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18 April 2009

A R20 million Mthatha furniture incubation centre was launched on Saturday 18 April 2009, in Mthatha at King Sabata Dalindyebo Local Municipality in O R Tambo District Municipality by the Minister of Trade and Industry (the dti), Mandisi Mpahlwa.

The incubation centre will kick-start the redevelopment and growth of the furniture and wood industries in the region and the province. The project is envisaged to further diversify and expand the value chain of the forestry sector in the region.

Speaking at the launch, Minister Mpahlwa said business incubation is one of the many and important instruments that government utilises in its commitment to tackle poverty and unemployment. According to him, the launch of the centre is in line with the country’s National Industrial Policy Framework (NIPF).

“In that regard, this launch is an important milestone and achievement in support of the NIPF, adopted in 2007 to set government’s approach to industrialisation. Indeed, this launch, then gives us the proof that with realistic ambition, good strategy and the requisite resources, we are capable of promoting the further industrialisation of our economy.”

Nineteen local learners have completed training programme in wood machining and upholstery and have established five small businesses after completing the programme. Their businesses are currently undergoing incubation at the centre.

Minister Mpahlwa said that he is confident that the forestry charter will also facilitate greater support by forestry companies for enterprise development in downstream industries.

He stated that the establishment of this furniture incubation centre is another indication of the seriousness that the dti, in collaboration with other stakeholders, place on supporting the increase of value adding activities in the rural communities. “Also, a rural manufacturer can produce furniture from home and sell it on the local market and by so doing create employment for the local people,” said Mpahlwa.

On Friday 17 April, the Minister also officially launched the ninth Small Enterprise Development Agency (Seda) district office at Mount Ayliff in the Nzo District Municipality. The purpose of the office is to bring services closer to the people.

The Minister added that it is government’s view that the South African furniture industry is an important sector in the economy because it is labour-intensive and has potential to contribute quite significantly to the reduction of unemployment, increase exports and develop Small, Medium Micro-Economic (SMMEs). However, he said that government was aware of the challenges that must be dealt with in order to help the sector to achieve its full potential.

Enquiries:
Sidwell Medupe
Tel: 012 394 1650
Cell: 073 522 6801
E-mail: MSMedupe@thedti.gov.za

Issued by: Department of Trade and Industry
18 April 2009