30 Jul 2024

Minister of Trade and Industry, Mr Mmusi Kgafela, says SPEDU is currently facilitating four companies in paper stationery production.

Answering a question on Monday, Mr Kgafela said the products produced included printing paper, exercise books (hard and soft covers), files and other forms of stationery.

He said the companies employed 99 employees.

He added that there were incentives offered to companies that set up to manufacture in Selebi Phikwe.

He disclosed that the incentives offered included corporate tax of five per cent for the first five years and 10 per cent for the fifth year onwards, zero duty on imported raw materials producing goods for exports, 30 per cent direct government off-take where first preference on government procurement provided quantity, quality and price requirements were met, in line with the Government Economic Diversification Drive (EDD), land provision on a minimum 50-year land lease as well as trade facilitation for permits.

He said the incentives were available to all the companies irrespective of the items being manufactured.

Further, he said SPEDU companies had, in the past five years, secured tenders from Serowe District, Bobirwa Sub District, Francistown City Council and the Tutume Sub District.

Specifically, he said Serowe District Council had in 2023/24 financial year supported Profitpile (Pty) Ltd through tenders of LPO 19866, LPO 19870, LPO 19871 and LPO  19912.

“My ministry is not aware of any companies which are operating fraudulently, using fraudulent codes, having no evidence of manufacturing and continue to win big tenders for the supply of stationery by Local Authorities and Central Government.

“I encourage the honourable member to report such fraudulent cases to the relevant authorities for proper action to be carried out,” Mr Kgafela said.

He indicated that Selebi Phikwe or SPEDU based stationery manufacturers continued to benefit from tenders that were being offered by the local authorities.

However, he said manufacturers might not be benefitting from all local authorities, saying “the current situation could be improved considering that there are 31 district councils in addition to the central government if all could have procured their 30 per cent of their stationery needed from SPEDU based companies”.

“My ministry continues to engage with the procuring entities with a view to turn around the situation. Local authorities have expressed their commitment to procure. However, they also have to support companies in their localities as required by the Ministry of Local Government and Rural Development. As a result, they have to divide the support between the two programmes in cases where there are suppliers in their localities,” he explained.

He said to improve the situation, he had written to all the procuring entities informing them of the SPEDU incentives and requesting them to consider reserving 30 per cent of their requirements for SPEDU manufacturers.

Selebi Phikwe West MP, Mr Dithapelo Keorapetse had asked the minister to update Parliament on the number of registered and operating stationery manufacturers in Selebi Phikwe and SPEDU region, and what they manufactured including quantities and current number of employees per company.

Mr Keorapetse also asked the minister to state and explain incentives available for stationery manufacturers in Selebi Phikwe and SPEDU region and each company’s exact benefit of any specific incentive in the last five years, with emphasis on 30 per cent off take by government.

He also wanted to know which stationery manufacturing company in Phikwe or the region had benefited from any major government tenders for supply of stationery in the last five years.

Further, he asked the minister if he was aware of companies which continued to win big tenders for the supply of stationery by local authorities and central government though they were actually not manufacturing companies but agents with fraudulent manufacturing codes with no evidence of manufacturing. Ends