Fin24

Pandor: SA must develop manufacturing

2012-09-25 17:57

Johannesburg - South Africa must develop its manufacturing sector in order to industrialise, Science and Technology Minister Naledi Pandor said on Tuesday.
 
"Industrialisation is the normal route to development," she said.
 
High-income countries had all developed a substantial manufacturing base that in turn provided for full or nearly full employment.
 
As manufacturing activity expanded, it benefited from economies of scale, allowing unit costs of production to fall.
 
Other industries, such as agriculture or mining, ran up against resource shortages as they expanded.
 
In order to promote development, South Africa had recently introduced policies on beneficiation and localisation.
 
"South Africa is the second largest supplier of the mineral ore that can produce titanium metal," she said.
 
"However, we add little value to the mineral before export."
 
South Africa could produce titanium metal from its mineral resources.
 
Pandor's department was championing the development of a titanium industry. which would produce not only the raw mineral, but ultimately metal mill products and components.
 
The titanium metal powder industry was estimated to have income-generating potential of R3bn to R5bn a year, which could increase to R10bn to R30bn a year when a downstream industry was established.
 
The industry had the potential to create 450 jobs for workers, engineers, and technologists in metal production, and about 2 000 workers, engineers and technicians in the downstream component manufacturing.
 
"These new capabilities can position South Africa as a world leader in the cost competitive production of high-grade titanium metal powder," she said.
 
Titanium was a sought-after metal, especially in the aerospace industry where aircraft and satellites needed to be lighter to consume less fuel.
 
"These efforts mean that, in the near future, South Africa will have a new industry built around titanium."
 
Platinum was another example.
 
"Four years ago we launched the Hydrogen SA (HySA) programme," she said.
 
This marked the initiation of research and development activities, and the establishment of a South African fuel cell company, Clean Energy.
 
In partnership with Anglo Platinum and Altergy Power Systems, Clean Energy would initially market and eventually assemble and manufacture fuel cells in sub-Saharan Africa.
 
It was still in development, but had already sold 18 fuel-cell back-up power systems to Vodacom.
 
An agreement was being negotiated with a Norwegian partner for the commercialisation of a hydrogen storage material.
 
The parties had agreed to co-fund the pilot plant and up scale it into a fully-fledged manufacturing plant.
 
A third example was fluorine.
 
A multi-purpose fluorination pilot plant had been launched at the SA Nuclear Energy Corporation, in Pelindaba.
 
Through this initiative, South Africa could develop human capital and reduce its chemical trade deficit through exports.
 
It could also attract foreign direct investment and increase research and development, she said.

*Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.
 

Comments
  • sebenza.vanrooy - 2012-09-25 18:16

    Our ministers are a disgrace,what they are best at is to report on what should be happening. Are they aware that they should report that they have done it not South Africa needs to. Haai! we will always be the laughing stock , with this bunch!

      mc.segal.5 - 2012-09-25 19:00

      This Country used to be highly industrialised. Now only do you wake up. See Other comments on this story.most of the things I will post are already posted.We used to make cars Clothes tools machines. Fighter jets and everything under the sun and not Chinese junk Either . Give up Bit late now ...The trouble with these Idiots is that if they didnt think of it its not a good idea...Laws that cripple industry .Gaaaaaaa

      marthinus.booyens - 2012-09-25 19:35

      they can broadcast parliament live on channel 122,comedy channel

      croix.mactee - 2012-09-25 22:28

      Too true! Pandorisms are outdated and old garbage - waffle,waffle, blah, blah, blah. SA should this, SA should that. Time to learn a new tune, sister. You were USELESS in Education; You are still USELESS now.

  • squeegee.pilot - 2012-09-25 18:17

    Iv'e been hearing this for decades nothing has really come of it.

  • matthew.tuffney - 2012-09-25 18:18

    Why invest when bee and aa is a forced issue,and then u get stuck with a workforce who strike at the drop of a hat and labour laws that protect workers not the employer,cosatu baked the cake govt must now eat it

  • boltonbarry - 2012-09-25 18:27

    So you want this country to start manufacturing when we are faced with monthly strikes from people who will not work for minimum wage and with a power grid that can barely keep up with the supply as we speak in a country that has to much red tape.....Me thinks this is wishful thinking

      stirer.kathray - 2012-09-25 18:36

      Who is going to invest in manufacturing when the labour laws make it so difficult to fire the lazy and incompetent. If you can't have a productive labour force, there's no point in an industrialist putting his money down. Look how productive workers are in the East. We just can't match that, and support the strike intensive labourers we have here.

  • EricksonTL - 2012-09-25 18:30

    Perhaps if the school system created literate and numerate candidates. Perhaps if the billions spent on buying votes with social grants went to small business development. Perhaps if the ANC didn't give their youth league R100 million for piss ups. Perhaps if crime wasn't forcing companies out of SA. Perhaps if labour laws weren't pricing us out of the market.

      sebenza.vanrooy - 2012-09-25 18:35

      Thought,for your fourth perhaps, ZARA, M&S,TOP-SHOP and others are coming to South Africa. You are the only company forced out of South Africa.

      EricksonTL - 2012-09-25 19:09

      Lol. International businesses come IN, South African businesses leave ten fold more often. International businesses can also LEAVE much faster, and they're not actually manufacturing anything. They're selling you goods that China got paid to manufacture. You see the difference?

      sebenza.vanrooy - 2012-09-25 21:33

      Though,China is manufacturing the very same boots you are wearing. It is not the first with South Africa. Why do you think Europe and USA are still stuck in recession? China crippled them.

      EricksonTL - 2012-09-26 07:19

      Actually, they have much stricter import laws here - and buying Canadian is considered a matter of pride. The fact is, South Africa COULD have become a manufacturer. It COULD have industrialised (Moeletsi Mbeki was talking about this years ago by the way) but they chose to go the vote buying route instead. The ANC did have a hard task when they took over - no denying it. They could have chosen the road less travelled, and made the tough decisions that would have made success possible today. They didn't though. They chose the route of appeasement and buying votes. Which means that today, what Pandor proposes is just not even remotely possible.

  • amandla.whereto - 2012-09-25 18:59

    Thanks for that minister, announcing the desired destination is very easy and means nothing, please tell us how we get there? It is all the same political rubbish, we must alleviate poverty, we must combat crime, we must blah, blah, blah,

      rudi.debeer.5 - 2012-09-25 21:13

      spot on

  • kaspaas.breekwater - 2012-09-25 19:13

    Develop manufacturing by using Affirmative Action ?? LMAO !!!!

  • george.pito - 2012-09-25 19:15

    Yep so true only diffrence is the countries did not have a BEE as a requirement. In this country it is an excuse for corrupt people to earn income for doing nothing and to spunge on the people with some know how. The mines mus be nationalised and then the farmers must be murdered.The Engineers and consultants are not required we give it Malema and China based on the back hand policy.

  • jay.vyas.984 - 2012-09-25 19:23

    Dear Naledi Pandor, You talk about what we all know.... Even at Primary School Level! Even my 3 year old Nephew knows what you have spoken about. Usually you only open your mouth to " let the bubbles out!!" Score yourself a 9/10 for a Fake Accent!! So embarrassing!! Put yourself to Pasture please.... I Rest My Case! By the way, DO NOT BUY an e-TAG!! EVER!!

      mc.segal.5 - 2012-09-25 22:07

      Every commenter should sign off like NBE above:Do not buy an e-tag ever

  • Neal Sing - 2012-09-25 19:31

    Its not INDUSTRIALISE;Its NATIONALISE!

      jay.vyas.984 - 2012-09-25 19:44

      How about TENDERISE?

  • kevin.hogg.353 - 2012-09-25 20:03

    I deal in products that are almost 100% imported. Our overseas suppliers are willing to setup a factory, create jobs, transfer skill. Problem No government support, they re the biggest purchases of these products but would rather award the tenders to companies who import and sell these items a double the price.

      ike.molema - 2012-09-26 10:55

      Kevin please ask your suppliers to set up shop in South Africa.We will get them all the incentives from government if they do.I promise you its no joke.The country is serious on these matters.You must have talked to the wrong people -email me molema.m@vodamail.co.za

      ally.oh.7 - 2012-09-26 11:02

      Ike, what can you single-handedly do for Kevin? Let us in on the secret: in what way are you "the right person"?

  • braamc - 2012-09-25 20:47

    Naledi you can do better than this, one of the few ministers with brains

  • rudi.debeer.5 - 2012-09-25 21:10

    Naa, not with our labour laws and productivity......

  • francoisflippie.vanzyl - 2012-09-25 22:59

    Tell COSATU that its unions should stop making such high demands in salary increases every year, which drives up the labour costs and ultimately the price for goods and services made locally. ... Thats why so many people buy 'Fong-Kong' goods, because its so much cheaper to pay someone over there to make it and export it to our country

  • kosmonooit - 2012-09-25 23:07

    Pity the minister is so out of touch with reality. The current conditions in terms of grand schemes of social engineering (BEE) and law biased towards the employee do not encourage or faclitate entrepreneurs, that is honest ones at least. Only thing that is going to happen is foreigners with no scruples will come in and clean up because palms will be greased during deal-making, nothing will 'filter down' and we will be worse off that before.

  • fanie.gerber1972 - 2012-09-25 23:19

    let me think Rooivalk - scuppered by your inabillity to close the deal for 100 with Turkey. CSIR Composite trainer aircraft for the airforce and export- you lot decided to go for the pilatus - and the trainer down the tubes The Joule electric car.....need I say more? The list just go on and on

  • gerrit.vanpletzen - 2012-09-26 06:15

    Just give the incentives to the right people, and the benefits will come. Forget about BEE!

  • peter.cornelius.39 - 2012-09-26 08:48

    How come it's cheaper to buy imported aluminum doors/windows (made from aluminum mined in South Africa) than it is to build the finished product here? How the hell can an imported product be cheaper to import than to make locally, when they are made from the same materials? Our government has the backbone of a jellyfish and the morals of a brick.

  • thepatrickwinter - 2012-09-26 09:14

    You have to concede, for the most part, they are loyal to eachother. Mentally challenged, but loyal.

  • ike.molema - 2012-09-26 10:32

    There goes my favorite Minister-I think Mme Naledi should be the next Minister of Trade & Industry for her foresight & comments.We need to rally our communities around these important issues as it addresses poverty directly.Globalisation must not take away our initiatives & capability as a country.

  • ally.oh.7 - 2012-09-26 10:59

    Cut the red tape and we'll all be happy to start new enterprises and be productive.

  • vlammie.pilot - 2012-09-26 12:09

    But naledi pandor... it was YOU who constructed this non-functional schooling system because you failed to see the value of the original eduction system built by our great forefathers. Now you call for manufacturing, who will do it? You have failed to produce ANY young people capable of working - let alone start a manufacturing industry. Also you collude with chinese communists who are thieves, stealing this country's manufacturing opportunity. We will not forget the damage you done to the country. Shut your mouth and go away before we deport you to the uk, where you sound you should rather be.

  • pages:
  • 1