Deputy Minister Ntuthuko Mbongiseni Sibiya: Productivity SA Annual General meeting

Thank you, Chairperson of the Board for the introduction and the opportunity to address the Productivity SA Annual General Meeting this morning. I would like to firstly greet and acknowledge the entire board, Productivity SA Executive Committee, Stakeholders from Government, Labour, Business, Academia , Community as well as distinguished guests that are in attendance this morning.

It is indeed an honor for me to be joining you today to give an address following my appointment together with Minister Makhosazana Meth (MP) and my fellow Deputy Minister (who is also here with us this morning) Ms Phumzile Mgcina, MP, by his excellency President Cyril Matamela Ramaphosa to work with all of you colleagues, in leading the Portfolio of Employment and Labour.

Productivity SA is established in terms of Section 31 of the Employment Services Act No. 4 of 2014, with a mandate to promote employment growth and productivity, thereby contributing to South Africa's socio-economic development and competitiveness. Its vison is also very clear i.e. “To lead and inspire a productive and competitive South Africa".

As elected representatives in this portfolio, we are cognisant of the amount of work and challenges that lie ahead. To realize Productivity SA's vision therefore, all of us working with all role-players, domestically and globally, need to pull together and in the same direction, as per our set and defined roles and responsibilities.

I would like to commend the great collaborations and partnerships that have proved to work to the benefit of our country i.e. the Africa Kaizen Initiative (AKI) by AUDA- NEPAD; the Quality and Productivity Improvement (QPI) by the Japan International Cooperation Agency & our dtic; and Productivity Ecosystem for Decent Work by the International Labor Organization. May we continue to work hard and engage so that more of these collaborations are established. This is more so as we still have budgetary constraints. We need to be both inventive and innovative.

I am aware that this meeting is the last one for the current board whose term ends on 30 November  2024. May I therefore take this opportunity to formally thank the outgoing members for availing yourselves to serve and wish them very well in their future endeavors. Their dedication , ladies and gentlemen , contributed to the results that were achieved by the Productivity SA team during the term. I would also like to, on the same token, pledge our support for the new board as it shall be appointed by November 2024.

We are in the 7th administration and, this new board will therefore be expected to deliver on the GNU government's renewed commitment to fostering inclusive socio-economic growth, especially through initiatives that focus on employment creation and labour market stability.

The significance of productivity and its centrality in our economic recovery as a country cannot be over emphasised! It remains a key driver in that it: 1) Enhances the competitiveness of South African businesses globally and this directly influences economic growth, job creation, and the ability of industries  to compete in international markets; 2) It boosts economic growth; 3) It leads to the retention of the current jobs and creation of new ones - a key priority for our South African economy; 4) It increases competitiveness in the global market and ensures that South Africa is not out performed by more efficient global players; 4) It addresses skills and workforce development. As an example, by focusing on productivity, South Africa can better equip its workforce with the skills needed for high-demand sectors, thus reducing unemployment and improving job quality; and 5) It contributes to sustainable

Growth and Socio-Economic Development - Productivity improvements contribute to the long-term sustainability of businesses, helping them weather economic fluctuations and disruptions. By creating a stable and growing business environment, South Africa can improve the standard of living for its population, reduce poverty, and foster inclusive socio-economic development.

On our role as the Department of Employment and Labour:

The collaborative relationship between the Department of Employment and Labour and Productivity SA, to achieve the shared goals of promoting employment growth and boosting productivity is important. This relationship extends to other DEL entities such as the UI especially as it relates to the funding of the Business Turnaround and Recovery Programme which provides non-financial support to enterprises facing financial or operational challenges. I am delighted to report that , the three agreements (to support the Business Turnaround and Recovery Programme) between the UI and Productivity SA has just been signed on 25 July 2024 and the total value is R 52 168 240.00.

A total of 226 companies are targeted and 11 300 jobs are targeted to be saved.

Whilst I commend and appreciate the results that Productivity SA has achieved , amidst challenges that are outlined in the 2023 /2024 annual report ( to be tabled today) , there remains very many companies / enterprises that need support! So, as we deliberate and engage on the plans and the work ahead, we need to ask ourselves as to whether we are doing all we can or not? and whether there are innovative ways that we need to explore to expand the geographic reach of our programme, increase outcomes and impact as per our mandate.

The question of support that has to go to enterprises in rural areas and townships remains a matter that we need to urgently address. This is not at all intended to negate the results that were achieved through Township Economy support programmes such as the Chamdor Capacity Building programme; ILO Ecosystem for Decent Work Through the ILO Project in partnership with the AIDC, Productivity SA supported 19 Micro enterprises and employed 66 people in Chamdor , as an example. It calls for a reflective rethink of our approached , work and approaches.

Our (DEL and Productivity SA) efforts are rooted in our shared mission, which is to promote employment growth, enhance productivity, and drive economic development in South Africa. We also share a commitment to improving the efficiency and competitiveness of our businesses, empowering workers with the skills they need to thrive in an evolving economy and ensuring that the labour market remains inclusive and dynamic. In these challenging times, synergy between the Department and Productivity SA is more critical than ever. It will assist in addressing unemployment, promoting decent work, and contribute to the broader socio-economic development of our nation.

As indicated, SMMEs are engines of growth and productivity.

The Competitiveness Improvement Services (CIS) Programme which enhances the capacity of SMMEs and Co-operatives to adopt world-class productivity enhancement best practices is not only a strategic intervention, but a programme that need to be prioritized so that SMMEs can grow to higher levels. By targeting priority productive sectors with strong growth and employment opportunities, with a focus on the township and rural economies   and the participation of historically disadvantaged people, the CIS programme, contributes to meaningful BBBEE. One of the CIS flagship and successful programme, is the Workplace Challenge Programme (WPC) that is funded by the dtic. Opportunity for more collaborations of this nature need to be explored beyond the dtic. All possible role-players need to be brought on board.

Ladies and gentleman, one of the challenges that we are dealing with is that Productivity SA seem not to be known and its work seem not very well publicized. Besides the fact that this is a challenge on basic service delivery Batho Pele principles of Information and access, it is the truth that companies and businesses will not reach out for assistance that they do not know much about. There has to be concerted effort to use the District Development Model and various Intergovernmental Relations Structures to communicate and publicize the work of Productivity SA. Innovative 4IR related mechanisms need to be utilized to publicize the work of the department.

The important work that is being done by the Research, Innovation and Statistics unit within Productivity SA i.e. Measuring and evaluation of productivity in the workplace and competitiveness of the economy; development and maintenance of database and best practice productivity and competitiveness system, amongst others need to publicized for the value that Productivity related Research and Statistics brings in terms of policy and interventions. Evidence based policy responses and interventions are key and yield better results, outcomes and impact.

As the key funder of Productivity SA, the Department of Employment and Labour, remains committed to supporting the crucial work that Productivity SA does in promoting employment growth and boosting productivity across the country.

Our mission is to improve productivity by diagnosing, advising, implementing, monitoring and evaluating solutions aimed at improving South Africa's sustainable growth, development and employment through increased competitiveness. The productivity movement, ladies and gentleman is aimed at promoting a culture of Productivity and Accountability thereof at all levels – National, Sector, and enterprise level. It is further aimed at building awareness of the importance of a new mind-set about Productivity in South Africa to pave the way for an inclusive society. As we put our efforts towards agenda 2030, skills development to support entrepreneurs and enterprises in both the informal and formal economy with a focus on Youth, Women and PWD; enterprise development and support ecosystem; and lastly Research and Statistics to provide value-added information and statistics are key.

In conclusion , I would like  to thank the board for the opportunity to address the AGM this morning , thank the team for achieving an unqualified audit yet gain in the last financial year and wish to state that a clean audit remains our target. Good and clean governance is key, and its principles have got to be adhered to at all times. We commit to do our part as the collective executive of the Department led by Minister Nomakhosazana Meth , MP . This is , from the appointment of the new board which is our immediate task and continuously providing support and guidance that is required. I am convinced that we will be able to address the matters that were raised by the Auditors and move our performance from 77% to 100% in the 2024/2025 financial and get a clean audit.

I thank you​