Parks Tau Welcomes Signing of Companies Amendment Act, Climate Change Bill

“The Act will significantly contribute to upholding sound corporate governance, accountability, and transparency, ensuring that directors perform their duties with integrity and care,” Tau said.

Trade, Industry and Competition Minister Parks Tau has expressed enthusiasm following President Cyril Ramaphosa's recent signing into law of the Companies Amendment Act. Addressing the National Council of Provinces (NCOP) during his department’s Budget Vote debate, Tau highlighted the Act's potential to improve business conditions and corporate governance in South Africa.

“In the spirit of transparency and with the goal of enhancing the ease of doing business, we welcome President Ramaphosa’s approval of the Companies Amendment Act,” Tau stated. He explained that the Act aims to streamline company law, making it more aligned with established principles while avoiding excessive burdens on businesses. Additionally, it seeks to balance interests between directors, senior management, shareholders, and workers, addressing public concerns about inequality.

“The Act will significantly contribute to upholding sound corporate governance, accountability, and transparency, ensuring that directors perform their duties with integrity and care,” Tau said.

In his address, Tau also praised the signing of the Climate Change Bill into law, calling it a milestone for South Africa. The Climate Change Act outlines the country’s national strategy for climate change, including both mitigation and adaptation measures, and represents South Africa’s commitment to global climate action.

“The Climate Change Act is timely as our department has been actively exploring opportunities in industrial decarbonization and the production of green products for local and export markets,” Tau noted. The Act provides for provincial and municipal roles in coordinating climate responses and sets emissions targets for various sectors.

Tau highlighted the Green Hydrogen Commercialisation Strategy, which will soon be rolled out. “We will collaborate with provinces and the South African Local Government Association (SALGA) to align our efforts and promote a greener, climate-resilient economy,” he added.

The Minister also outlined plans to accelerate the Special Economic Zones (SEZ) program to enhance spatial equity. He cited the Coega Industrial Development Zone as a successful example, housing 63 firms, employing about 10,000 people, and attracting investments of approximately R11.5 billion.

Tau emphasized the importance of maximizing industrial opportunities created through policy, regulatory, and private-sector decisions to drive manufacturing-led growth. “Manufacturing generates significant growth and jobs in related sectors, providing stable, well-paying careers that offer dignity to our citizens,” he concluded.