Cape Town - Trade and Industry Minister Rob Davies on Thursday committed to five pillars identified in the Industrial Policy Action Plan (IPAP) 2015 that will boost industrial development in South Africa during his budget speech in Parliament. They are:
1. Infrastructure-driven industrialisation
This will “ensure that the very substantial build programme supports local industrial development”, said Davies.
2. Resource-driven industrialisation
This is “aimed at leveraging the mineral resources endowment to support higher levels of downstream beneficiation and value addition, whilst systematically building up both the demand and competitive advantages South Africa enjoys in the upstream mining, transport and capital goods sectors”.
3. Advanced manufacturing-driven industrialisation
“The dti will continue to build an integrated system of industrial financing, incentives and export support with a special focus on lead and dynamic companies that can compete effectively in export markets,” said Davies. “It encompasses a strong commitment to support emerging black industrial entrepreneurs.”
4. Procurement
“This focuses on strengthening the localisation of public procurement, building on the lessons learnt through the implementation of various policy instruments over the past few years,” said Davies.
“The dti has designated 16 sectors, subsectors and products for local procurement. When I launched IPAP 2015 I announced further designations for local procurement in the following product areas: transformers, power-line hardware and structures, steel conveyance pipes, mining and construction vehicles and building and construction.”
5. Regional economic integration
“This centres on maximising the opportunities presented to the domestic economy by a growing market on the African continent, driven by high growth in the region, strong consumer demand, infrastructure development and resource exploitation,” said Davies.
“The opportunities are significant, and must be energetically leveraged by unblocking obstacles to expanded regional economic trade and crafting clearly-defined programmes of complementary regional industrial development and value chain integration.”
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