The ANC is giving this House notice: Twenty years of sunset clauses and the determination of some to sustain the status quo are over. [Interjections.] You have had your honeymoon! [Applause.] In the fourth term in Parliament, the portfolio committee had already embarked on this path, which is quite clearly spelt out in the Broad-Based Black Economic Empowerment Act, which, I must say, the poor DA got very confused about. [Interjections.] Indeed, 20 years of democratic transition calls for bold and decisive steps to place the economy on a qualitatively different path that substantially, significantly reduces inequality, especially for women.
More than 75% of the Department of Trade and Industry's budget, R9,8 billion, directly and indirectly, is geared to ramp up industrialisation. The Minister's decision to use manufacturing to spearhead this drive makes sound economic sense. Manufacturing has the highest economic and employment multipliers of any sector. Read the KPMG report and learn. Higher levels of value addition, as South Africa shifts up the value chain, are expected to generate higher income levels and greater wealth. [Interjections.] The one thing that will go up is, of course, the ANC's support.
Using the R9,8 billion budget, the Department of Trade and Industry, DTI, is expanding manufacturing to create jobs through the development of the productive sectors. This, the committee believes, is its greatest contribution to capturing policy space. In the state of the nation address, President Jacob Zuma also mentioned three issues. He spoke about increasing private sector investment to support industrial development, with the impending piece of legislation, the Protection and Promotion of Investment Bill, already in the pipeline. [Interjections.] Yes, you may well say "Woo!" As soon as final regulations on broad-based black economic empowerment, BBBEE, become effective, you will be "wooing" your way out! [Laughter.] He also spoke about strengthening the country's economic and investment ties with other regions. Yes, we are going to become Africans, if we are not already thinking of ourselves as Africans. We won't have a choice, we are deepening our entry into African trade.
We are very fortunate that there has been a sixth iteration of Ipap. There is absolutely no doubt ... [Interjections.] No doubt you have never ridden one! Yes, the Ipap, whilst recognising the achievements of the past, has acknowledged that the results have been somewhat uneven. Yes, much more remains to be done. As the Minister keeps on putting it, let's develop greater traction here. [Applause.]
We all unanimously agreed that ... [Interjections.] If you would like to take the floor and dance, do so [Laughter.] ... there should be greater co- ordination between the national departments, between the three spheres of government, regarding the implementation of Ipap. I must say, hon Minister, I know you are not a silo conformer and I am pleading with your colleagues to stop the silo mentality. We have to work together. We do not want any maestros around here. [Interjections.] We don't! [Laughter.]
Furthermore, we want to see the decentralisation of productive activities. I want to congratulate you, Minister, for actually recognising this. Did you know, mealie meal was taken all the way up from the rural areas to Gauteng, where I live - yes, I do eat mealie meal occasionally - it is then refined and taken all the way back? [Interjections.] I guess you are not interested in what poor people eat. [Interjections.] You are not! The cost of the mealie meal included transport there and back and, on top of it, did not create jobs in local areas. Minister Davies, the director-general and his team, Lionel October and the rest, worked together on this, and they are now intent on developing a lot more of these mills around the country. That is a very good idea. [Applause.]
Chairperson, if I may just say one thing, because I see we are on the point of closing: The budget is a political tool. That is why there is so much noise here. [Interjections.] The budget is a socioeconomic tool. The budget, as we will learn very soon, is a legal tool - we have to vote on it. Most of all, beyond all of those technicalities, the budget is about improving people's lives. It absolutely is. [Applause.] Let me say that one of the better moves that we have made as a government was to separate small business, to take it out, to give it its own place in the sun. You have two specialists, two passionate people, in co-operatives, and they are the hon Ruth Bhengu and the hon Mabasa. Their name is "co-operatives". So, you will certainly go far with that.
I do want to say that the Minister of Trade and Industry, the Minister of Small Business Development, and the Minister of Economic Development, as well as the Deputy Ministers, are really an example to their colleagues of how we should be working together collegiately and collectively to actually implement our budget effectively. I thank you. [Applause.]