SACP Mpumalanga Provincial Economic Transformation Summit Declaration

19 October 2014

We, the representatives of SACP structures, YCLSA, Financial Sector Campaign Coalition, the Youth Chamber, COSATU, SANCO and South African National Apex Cooperative (SANACO) from Mpumalanga Province, met at the Provincial Economic Transformation Summit in Mbombela from 17 - 18 October 2014 under the theme "Build People`s Economy in this Radical 2nd Phase of the National Democratic Revolution". The summit received presentations from Financial Sector Campaign Coalition, Department of Finance, Economic Development and Tourism (FEDET), Department of Transport, and the Deputy Minister of Economic Development Cde Madala Masuku.

The summit was further addressed by the State and Economic Transformation Commission Convener and MEC for FEDET Cde Eric Kholwane, 1st Deputy Provincial Secretary Cde Lucky Mbuyane and SACP Deputy National Chairperson and Minister of Public Works Cde Thulas Nxesi.

The Summit noted the following:

• The need to create decent work in the province of Mpumalanga through meaningful economic transformation and inclusive development.
• The stubbornly high levels of unemployment in the province of Mpumalanga, in particular amongst young people.
• The lack of participation of young people in the agricultural sector.
• The extremely high failure rate and disunity that exists within the cooperative movement.
• The extremely high levels of private monopoly domination - especially by mining, banking, and energy complex, which has resulted in a relatively weak manufacturing and SMME sector.  The presence of monopolies, results in unhealthy competitive practices like price fixing.
• The uneven spatial development of the province, characterised by high levels of uneven urbanisation and under developed rural communities.
• The province contributes 83% of South Africa`s coal production, being the 3rd largest coal exporting region in the world. The summit further noted that the province still poses strategic deposits of coal, platinum and nickel.
• The shortage of critical technical skills required to support the development of sustainable economy. This is reflected through a small artisanal and skilled stratum compared to the large numbers of semiskilled and unskilled workers.
• Mpumalanga is world renowned tourism hub with biodiversity, wildlife, scenic attractions and idealistic tourist destinations whose potential has not been fully harnessed.
• The Hospitality Academy`s (MRTT) lack of focus on provincial needs to respond to economic development.

Noting the above, the summit has resolved on the prioritisation of the strategic actions:

• To reaffirm the theoretical conception as well as the overall programmatic thrust of the SACP`s political program.
• The reindustrialisation of the provincial economy.
• The promotion of mineral beneficiation in the mining, agriculture and forestry value chain.
• Leveraging of the natural and cultural heritage as the basis of building a sustainable and labour intensive tourism sector.
• To enforce localisation, of manufactured goods and services in the Mpumalanga Infrastructure Master Plan in order to stimulate local manufacturing and industry. The Kusile Power Station, Majuba Power Station, Moloto Rail Corridor Project should form the part of this plan.
• Preferential procurement practices should be put in state procurement to promote youth owned enterprises and cooperatives.
• Rural development, to assist with the development of markets for small and emerging farmers through establishment of farmers markets in all municipalities.
• Skills Development, to invest in the development skills which will respond to the strategic growth pillars of the province. To encourage society to participate in formal skills development programs in all the strategic industrial clusters which are delivered through the TVET Colleges and SETAs.
• To strengthen oversight role over State Owned Companies (MEGA and MTPA).
• To encourage the participation of the cooperatives in the ICT sector.
• To strengthen the relationship between the SACP and SANACO.
• The Hospitality Academy (MRTT) must be capacitated to play a critical role in shaping the tourism sector and deal with customer support.

Mpumalanga Growth Industries

Noting the spatial development layout, and guided by the New Growth Path the SACP has resolved on the promotion of the following industrial clusters

1. Mining, Agriculture and Manufacturing
2. ICT, Green Economy and Infrastructure
3. Tourism and Social Economy

Financial Sector Campaign

The Summit resolved to the campaign to transform this sector through mobilisation of all structures and our government to act in the interest of the working class and the poor.

On Corruption and Tender System

The summit reflected broadly on the subject of corruption, its genesis and morphology. The summit concluded that corruption is a phenomenon inherent within the competitive system of capitalism, and is a reflection of uneven power relations of society.

As a result, the summit has taken note of the numerous challenges related to the tender system, in the movement and the state and private sector, which lend to the system being abused. To strengthen and support the work of the Competition Commission, including its ability to impose harsher punitive penalties, towards those organisations who have committed uncompetitive behaviour.

On the NDP

The Summit reaffirms the Alliance Summit of 2013 resolution on the National Development Plan, calling for the continuous engagement on the National Development Plan`s Economic chapter. The summit reaffirms the government`s position directed towards the promotion SMMEs and in particular the cooperative movement.

On Moloto Corridor

The summit noted the work done by the YCLSA in mobilizing the community and progressive structures of former KwaNdebele as they seek to have the PUTCO Bus Fleet replaced by an alternative Bus fleet and an integrated Rapid Rail Project. The SACP further resolved to strengthen its leadership role in this project as it moves towards the point of execution.

On the Battle of Ideas

The SACP notes that the attainment of these objectives can only be achieved through an activist SACP, which has the capacity at all organisational levels to agitate, defend and advance its goals. The summit therefore resolves to mobilise communities and its structures to rally behind the program of the SACP of the "Radical 2nd Phase of the National Democratic Revolution". To achieve this, the SACP will intensify its participation in the battle of ideas, against those who sit to the right and far left.

Issued by SACP Mpumalanga

Enquiries:

Eric Kholwane - Convener: State and Economic Transformation Commission

Mobile: 083 297 5222

Lesetja Dikgale - Provincial Spokesperson

Mobile: 076 869 4360

Tinyiko Ntini - Provincial Media Liaison

Mobile: 084 979 5999