By Simon Nare
Cabinet has welcomed the steady progress in revitalising state-owned enterprises, saying this will bolster South Africa’s industrialisation drive, according to Minister in the Presidency, Khumbudzo Ntshavheni.
She told reporters that Denel had posted a profit of R390 million before interest and tax for the 2023/24financial year, with irregular expenditure declining by 98%.
“Prasa is making strong headway in getting passenger trains back on track with 31 of the 40 rail corridors now operational, and Eskom’s Recovery Plan continues to deliver positive outcomes, with load-shedding remaining suspended for more than 175 days as of 18 September 2024,” Ntshavheni said.
Still on the economy, Ntshavheni said that data released by Stats SA early in the month confirmed that the GDP increased by 0.4% in the second quarter of 2024.
This was influenced by an improvement in the manufacturing sector of 1.7% year-on-year.
Ntshavheni, who was briefing the media following Cabinet’s meeting on Wednesday, said the improvements were driven by five of the 10 manufacturing divisions.
These included food and beverages, basic iron andsteel, nonferrous metal products, metal products and machinery, which all recorded a rise in production.
“The revival of the manufacturing sector is a critical success factor in the reindustrialisation of South Africa,” she said.
Ntshavheni also announced that the final funding policy for micro, small and medium enterprises (MSMEs) and cooperatives had been approved for implementation.
It aims to eliminate obstacles that prevent smaller businesses and cooperatives from obtaining financial support.
“These interventions will also enable seamless transition from informal to formal enterprises and from small to medium enterprises,” she said.
“The policy provides for the creation of a funding environment for targeted groups such as youth, women and persons with disabilities.”
This policy forms part of other interventions to support small businesses, including the National Integrated Small Enterprise Development Framework, which was approved by Cabinet in 2022.
Ntshavheni said the government had prioritised support for MSMEs and cooperatives because they created the most jobs and provided the most opportunities for people to earn a living.
The policy would also eliminate the credit gap in theMSMEs ecosystem and enable economic growth.
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