Trade, Industry and Competition Deputy Minister Andrew Whitfield says it is essential that South Africa’s economic growth is grounded in manufacturing-led growth and export-oriented economy.
To this end, the department will support local industries to increase their manufacturing capacity and volumes, enhance their competitiveness and identify suitable export markets for their manufactured products.
Whitfield was speaking during a debate on the Budget Vote of the Department of Trade, Industry and Competition (the dtic) in the National Council of Provinces (NCOP) in Parliament on Tuesday.
‘It is essential that South Africa’s economic growth is grounded in manufacturing-led growth.
‘Manufacturing is indeed less volatile and less vulnerable to economic downturns and will create real, sustainable and decent paying jobs for our people.
‘South Africa must also create an export-oriented economy. A dedicated focus on manufacturing growth will also lead to export growth,’ he said.
Whitfield said one of the dt
ic’s key focus areas under the new administration will be a renewed export drive to lower the risk of slow domestic growth, while also identifying high growth opportunities.
‘The creation of an export-oriented economy can be realised through a dedicated focus on implementing measures to boost the competitiveness of local industries in global markets, streamlining export processes, lowering trade barriers, offering financial and technical assistance to exporters and cultivating beneficial trade alliances with other nations,’ explained Whitfield.
He said South Africa’s exports in May this year totalled over R178 billion and the country recorded a trade surplus of over R20 billion, significantly higher than forecast, and the widest trade surplus in six months.
‘This is commendable and illustrates the important contribution that exports can make to our fiscus. We will support local industries by building a supportive and competitive ecosystem to drive manufacturing growth.
‘We will also identify intermedia
te goods that could make our manufacturers more competitive; as well as identify products that we produce competitively and the markets that consume those products in large and/or growing volumes,’ Whitfield said.
Earlier this month, dtic Minister Parks Tau reiterated the commitment to ‘smart industrial policy’, which will support the successful implementation of government’s development imperatives.
READ | The dtic to support programmes outlined by the President
‘In line with what the President said [during the Opening of Parliament Address] when talking about smart industrial policy, the dtic group will implement sectoral plans building on the successes recorded in the automotive, clothing and textiles, retail and agro-processing sectors.
‘Smart industrial policy speaks to underlining beneficiation and export-led growth. It highlights the imperatives of the Public Procurement Act that will complement the essential legislative tools to unlock localisation and transformation.
‘Every year the South Afric
an economy spends 25% of the national wealth created on imported goods. Not only is this propensity to import much greater than our competitor countries, it is also out of sync with our developmental needs,’ Tau said.
The Minister said government will reverse this in pharmaceuticals and medical devices, green industries, food products and manufactured goods, among others. He noted that smart industrial policies and programmes are being implemented to respond to the global market trends towards electric vehicles.
Source: South African Government News Agency