All contracts that were issued without complying with localisation regulations must be cancelled and reissued in line with those regulations, Trade and Industry Minister Dr Rob Davies told members of the Trade and Industry Portfolio Committee last week.

He was responding to a question during a Parliamentary debate on the State of the Nation address on issues relating to the Department of Trade and Industry (DTI).

Where the localisation regulations had been applied, Davis said, investments and job creation had increased; therefore, government was unapologetic about applying localisation tools.

“It is imperative not only to get the money back in some cases but [also] to cancel and reissue contracts according to the localisation regulations. We are pleased with the process of rectifying these import leakages as a result of non-implementation and corruption of the programme,” said Davies

The Minister added that, despite many challenges facing the localisation programme, considerable investments, new capacity and capabilities had been created.

He said added collaborative platforms with global original-equipment manufacturers had contributed to technology and skills transfer, as well as the development of new products and the launching of new factories.

Davies also stated that 131 projects had been approved under the DTI’s Black Industrialists Scheme, which resulted in increased investments and job creation.

“The approval of these 131 projects of black entrepreneurs has leveraged over R13.2-billion in private-sector investment and about 9 500 new jobs [have been] created and 8 900 retained in a range of manufacturing subsectors.

“Going forward, the DTI will increase its efforts to provide financial and market access, capacity building and technical support for approved black industrialists in collaboration with State-owned companies, other government departments and the private sector.”

To revitalise industrial parks to enable them to serve as catalysts for broader economic and industrial development in their host regions (townships and rural areas), R300-million has been approved for the second phase of the industrial parks revitalisation programme.

To date, six industrial parks have been launched and funded to the value of R511-million, and four will be ready for launch this year.