Zuma says manufacturing incentives working

Cape Town - Manufacturing incentives through the automotive investment scheme sustained more than 50 000 jobs, President Jacob Zuma said in his State of the Nation address on Thursday.

"Our incentives to boost manufacturing have yielded returns. The automotive investment scheme that was launched in 2009 has approved a total R3.8bn worth of incentives for about 160 investment projects."

The companies would develop sedans, minibus taxis, and buses. The clothing, textile, leather and footwear sector, which had been shedding jobs, had been stabilised, Zuma said.

"Several industries have been designated for local content. These include buses, canned vegetables, clothing, textiles, leather and footwear, and other goods."

There were concrete examples of the success of the localisation programme.

"In the past two years alone, more than 20 000 minibus taxis and 330 buses were assembled locally, drawing investment and development to our cities."

Over the next five years, the state would procure at least three-quarters of its goods and services from South African producers, Zuma said.