every 2^nd week or once a month but it also reports to the Ministry and Presidency on a regular basis. The TWG has met more the 8 times – going forward it plans to meet once a quarter as soon as the electronic automated tracking and reporting system for the EOSS has been developed.
• The EOSS also has an MOU with the Energy Council of South Africa – it provides technical advisory and capacity building services to the EOSS Team.

(3) What (a) problems have been identified with the system, (b) measures are being taken to rectify the identified problems, (c) on what date does he envisage the (i) identified problems will be resolved and (ii) system will be established and fully functional?

a) Delays in approvals by some Departments and Agencies (e.g. ESKOM – Cost Estimate Letters (CELs) and Budget Quotes (BQs).

b) Challenges that IPPs are encountering with Departments and Entities are addressed and resolved by EOSS through TWG members. Municipalities remain the biggest challenge as there is a lack of standardised processes in place to deal with Renewable Energy Projects (both in terms of Human Resources and Expertise). A Mapping exercise was embarked upon by the EOSS and a report with recommendations outlining intervention was developed. Through greater coordination led by the EOSS in conjunction with SALGA and COGTA in supporting municipalities, the EOSS for example with the support of the Presidency and Office of the Premier in the Free State unlocked some major project challenges for Developers such as Sunelex Solar Power in the Matjhabeng Municipality – 605MW.

c) Unresolved challenges outside reasonable and stipulated time-frames are escalated to the PMO in the Presidency and NEOCOM for intervention. Challenges are escalated once evaluated and severity determined. A single windows application and tracking system is being developed to automate and harmonise processes – the envisaged fully operational date is end of Q1 2025 subject to budget availability.

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Reply:

The Department has commenced an investigation into matters relating to the National Gambling Board, initially focused on the procurement of the building. A forensic investigating company has been appointed in this regard.

A further briefing by the Department relating to remuneration and authorization for overseas travel has raised governance questions relating to these matters. This will now be included in the forensic investigation.

The Department is also considering what appropriate immediate steps should be taken in addition to the above.

Once the investigation is complete, the necessary actions will be taken where warranted, and a report will be submitted to Parliament.

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Reply:

The South African Bureau of Standards advises that a capital expansion plan of R376.0 million has been budgeted for in the Corporate Plan for FY 2024/25 to 2026/27.

The R376.0 million capital budget is focused mainly on three (3) areas, namely Laboratory Services, Facilities, and Information & Communication Technology. The capital budget will be funded through a combination of grant funding from the fiscus and own funds.

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Reply:

The South African Bureau of Standards has furnished me with the following response to the question:

As part of the Turnaround Plan, the SABS undertook an organisational review exercise with the objective of determining a suitable Operating Model and a fit for purpose Organisational Structure which got approved by the Administrators following extensive consultations with the SABS employees. The new structure has 829 positions, but the management agreed to freeze 71 posts due to budget constraints. That left a total of 758 posts. To fill these positions, some of which were new, others redefined, the matching and placement process was undertaken and concluded in October 2023.

As at 31 March 2024, 662 of 758 positions were filled.

Of the 96 posts, the management has prioritised the filling of 59 vacancies due to further financial constraints. These will be filled as follows:

• 37 in 2024/25, and
• 22 in 2025/26, subject to the availability of funding.

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Reply:

The Department has commenced an investigation into matters relating to the National Gambling Board, initially focused on the procurement of the building. A forensic investigating company has been appointed in this regard.

A further briefing by the Department relating to remuneration and authorization for overseas travel has raised governance questions relating to these matters. This will now be included in the forensic investigation.

The Department is also considering what appropriate immediate steps should be taken in addition to the above.

Once the investigation is complete, the necessary actions will be taken where warranted, and a report will be submitted to Parliament.

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Reply:

Following information received from the National Gambling Board (NGB) relating to this transaction, I have requested the Director-General to further engage the NGB on information required and processes followed and provide me with a Report. A supplementary reply will be provided once the information has been received.

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Reply:

The World Economic Forum (WEF) 2024, which took place in Davos-Klosters, Switzerland, from 15 to 19 January 2024, provided South Africa an opportunity to engage international investors and policy-makers.

I was accompanied by the Acting DDG Invest SA and two DTIC permanent representatives to Geneva. The department’s appropriated budget covered all expenses.

The engagements and activities included

• More than 15 separate sessions with investors in sectors such as beverages, transport-logistics, energy, steel, engineering and retail.
• Meetings with a number of trade and economic ministers from across the world, including Norway, the UAE, Saudi Arabia, Qatar, Netherlands and Oman and with government advisors from Nigeria
• A meeting with the European Union Vice President and Trade Commissioner on SA-EU trade matters and on the WTO
• A session with a US Senator, covering SA-US trade and investment relations
• Participating as a speaker in panels dealing with development and with SMME promotion in value-chains
• A ‘South Africa Investment’ session hosted by Bloomberg
• Separate meetings with the Director General of the WTO and with the Secretary General of the AfCFTA
• Participation in a number of briefing sessions on global policy matters, including by the Premier of China and the US Secretary of State
• A WTO session attended by officials.

I am advised the total cost was R802 000, made up of accommodation, air travel, and ground transportation, food, subsistence and travel costs.

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Reply:

(1) Retrofitting in the automotive industry refers to the practice of replacing internal combustion engines (ICE) in vehicles with an electric motor and large storage batteries, making them electric vehicles (EVs). This practice thus means that an old or used vehicle is fitted with modified or new equipment for alternative propulsion than initially designed for.

In the case of retrofitting, the manufacturer of the original vehicle provides no warranty or assurance of its integrity as the fitment of non-original parts generally compromises the vehicle as it deviates from the original specifications for safety and other parameters.

The government focuses on supporting the mass production of new vehicles that can be distributed globally and meet stringent homologation requirements. Vehicle assemblers provide warranties on their originally-built vehicles and components thus giving consumers relative comfort and confidence that such vehicles are of acceptable and good standard.

 

a) In light of the above, government has collaborated with key stakeholders including vehicle assembler OEMs, Component Manufacturers and other stakeholders such as Research institutions in developing an EV White Paper that was published in December 2023. This White Paper seeks to create an environment supportive to investment for and production of electric vehicles and components in response to the global transition from ICE to EVs.

b) The National Treasury has announced through the Budget Speech on the 22 February 2024, the introduction of a tax support mechanism for EV production with effect from April 2026. Details of this tax support will be published in due course following the adoption of implementation guidelines.

c) EV manufacturing will in addition to the tax support also benefit from the Automotive Production and Development Programme (APDP). The APDP supports the manufacturing of vehicles on a completely knock-down basis and not retrofitting.

The objectives of the EV White Paper are to:

• Provide additional investment funding to attract investment in the local production of electric vehicles and components.

• Promote access for these locally produced vehicles to regional and global markets.

• Deepen the automotive value chain by promoting regional cooperation for the local beneficiation of critical minerals.

• Promote uptake of locally produced vehicles through fleets including government.

• Develop requisite skills to support the transition to electric vehicles through partnerships with industry and academic institutions.

(i) Ensuring safety standards is critical for the transition to EV production. Therefore, all EV vehicles will be homologated in line with applicable regulations of the South African Bureau of Standards (SABS) and the National Regulator for Compulsory Specifications (NRCS).

(ii) The vehicle component manufacturers represented by the National Association of Automotive Component and Allied Manufacturers (NAACAM) are key stakeholders in the growth of the local automotive industry. Thus, they continued to be actively involved in the development of the framework for the transition to EVs. The component manufacturing industry accounts for the lion's share of jobs in the automotive industry, over 70% of the total employment in the automotive industry in 2022.

(iii) The success of the transition requires all stakeholders to continue to work collaboratively to navigate this challenging transition and transform it into an opportunity for growth, sustainability, and economic vitality. There is an established industry stakeholder engagement platform called the Executive Oversight Committee (EOC) to oversee the implementation of the SAAM 2035. Its mandate will be expanded to include overseeing the implementation of the EV White Paper. Therefore, there is a requirement for the active participation of additional stakeholders including those in Logistics (rail and electricity), technology developers (innovation, research, and technology commercialisation), EV support infrastructure (charging facilities providers, emergency services providers). It will also include those involved in marketing SA capabilities to position South Africa as a production and demand destination for EVs and related components.

(iv) Technology changes are at the core of this transition. This includes the introduction of new raw materials and components, while some ICE-specific components are expected to become obsolete over time. These changes in the supply chain are resulting in the re-organisation of the global value chain with the growing importance of locations that can supply EV-specific components.

(v) the dtic has collaborated with Research institutions and entities mainly as service providers during the development of the EV White paper which is the culmination of substantial research and engagement over the last number of years and follows the publication of a green paper in 2021, a process of receiving public comments, which have been integrated into the policy actions to be taken. This collaboration continues during the transition to EV production.

(2) The EV White Paper focusses on the manufacturing of electric vehicles and their components rather than on retrofitting used vehicles. This focus will mitigate potential job-losses due to the transition to e-mobility as EVs have fewer components and also ensure that South Africa remains a viable manufacturing location in the global setting.

The EV transition requires new certification programs and extensive reskilling to produce and use the associated new technologies. To this end, the industry has completed a Comprehensive Skills Gap Analysis that covers the Labour Market Analysis which gives the future occupations, and the Competency Analysis which gives the future competencies. To address the skills gaps, five roadmaps have been developed.

As part of the implementation of the roadmaps, MerSETA, the Department of Higher Education, and the automotive industry are developing the EV curriculum and certificate. The main beneficiaries will be young people with the automotive industry setting a target of 10 000 learnerships and apprenticeships by 2035.

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Reply:

The National Lotteries Commission has furnished me with the attached response to the question.

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Reply:

a) Because an international agreement will be binding on South Africa, the country must be able to maintain its international obligations in terms of the Treaty to which it has acceded. In order to accede to the Marrakesh Treaty, it is necessary therefore to finalise amendments to the Copyright Act, Act 98 of 1978. The Copyright Amendment Bill that addresses these matters was passed by the National Assembly recently, for referral to the President for assent.

b) The Constitutional Court found Section 13 of the Copyright Act to be unconstitutional. In its order, the court read into the Copyright Act, 1978 an exception that allows persons who are blind and visually impaired to convert published works into accessible formats without the consent of the copyright holder. The judgment thus offered the blind and visually impaired remedies with immediate effect. This exception is valid for a period of 2 years until 20 September 2024 pending the approval of the Copyright Amendment Bill, to ensure that the rights of the blind and visually impaired are not compromised. Clause 19D of the Copyright Amendment Bill extends to persons with disabilities such as learning disabilities, dyslexia etc and not only for the blind and visually impaired.

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Reply:

South Africa currently exports around 63% of its vehicle production, making it imperative to consider global developments in the auto industry. Major export markets such as the EU and the UK have announced bans on internal combustion engine (ICE) vehicle sales by 2035, accompanied by incentives for electric vehicle (EV) adoption. This global shift towards environmentally friendly transportation is expected to reduce demand for vehicles manufactured in South Africa.

Following extensive work undertaken both with industry and within government, a White Paper was finalised by Cabinet, setting out the policy framework for the technology, production, export and domestic market adoption of electric vehicles, as well as a detailed roadmap and plan of action. The White Paper was publicly released in December 2023.

Subsequently, the Minister of Finance released details of tax benefits that will be available to the industry to facilitate the transition. In addition, discussions have been held with auto-producers not yet in the SA market to encourage new investment in the sector.

While existing policies like the Automotive Production Development Programme and the Automotive Investment Scheme provide a good framework for developing EV productive capacity, including in assembly and component manufacture, additional action will be required. The White Paper thus identifies 10 policy goals with a set of 16 specific and distinct policy actions to be implemented over specified timelines between 2023 and 2035 with 10 actions in support of the development of cost-competitive EV productive capacity in South Africa; and 6 actions in support of the development of a cost-effective local market for EVs.

A copy of the White Paper may be accessed at http://www.thedtic.gov.za/wp-content/uploads/EV-White-Paper.pdf

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Reply:

The IDC’s investment portfolio in terms of exposure, is currently at R98.9 billion, made up of R65.7 billion (66%) in Debt and R33.2 billion (34%) in Equity. Debt investments are those that are classified as Solely Payments of Principal and Interest (SPPI) and Equity investments are classified as Non-SPPI. The Mining Sector comprises the most significant exposure at 38%, followed by Chemicals (17%) and Energy (12%). Details are as shown in Table 1 below.

Table 1: IDC Portfolio Per Sector

 

Full list of companies under each of the investment sectors listed in Table 1

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Reply:

A well-functioning transport and logistics system is vital to unlock the opportunities presented by trade, to grow the SA economy and create jobs.

The Department of Trade, Industry and Competition (the dtic) supports efforts by the Department of Public Enterprises (DPE) to address challenges at ports and find permanent and systemic solutions. A workstream has been put in place by DPE and the Presidency with the private sector, which enables skilled personnel to assist with improving the country’s logistics systems. the dtic attends the oversight meetings convened by the Presidency.

Companies from time to time approach the dtic with specific challenges relating to a shipment of cargo. the dtic engages Transnet on these in order to resolve them.

The DPE will be best placed to provide information on the measures taken to date to address the challenges and the progress made.

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Reply:

The SBIDZ is managed by the Western Cape Provincial Government.

According to the Western Cape Provincial Government and the SBIDZ, the entity is not yet independently financially sustainable and is still reliant upon the Provincial Government as the owner of the SEZ, for operational funding.

Below is a table with the provincial allocation for the financial years 2022-2026.

Specific Budget policy programmes	2022/23	2023/24	2024/25	2025/26
	(R ‘000)	(R ‘000)	(R ‘000)	(R ‘000)
Operational Funding	41 977	-	-	-
New Integrated Port PPF request for SBIDZ	-	9,400*	-	-
Investment – Green Hydrogen development (Earmarked priority allocations)	-	3,300	18,150	18,150
Total	41 977	12,700	18,150	18,150

*To note, R9,4 million appropriated in the 2023/24 main budget for the Project Preparation facility for the integrated port upgrade in Saldanha is to be reclassified in the 2023 Adjusted Estimated for use as operational expenditure by the entity to assist with the entity’s sustainability.

In terms of funding from the SEZ fund, managed by the dtic the SBIDZ zone has received the following funding:

Bulk infrastructure	R 741 858 000
Top structure	R 391 130 000
Skills development	R 4 495 000
Total	R1 137 483 000

The total amount the SBIDZ received from the dtic SEZ fund is R1 137 483 000 over seven years, between 2016/2017 – 2023/2024.

In respect of green energy, the SBIDZ would require operational funding from the Provincial Government. the dtic, IDC and the SBIDZ are working together to attract private investment in green energy.

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Reply:

The post of Director General was advertised, and applications were considered by an Inter-Ministerial Committee. However, during the process, the Minister was requested to consider whether structural changes should be proposed involving the responsibilities within the dtic, which would affect the selection of a suitable candidate. This has taken some consideration during the second half of 2023. The Department intends that the position will be filled by the end of the financial year.

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Reply:

In the past five years the Industrial Development Corporation (IDC) issued:

The total number of 834 business loans and equity funding.

The total monetary value is R80,5 billion.

Total Approvals

BEE owned (>50%)

Women owned (>50%)

Non-South African companies

a) Total number of the business loans/equity that were issued:

1. 53,7% of the total number of business loans/equity by the IDC in the last five financial years was issued to majority black-owned companies; and by value it constituted 31,3% of all loans/equity approvals.
2. 11,8% of the total number of business loans/equity by the IDC in the last five financial years was issued to majority woman-owned companies.
3. 3,8% of the total number of business loans/equity by the IDC in the last five financial years was issued to non-South African companies (including investment in other African countries, and by value it constituted 15% of all loans/equity approvals.

Additional information requested will be compiled.

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Reply:

I am advised that the National Empowerment Fund did not pay for the Chief Executive Officer or any other official to travel to France during the stated period. The NEF pays travel and related expenses exclusively for official business trips.

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Reply:

a) The Special Economic Zone (SEZ) tax incentive was introduced into the Income Tax Act to promote investment, growth and job creation in the South African manufacturing sector and the development of designated regions. On 6 July 2018, the Minister of Finance issued Government Gazette 41758, with the following SEZ’s eligible for purposes of the reduced income tax rate:

• COEGA Special Economic Zone

• Dube Trade Port Special Economic Zone

• East London Special Economic Zone

• Maluti-a-Phofung Special Economic Zone

• Richards Bay Special Economic Zone

• Saldanha Bay Special Economic Zone

A qualifying company can only benefit from the tax incentive if it is located within an eligible SEZ and based on financial considerations to the state, as required by section 12E(3) of the Income Tax Act. The potential benefits are:

• A reduced corporate income tax rate of 15%; and
• An accelerated depreciation allowance of 10% on cost of any new and unused buildings or improvement owned by the qualifying company.

In terms of the qualifying criteria, 90% of the companies income must be derived from the carrying on of business or provision of services within that SEZ; and no more than 20% of the deductible expenses incurred or 20% of the income received by or accrued to the company are from transactions with connected persons that are residents or with non-residents and those transactions are attributable to a permanent establishment in the Republic.

With regards to the depreciation allowance, companies do not qualify, if the buildings are owned by the SEZs themselves.

(i) and (ii) According to information provided by the qualifying SEZs for the financial years 2020-21 and 2022-23, 9 companies applied for the reduced income tax rate. Three (3) companies in COEGA and six (6) companies applied in Dube Trade Port for the reduced income tax rate.

b) The disclosure of the total value of the tax discounts for companies is governed in terms of the Tax Administration Act, 2011, administered by SARS. Taxpayer information is subject to the confidentiality provisions, which contained in Chapter 6 (sections 67 to 74) of the Act.

Access to information can be directed through the relevant portfolio committee to SARS.

 

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Reply:

I have been furnished with the information below by the IDC:

The IDC’s investment portfolio, in terms of exposure, is currently at R98.9 billion, made up of R65.7 billion (66%) in Debt and R33.2 billion (34%) in Equity. Debt investments are classified as Solely Payments of Principal and Interest (SPPI), and Equity investments are classified as Non-SPPI. The Mining Sector comprises the most significant exposure at 38%, followed by Chemicals (17%) and Energy (12%). Details are shown in Table 1 below.

Table 1: IDC Portfolio Per Sector

 

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Reply:

I am advised that the following key tax incentives and support apply:

• A reduced corporate income tax rate of 15%
• An accelerated depreciation allowance of 10% on cost of any new and unused buildings or improvement owned by the qualifying company, where applicable.
• Customs Control Incentives (CCA).
• Building of Top Structures for tenants in the SBIDZ.

These incentives and support are subject to applicants meeting application criteria and budgetary availability. National Treasury considers tax incentives relating to SEZs.

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Reply:

I am advised as follows. On 6 July 2018, the Minister of Finance issued Government Gazette 41758 indicating that companies located in the Saldanha Bay IDZ can be eligible for tax incentives/rebates based on qualifying criteria.

These incentives include:

• • A reduced corporate income tax rate of 15%.
  • An accelerated depreciation allowance of 10% on cost of any new and unused buildings or improvement owned by the qualifying company.
  • Customs Control Area Incentives (CCA).

Currently National Treasury has put a sunset clause for SEZ Tax Incentives/ Rebates ending 2031. In terms of the SEZ Act No. 16 of 2014, the Minister of Trade and Industry and Competition must consult with the Minister of Finance on tax incentives for special economic zones. The Minister of Finance is the authority to extend tax incentives/rebates. Should a clear business case be made out for extension of a tax incentive, the dtic will assist to bring same to the attention of the National Treasury for consideration.

Saldanha Bay Industrial Development Zone (SBIDZ) is a designated as an SEZ which is specifically focused on the maritime, energy, logistics and green hydrogen sectors, it offers a platform for global exports by attracting foreign and local investment in the associated manufacturing and services industries.

 

Value Proposition of the SEZ:

• Strategically located within the deep-water port of Saldanha Bay, which allows for easy access to worldwide shipping routes and road linkages to the Saldanha – Northern Cape Logistics Corridor, Cape Town and beyond, and as such represents a prime logistics location.
• Tenants and qualifying investors have access to various incentives and support, including top structures and CCA benefits.
• 356-hectare footprint of secure and prime serviced industrial land, investor sites are available for occupation.
• Saldanha has also established the Saldanha Bay Innovation Campus to boost skills development in innovation and technology in the Marine and Energy Sectors.

 

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Reply:

Restrictions on exports of certain scrap metal and copper cable products have been put in place since 30 November 2022, following research done on measures to curb widespread theft; and at the request of law enforcement and other entities.

Concerns have been raised by companies in the blast-furnace value chain and by scrap metal exporters. Support has been expressed by companies in the arc-furnace value-chain. The IDC is exposed to investments in both blast-furnace and arc-furnace value-chains. The export restriction is not however an industrial policy measure but is specifically focused on addressing the demand for scrap metal, which has been found to be a factor in incentivizing theft of cable and metal from public infrastructure. The impact of the measures is being considered and no information is ready for public release.

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Reply:

Appointments made within the dtic-group are based on suitability of candidates for the job. In addition, the dtic-group has taken action to address any instances of corrupt and/or inappropriate financial behaviour, as evidenced by steps taken in respect of the National Lotteries Commission.

The reasons for deindustrialisation can inter alia be traced back to premature and sharp reductions in trade support to industry, following the binding offer made prior to 1994 by the National Party government during the global trade talks in the Uruguay Round of the Generalised Agreement on Tariffs and Trade (GATT). This was compounded by limited supply-side measures to assist firms to strengthen their competitiveness, which is normally applied to assist with a transition from high trade protection, at about the time when China and other Asian exporters expanded their manufacturing output. A number of structural factors that have been highlighted previously, have also served to constrain manufacturing growth.

The focus on sector-specific growth strategies as contained in masterplans, access to large export markets, support for local firms and other elements of the reimagined industrial strategy, are aimed at reversing these trends. Preferential procurement policies have included support for procurement from local manufacturers, which have helped to lean against deindustrialisation pressures.

Government considers lessons from global best-practice and research and insights from policy-thinkers in adjusting policies to address the extraordinary challenges faced from the legacy of our past.

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Reply:

The department has not paid for anyone to travel to France to attend the Rugby World Cup final in France during October 2023. We are proud of the victory of the Springboks and the thrilling matches against France, England and New Zealand.

 

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Reply:

In 2022 South Africa’s goods exports to the United States amounted to about US$14.4 billion. Of this, 21% ($3 billion) entered the US under AGOA. Over the recent five years since 2018, on average 16% of SA exports entered the US under AGOA.

Some sectors utilise AGOA for a significant portion of their US exports. I attach a revised copy of a presentation made to a joint meeting of the Portfolio and Select Committees of Parliament on 26 September 2023.

Both the SA and US data sets do not distinguish exports/imports by company size and employment and also do not record the suppliers of inputs into the production of the exported/imported products.

The Impact of AGOA on economic growth will require detailed research, and will not be definitive, as a number of factors influence trade performance, for example changes in the exchange rate of the currency.

 

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Reply:

Work done by the National Treasury over the past number of months has pointed to the need to identify ways to reduce the levels of public expenditure, including structural costs due to the number of public entities.

the dtic-group is therefore reviewing the Standards, Quality Assurance, Accreditation, and Metrology entities to identify whether potential mergers of entities can be effected, whilst enhancing service delivery.

The appointment of CEOs on lengthy fixed term contracts may impact on these. Steps were taken for the appointment of CEOs in the Standards, Quality Assurance, Accreditation, and Metrology institutions prior to the above considerations and the Department is working to align these two processes, taking into account the need for stability.

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Reply:

Information sourced from Export Councils, who are partially supported by the Department, and which represent exporters of fruit, ostrich and abalone indicates that the two most important factors that affect the quality of perishable products destined for export markets are time and temperature control. For products that are scheduled for export at the Container Depots, load shedding and unstable supply of electricity necessitates that alternative power sources are installed in the form of diesel-powered generators for cold chain maintenance and operations which cannot be halted.

With regards to Cold Stores, time becomes a critical factor for temperature control of perishable products. Several contact points in cold stores that are impacted by electricity supply include the container-truck waiting times; all of which have a knock-on effect on the export load schedules as well as booking times at the ports. Final Inspections by the Perishable Produce Export Control Board (PPECB) at the cold stores may result in reefer rejections if the time and temperature control requirements are not complied with, which can lead to either compromised shelf-life or spoilage of the perishable products.

Between April 2021 and September 2023, R323 million was approved to support more than 50 projects in the agriculture and agro-processing industries. During the same period R260 million was disbursed to just over 45 projects in the agriculture and agro-processing industries.

Products include the following:

• Fruits such as blue berries, citrus, dried mango and tropical fruits;
• Meat products such as processed meat, pork carcasses;
• Dairy products;
• Alcohol such as wine and gin;
• Vegetable oils; and
• Snacks such as sugar-based confectionaries, condiments, popcorn, and cookies.

Given the above, we welcome and support the measures to address electricity supply and stability.

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Reply:

The NEF has not paid for any employee to travel to France during the months of September and October 2023.

.

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Reply:

The 2019-2024 Executive Performance Agreement was entered into in November 2020 following an agreement on Ministerial priorities and activities with the President.

Key elements of the Performance Agreement are included in Annual Performance Plans by the department and entities. Detailed quarterly reports are provided to the portfolio committee setting out performance on key areas, as shaped by the performance agreements.

In addition, the annual reports of the Department and Entities for the following years provide further details:

• 2020/21
• 2021/22
• 2022/23

In May 2023, a review of the department's priorities and the executive's performance occurred, resulting in a revised priorities agreement for the 2023/24 financial year. These have mainly been incorporated in or are reflected in the Annual Performance Plan of the dtic-group for 2023/24.

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Reply:

In May 2021, I set out in the Budget Vote speech details of key policies on trade and industrial development to be publicly released. These were subsequently done, and covered both trade and industrial policy matters, and can be obtained from the relevant government gazettes. A number of masterplans were developed and key trade measures were adopted.

In addition, I will provide the Honourable Member with a list of trade and industrial policies tabled or made public prior to 2021, and will make it available as soon as the process of compiling these are completed.

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Reply:

Industrial Parks fall within the responsibility of Provinces and in some instances, municipalities. The role of the dtic is to consider requests for funding for infrastructure improvements, typically on areas such as fencing and security. The dtic does not manage implementation of upgrading nor does it operate industrial parks. The Department has tabled reports on SEZs and Industrial Parks at the Portfolio Committee of Trade and Industry, addressing the challenges with the existing model and the need for reform.

The Department has provided the following details on developments relating to the Ekandustria Industrial Park, which I set out below.

a) Budget allocations for industrial parks, under the Industrial Parks Revitalisation Programme (IPRP) of the dtic, are approved on an application basis and there is therefore not a dedicated budget to a specific industrial park.

The Ekandustria Industrial Park received approval for R51,812,604 in the

2015–2016 financial year (FY), and construction was finished in the 2019–2020 financial year.

(i) FY 2019-2020 - R268,398 was spent as the last tranche of the allocation;

(ii) FY 2021-2022 – nil; and

(iii) FY 2022-2023 – nil.

b) (i) The activities listed below that began in FY 2015–2016 were finished in

FY 2019-2020:

• 13 Factory spaces were revamped, amounting to 35 835 square metres of roofing with new ventilators, box gutters and insulation;
• 2km Clear View fencing installed;
• 3 Guard houses constructed;
• 3 Swing gates and 6 boom gates with pedestrian walkways/gates; and
• Refurbishment of Waste Water Treatment Plant;

(ii) 2021-22 – nil; and

(iii) 2022-23 – nil.

c) The original application submitted by MEGA has been reworked to include investors/tenants' priority critical infrastructure needs. A Project Steering Committee comprising of City of Tshwane, MEGA, and Gauteng Department of Economic Development, is finalising the application to be submitted to the dtic.

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Reply:

During the course of the current Administration, two factors required a different approach to the administration of applications and recommendations relating to trade.

First, the new industrial strategy framework was based on a more careful coordination of trade policy measures with industrial policy. This required

1. the development of masterplans and sector growth strategies in particular sectors

2. consideration of the principles underpinning masterplans to other sectors, and

3. consideration of the impact of a trade measure on the growth of the industry and on downstream sectors.

Second, COVID-19 caused a slowdown in world trade, disruption in global supply chains and changing trade flows. Some of these had significant impacts on consumer prices. Following Covid-19, four other shocks affected the domestic market: the July 2021 unrest, the April 2022 floods and the war in Ukraine. The latter in particular saw a spike in food, fuel and fertiliser prices. A number of proposed trade measures were put on hold to enable the effects of extraordinary events to be considered and monitored, and for normal market conditions to return, except where circumstances required otherwise.

The timeframes therefore for introducing specific trade measures have changed, based on the above. Certain tariff recommendations were therefore only considered at a later stage than would have applied in the past. A supplementary reply will be compiled to the question, to provide specific examples of these.

In respect of the costs associated with timing of trade measures, there is no agreed methodology to calculate costs. While local industries may benefit from a tariff increase, importers may see it as a cost. Public policy carefully balances a number of policy goals in setting of trade policy.

More research will be conducted in the form of impact assessments trade measures, including tariff increases. This research may provide additional information that relate to the question above and the results will be made available publicly once these are available.

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Reply:

The Industrial Development Corporation has not invested in copper smelting activities in the past three financials years being, FY2022/23, FY2021/22 and FY2020/21.

The Department does not have a dedicated funding facility for smelters in its budget, approved by Parliament, and no disbursements were made in the financial years concerned to copper smelters.

Tax incentives are announced by the Minister of Finance.

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Reply:

I published Regulations in May 2023 under the Companies Act, as amended in 2022, to prescribe how companies will submit information to disclose; or make known companies shareholders; or those who hold beneficial interest in securities in companies.

Companies will be required to file the register of the disclosure of beneficial interest in their companies with the Companies and Intellectual Property Commission (CIPC) when submitting their annual returns. The companies required to disclose the beneficial ownership information include mining companies or their subsidiaries. The information as currently provided for in the legislation and regulations, is for law enforcement agencies.

The new Companies Amendment Bill, 2023 addresses the matter of broader disclosure of information on shareholding. I believe it is in the public interest that beneficial ownership should be available more widely. The Bill is currently before Parliament and I await its consideration by Parliament

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Reply:

The spending by the Department is set out below. Information on entities will be provided in a supplementary reply.

Entity		(aa) 2020-21	(bb) 2021-22	(cc) 2022-23
Department of Trade Industry and Competition (DTIC)	Total amount paid	R279 950.00	R255 850.00	R269 400.00
	Supplier	Bakhoni Ba Kopane Trading (Pty) Ltd	Indulgence Palace (Pty) Ltd	MKYJAN Trading (PTY) Ltd
	Total number of copies printed	420	420	420

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Reply:

The existing EME threshold of R10 million annual revenue was set to exempt small businesses from mandatory compliance with B-BBEE.

While the exchange rate itself may not be sufficient grounds for a review, there may be other information that justifies a review. I am accordingly requesting the Department to consider the matter and advise me by the end of November 2023 whether there are grounds for a review.

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Reply:

The top export and import partners, and trade values are summarised below.

Exports reached an all-time high in 2022, surpassing ZAR 2 trillion for the first time, with notable growth in exports to markets including Germany, Japan, the Netherlands, India, and all neighbouring countries.

	TOP 10 Export destinations	Exported value in 2022
	World	2 024 476 648
1	China	195 591 758
2	United States of America	179 425 236
3	Germany	163 795 988
4	Japan	140 869 179
5	United Kingdom	103 567 427
6	Netherlands	98 245 133
7	India	84 135 321
8	Botswana	77 071 498
9	Belgium	65 199 545
10	Namibia	56 997 549

Imports grew rapidly, particularly due to the rising petroleum imports, which also drove a rapid spike in imports from India, the UAE and Oman.

	TOP 10 Import suppliers	Imported value in 2022
	World	1 832 262 773
1	China	368 761 963
2	India	136 911 736
3	Germany	135 371 730
4	United States of America	134 817 391
5	Saudi Arabia	71 916 317
6	United Arab Emirates	67 786 536
7	Thailand	50 512 434
8	Japan	46 522 269
9	Oman	43 472 407
10	Italy	40 429 620

Data source: International Trade Centre TradeMap reporting of SARS data. Exports to Mozambique have been adjusted to account for misclassified data bound for third markets via the Port of Maputo. Reported figures are as reflected in official SARS data, and may include some transit trade classified as exports by SARS.

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Reply:

The Companies and Intellectual Property Commission (CIPC) has furnished me with the following response to the question, received from Adv R Voller:

“(1) Prior to 2016, SAMPRA was accredited as a Collecting Society for owners of sound recordings in terms of Regulation 3(1)(a) of the Regulations on Collecting Societies. It was in 2016 that SAMPRA transited into a Collecting Society representing both owners of sound recordings and performers in terms of Regulation 3(1)(c) of the Regulations on Collecting Societies.

During such period of changing its representation, an interim board was established representing both performers and owners of sound recordings. The interim board served to approve all business activities of the Collecting Society.

The Companies and Intellectual Property Commission (CIPC) is not aware of any situation that might have availed a conflict of interest especially that the interim board constituted of two chairpersons representing the interests of all members (the performers and owners of sound recordings).

Further, there was no complaint or request directed to CIPC to investigate such conflict of interest. The SAMPRA as an accredited Collecting Society is also subjecting itself to auditing by its auditors.

(2) The CIPC is not aware of any information indicating that SAMPRA absorbed losses incurred by RISA as a result of 2016 edition of SAMA but should such information be brought to its attention, it will investigate the matter accordingly.

(3) During the transitioning period, the interim board was established to approve the business affairs and transactions at SAMPRA. The CIPC is therefore not aware of any sponsorship amount of R600 000 approved by SAMPRA – RISA Chairman, which belonged to SAMPRA.

If there is any information indicating that SAMPRA monies were approved contrary to the parameters of the Regulations on Collecting Societies, CIPC is prepared to investigate such allegations, as mentioned above. The SAMPRA has been consistently deducting its 20% administration costs in accordance with the Regulations.”
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Reply:

The findings of the Competition Commission report are taken up in a number of ways. They include the following:

1. Market Inquiries/investigations in terms of the Competition Act.

2. Considerations applied during the assessment of merger applications.

3. Support for SMMEs through financing packages.

4. Measures to strengthen the competitiveness of smaller firms.

5. Promotion of supplier development funds and partnerships.

6. Measures in masterplans.

the dtic and its entities, the Industrial Development Corporation (IDC) and National Empowerment Fund (NEF) offer a range of funding instruments for the support of SMMES as grants and loans.

the dtic provides support to emerging exporters, to show-case their products at international exhibitions, funding to develop emerging black film makers through the Film and TV incentive as well as emerging black aquaculture farmers.

Other cost-sharing grant funding is available to SMMEs operating in the research and development field . The funding for these incentives is structured to encourage collaboration between industry and academia that will result in the development of pioneering prototypes ready for commercialisation.

A recent report to the Portfolio Committee highlighted the work of the dtic-group on township economies.

Additional resources are mobilised through supplier funds, such as:

1. Shoprite establishing a R350 million development fund to develop independent retails, spaza shops, micro caterers and micro farmers.
2. Heineken to establish a R400 million Supplier Development Fund, and procure R4.7 billion from Historically Disadvantaged Persons.
3. Pepsico has made R300 million available as a development fund to develop the capacity of emerging farmers, R100 million contribution for enterprise development and R200 million for educational programmes in partnership with universities.
4. Coca-Cola has contributed R240 million to a localization fund and will increase volumes of sugar procured from black sugarcane farmers.
5. Implats will contribute R50 million for regional enterprise development that will benefit women and youth owned businesses.
6. Mediclinic will for a period of five years will ensure procurement of R2.5 billion from small and black owned enterprises.

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Reply:

Based on SARS provisional data, the top 10 countries from which SA imported goods in the period 1 January to 31 March 2023 are:

1. China

2. Germany

3. USA

4. India

5. UAE

6. Thailand

7. Nigeria

8. Saudi Arabia

9. Japan

10. Oman.

Based on SARS provisional data, the top 10 countries to whose markets SA exported goods in the period 1 January to 31 March 2023 are:

1. China

2. USA

3. Germany

4. Japan

5. India

6. UK

7. Netherlands

8. Belgium

9. Botswana

10. UAE

South Africa’s import suppliers (Rand values)

		Total (January to March 2023)
	World	R485 259 081 939
1	China	R99 146 820 610
2	Germany	R39 723 451 934
3	United States	R36 334 678 519
4	India	R32 626 305 702
5	UAE	R19 055 926 925
6	Thailand	R15 515 425 690
7	Nigeria	R13 003 529 551
8	Saudi Arabia	R12 835 399 393
9	Japan	R11 345 815 628
10	Oman	R10 959 640 838

Data source: SARS, adjusted for transit trade

(2)(a) and (b):

South Africa’s export destinations (Rand values)

		Total (January to March 2023)
	World	R455 061 074 141
1	China	R54 887 839 800
2	United States	R36 896 513 669
3	Germany	R31 268 892 040
4	Japan	R28 613 650 186
5	India	R22 963 598 797
6	United Kingdom	R21 062 612 635
7	Netherlands	R20 751 577 401
8	Belgium	R15 869 295 095
9	Botswana	R15 319 831 767
10	UAE	R12 369 444 500

Data source: SARS, adjusted for transit trade and errors in export data.

The Department also considers revisions in SARS data, as well as data from trading partners to build a more accurate picture. The latter data is not fully available for all countries yet.

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Reply:

a) Announced at the 2023 Budget Vote of the Department of International Relations and Cooperation (DIRCO), South Africa has representation through 116 diplomatic missions in 102 countries.

b) In terms of the above DIRCO missions, the dtic has 31 missions allocated for the transfer of officials to serve as Foreign Economic Representatives (FERs), fulfilling the roles associated with trade attachés or commissioners

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Reply:

a) The Programme for Infrastructure Development in Africa (PIDA) is a programme of the African Union (AU) launched in 2012. It is coordinated through the AU Development Agency (AUDA-NEPAD) in cooperation with regional economic communities, regional and continental technical agencies, and participating countries. The Presidency acts as the focal point in South Africa for PIDA.

According to the Virtual PIDA Information Centre, the following South African firms and entities have been involved in the development and implementation of the PIDA Priority Action Plan (PIDA PAP1 2012-2020):

No	Project Name	SA Firms/Entities	Status
01	Durban Port Expansion	Transnet	Ongoing
02	Maputo Port Expansion (Maputo and Matola Drybulk Terminal)	Grindrod and Zutari	Ongoing
03	Dar es Salaam-Isaka-Mwanza Standard Gauge Railway Project	DBSA	Ongoing
04	Beitbridge One Stop Border Post	Rand Merchant Bank, Standard Bank, Nedbank, ECIC and Raubex Group Ltd	Ongoing

* Source: PIDA Dashboard, company websites and media

b) With regards to the internet and Information and communication technologies (ICT), the PIDA Dashboard indicates a total of 114 projects that have been prioritised under PIDA PAP1. A further 11 anchor projects have also been approved for the PIDA PAP2 2021-2030, which is the second PIDA priority action plan for the period 2021-2030.

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Reply:

Trade with the United States is regulated by two types of legal instruments: the first is the multilateral framework of the World Trade Organisation, under which the largest part of SA exports to the US is classified; and unilateral preferential market access arrangements, such as the African Growth and Opportunity Act (AGOA) and the Generalised System of Preferences (GSP).

AGOA is a preference granted by the United States to sub-Saharan countries qualifying in terms of criteria established by the US Congress. AGOA is currently set to expire in 2025. Decisions around renewal are taken by the United States and it is then up to exporters from eligible countries to utilise the preferential access to the US market.

South Africa together with other African countries have put forward the proposal for the extension of AGOA beyond 2025.

While the value of trade under AGOA has decreased, it continues to provide benefits to South African exporters, which assists with job creation and has positive spill-over effects in the region. Given the size of South Africa’s employment challenge, every trade benefit that is available should be utilised.

In light hereof, South Africa continues to engage the United States on the future of AGOA and the value of extending AGOA beyond the current expiry date.

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Reply:

1. The draft legislation had been prepared by the department for consideration. There were two processes that needed to be taken account of however, prior to Cabinet consideration of its contents. The first relates to the World ~Trade Organisation (WTO) discussions on flexibilities to international rules on intellectual property. The second was the discussions held under the auspices of the African Continental Free Trade Area (AfCFTA) on an African Protocol on Intellectual Property Rights.

Significant progress has been achieved on both, with conclusion on a WTO agreement covering vaccines, reached in June 2022; and finalisation of the AfCFTA Protocol in February 2023. The content of draft legislation can thus be evaluated against these changes in the global regulatory landscape by Cabinet during its consideration of the Bill, which is expected shortly. The legislation will be released for public comment within one week of approval by Cabinet.

2. Officials of the Department have not experienced external pressures from any trade entities from any country and no entity would be privy to the content of the draft legislation until same is released publicly.

3. It is intended that the draft Bill would be submitted to Cabinet shortly after completion of the process referred to in 1 above.

-END-

Reply:

The impact of the Protocol on Intellectual Property Rights and the agreement at the World Trade Organisation on waivers and flexibilities relating to pandemic use of patented vaccines are being considered. Should no changes be necessary, the Bill will be finalised for public consultation. Should changes be necessary, these will be effected prior to the release of the Bill.

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Reply:

The National Lotteries Commission has furnished me with the following response to the question

The NLC paid the following amounts for copies of its annual reports:

2020: R1, 987, 926

2021: R2, 695,956

2022: R2, 600, 897

The supplier in all three years was INCE (PTY) LTD.

The number of copies printed were as follows:

2020: 205 copies printed;

2021: 200 copies printed;

2022: 70 copies printed.

I am advised that an official with relevant information on the distribution of the copies of the Annual Report is currently on suspension and therefore not all the requested information is available. I have further requested the NLC to provide an updated report on the distribution of annual reports as soon as the information is available.

The SIU has made substantial progress with probing allocation of grant monies under the pro-active scheme. I have requested that the NLC also investigates all its procurement contracts and have proposed that the terms of the SIU be widened to cover procurement and payments to consultancies. Given the amounts of money involved in the printing of the annual report, this expenditure should also be covered by the internal and external investigation.

 

-END-

Reply:

Through its procurement, the dtic group has a concerted effort to ensure that it procures from SMME, women, youth and people with disability, inclusive of township and rural enterprises.

The following information has been submitted by the dtic-group:

(a)&(b) DTIC and its Entities	(aa)&(bb) Financial Period	b(i)
Department of Trade Industry and Competition (the dtic) including B-BBEE Commission	2021-22	56%
	Since 1 April 2023	93,36%
Companies and Intellectual Property Commission (CIPC)	2021-22	There was no direct allocation to SMMEs. However, CIPC procures through RFQs and tenders from suppliers registered on the CSD. This includes SMMEs.
	Since 1 April 2023	There was no direct allocation to SMMEs. However, CIPC procures through RFQs and tenders from suppliers registered on the CSD. This includes SMMEs.
Companies Tribunal (CT)	2021-22	60%
	Since 1 April 2023	65%
Competition Commission	2021-22	85%
	Since 1 April 2023	98%
Competition Tribunal	2021-22	57.59%
	Since 1 April 2023	68.52%
Export Credit Insurance Corporation (ECIC)	2021-22	45.63%
	Since 1 April 2023	58.82%
Industrial Development Corporation of South Africa Limited (IDC)	2021-22	50.65%
	Since 1 April 2023	78.74%
International Trade Administration Commission (ITAC)	2021-22	46% (R928 047.80)
	Since 1 April 2023	71% (R213 420.34)
	Since 1 April 2023	0%
National Consumer Tribunal (NCT)	2021-22	55%
	Since 1 April 2023	R1.2 million
National Credit Regulator (NCR)	2021-22	58%
	Since 1 April 2023	54%
National Empowerment Fund (NEF)	2021-22	The National Empowerment Fund has procured goods and services to the total amount of R35.8 million for the period under review with a combined percentage of 75% being spent as follows: Exempted Micro Enterprises - R16,9 million (47%) Qualifying Small Enterprises – R9,9 million (28%)
	Since 1 April 2023	From 1 April 2023 to date a combined percentage of 89% of the total amount of R2,5 million being spent as follows: Exempted Micro Enterprises - R1,7 million (67%) Qualifying Small Enterprises – R560k (22%)
National Gambling Board (NGB)	2021-22	2.72%
	Since 1 April 2023	1%
National Lotteries Commission (NLC)	2021-22	32.80% was procured from Qualifying Small Enterprises (QSE). 29.46% was procured from Exempted Micro Enterprises (EME).
	Since 1 April 2023	Approximately 40% was procured from Qualifying Small Enterprises (QSE).
	Since 1 April 2023
National Regulator For Compulsory Specifications (NRCS)	2021-22	(i)(aa) 16% (R5 240 909,60)
	Since 1 April 2023	(i)(bb) 84% (R4 873 670,00)
South African Bureau of Standards (SABS)	2021-22	43.2%
	Since 1 April 2023	Procurement spend for this category is unknown as the data is only manually calculated against B-BBEE certificates on quarterly basis.
South African National Accreditation System (SANAS)	2021-22	100% SMMEs - 73% EMEs - 27%
	Since 1 April 2023	100% SMMEs - 35% EMEs - 65%

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Reply:

South Africa is the second largest exporter of citrus fruits globally. Our exports of citrus fruits represent 11.2% of world exports for this product.

The measures introduced by the European Union, both in respect of citrus black spot and false coddling moth are inappropriate, unjustified and not consistent with the EU’s international obligations.

South Africa requested consultations with the EU on 22 July 2022 in World Trade Organisation (WTO). The consultations were held on 15-16 September 2022.

The objective of consultations is to achieve a mutually agreed solution. Both South Africa and the EU saw value in exploring options for settlement of the dispute (before proceeding to the formal dispute through panel proceedings).

South Africa is exploring all its options, including proceeding to the Panel and is also assessing options for a mutually acceptable outcome. In this regard, Minister Didiza and I have held meetings with EU policy-makers outside the WTO framework, including over the past three months.

This process of engaging the EU is still on-going with Government using every opportunity to seek a solution that can support the industry during the current season. We are considering requesting a WTO Panel though it should be noted that the panel process can be lengthy and on average takes approximately 18 months. In addition, there is no functioning appellate body in place at the WTO.

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