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Johannesburg - The Industrial Policy Action Plan (IPAP) 2013/2014, aimed at creating economic growth, was unveiled in Pretoria on Thursday.
Presenting the plan, Trade and Industry Minister Rob Davies said the document was a plan of action detailing what needed to be done to industrialise the economy.
It sought to build a competitive manufacturing sector with strong growth and employment.
The plan also aimed to deepen support programmes in automotive, metals, agro-processing, clothing, textiles, leather, and footware.
IPAP 2013/201314 entailed action plans for supporting green industries, renewable energy efficiency, and advanced manufacturing and materials.
It set standards and a strategic tariff regime to clamp down on illegal and substandard imports.
It introduced a strategic focus in minerals and resources beneficiation, and improved competition policy to clamp down on collusion and price-fixing.
Davies said the South African economy had structural problems which caused it to be driven by imports and consumption sectors.
The country had enjoyed growth these past years, but still battled with high levels of unemployment.
Davies said structural unemployment experienced in the South African economy over the years could not be addressed by mere economic growth.
"If we want to make a dent on unemployment we need to boost the productive sector of the economy."
The consumption sector of the economy had grown at twice the rate of production sectors, such as agriculture, mining, and manufacturing.
"Even if we have jobs in the services sector, those jobs are more secure and are stronger in quality if they are underpinned by a strong value added manufacturing sector."
The IPAP 2013/2014 sought to promote value-added productive activity in different sectors of the economy, and aligned government policies into one encompassing plan.
Davies said procurement was a priority identified by the plan to boost local production.
"We have taken a decision, as government, that we need to make sure that our procurement policies support deeper localisation and create more opportunities for locally-based productive enterprises to produce goods and supply services to government agencies."
Davies said particular sectors had been designated to boost local content through procurement. These included railway equipment, transmission lines, uniforms, and medicine or tablets used in public health institutions.
There were also new designations which were being prepared, and these included valves, manual and pneumatic actuators, power and telecoms cables, and components for solar water heaters.
Among other sectors identified as having potential for growth were green industries, pharmaceuticals, and agro-processing.
IPAP 2013/2014 identified beneficiation as an area with great potential to boost both the mining sector and manufacturing sector, while creating more jobs.
Davies said the South African economy had to create new export markets, particularly in Africa, improve innovation and technology, and align skills development with its industrial policy.
"We need to pursue regional integration."
The new plan would be put into practice and aligned to government’s infrastructure programme, Davies said.
