Thank you, House Chairperson,
Honorable members,
Social partner in the gallery,
special guests, and
Ladies and gentlemen.
As we celebrate Africa Month, the AU's commemorative theme, titled “Unity, Unity and Development”, resonates with the DTC's Budget Vote 39, which focuses on transformation as a moral, constitutional and economic imperative for all in the country.
We readily acknowledge that the local and international context in which we operate is complex and very challenging. The global environment has become quite volatile due to the ongoing war in the Middle East and the associated disruption in supply chains of energy, fertilizers and petrochemicals. As a net oil importer, South Africa faces real recession risks and threats to our industrial competitiveness.
Amid these headwinds, and as this budget vote will signal, we are changing direction as a country, and as the direction is taken, our work remains at the center of this movement.
As we turn the corner guided by the Portfolio Committee, I would like to acknowledge and thank the Chair of the Portfolio Committee, Honorable Mzwandile Masina for helping us stay on the right track. Budget Vote 39 is living proof that it is possible to work together and build a stable dtic family that protects the industry in the face of adversity.
Speaker of the House,
In his 2026 State of the Nation Address, His Excellency President Cyril Ramaphosa told the nation:
“Our policy environment is now coherent and forward-looking. Cabinet has recently adopted the Industrial Development Strategy (IDS) which guides the country's industrial policy agenda. This strategy recognizes that the structure of South Africa's economy is changing. We are clear that this strategy is about:
To position South Africa as a leading player in the green economy.
To implement a visionary industrial policy that creates jobs.
Using trade policy to support export resilience and growth.
Our pathways to decarbonisation, diversification and digitalisation form the basis of the Industrial Development Strategy, reflecting the reality that South Africa cannot compete in the world of the future using the tools of the past.
Under the leadership of Director General Mr Simphiwe Hamilton, I would like to thank Dr Tebogo Makube, Ms Zukiswa Kimani, Mr Fanny Gagiano and Ms Pamela Mondliwa for their tireless work in bringing together IDS.
Honorable members,
Allow me to draw a picture demonstrating the partnership.
On Africa: This is the parliament that approved the elevation of South Africa as a sovereign member (Class A shareholder) of Afreximbank, opening up investment opportunities.
On the European Union (EU): The CTIP and Global Gateway initiatives are beginning to bear fruit with EU investments in the clean energy and pharmaceutical sector. This financial instrument is benefiting a number of provinces, including the three Cape provinces, in the context of the transition to our green hydrogen ambitions. These include the projects of Prisca, Coega and Saldhana Bay.
On the United States (US): AGOA has been extended to date resulting in job protection. Let me also emphasize that once one gets past the noise, our trade with the United States remains strong. Exports from South Africa are set to increase from R238 billion in 2024 to R260 billion in 2025, with more than 89% of this under the Most Favored Nation principle.
On China: South Africa has commenced trade under the China-Africa Economic Partnership Agreement (CADEPA) framework and until 1 May 2026, we enjoy duty-free access to the $1.4 billion strong market in the targeted sectors. Our objective is to change the structure of trade with China from predominantly export of goods (93%) to a significant increase in manufactured and value-added products.
On Mercosur: Our Preferential Trade Agreement (PTA) remains one of the most important areas of potential enlargement. We are looking for areas of interest to South African exporters and working on complementarities with our South American counterparts.
On the Gulf Cooperation Council (GCC): We are unlocking investment in agriculture, oil and gas, mining, capital equipment and chemical equipment with GCC members.
Honorable members,
Crossroads are not a place of collapse, they are a place of choice. Against this backdrop we are reminded of the words of Ambassador Nozipho Mxakato-Diseko, former Co-Chair of the UN Secretary-General's Panel on Critical Energy Transition Minerals, when he said:
“In this way, our critical minerals become a platform for inclusive growth, green industrialization, innovation and a circular economy.”
We are reviewing our Automotive Production Development Plan (APDP2) with the aim of encouraging new investment in South Africa and supporting the growth of our component manufacturers.
The DTC's work in implementing localization is evidenced by the R86.6 billion in locally manufactured goods and services purchased in the 2025/26 financial year. Our target for this current financial year is Rs 100 billion in localization. This is possible with the support of our social partners.
In relation to the systemic challenge of tackling the illicit economy, which causes losses of R700 billion to the South African economy equivalent to approximately 10% of GDP, significant interventions are being undertaken by one of our institutions, the National Consumer Commission. As a measure to protect consumers from illicit trade in the economy, this financial year, we will publish a track-and-trace mechanism on commodities. This mechanism will primarily target illicit trade in tobacco, alcohol, food and consumer appliances.
Speaker of the House,
Change as a moral, constitutional and economic imperative is evident in our investment campaign.
The 2026 South African Investment Conference (SAIC) achieved the highest ever value of investment commitments since its inception in 2018.
Domestic companies led the way, with two-thirds of investments coming from South African companies, indicating strong confidence in the local economy. That's homegrown confidence!
The conference formally launched South Africa's second investment mobilization campaign, with a target of R3 trillion in new investment by 2030. In the 2025/26 financial year alone, DTC achieved investments of R647 billion against the annual target of R450 billion.
Ladies and gentlemen,
As we work to address the imbalances of the past, as our predecessors demanded, we are creating development finance institutions that return to their industrial development mandate, while also creating a favorable regulatory environment aimed at reducing the cost of doing business.
The Export Credit Insurance Corporation is partnering with South Africa's five largest banks on an investment campaign that will improve export financing by enhancing export risk insurance cover, supporting outward investment on the continent and supporting industrialisation.
For example, in the steel sector, the Industrial Development Corporation is taking strategic steps to stabilize the industry, which is critical to our broad manufacturing base. Meanwhile, the ferrochrome support package is breathing new life into plants that were struggling with cost pressures. For example, the National Empowerment Fund has supported hundreds of MSMEs, with a particular focus on black entrepreneurs and women-led enterprises.
Ultimately, strengthening our technological infrastructure institutions is saving lives, protecting our economy and building industries. Our institutions are playing a critical role in reshaping the economy, going beyond isolated interventions and becoming catalysts for structural change.
The National Gambling Board is strengthening enforcement, working with partners such as the Center for Financial Intelligence and NSFAS to protect consumers and ensure growth never comes at the expense of our people. A Verified Operator web portal has been established – providing the public with a trusted, centralized list of licensed operators across South Africa. We are also advancing a National Gambling Amendment Bill to give the national government increased powers to tackle illegal online gambling, address advertising proliferation and enforce consistent standards across provincial borders.
Speaker of the House,
The Competition Commission, through its mergers and disposals interventions, has committed R42 billion to the economic transformation we have seen – including R40.8 billion in supplier and procurement commitments. The Commission's work has saved more than 11,000 jobs.
A landmark study conducted by the B-BBEE Commission in partnership with the B-BBEE Advisory Council and the Competition Commission – assessing more than 28,000 certificates over a decade – confirms that B-BBEE compliance has steadily increased since the 2013 amendments. Achievement of black ownership increased from 50 percent of the target in 2013 to 86 percent in 2023. Enterprise and supplier growth increased from 19 percent to 66 percent. Skill development from 17 percent to 61 percent.
Yesterday I visited the BioVac Institute which is a public-private partnership that is Black owned, managed and controlled and has become a world-class vaccine manufacturing facility. The funds raised through various development finance institutions will see Biovac expand its end-to-end vaccine manufacturing facility in Cape Town, enabling it to produce 40 million vaccines ready for global export.
Speaker of the House, ladies and gentlemen,
In conclusion, the resilient spirit of the South African people to never give up when faced with local and international challenges can never be underestimated.
The DTIC and its entities have been entrusted with consolidated resources amounting to approximately R130.6 billion over the medium term to advance South Africa's industrialisation, economic transformation and investment agenda. South Africans can be assured that we will protect these resources like the father of the most beautiful bride in the village.
I would like to thank Deputy Ministers Zuko Godlimpi and Alexandra Abraham for their continued support. I would also like to thank the heads and staff of all our institutions in the DTIC family.
House Chairperson, I present Budget Vote 39 for the 2026/2027 fiscal year.
I thank you.