DTIC Recommits to Economic Transformation at Kgodiso Development Fund Engagement

The Department of Trade, Industry and Competition (the dtic) says it will continue intensifying efforts to dismantle economic barriers, expand participation in the mainstream economy, and promote inclusive growth through strategic partnerships, industrialisation, and enterprise development initiatives.

This was highlighted by the Chief Director of Transformation and Competition at the dtic, Takalani Tambani, during the Kgodiso Development Fund stakeholder engagement held in Johannesburg on Tuesday.

Kgodiso Development Fund Supports Black-Owned Enterprises

The Kgodiso Development Fund has been established to support broader economic transformation objectives by assisting black-owned farming enterprises and Small and Medium Enterprises (SMEs) operating within PepsiCo’s value chain.

The initiative is aimed at strengthening participation of historically disadvantaged businesses in sectors such as:

• Agriculture

• Agro-processing

• Supply chains

• Manufacturing-linked industries

Officials said the fund represents an example of collaborative efforts between government and the private sector to support sustainable economic inclusion and enterprise growth.

Strategic Partnerships Critical for Inclusive Growth

According to Tambani, strengthening partnerships with the private sector remains one of the key strategies for dismantling structural economic barriers in South Africa.

He noted that government continues working to:

• Expand market access opportunities

• Diversify trade relationships

• Strengthen economic resilience

• Support black-owned businesses

• Promote supplier development

Tambani emphasized that economic transformation requires coordinated action involving both the public and private sectors.

Transformation Fund and Black Industrialists Programme Highlighted

Tambani pointed to several government initiatives designed to support black-owned enterprises and broaden economic participation.

These include:

• The Transformation Fund

• The Black Industrialists Programme

According to the dtic, the Transformation Fund is intended to aggregate enterprise and supplier development funding for:

• Small businesses

• Black-owned enterprises

• Emerging entrepreneurs

“Initiatives like the Transformation Fund, aimed at aggregating enterprise and development funds for small and black-owned enterprises, and the Black Industrialists Programme are key in supporting access by black-owned and controlled enterprises to the mainstream of the economy,” Tambani said.

Localisation Remains Key Economic Strategy

The dtic also stressed the importance of localisation policies as part of South Africa’s industrial and transformation strategy.

Tambani said localisation is especially important in sectors such as agriculture and manufacturing, where strengthening domestic production capacity can support:

• Industrial development

• Employment creation

• Supply chain resilience

• Economic competitiveness

The department also praised private sector-led development funds for contributing toward inclusive growth and job creation.

Industrialisation Remains Central to DTIC Mandate

Tambani reaffirmed that industrialisation continues to be one of the department’s central policy priorities.

He said the government is placing strong emphasis on future growth sectors including:

• Agriculture

• Agro-processing

• Manufacturing

• Tourism

• Green industries

The dtic believes these sectors can play a major role in driving economic growth, industrial diversification, and employment opportunities.

Government Supporting Enterprise Development

According to Tambani, the department is pursuing industrial expansion through a combination of:

• Industrial financing

• Market access initiatives

• Supplier development programmes

• Enterprise support mechanisms

The goal, he said, is to build:

• Sustainable enterprises

• Competitive businesses

• Job-creating industries

• Stronger domestic supply chains

“Through a combination of industrial financing, market access initiatives and supplier development programmes, the dtic aims to build sustainable and competitive enterprises that contribute meaningfully to industrial expansion and employment creation,” he said.

Localisation to Strengthen Manufacturing Capacity

Tambani noted that deepened localisation remains a key pillar of the government’s transformation agenda.

The strategy is intended to:

• Build domestic manufacturing capability

• Reduce dependence on imports

• Expand local supplier participation

• Position South Africa more strongly within global manufacturing value chains

“All these initiatives will be complemented by pursuing deepened localisation as a key pillar of transformation that is aimed at building domestic manufacturing capability and repositioning South Africa as a significant participant in global manufacturing value chains,” he said.

Transformation Described as “Non-Negotiable”

Tambani stressed that economic transformation remains a non-negotiable component of the dtic’s work.

The department continues to prioritize broadening economic participation across industries and supporting greater inclusion of historically disadvantaged groups in economic activity.

He described the Kgodiso Development Fund as an important example of how public interest conditions can contribute to meaningful economic transformation.

Measuring Transformation Through Real Outcomes

Tambani argued that transformation should not only be assessed through policy commitments but through tangible outcomes affecting communities and businesses.

“Transformation must be measured in policy commitments, hectares planted, farmers funded, business sustained and livelihoods improved,” he said.

The remarks reflect increasing emphasis within government on ensuring that economic transformation policies produce measurable developmental and employment impacts.

Agriculture and Agro-Processing Seen as Strategic Sectors

Agriculture and agro-processing remain key focus areas for South Africa’s economic development agenda.

Government officials increasingly view these sectors as important for:

• Food security

• Rural development

• Export growth

• Industrialisation

• Job creation

• Small business development

Partnerships involving large corporations and black-owned suppliers are also being promoted as mechanisms to strengthen inclusive participation in agricultural value chains.

Focus on Building Inclusive Economy

South Africa continues to face major structural economic challenges, including:

• High unemployment

• Inequality

• Limited access to capital

• Market concentration

• Historical economic exclusion

The dtic has increasingly emphasized transformation, industrialisation, localisation, and enterprise development as central components of efforts to build a more inclusive economy.

Analysts note that successful implementation of these policies will likely depend on:

• Effective public-private partnerships

• Access to financing

• Market integration

• Skills development

• Sustainable industrial policy implementation

Private Sector Partnerships Becoming Increasingly Important

The Kgodiso Development Fund engagement also reflects growing reliance on collaboration between government and private companies to support transformation objectives.

Public-private partnerships are increasingly viewed as essential for:

• Expanding enterprise development

• Supporting SMEs

• Developing supply chains

• Promoting inclusive industrial growth

• Creating employment opportunities

Officials believe stronger collaboration between government and the private sector can help accelerate economic inclusion and support long-term sustainable development.