Robust industrial capacity, dynamism needed for SA firms to grow

• Published date: 20 May 2022
• Publication title: South African Official News

South Africa can play a more prominent role in the world of regional production hubs by focusing on improving the dynamism and capacity of its industrial base, says Trade, Industry and Competition Minister, Ebrahim Patel.

Presenting the department's 2022/23 budget vote in Parliament on Friday, the Minister said the country needs to intensify industrialisation by spearheading transformation to build an inclusive economy, which will create opportunities for firms to grow.

'[To] build a capable State to execute our strategy, we set out in the annual plan about 150 specific actions and indicators,' he said.

Patel said the DTIC's pursuit of industrialisation sought to expand the level of local output, to secure parts of the local market lost imports and to boost value added exports.

He said to be labor absorbing, the country needed jobs or providers of critical public goods, healthcare or significant earners of foreign exchange.

Patel said the work of the Department of Trade, Industry and Competition (dtic) on spearheading transformation seeks to create opportunities for all South Africans.

'This involves the concentrating of our economy [by] opening up exclusive product and service markets to participation by all. It is also about our enduring commitment to support the black industrialists and workers who were previously denied access to opportunities for economic ownership and participation.'

Furthermore, he said it is also about ensuring a spatial strategy that informs how the country builds and supports a new model of Special Economic Zones and industrial parks in secondary towns in co-hubs.

'It is informed by the principle of trying to expand industrial activity beyond its concentration in the urban metropolitan areas. Transformation is about building an economy that works well where people are.'

Economic recovery and deepening industrialisation

Patel said the dtic's entities will collectively offer R22 billion in customer support packages to companies over the next 12 months.

'This will be complemented by strategic support to deepen implementation of our master plans, including the launch of the new R400 million furniture growth funding partnerships with manufacturers and retailers,' said Patel.

To support its localisation efforts, the DTIC will aim to achieve a R40 billion increase in the production of targeted local...