Govt plan to boost new sectors

Johannesburg - The government's new Industrial Policy Action Plan (IPAP2) can create opportunities for investment in new industries, says Shakeel Meer, divisional executive for industrial sectors at the Industrial Development Corporation (IDC).

Meer says industries targeted by the IPAP2 include new concerns like green technology, as well as more established industries such as metal manufacturing.

IPAP2 will benefit more established industries, as well, Meer believes.

Feedback on the IPAP2 has generally been positive.

Players are particularly satisfied with the clear targets, role-division and the plan's objectives.

Cosatu industrial policy coordinator Jonas Mosia reckons that the industries targeted have good potential for job creation.

Mosia is especially optimistic about the inclusion of agricultural processing as a focus area of the IPAP2, as well as the capital, transport equipment and metal manufacturing industries.

The IDC - for which IPAP2 sets a new objective of cheaper finance for industries - also regards the new action plan as an "positive step".

The IDC has already begun to align its activities with IPAP by investigating and developing opportunities for investment and other collaboration in the specific industries.

Although capital injections are not needed at this stage, the IDC will continue to monitor its capital requirements and in the foreseeable future raise capital using its traditional methods, says Meer.

New possible sources of capital will also be investigated.

The IDC last received capital from government in the 1950s. Its sources are traditionally other development funding institutions, while it can also issue bonds.

- Sake24.com

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