implementation of government’s · pdf fileto facilitate diversification beyond our...
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The Department of Trade and Industry (the dti)the dti Campus, 77 Meintjes Street, Sunnyside, Pretoria
Private Bag X84 Pretoria 0001, Republic of South Afica
the dti Customer Centre: 0861 843 384 (South Africa)+27 12 394 9500 (International)
www.thedti.gov.za
Implementation of Government’sNational Industrial Policy Framework:
Industrial Policy Action PlanAugust 2007
ISBN 1-920106-11-1
Introduction 2
Our Industrial Policy Approach 2
Industrial Policy Action for immediate implemntation 3
Glossary 43
TABLE OF CONTENTS
2Industrial Policy Action Plan
INTRODUCTION1
1.1 South Africa has implemented a number of industrial policy initiatives since 1994. However, it has notuntil now produced a comprehensive statement of government’s approach to industrialisation and industrialpolicy. Cabinet adopted the National Industrial Policy Framework (NIPF) in January 2007. The NIPF setsout government’s broad approach to industrialisation in the context of the Accelerated and Shared GrowthInitiative for South Africa (ASGI-SA) and its targets of halving unemployment and poverty by 2014 throughaccelerated growth of at least 6 per cent from 2010.
1.2 The Cabinet Lekgotla of July 2007 endorsed the Industrial Policy Action Plan (IPAP) that sets out indetail key actions and timeframes for the implementation of our initial round of industrial policy.
1.3 South Africa has achieved stable economic growth since 1994, with acceleration to 5 per-cent in 2005and 2006. The major weakness identified in South Africa’s long term industrialisation process has beenthat the decline in the share of employment in our traditional tradable sectors – notably mining andagriculture – has not been adequately offset by a sufficiently large increase in the share of relativelylabour-intensive employment in non-traditional tradable goods and services – particularly in manufacturing.Therefore the main objectives of the NIPF are:
To facilitate diversification beyond our current reliance on traditional commodities and non-tradable services. This requires the promotion of increased value-addition characterised particularly by movement into non-traditional tradable goods and services that compete in export markets as well as against imports.The long-term intensification of South Africa’s industrialisation process and movement towardsa knowledge economy.The promotion of a more labour-absorbing industrialisation path with a particular emphasis on tradable labour-absorbing goods and services and economic linkages that catalyse employment creation.The promotion of a broader-based industrialisation path characterised by increased participationof historically disadvantaged people and marginalised regions in the mainstream of the industrialeconomy.Contributing to industrial development on the African continent with a strong emphasis on building its productive capabilities.
1.4 South Africa’s key industrialisation challenge is therefore to grow and diversify manufacturing exportsand tradable services (such as Business Process Outsourcing and Offshoring and Tourism). There isalso unexplored high-value potential in agriculture and mining.
1.5 South Africa’s industrialisation process faces a number of constraints that have resulted in low manufacturingprofitability. This in turn has lead to low investment, low output, and poor export and employmentperformance particularly in low-and-medium skill manufacturing industries. These constraints include:
The level and volatility of the exchange rate.Relatively small market size coupled with relatively costly and unreliable infrastructure and high logistics systems, particularly freight and commuter transport.The monopolistic pricing of key intermediate inputs into the manufacturing sector.Challenges with respect to skills development and training.An intensely competitive global environment.Inadequate state support for investment, upgrading, innovation and technology.
1.6 This has resulted in low manufacturing profitability which in turn led to low investment, low output andpoor export and employment performance, particularly in low-and medium-skill industries.
2
2.1 South Africa has a relatively diversified and complex economic base that needs ongoing consolidationand renewal. This implies that government will always have to engage across substantial parts of themanufacturing, services and primary sectors of the economy. Ongoing self-discovery processes with theprivate sector and other stakeholders will assist in identifying opportunities to grow and diversifymanufacturing and services, and associated constraints.
2.2 Three of the four manufacturing and tradable services sectors which government has actively supportedsince 1994 have become leading sectors:The Automotives sector has become our leading manufacturing sector predominantly through the MotorIndustry Development Programme.A range of resource-processing industries including carbon and stainless steel; chemicals and aluminiumsectors have restructured for global competitiveness supported substantially by various tax instrumentsand highly beneficial restructuring arrangements, in addition to prior state support. However, this supportwas insufficiently linked to the pricing behaviour of these industries in the domestic economy.
OUR INDUSTRIAL POLICY APPROACH
The Tourism sector has massively expanded foreign arrivals on the back of major internationalmarketing efforts through institutions such as South Africa Tourism.The Clothing and textiles sector, as in most developed and developing countries, has been under severe strain from intense global competition. The Duty Credit Certificate Scheme hasbeen partially successful but the industry requires a different support environment for long-term sustainability.
2.3 Notwithstanding these important industrial policy successes, the manufacturing sector in particular hasnot reached its full potential. Therefore, government will single out sectors for particular focus, basedon substantial:
growth and employment potential;potential for the diversification and growth of exports; andresearch and self-discovery processes having been completed.
2.4 Once such sectors have been identified, active use of a range of appropriate policy instruments to upscalethese industries to their full potential will be of critical importance, particularly:
Supporting investment to update ageing machinery and equipment stock through appropriatetargeting and scale;Industrial upgrading to deepen manufacturing capabilities;Support for industry and Economic Cluster specific infrastructure; and Addressingmonopoly pricing.
3. INDUSTRIAL POLICY ACTIONS FOR IMMEDIATE IMPLEMENTATION
3.1 The Industrial Policy Action Plan reflects work that has recently been undertaken by the dti and other government departments and is mostly ready for implementation. It has three main components.
3.2 A range of sectoral actions, including:Fast-track implementation of the four lead sectors that have emerged from research and intensive interactions with stakeholders:o Capital/Transport equipment and Metals; o Automotives and Components;
Chemicals, Plastic fabrication and Pharmaceuticals;o Forestry, Pulp and paper, and Furniture.Maintaining momentum on implementation of ASGI-SA sector priorities: Business Process Outsourcing & Offshoring (BPO&O), Tourism and Biofuels,Implementation of other substantive sector projects in: Diamond beneficiation and jewellery;Agro-processing; Film and Crafts.Further strategy work needs to be developed in a range of other sectors including: Mining andmineral beneficiation; Agriculture /Agro-processing; ICT (services and products) and CreativeIndustries and White Goods.
3.3 A set of cross-cutting actions of particular importance for industrial policy.The design and implementation of an Industrial Upgrading Programme to deepen manufacturingcapabilities.A revised suite of Industrial financing instruments to support the industrial policy.Reducing input costs through competition policy and the review of import duties on a range of intermediate inputs into manufacturing.In addition a range of industrial policy related cross-cutting imperatives are being implementedas set out in Government’s Programme of Action.
3.4 Measures to improve government’s organisation and capacity to implement industrial policy.
3.5 SECTOR INTERVENTIONS
3.5.1 Lead SectorsThe following are the four lead sectors that currently form the central focus for the implementation of the NIPF.
Capital/Transport equipment and MetalsThis presents a major opportunity to stimulate manufacturing through reducing import leakage of the publicCapex programme and capitalising on the current mining and mineral-processing boom. It also offers a platformto position these sectors as major future exporters into the rest of the continent and beyond.
Automotive assembly and ComponentsThis is South Africa’s leading manufacturing sector, generating strong backward linkages from other sectors,particularly metals, leather, textiles and plastics. There is a major opportunity to double current vehicle productionto 1.2 million units by 2020 with a corresponding deepening of local content.
3Industrial Policy Action Plan
4Industrial Policy Action Plan
Chemicals, Plastic fabrication and PharmaceuticalsMajor opportunities to increase local beneficiation of polymers, particularly for automotive and packagingappl icat ions and leverage state procurement for local product ion of pharmaceut icals exist .
Forestry, Pulp and paper, and FurnitureThe sector has the potential to bring jobs and income to poor rural communities. Increasing plantations in ECand KZN in the next 10 years will contribute to the provinces’ growth and employment and stimulate processingactivities, such as sawmilling and furniture.
Capital / Transport Equipment and Metal FabricationThe South African capital equipment, metal fabrication and transport equipment sectors accounted for 11 percent of manufacturing value added (MVA) and contribute 18 per cent of manufacturing jobs, 216,263 jobs in2005. Additional value addition and jobs are contributed through services associated with a range of capitalgoods sub-sectors. The cluster contributes about 2 per cent to GDP.
These sectors have developed important capabilities based on South Africa’s fairly diversified industrial baseand long history of industrialisation. Technological leadership has been achieved in a range of niche areasrelated to capital equipment for the mining sector, such as valves and pumps. However, in general these sectorshave underperformed for a variety of reasons. These included low levels of expenditure on public infrastructureover the last three decades, uncompetitive pricing of raw material inputs and lower than optimal mining investment.
There is a major opportunity to grow these industries on the back of the public expenditure programme in energyand transport as well as the current mining and mineral processing boom. This requires a coordinated effort tomatch public investment and operational expenditure requirements to the upgrading of domestic suppliers. Asmuch as possible of this opportunity will be leveraged while ensuring without compromising the cost or qualityof public investments. Mining and mineral processing investments and replacement expenditure also representa major opportunity to grow these industries. Here the focus must be on building and strengthening capabilitiesfor technological leadership. The long-term trajectory for these industries is to further strengthen their exportcapabilities on the back of domestic and regional investments.
These sectors face a number of constraints that need to be addressed. Input prices of raw material inputs suchas steel, aluminium and scrap are often far from being suitably competitive. In addition, shortages may beemerging with respects to certain grades of steel. Due to low levels of demand in a number of areas, productioncapabilities have been eroded. Firms therefore need to upgrade aged capital equipment in certain importantsegments. Firms generally need to adopt more efficient production systems. A systematic drive to develop boththe scale and depth of skills across these sectors is required. Important supportive technological infrastructuresuch as tooling and casting facilities are needed. Systems to support longer term product development, innovationand research and development must be strengthened. Stronger coordination is required in order to matchproduction capabil i t ies to major planned investments, part icularly in infrastructure and mining.
5Industrial Policy Action Plan
Mea
sure
s to
stim
ulat
e m
ore
com
petit
ive
inpu
t pric
ing
Rev
iew
of i
mpo
rt du
ties
ofke
y in
dust
rial i
nput
s in
tom
anuf
actu
ring
Pro
ject
s/ K
AP
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utco
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chm
arks
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put
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cess
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eve
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uts
Sta
keho
lder
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rtm
ents
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efra
mes
(for
ach
ievi
ng o
utpu
ts)
Red
uce
the
cost
s of
inpu
tsto
dow
nstre
am in
dust
ries
to in
tern
atio
nally
com
petit
ive
leve
ls
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uce
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ts c
osts
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cted
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ufac
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gin
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ries
thro
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ess
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ithC
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vest
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ndre
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irem
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outh
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Com
plet
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Ent
erpr
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ricin
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iew
the
role
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mer
chan
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the
stee
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Mea
sure
s re
late
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expo
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into
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ew c
arbo
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outh
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Impo
rt du
ties
on u
pstre
amal
umin
ium
pro
duct
s re
view
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Key
act
ions
to b
e le
d by
the
dti
6Industrial Policy Action Plan
Supp
lier D
evel
opm
ent
Prog
ram
mes
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rage
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expe
nditu
re
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ties
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Sou
th A
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vest
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lm
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Red
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feed
into
the
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pro
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s
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ngth
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Stre
ngth
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Det
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whi
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Supp
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ns to
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port
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skom
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lise
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ent S
trate
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ithre
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ic tr
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otiv
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r com
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achi
nery
and
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atio
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chno
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atio
nal T
oolin
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itiat
ive
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7Industrial Policy Action Plan
Automotives and ComponentsContributing 7.4 per-cent to GDP during 2005, the automotive industry is South Africa’s leading manufacturingsector and the largest attractor of foreign direct investment in manufacturing.. Annual FDI between 2000 and2005 more than doubled from R1.5 billion to R3.6 billion. The industry directly employed 107,981 people in 2005in vehicle and component manufacturing with further employment stimulated in related manufacturing sectorsas well as in the retail automotive market. Our vision for 2020 is to double production levels to 1.2 million unitswith much stronger development of the local component manufacturing.
Driven by the Motor Industry Development Programme (MIDP), the sector has restructured, rationalised andalmost doubled in growth between 1995 and 2006 from 388,000 to around 580,000 units. It has moved from anegligible competitive position in terms of the global automotive industry in 1995 to a ranking of 19th in the world(0.7 per-cent of global market share) in 2005. Over this period exports grew exponentially from 16,000 to 180,000units.
Due to its synergies with several sectors such as metals, leather, textiles and plastics, the automotive sectorhas a strong linkage effect with the broader manufacturing sector. There has been significant growth in importantcomponent sectors such as leather seat covers, si lencers, exhausts and catalyt ic converters.
While the industry has achieved substantial rationalisation and productivity growth it faces a number of challenges.Higher productivity growth needs to be achieved to match the growth rates of some of our key competitors.There is currently insufficient local content particularly at the component end of the value chain. High levels ofimport penetration imply that the industry needs to shift to greater growth based on both domestic and exportmarkets. While the basic architecture and level of support should continue, adjustments need to be made withrespect to increasing local content, raising levels of productivity and making the programme consistent withinternational trade obligations. All of these factors imply important changes to the nature of a future developmentprogramme for the industry aimed at raising levels of productivity, local content and supply for the domestic,regional and broader export markets. In addition an appropriate Black Economic Empowerment plan for thesector must be developed by the industry.
8Industrial Policy Action Plan
Fina
lise
the
sect
or s
trate
gyan
d th
e as
soci
ated
KA
Ps
that
will
see
k to
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ld o
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lity
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lise
the
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hase
of th
e M
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to e
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e th
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elop
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tpr
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ject
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utco
me
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chm
arks
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cess
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eve
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uts
Sta
keho
lder
depa
rtm
ents
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efra
mes
(for
ach
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utpu
ts)
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oved
pol
icy
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ronm
ent a
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erta
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Key
act
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to b
e le
d by
the
dti
9Industrial Policy Action Plan
Chemicals, Plastic Fabrication and PharmaceuticalsThe South African chemical sector is diverse and complex. On the one hand it comprises a well-developedupstream industry – Basic Chemicals and Other Chemicals – with the former being highly capital intensive. Onthe other is the more labour-intensive downstream Plastics industry. Collectively all three industries combinedcontributed R28 billion or 2.8 per cent of GDP in 2006. Basic and Other Chemicals employ 64,285 people, plasticfab r i ca to rs emp loy 39 ,893 wh i l e t he pha rmaceu t i ca l s i ndus t r y emp loys abou t 10 ,000 .
The chemicals sector is the fourth-largest employer in manufacturing, behind food products, motor vehicles,parts and accessories, and metal products (based on 2005 figures). It invests around R2 billion annually inupgrades, with less than 1 per-cent of sales being spent on R&D. Products of the chemicals and metals sectorsare the basis for almost every manufacturing activity. It is thus a crucial industry from the perspective of SouthA f r i c a ’ s o n g o i n g g r o w t h p a t h f o r a d v a n c i n g s o c i o - e c o n o m i c d e v e l o p m e n t o b j e c t i v e s .
The development of the chemicals sector has two major elements: firstly, to promote beneficiation of mineralsinto primary products for exports and also to provide feedstock into higher value-adding manufacturing activities;and secondly, to promote downstream fabrication of polymers, thereby creating more jobs and adding significantvalue. Primary beneficiation faces constraints such as the risks and coordination problems associated with largecapital-intensive projects. Downstream plastics fabrications requires far more competitive pricing of polymerinputs, skills development, support for firm and industry level technical capabilities such as R&D, tooling andstronger matching of final product demand patterns to intermediate plastic inputs. The pharmaceuticals industryis threatened by high-levels of import penetration. The industry faces coordination and regulatory challengeswith regards to state procurement demand, medicine licensing procedures, and price administration.
10Industrial Policy Action Plan
Rev
iew
of t
he im
port
dut
yon
ups
trea
m c
hem
ical
prod
ucts
Esta
blis
hmen
t of p
roje
ctfo
cuss
ing
on in
crea
sing
poly
prop
ylen
e va
lue-
adde
dpr
oduc
ts u
sed
inau
tom
otiv
es a
ndpa
ckag
ing
indu
strie
s
Fluo
ro-c
hem
ical
sEx
pans
ion
Initi
ativ
e
Des
igna
tion
of th
epr
oduc
tion
of A
RV
phar
mac
eutic
als
as a
stra
tegi
c in
dust
ry
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Red
uce
the
cost
s of
inpu
tsin
to d
owns
tream
act
iviti
es
Incr
ease
d co
nsum
ptio
n of
poly
prop
ylen
e in
dow
nstr
eam
act
iviti
esw
here
ther
e is
hig
h jo
bcr
eatio
n po
tent
ial
Incr
ease
d flu
oro-
chem
ical
indu
stry
in S
outh
Afri
ca b
ybu
ildin
g a
wor
ld-c
lass
,hi
gh v
alue
add
ed fl
uorin
e-ba
sed
indu
stry
with
asso
ciat
ed d
owns
trea
mfin
e ch
emic
al s
ynth
esis
oper
atio
ns
Incr
ease
d do
mes
ticpr
oduc
tion
thro
ugh
leve
ragi
ng th
e A
RV te
nder
With
ITA
C, i
dent
ifyun
nece
ssar
y im
port
dutie
s an
dre
mov
e th
em
Fina
lise
FRID
GE
stud
y to
iden
tify
prod
ucts
and
mar
ket
oppo
rtun
ities
Com
plet
ion
of E
IA a
ndfe
asib
ility
stu
dy a
ndid
entif
icat
ion
of a
ppro
pria
tela
nd fo
r pro
ject
Task
Tea
m a
lread
y fo
rmul
ated
to lo
ok a
t inc
reas
edlo
calis
atio
n of
AR
V te
nder
ITA
C, P
resi
denc
y, N
T
DST
DM
E, D
ST, I
DC
, NEC
SA
DO
H, P
resi
denc
y, D
ST
Mar
ch 2
008
Febr
uary
200
8
Com
men
ce E
IA a
ndfe
asib
ility
stu
dy in
Aug
ust
2007
Mar
ch 2
008
Rem
oval
of t
he im
port
dut
ies
whe
re it
is n
eces
sary
Bus
ines
s C
ase
to id
entif
ypo
tent
ial i
nves
tmen
t
Envi
ronm
enta
l im
pact
asse
ssm
ent a
nd fe
asib
ility
stud
ies
com
plet
ed
Leve
rage
AR
V te
nder
toex
pand
loca
l cap
abili
ties
Key
act
ions
to b
e le
d by
the
dti
11Industrial Policy Action Plan
Forestry, Pulp and Paper, and FurnitureThe forestry sector has an annual turnover of R32 billion with a value adding contribution to the South Africaeconomy of some R14 billion in 2006. It is estimated that the sector employs 170,000 This estimate coversplantations, pulp and paper mills, woodchip exports, sawmilling, timberboard, mining timber, treated polesand charcoal people (based on 2003 figures). Because forestry and the primary processing activities take place largelyin rural areas, i t has the potential to increase jobs and income in poor rural communit ies.
The following specific challenges also need to be addressed. Currently, the small players in the forestry valuechain do not participate in value-added activities. If the regional economies are to grow, efforts must be madeto encourage processing and attract investment in the areas closer to plantations. The forestry sector strategyprovides for the afforestation of 100,000 hectare net increase in planted area over the next ten years in theEastern Cape (EC) and 40,000 hectare in KwaZulu Natal (KZN). This represents an investment in forestryin excess of R1,5 billion, with further substantial investments in downstream processing enterprises. It isestimated that the new afforestation has the potential to contribute R215 million to GDP and create 26,000jobs in plantation level and 1,700 at primary processing level in EC; while the areas in KZN will contributeR500 million to GDP and create 15,000 jobs in plantation level and 429 at primary processing level It isrecognised that most of the increase in new plantations in KZN or those areas of EC closer to KZN couldsupply the existing pulp mills in KZN but those in the EC further from KZN should stimulate the developmentof more processing activities in the area..
In order to realise growth in this sector, government has committed itself to expediting the afforestationlicensing process, the confirmation of land rights for land holding communities, technical and financial supportto emerging small growers and improvements to transport infrastructure.
1. This estimate covers plantations, pulp and paper mills, woodchip exports, sawmilling, timberboard, mining timber, treated poles and charcoal
2. It is recognised that most of the increase in new plantations in KZN or those areas of EC closer to KZN could supply the existing pulp millsin KZN but those in the EC further from KZN should stimulate the development of more processing activities in the area.
12Industrial Policy Action Plan
Fast
-trac
k th
e is
suin
g of
wat
er li
cens
es fo
r pro
duce
rs
Dev
elop
a p
rogr
amm
e fo
rsk
ills tr
ansf
er a
nd to
upg
rade
the
tech
nolo
gica
l equ
ipm
ent
for s
mal
l saw
mille
rs (b
egin
with
a p
ilot p
roje
ct in
Chr
isH
ani D
istri
ct m
unic
ipal
ity)
Expa
nsio
n of
furn
iture
indu
stry
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Impr
oved
and
fast
-trac
ked
proc
edur
es fo
r the
issu
ing
ofth
e lic
ense
s
Impr
oved
cap
acity
of s
mal
lsa
w m
illers
to e
nabl
e gr
eate
rpa
rtici
pate
in th
e va
lue
chai
n
Com
petit
ive fu
rnitu
re in
dust
ryde
velo
ped
in S
outh
Afri
ca
DW
AF to
dev
elop
and
impl
emen
tpr
opos
als
on fa
st-tr
acki
ng w
ater
licen
sing
for p
rodu
cers
with
rele
vant
dep
artm
ents
Map
ping
of g
eogr
aphi
c po
sitio
ns,
skills
and
tech
nolo
gyre
quire
men
ts o
f sm
all m
illers
Secu
re o
f fun
ding
for t
hein
cuba
tor p
roje
ct
the
dti,
Pres
iden
cy, E
C a
ndKZ
N p
rovin
cial g
over
nmen
t, N
T
Pres
iden
cy, E
C p
rovi
ncia
lgo
vern
men
t, N
T
OR
Ntin
ga D
evel
opm
ent
Agen
cy, E
CD
C, E
C p
rovi
ncia
lgo
vern
men
t
Ong
oing
Mar
ch 2
008
Mar
ch 2
008
Agre
emen
ts o
n fa
st-tr
acki
ngw
ater
lice
nsin
g fo
r sm
allh
olde
rfo
rest
ry p
rodu
ctio
n
A co
mpl
eted
feas
ibilit
y st
udy,
busi
ness
and
impl
emen
tatio
npl
an
Esta
blis
hmen
t of a
dditi
onal
furn
iture
incu
bato
r in
EC
Expl
ore
the
pote
ntia
l of f
urni
ture
sect
or o
utsi
de th
e EC
and
KZN
Key
act
ions
to b
e le
d by
the
dti a
nd D
WA
F
13Industrial Policy Action Plan
3..5.2 MAINTAING MOMETUM ON ASGI-SA SECTOR PRIORITIES
In the context of ASGI-SA priorities, three sectors were identified for immediate and special attention: BusinessProcess Outsourcing and Offshoring (BPO&O); Tourism; and Biofuels. What these industries have in commonis that they are relatively labour-intensive, rapidly growing sectors worldwide, suited to South Africancircumstances, and open to opportunities for Broad-Based Black Economic Empowerment (B-BBEE) andsmall business development.
Business Process Outsourcing and Offshoring (BPO&O)The global BPO&O industry is forecast to grow at 50 per-cent per annum (equivalent to growth of between$90bn and $100bn) over the next 4-5 years. A window of opportunity exists for South Africa to become asignificant global player in the industry through an appropriate value-proposition based on a high-quality yetcost-effective offering. It is estimated that the sector has the potential to contribute up to R7.9bn in grossdomestic product (GDP) by 2009 and create up to 100,000 new jobs in South Africa (25,000 direct and 75,000indirect) by 2014.
To capture this opportunity, South Africa must move quickly to overcome constraints including hightelecommunication costs relative to other BPO destinations, an inadequate skills base, and it must alsoincrease its profile and reputation amongst potential global investors.
What has been achieved?A five-year strategy approved by Cabinet in December 2006, identified the main constraintsto the establishment of a significant BPO&O sector in South Africa as high telecommunicationscosts, the need for skills development, and competition for foreign investment on the basisof initial incentives.In late 2006, Telkom agreed to benchmark its prices against South Africa’s relevant main competitors. The introduction of a developmental telecommunications pricing model, to giveeffect to this commitment, must be finalised urgently.National Treasury has allocated funds for an initial incentive for investors in BPO&O in the2006/7 Medium Term Expenditure Framework (MTEF).The Department of Labour (DoL) has allocated R17.1 million to fund the pilot skills developmentprogramme to be rolled-out in 2007.A national business association, the South African Contact Centre Community (SACCOM),has been established.A Rural Call Centre Support Programme has been developed with partial funding, and 13 sites have been identified.
14Industrial Policy Action Plan
Key
act
ions
to b
e le
d by
the
dti
Impl
emen
t a d
evel
opm
enta
lte
leco
mm
unic
atio
ns p
ricin
gm
odel
Rol
l-out
of e
xist
ing
ince
ntiv
esc
hem
e
Impl
emen
t the
tale
ntde
velo
pmen
t pro
gram
me:
the
Mon
yetla
Wor
k R
eadi
ness
Prog
ram
me
Stra
tegi
c an
d ta
rget
edm
arke
ting
to e
nsur
e th
eat
tract
ion
of k
ey in
vest
ors
toSo
uth
Afric
a
Form
ulat
e ne
w s
uppo
rtm
easu
res
aim
ed a
t the
deve
lopm
ent o
f SM
Es a
ndco
ntac
t cen
tres
in le
ssde
velo
ped
desi
gnat
ed a
reas
Dev
elop
qua
lity s
tand
ards
for
the
sect
or
Esta
blis
h ca
ll ce
ntre
s in
desi
gnat
ed le
ss d
evel
oped
area
s
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Enco
urag
e FD
I thr
ough
pric
es th
at a
re d
emon
stra
bly
com
petit
ive
with
rele
vant
coun
tries
Incr
ease
inve
stm
ents
and
job
crea
tion
in th
e BP
O&O
sect
or, t
hrou
gh a
ttrac
ting
pote
ntia
l inv
esto
rs
Incr
ease
ski
lls d
evel
opm
ent
and
train
ing
for t
he s
ecto
r
Incr
ease
inve
stm
ents
and
job
crea
tion
in th
e BP
O&O
Incr
ease
inve
stm
ents
and
job
crea
tion
in th
e BP
Ose
ctor
, thr
ough
incr
ease
dsu
ppor
t for
SM
Es a
ndin
crea
sed
econ
omic
act
ivity
in d
esig
nate
d ar
eas
Prom
ote
best
pra
ctic
e, b
yad
optin
g st
anda
rds
that
are
in lin
e w
ith th
e gl
obal
BPO
&Ose
ctor
Cre
ate
jobs
and
stim
ulat
eec
onom
ic a
ctiv
ity in
depr
esse
d to
wns
Fina
lise
nego
tiatio
ns w
ith T
elko
mM
arke
ting
of S
A BP
O&O
sec
tor
and
supp
ort m
easu
res
of th
e dt
ian
d pr
ivat
e se
ctor
Adm
inis
tratio
n of
app
licat
ions
thro
ugh
the
dti
Fina
lise
agre
emen
t with
DoL
on
2007
/8 tr
aini
ng p
rogr
amm
e an
dfu
ndin
g m
echa
nism
s
Appo
int a
ccre
dite
d tra
inin
gpr
ovid
ers,
who
will
also
dev
elop
train
ing
man
uals
for 2
007/
8 an
dsu
bseq
uent
yea
rs
Exhi
bitio
n, tr
ade
mis
sion
s an
don
e-on
-one
con
sulta
tion
with
inve
stor
s
Enga
ge w
ith N
T an
d ot
her
stak
ehol
ders
on
the
form
ulat
ion
of p
rogr
amm
e gu
idel
ines
Con
tinuo
us e
ngag
emen
tsbe
twee
n SA
BS a
nd in
dust
ryFi
nalis
e pr
ovin
cial B
PO s
trate
gies
Fina
lise
agre
emen
ts w
ithm
unici
paliti
es a
nd D
OE
to p
rovid
eth
e ne
cess
ary
infra
stru
ctur
e
DO
C, P
resi
denc
y
NT
DO
L
Busi
ness
Tru
st, i
ndus
tryas
soci
atio
n
NT,
Bus
ines
s Tr
ust
SABS
Prov
inci
al d
epar
tmen
ts,
mun
icip
aliti
es, D
OE,
DO
C,
DPL
G
Augu
st 2
007
Mar
ch 2
008
Appo
int t
rain
ing
prov
ider
s by
June
200
7
1000
lear
ners
trai
ned
byM
arch
200
8
On-
goin
g
Fina
lise
new
pro
gram
me
guid
elin
es b
y M
arch
200
8
Mar
ch 2
008
Augu
st 2
007
An a
gree
men
t with
Tel
kom
on
a de
velo
pmen
tal p
ricin
g m
odel
for t
he s
ecto
r
Rol
l-out
of i
ncen
tive
sche
me
Trai
ning
pro
gram
me
for 2
007/
8de
velo
ped
1,00
0 le
arne
rs tr
aine
d in
the
Mon
yetla
pilo
t pro
ject
Agre
emen
t on
prog
ram
mes
for
subs
eque
nt y
ears
Impl
emen
tatio
n of
exi
stin
gm
arke
ting
stra
tegy
New
sup
port
mea
sure
sap
prov
ed b
y C
abin
et
Publ
icat
ion
of s
tand
ards
Firs
t Cal
l Cen
tre to
go
live
inAu
gust
200
7
15Industrial Policy Action Plan
TourismTourism is one of the largest sectors in the world accounting for 842 million international arrivals in 2006 –a 4,5 per-cent growth on 2005. Total annual arrivals to South Africa in 2006 increased by 13,9 per-cent to8,395,833. The sector is also a major contributor to the South African economy at an estimated 8,8 per-centof GDP and 8 per-cent of total employment in 2005. Investment levels in the tourism industry are expectedto continue to rise, boosted by South Africa’s hosting of the 2010 FIFA Soccer World Cup. Government hasthe target of increasing foreign tourist arrivals to 10 million per annum, thereby creating an additional 400,000direct and indirect jobs by 2014.
In order to ensure that this growth and job creation is realised, certain key constraints need to be addressed.These include: enhancing the marketing of South African destinations, improving tourist transportation (bothairlift and ground transport), improving collection of statistical information for decision-making, improving skillsdevelopment and training, ensuring tourist safety and security, increasing investment and business developmentand transformation of the tourism industry.
What has been achieved?Progress has been made in developing a communication strategy to reassure tourists of their safetyand security. In addition Tourism Safety and Security Forums have been established in KwaZulu-Natal, the Western Cape, Gauteng and Mpumalanga. However, provinces need to allocate more personnel to develop and implement safety and security strategies for tourists.DEAT and the Business Trust have provided additional funds to the Tourism Enterprise Programme.The programme focuses on training to ensure small and medium tourism enterprises benefit from 2010. To date over 250 enterprises have been assisted.The number of inbound aircraft seats, mostly from Mozambique, France, Oman and the UAE, has increased by 700,000. However, the Airports Company of South Africa (ACSA) still lacks adequatesystems to track traffic on different routes, making it difficult to respond to changing demand.A Tourism BEE Charter has been signed and a charter council to drive implementation has been established.In response to the Deputy President’s call for partnerships in developing foreign language capacityfor the tourism sector, several foreign embassies have offered language training. Some tour guideshave already been trained in Chinese languages.
16Industrial Policy Action Plan
Key
act
ions
to b
e le
d by
DEA
T an
d th
e dt
i
Rev
ise
and
final
ise
the
Tour
ism
Sec
tor S
kills
Pla
n
Des
ign
cust
omis
ed in
cent
ive
for t
he s
ecto
r
Impl
emen
t Nat
iona
l Tou
rism
Safe
ty a
nd A
war
enes
sSt
rate
gy
Impr
ove
tour
ism
rese
arch
and
stat
istic
s
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Trai
ning
and
ski
llsde
velo
pmen
t pro
gram
mes
base
d on
sca
rce
and
criti
cal
skills
Incr
ease
inve
stm
ents
and
job
crea
tion
in ru
ral a
nd p
eri-
urba
n ar
eas
Incr
ease
d sa
fety
and
sec
urity
for t
ouris
ts in
pro
vinc
es
Impr
ove
tour
ism
dat
a an
dst
atis
tics
thro
ugh
the
deve
lopm
ent o
f the
Tou
rism
Sate
llite
Acco
unt (
TSA)
by
2009
Rev
ise
the
Tour
ism
Sec
tor S
kills
Plan
Dev
elop
an
info
rmat
ion
gene
ratio
n an
d sh
arin
g sy
stem
Iden
tify
gaps
in c
urre
nt to
uris
mcu
rricu
lum
and
cur
rent
accr
edita
tion
syst
em
Achi
eve
buy-
in w
ith s
take
hold
ers
Des
ign
ince
ntiv
e pr
otoc
ols
Enga
ge N
T on
the
budg
etar
yim
plic
atio
ns
Dis
cuss
ions
with
the
dti,
SAP
S
Inte
grat
ion
of th
e st
rate
gy in
toth
e br
oade
r law
enf
orce
men
tag
ency
inte
rven
tions
as
wel
l as
Sout
h Af
rica’
s m
arke
ting
and
bran
ding
initi
ativ
es
Com
mun
ity a
war
enes
s cr
eatio
nac
tiviti
es
Qua
rterly
Tou
rism
Res
earc
hAd
viso
ry c
omm
ittee
mee
tings
with
ext
erna
l sta
keho
lder
s
Mon
itor t
he im
plem
enta
tion
of th
e3-
year
TSA
dev
elop
men
t pla
n
DoL
, DoE
, Pro
vinc
es
NT
DSS
, pro
vinc
ial d
epar
tmen
ts,
SAPS
STAT
SSA,
DH
A, S
AT, p
rovi
nces
Mar
ch 2
008
Mar
ch 2
008
Mar
ch 2
008
Mar
ch 2
008
Impl
emen
tatio
n of
the
revi
sed
Sect
or S
kills
Pla
n an
d th
eM
ogal
e C
ity D
ecla
ratio
n on
tour
ism
ski
lls
A de
sign
ed a
nd b
udge
ted
for
cust
omis
ed in
cent
ive
in p
lace
Prov
inci
al S
afet
y an
dAw
aren
ess
Plan
sFi
nalis
ed
7 of
10
tabl
es o
f TSA
in d
raft
form
, whi
ch w
ould
incl
ude
indi
cato
rs s
uch
as G
DP,
prod
uctio
n, a
nd in
and
out
boun
dst
atis
tics
17Industrial Policy Action Plan
Faci
litat
e th
e ac
cele
ratio
n of
grad
ing
of to
uris
mes
tabl
ishm
ents
Dev
elop
stra
tegi
es to
fast
track
impl
emen
tatio
n of
B-
BBEE
in th
e se
ctor
and
capa
cita
te p
rovi
ncia
l and
loca
l gov
ernm
ent s
truct
ures
to d
eliv
er o
n th
e gr
ound
Impl
emen
tatio
n of
the
Airli
ftSt
rate
gy
Addr
ess
cons
train
ts to
sm
all
busi
ness
par
ticip
atio
n in
the
tour
ism
sec
tor t
hrou
gh th
eTo
uris
m E
nter
pris
ePr
ogra
mm
e
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Qua
lity
assu
red
tour
ism
prod
ucts
Broa
d ba
sed
trans
form
atio
nof
the
tour
ism
sec
tor i
n lin
ew
ith th
e 20
09 a
nd 2
014
targ
ets
Incr
ease
num
ber o
f tou
rists
in S
outh
Afri
ca
Sust
aina
ble
tour
ism
SM
MEs
Audi
ts o
f SM
ME
tour
ism p
rodu
cts
to a
sses
s ga
ps
Dev
elop
men
t of a
Qua
lity
Assu
ranc
e To
olki
t and
Tra
inin
gPr
ogra
mm
e
Dev
elop
men
t of a
com
mun
icatio
nst
rate
gy o
n gr
adin
g
The
deve
lopm
ent o
f sys
tem
sca
paci
ty to
han
dle
larg
e vo
lum
esof
enq
uirie
s an
d ap
plic
atio
ns
Con
clud
e ai
rlift
plan
Con
vene
Stra
tegi
c Pl
anni
ngC
omm
ittee
to d
evel
op p
ositi
ons
rega
rdin
g m
arke
tsH
old
bila
tera
l mee
tings
with
rele
vant
mar
kets
Con
clud
e bi
late
ral a
ir-se
rvic
eag
reem
ents
Iden
tify
foca
l poi
nts
in a
llpr
ovin
ces
Faci
litate
the
crea
tion
of lin
kage
sbe
twee
n SM
MEs
and
big
busi
ness
Acce
lera
te th
e ro
llout
of S
MM
Etra
inin
g an
d su
ppor
t ini
tiativ
es
Prov
ince
s
All g
over
nmen
t dep
artm
ents
DoT
, DFA
, AC
SA
DAC
, DoT
Mar
ch 2
008
2009
and
201
4
Mar
ch 2
008
Mar
ch 2
008
2,50
0 SM
ME
acco
mm
odat
ion
esta
blis
hmen
ts g
rade
d
20,0
00 b
usin
esse
s fo
rmal
lyco
mm
itted
to im
plem
enta
tion
ofth
e To
uris
m B
EE C
harte
r and
Scor
ecar
d
Incr
ease
slo
ts in
to S
outh
Afri
cafro
m to
uris
m p
ortfo
lio m
arke
tspe
r ren
egot
iate
d bi
late
ral a
irse
rvic
e ag
reem
ents
550
busi
ness
link
ages
cre
ated
2,60
0 SM
MEs
trai
ned
5 to
olki
ts d
evel
oped
300
SMM
Es s
ent t
o lo
cal a
ndin
tern
atio
nal e
xhib
ition
s
19Industrial Policy Action Plan
Dev
elop
a re
gula
tory
fram
ewor
k an
d ap
prop
riate
supp
ort m
echa
nism
s fo
r the
crea
tion
of a
via
ble
biof
uels
indu
stry
in S
outh
Afri
ca
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Dev
elop
men
t of b
iofu
els
indu
stry
as
a so
urce
of
rene
wab
le e
nerg
y, w
ithou
tra
isin
g ag
ricul
tura
l pric
es
Disc
ussio
ns w
ith s
take
hold
ers
onfin
alis
ing
the
stra
tegy
Fina
lisat
ion
of p
ropo
sals
on
ince
ntiv
es a
nd re
gula
tions
Fina
lise
mea
sure
s fo
rsm
allh
olde
rs
Fina
lisat
ion
of s
tand
ards
the
dti,
DO
A, P
resid
ency
, DST
,D
EAT,
SAB
SAu
gust
200
7
Dec
embe
r 200
7
Biof
uels
stra
tegy
app
rove
dby
Cab
inet
Esta
blis
hmen
t of r
egul
ator
yfra
mew
ork
and
ince
ntiv
esto
sup
port
prod
uctio
n an
dus
e of
bio
fuel
s
Stra
tegy
to e
nsur
ein
crea
sed
prod
uctio
n of
inpu
ts, p
artic
ular
ly b
ysm
allh
olde
rs
Res
earc
h, d
evel
opm
ent a
ndte
chno
logy
dem
onst
ratio
nsu
ppor
t pro
gram
me
final
ised
Key
act
ions
to b
e le
d by
DM
E
18Industrial Policy Action Plan
BiofuelsThe biofuels industry in South Africa is in its infancy. However it has substantial potential to assist in addressingimportant economic and social challenges. Internationally the biofuels industry is growing rapidly, due chieflyto a combination of: higher oil prices; mounting concerns with respect to the environment; and governmentpolicies, regulations and incentives that support this indigenous renewable fuel source over fossil fuels.
The Biofuels Draft Strategy – approved for public consultation by Cabinet in December 2006 – aims to achievean average biofuels market penetration of 4.5 per-cent in liquid road transport fuels (petrol and diesel) by 2013.The development of a biofuels industry will have enormous economic benefit. It will stimulate small-scale andcooperative farming practices in rural areas, creating up to 55,000 jobs opportunities. It will generate macroeconomicbenefits as increased use of biofuels will reduce our dependence on oil imports. It is estimated that about R2billion per annum will be added to GDP. Biofuels being a renewable energy source will also contribute 75 per-cent towards our 2013 Renewable Energy targets of 10,000GWh.
20Industrial Policy Action Plan
3.5.3 SUPPORT FOR THE CLOTHING AND TEXTILES SECTOR TO PRESERVE CAPABILITIES ANDRETAIN EMPLOYMENT
Clothing and textiles are amongst the most labour-intensive industries in South Africa employing approximately127,000 people (11 per-cent of total manufacturing employment). The sector contributes around 0.6 per centto GDP. The clothing and textiles sector has been under intense pressure since the mid 1990s, negativelyimpacted by periods of currency strength and fierce import competition, particularly from China. Notwithstandingthese pressures, the sector cannot be left to wither away due both to its contribution to employment as wellas to retain core capabilities that have been built in the sector.
Recent government efforts around the sector have been aimed at arresting its decline. However, the medium-long term challenge for the industry is to undertake the upgrading and restructuring that the industry needs tobecome fully sustainable. This will require an adaptation of current support measures – particularly the DutyCredit Certificate Scheme (DCCS) – by government but also a very strong commitment by business and labourto make the necessary adjustments. An added level of complexity that needs to be taken into consideration inrevising the DCCS is that it is an instrument that applies across the entire Southern African Customs Union(SACU) and not simply to the South African economy.
The sector faces a range of challenges. These include: difficulty in competing against low-cost imports; lowlevels of investment in upgrading of skills and production processes to become more competitive; associatedlow levels of product design and innovation; and a marked decline in exporting.
These challenges need to be fully confronted in agreeing how the industry goes forward. A number of measuresneed to be taken to place the industry on a more competitive and sustainable footing which essentially requiresmovement up the value chain. Key measures to be undertaken during the 2007/8 financial year include: aredesigned support scheme for the sector aimed at recapturing domestic market share, a review of input costsinto the clothing sector, full implementation of country of origin labelling and support for productivity upgradingand skills development.
21Industrial Policy Action Plan
Impl
emen
t mea
sure
s to
reca
ptur
e an
d st
abilis
e th
edo
mes
tic m
arke
t
Rev
iew
of i
mpo
rt du
ties
ofke
y in
puts
into
the
clot
hing
sect
or
Fast
-trac
k th
e de
velo
pmen
tof
an
alte
rnat
ive
supp
ort
mec
hani
sm to
the
Dut
y C
redi
tC
ertif
icat
e Sc
hem
e (D
CC
S)
Des
ign
cust
omis
ed in
dust
rial
upgr
adin
g pr
ogra
mm
e fo
r the
sect
or
Cre
atio
n of
a te
xtile
sen
gine
erin
g C
entre
of
Exce
llenc
e
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Arre
st o
f dec
line
of d
omes
ticm
arke
t sha
re
Red
uce
the
cost
s of
inpu
tsin
to th
e cl
othi
ng s
ecto
r and
ther
eby
impr
ove
cost
com
petit
iven
ess
Stab
ilise
indu
stry
and
ultim
atel
y se
t the
bas
is fo
rgr
owth
acr
oss
SAC
U b
ased
on h
ighe
r pro
duct
ivity
of
capi
tal a
nd la
bour
Incr
ease
s in
vest
men
ts a
ndjo
b cr
eatio
n/re
tent
ion
in th
edo
mes
tic m
arke
t
Terti
ary
text
ile e
ngin
eerin
gqu
alifi
catio
ns in
the
indu
stry
Impl
emen
tatio
n an
d m
onito
ring
by C
CR
D d
ivis
ion
of th
e dt
i
Ong
oing
liai
son
with
indu
stry
,SA
RS,
ITED
and
ITAC
on
impl
emen
tatio
n an
d m
onito
ring
Initi
ate
an in
vest
igat
ion
on th
edo
wnw
ard
adju
stm
ents
on
sele
cted
text
iles
and
fibre
Inte
ract
ion
with
clo
thin
g an
dte
xtile
s st
akeh
olde
rs a
nd IT
AC
Con
sulta
tions
with
indu
stry
and
SAC
U p
artn
ers
Achi
eve
buy-
in w
ith s
take
hold
ers
Des
ign
ince
ntiv
e pr
otoc
ols
Enga
ge N
T on
the
budg
etar
yim
plic
atio
ns
the
dti t
o as
sess
and
app
rove
busi
ness
pla
n
SAR
S, IT
ED, I
TAC
ITAC
, NT
SAC
U, N
T
NT
CSI
R, D
ST
Appl
icat
ion
of th
e re
gula
tions
:Ju
ly 2
007
Quo
tas
timel
ine:
Dec
embe
r20
08
Mar
ch 2
008
Con
sulta
nt to
be
appo
inte
d in
Dec
embe
r 200
7
SAC
U a
gree
d pr
ojec
t pla
n to
be fi
nalis
ed in
Mar
ch 2
008
Mar
ch 2
008
Augu
st 2
007
Impl
emen
t the
cou
ntry
of o
rigin
labe
lling
regu
latio
ns
Mon
itor t
he im
plem
enta
tion
ofqu
otas
aga
inst
Chi
nese
impo
rts
Impo
rt du
ties
on s
elec
ted
text
iles
and
fibre
revi
ewed
Initi
ate
a pr
oces
s to
dev
elop
aSA
CU
-wid
e st
rate
gy
A w
ell-d
esig
ned
and
budg
eted
cust
omise
d pr
ogra
mm
e in
pla
ce
Cen
tre o
f exc
elle
nce
deve
lope
dat
CSI
R in
Por
t Eliz
abet
h
Key
act
ions
to b
e le
d by
the
dti
22Industrial Policy Action Plan
3.5.4 IMPLEMENTATION OF OTHER KEY SECTORAL PROJECTS
Diamond beneficiation and jewelleryThe world market for uncut stones is valued at US$13.4 billion a year. By comparison, retail diamond jewellery salesin 2005 were valued at US$70 billion. Diamond-producing countries in southern Africa are therefore looking to bridgethat gap by promoting local beneficiation to ensure a bigger share of the downstream profit (cutting and polishing addsapproximately 50 per-cent to the value of rough stones), as well as much needed employment creation.
South Africa is the third-largest diamond producer in the world, with an annual output of 14.5 million carats, worthapproximately US$1.2 billion. The industry currently employs approximately 14,300 people, 11,000 of whom areemployed in mining, 2,400 in manufacturing and 900 in sorting and valuing. The country’s diamond trade activity isvalued at around US$2.5 billion, almost half comprising rough exports. Despite being a major producer, South Africaonly beneficiates 3 per-cent of its total diamond production.
In February 2006, Cabinet passed the Diamonds Amendment Act, aimed at promoting local value addition andeliminating loopholes in the law that had enabled companies to export rough diamonds duty free. The Act makesprovision for the local supply of rough diamonds through the establishment of the State Diamond Trader (SDT) withthe power to purchase 10 per-cent of mine production in order to improve access to rough diamonds for localbeneficiators. Further legislative amendments include the introduction of beneficiation licenses for control purposesand a reduction of the export duty to 5 per-cent. The key thrust of this policy is to increase local beneficiated diamondproduction from 3 per-cent to at least 10 per-cent of rough diamond production.
Key challenges facing the industry include: shortages of skilled labour, access to capital, and costs of cutting andpolishing. A major challenge is therefore to grow and advance South Africa's cutting and polishing capacity in orderto position South Africa as a globally competitive diamond-producing country. Development strategies in the sectorare therefore aiming to create a more enabling business environment through the creation of diamond and jewelleryhubs, addressing access to capital, and the provision of incentives to attract manufacturing investment, as well astraining and skills development initiatives.
23Industrial Policy Action Plan
Key
act
ions
to b
e le
d by
DM
E
Impl
emen
tatio
n of
Dia
mon
dBe
nefic
iatio
nLe
gisl
atio
n
Esta
blish
men
t and
exp
ansio
nof
dia
mon
d cu
tting
and
polis
hing
cen
tres
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Incr
ease
in s
uppl
y of
roug
hdi
amon
ds fo
r cut
ting
and
polis
hing
Valu
e ad
ditio
n to
pre
ciou
sm
etal
s an
d in
crea
sed
expo
rts o
f SA
jew
elle
ry
Fina
lise
the
listin
g of
the
Stat
eD
iam
ond
Trad
er a
nd a
ppoi
nt th
eBo
ard
Agre
emen
t of l
ocat
ion
of ID
Z w
ithAC
SA.
Appr
oval
of I
DZ
stat
us
Appo
intm
ent o
f cen
tre d
evel
oper
Con
stru
ctio
n of
jew
elle
rym
anuf
actu
ring
cent
re
the
the
dti,
NT,
The
Pre
siden
cy
DPE
, DO
T, S
ARS
Com
men
cing
Aug
ust 2
007
Mar
ch 2
008
Focu
sed
impl
emen
tatio
n of
the
bene
ficia
tion
drive
in th
e co
untry
(lice
nsed
cut
ters
, dea
lers
and
bene
ficia
tors
to a
cces
sdi
amon
ds)
Jew
elle
ry M
anuf
actu
ring
Cen
trein
IDZ
at O
liver
Tha
mbo
Inte
rnat
iona
l Airp
ort
Kim
berle
y di
amon
dbe
nefic
iatio
n hu
b
25Industrial Policy Action Plan
Key
act
ions
to b
e le
d by
the
dti
Esta
blis
hmen
t of a
Nat
iona
l Foo
d C
ontro
lAg
ency
Rev
iew
the
tarif
f pol
icy
on a
gric
ultu
ral p
rodu
cts
Prom
ote
expo
rts o
fbe
nefic
iate
d ro
oibo
s an
dho
neyb
ush
prod
ucts
Impl
emen
t the
bus
ines
spl
an fo
rmul
ated
toin
crea
se th
eco
mpe
titiv
enes
s an
d th
epr
ofita
bilit
y of
SA
fruit
cann
ing
Mak
hath
ini S
ugar
Proc
essi
ng F
acilit
yPr
ojec
t
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Incr
ease
exp
orts
thro
ugh
impr
oved
com
plia
nce
toin
tern
atio
nal q
ualit
yst
anda
rds
Incr
ease
d in
vest
men
ts,
job
crea
tion
and
incr
ease
d ex
ports
of
high
val
ue b
enef
icia
ted
prod
ucts
Dou
ble
the
curre
ntex
ports
of f
inis
hed
Roo
ibos
and
Hon
eybu
shpr
oduc
ts b
y 20
11
To c
reat
e a
sust
aina
ble
plat
form
for t
he lo
ng-
term
gro
wth
and
com
petit
iven
ess
of th
ein
dust
ry th
roug
him
prov
ed m
arke
tac
cess
; cos
t red
uctio
ns;
and
deve
lopm
ents
of
new
mar
kets
and
prod
ucts
Incr
ease
d in
vest
men
tsin
the
infra
stru
ctur
eth
ereb
y cr
eatin
g 4,
200
dire
ct jo
b op
portu
nitie
s
Obt
ain
buy-
in a
ndsu
ppor
t fro
m k
eygo
vern
men
tst
akeh
olde
rs
the
dti t
o de
velo
ppo
sitio
n pa
per
Con
sulta
tive
wor
ksho
psw
ith s
take
hold
ers
Con
sulta
tive
wor
ksho
psw
ith s
take
hold
ers
to p
lan,
repo
rt on
pro
gres
s an
dag
ree
on th
eim
plem
enta
tion
proc
ess
SA in
dust
ry to
neg
otia
tew
ith E
U in
dust
ries
to fa
ceou
t the
tarif
fs a
nd re
tain
the
quot
a le
vels
Com
miss
ion
feas
ibilit
y st
udy
and
deve
lop
a bu
sines
s pl
an
Begi
n w
ork
on th
eEn
viro
nmen
tal I
mpa
ctAs
sess
men
t
DO
H, D
OA,
SAB
S
DoA
, ITA
C a
nd D
EAT
DO
A, W
esgr
o, W
Cpr
ovin
cial
dep
artm
ents
,N
atio
nal A
gric
ultu
ral
Mar
ketin
g C
ounc
il
WC
pro
vincia
l dep
artm
ents
KZN
DO
A, ID
C, D
BSA
and
Tong
aat H
ewle
tt
2009
Mar
ch 2
008
Mar
ch 2
008
Econ
omic
ana
lysi
s:M
arch
200
8
Neg
otia
tion
with
EU
:M
arch
200
9
Mar
ch 2
008
MO
U w
ith s
take
hold
ers
Legi
slat
ive
fram
ewor
k fo
rth
e es
tabl
ishm
ent o
f the
agen
cy
Tarif
f gui
delin
es to
be
used
by IT
AC in
the
revi
ew o
fag
ricul
tura
l and
agr
opr
oces
sing
tarif
fs
Com
preh
ensi
ve m
arke
ting
stra
tegy
dev
elop
ed
Full
econ
omic
ana
lysi
s of
the
sect
or to
impr
ove
mar
ket a
cces
s, re
duce
inpu
t cos
ts, d
evel
op n
ewpr
oduc
ts a
nd m
arke
ts
Phas
ing
out t
he 5
per
-cen
tca
nned
frui
t tar
iff in
the
EUan
d re
tent
ion
of th
e 45
00m
t quo
ta
Feas
ibilit
y st
udy
com
plet
ed
24Industrial Policy Action Plan
Agro-processingThe agro-processing sector contributes around 10 per-cent annually to the GDP and in 2005, it employed 183,000people. The sector can generate relatively low-skilled job opportunities and can contribute to more geographicallybalanced economic development. It has strong backward linkages with the primary agricultural sector, which employs10 per-cent of the country’s labour force for which a large number are women particularly in rural areas. The sectoris endowed with some of the world’s sought-after delicacies such as rooibos, ostrich and honey bush products.
Despite its contribution to the South African economy and its demonstrated potential, the sector is faced with a numberof challenges that need to be addressed. It has been affected by changes in the general tariff dispensation that ignoresthe global sensitivities of the agricultural sector. Local producers have to compete against heavily subsidised producersand manufactures from developed countries. Furthermore, entry into developed countries’ markets is constrained byboth tariff and non-tariff barriers to trade. Local producers have also come under immense pressure in the last fewyears, resulting from an increase in imports of cheap products. Other important constraints relate to saturation inexisting exports markets, insufficient spending on R&D – particularly on product development to enable an uppermovement along the value chain; increasing input costs; and insufficient infrastructure.
A number of key measures have been identified to be undertaken during the 2007/8 financial year: facilitating theestablishment of a National Food Control Agency (NFCA) to ensure compliance of South African food products tointernational food quality standards; review of the tariff policy for agricultural products to address the distortions intrade; and increase exports of beneficiated Rooibos and Honeybush teas. Concurrent to the roll-out of these projects,more comprehensive work will be done on this sector. A process is currently underway to develop a comprehensiveperspective on the entire agriculture sector.
26Industrial Policy Action Plan
Film and TelevisionASGI-SA prioritises cultural industries because of their potential contribution to nation-building and SouthAfrica’s international image and because they can support employment creation in tourism as well as in productionof cultural goods and services. the dti has developed KAPs for film and television production, which is presentedin this section, with KAPs for the crafts industry presented below. the dti will also develop proposals for otherelements of the cultural industries, notably music and drama.
The content industry is a key growth area in the world economy and was valued at US$1.2 trillion in 2003. In2003, global filmed entertainment was growing at a rate of 9.4 per-cent and television at the rate of 6.3 per-cent, both in excess of global entertainment industry growth of 4.2 per-cent. Yet South African participation inthis global growth is minimal and estimates are that the country’s share is only a fraction of one percent (lessthan 0.5 per-cent). It is estimated that the sector employs around 20,000 people directly in broadcasting, film,commercials and other media related companies.
Although the South African film industry has a long history, the industry had until 1994 largely been characterisedby an inward-looking and culturally exclusive production structure. The opening up of the political, economicand cultural systems availed new challenges and opportunities for the industry. An increasing number of featurefilm, television and documentary productions and commercials have been produced in SA since 1994, whichhad had a positive impact in the local industry.
Some of the key constraints holding back the development of the sector include: limited access to financing;limited access to distribution and exhibition facilities; insufficient audience development; few training opportunitiesfor people entering the industry as well as producers, directors and scriptwriters currently working in the industry;few opportunities to export South African film and television products; and inadequate co-ordination and anabsence of standards in training provision.
27Industrial Policy Action Plan
Key
act
ions
to b
e le
d by
the
dti
Laun
ch th
e re
vised
reba
te fo
rfo
reig
n an
d lo
cal p
rodu
ctio
nto
incr
ease
loca
l pro
duct
ion
Dev
elop
men
t of a
nEn
terp
rise
Dev
elop
men
tPr
ogra
mm
e to
ass
ist w
ithbu
ildin
g th
e ca
paci
ty o
fem
ergi
ng p
rodu
ctio
nco
mpa
nies
, inc
ludi
ng th
ede
velo
pmen
t of s
carc
e sk
illssu
ch a
s w
riter
s an
d ed
itors
. Esta
blis
hmen
t of f
ive
pilo
tpr
ogra
mm
es in
diff
eren
tlo
catio
ns to
add
ress
dist
ribut
ion
infra
stru
ctur
e,lo
cal c
onte
nt a
nd a
udie
nce
expa
nsio
n
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Impr
oved
and
incr
ease
dlo
cal c
onte
nt g
ener
atio
n
Impr
oved
com
petit
iven
ess
and
trans
form
atio
n of
prod
uctio
n co
mpa
nies
An in
crea
se in
retu
rns
ondo
mes
tic p
rodu
ctio
ns
The
revi
ew w
ill in
clud
ein
trodu
ctio
n of
a s
econ
d re
bate
sche
me
targ
eted
at t
he lo
cal
film
mak
ers
Audi
t exi
stin
g bu
sine
sspr
ogra
mm
es a
nd s
ervic
e de
liver
y
Iden
tific
atio
n of
cen
tres
ofex
celle
nce
Esta
blis
hmen
t of a
fram
ewor
k of
serv
ice
deliv
ery
Res
earc
h th
e di
strib
utio
n an
dco
nten
t alte
rnat
ives
Esta
blis
h a
PPP
to in
vest
in th
edi
strib
utio
n an
d co
nten
tal
tern
ativ
es
DAC
, DO
C
DAC
, DoC
DAC
, DoC
Dec
embe
r 200
7
Dec
embe
r 200
8
2009
firs
t qua
rter
Rev
ised
reba
te s
chem
e to
be
laun
ched
in th
e th
ird q
uarte
r
Inte
grat
ed p
rogr
amm
e on
finan
cial
and
non
-fina
ncia
lsu
ppor
t ser
vice
sFi
ve p
ilot p
rogr
amm
eses
tabl
ishe
d
29Industrial Policy Action Plan
Key
act
ions
to b
e le
d by
the
dti
Esta
blis
hmen
t of p
rovi
ncia
lin
tegr
ated
cra
ft hu
bsin
clud
ing
prio
ritis
atio
n of
prov
ince
s
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Incr
ease
d vo
lum
e of
cra
ftsa
les
natio
nally
and
inte
rnat
iona
lly a
nd n
umbe
rof
jobs
cre
ated
Audi
t of c
urre
nt h
ub in
itiativ
es
Dev
elop
men
t of a
blu
e-pr
int
for a
bes
t pra
ctic
e m
odel
alon
g a
franc
hisi
ng c
once
pt
Prio
ritis
atio
n of
pro
vinc
es
DAC
, EC
and
WC
pro
vinc
ial
depa
rtmen
ts
Mar
ch 2
008
Stak
ehol
der a
gree
men
t on
prop
osal
s fo
r the
esta
blis
hmen
t of
viab
lepr
ovin
cial
hub
s as
cen
tres
ofex
celle
nce
impl
emen
ting
best
prac
tice
Dra
ft bl
ue-p
rint f
or a
bes
tpr
actic
e m
odel
alo
ng a
franc
hisi
ng c
once
pt
2 hu
bs e
stab
lishe
d in
EC
and
WC
28Industrial Policy Action Plan
CraftsThe craft sector contributes approximately R2 billion to GDP in retail sales of which approximately R150m isin export sales. The sector comprises approximately 7,028 enterprises across the entire value chain (from rawmaterial suppliers to retailers). These production enterprises derive annual income in the order of R1,145 million,which supports an estimated 380,062 people, many of whom are in the most marginalised populations in therural and peri-urban areas of South Africa.
Over the last 5 years, the number of production enterprises has increased by an estimated average of 40 per-cent. This growth can largely be attributed to the growth in tourism visitor numbers that grew by 82 per-centover the last 10 years. The production of crafts in South Africa is, however, compounded by a number of factors,which are overlaid with social and economic issues arising from the legacy of apartheid. Some of these include:diversity of units of production, media and product ranges; low skills levels; inadequate working capital; lacko f s tandard and qua l i t y assurance across the va lue cha in ; and poor in fo rmat ion f low.
To create maximum benefit and greater enhancement of the sector, the craft sector strategy proposes integratedmetropolitan hubs with rural satellites. The hubs will perform the role of: enterprise development; R&D; marketaccess; and trade support. The hubs will be set up in partnership with provincial and local authorities and willreceive joint funding.
31Industrial Policy Action Plan
Cap
ital G
oods
Min
ing
and
Min
eral
Ben
efic
iatio
n
Agr
icul
ture
/ Agr
o-Pr
oces
sing
ICT
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Lead
/re
port
ing
depa
rtm
ent
Fina
lise
the
sect
orst
rate
gy
Dev
elop
men
t of
stra
tegi
es th
at w
illat
tract
inve
stm
ent i
nto
the
min
ing
and
bene
ficia
tion
indu
stry
of S
outh
Afri
ca
Und
erta
ke re
sear
ch o
nth
e cu
rrent
sta
tus
ofpr
imar
y ag
ricul
ture
activ
ities
and
fina
lise
mea
sure
to p
rom
ote
grea
ter v
alue
add
ition
Dev
elop
a c
lust
erin
dust
rial p
olic
yre
spon
se to
sup
port
ICT
serv
ices
and
elec
tro-te
chni
cal
prod
ucts
Doc
umen
t det
ailin
gov
eral
l per
spec
tive
onth
e st
atus
of t
hein
dust
ry a
ndco
nstra
ints
bot
h ov
eral
lan
d at
sub
sect
or le
vel
Doc
umen
t out
linin
gpo
ssib
le s
trate
gic
inte
rven
tions
for t
hem
inin
g se
ctor
Doc
umen
t det
ailin
g th
eva
lue
chai
n’s
abilit
y to
cont
ribut
e to
sha
red
grow
th in
futu
re, a
ndco
nstra
ints
at
subs
ecto
r lev
el
Doc
umen
t ind
icat
ing
pote
ntia
l ben
efits
of
expa
ndin
g IC
Tpr
oduc
ts a
nd s
ervi
ces
and
impl
icat
ions
for
polic
y an
d st
akeh
olde
rs
Proc
ess
unde
rway
tode
velo
p a
CSP
Con
vene
a m
inin
gin
vest
men
t stra
tegy
wor
ksho
p w
ithst
akeh
olde
rs
Task
team
con
vene
dby
the
dti t
o de
velo
ppe
rspe
ctiv
e on
val
uech
ain
Und
erta
ke re
sear
chto
iden
tify
oppo
rtuni
ties
with
inIC
T se
rvic
es to
supp
ort l
ocal
con
tent
deve
lopm
ent.
the
dti
DM
E
the
dti,
DO
A
DO
C
Broa
d ag
reem
ent i
ngo
vern
men
t and
with
stak
ehol
ders
on
the
curre
nt s
tate
and
futu
reof
the
indu
stry
, inc
ludi
ngits
link
ages
to th
ein
frast
ruct
ure
CAP
EX,
and
leve
ragi
ng e
xist
ing
capa
bilit
ies
for e
xpor
ts
Broa
d ag
reem
ent i
ngo
vern
men
t and
with
stak
ehol
ders
on
the
futu
re o
f the
indu
stry
(incl
udin
g is
sues
on
upst
ream
and
dow
nstre
am li
nkag
es,
and
impa
ct o
n ex
ports
and
fiscu
s)
Broa
d ag
reem
ent i
ngo
vern
men
t and
with
stak
ehol
ders
on
inte
rven
tions
to e
nsur
eva
lue
chai
n co
ntrib
utes
optim
ally
to A
SGI-S
Ata
rget
s ar
ound
sha
red
grow
th, e
spec
ially
inte
rms
of e
mpl
oym
ent
crea
tion
and
hous
ehol
dfo
od s
ecur
ity
Broa
d ag
reem
ent o
ngo
vern
men
tin
terv
entio
ns to
sup
port
cont
ent d
evel
opm
ent
with
in IC
T se
rvic
es a
ndel
ectro
-tech
nica
lpr
oduc
ts (l
inke
d to
the
impl
emen
tatio
n of
the
digi
tal m
igra
tion
stra
tegy
and
expa
nsio
n of
broa
dban
d ac
cess
).
Tim
efra
mes
(for
ach
ievi
ngou
tput
s)A
rea
of P
rior
ity
Pres
iden
cy, D
PE, N
T
the
dti,
Pres
iden
cy,
DEA
T, D
WAF
, DPE
,N
T, D
ST
Pres
iden
cy, D
WAF
,D
EAT,
DPL
G, N
T, D
ST
the
dti,
DST
,Pr
esid
ency
Dra
ft do
cum
ent:
Nov
embe
r 200
7
Subm
issi
on to
Jan
uary
Lekg
otla
Wor
ksho
p to
take
pla
cein
Jun
e 20
07
Subm
issi
on o
f a d
raft
repo
rt to
Clu
ster
by
Nov
embe
r
Com
plet
e dr
aft i
nN
ovem
ber 2
007
Subm
issi
on to
Jan
uary
Lek
gotla
Dis
cuss
ion
on d
raft
docu
men
t at I
SFG
inJu
ne
Subm
issi
on to
Jul
yLe
kgot
la
30Industrial Policy Action Plan
3.5.5 SECTORS FOR WHICH SUBSTANTIAL SECTOR STRATEGY DEVELOPMENT AND PERSPECTIVESIS FURTHER REQUIRED
There are a number of sectors in the economy that have the potential to contribute to the competitiveness ofthe tradable activities and also diversify the non-traditional tradable activities. However no coherent sectoralapproach and strategies have been developed to take economic advantages presented in these sectors.Although there are projects that are already being rolled-out in some of these sectors, there is however theneed to develop an overarching strategy for each of these sectors as a basis for prioritising interventions.
During 2007/8 more comprehensive sector strategies and interventions will be developed, including in thefollowing sectors:
Mining and mineral beneficiation Agriculture /Agro-processing ICT (services and products) Creative Industries
Develop perspectives on: White goods Retail
Community/Social services
The 2007/8 IPAP commits to a process for sector strategy development as a KAP for this financial year. Theprocess should provide the basis for developing and prioritising sector-specific KAPs, which would beincorporated into 2008/9 IPAP and POA implementation plans. The table below sets out the process to befollowed for each of the above-mentioned sectors:
33Industrial Policy Action Plan
3.6 CROSS-CUTTING PRIORITIESThere are a number of cross-cutting interventions necessary to underpin a successful industrial policy. Inparticular, the efficiency of the basic rail and port infrastructure; the availability and cost of broadbandtelecommunications infrastructure; and the availability of appropriate skills have emerged as major cross-cutting constraints. Regulatory effectiveness of government is also an important factor that impacts on firms.For small and medium size firms the ‘regulatory burden’ may be too onerous. However, large projects mayalso be held up due to regulatory delays. Therefore the cross-cutting priorities for implementation in thiscurrent cycle of IPAP are designed to deal with these challenges. As should be expected, some of the cross-cutting priorit ies are informed by the sectoral interventions hence the similarity in the KAPs.
3.6.1 Improving the design and administration of industrial financingIndustrial financing is one of the important pillars available to successfully implement the NIPF. There is awell-developed infrastructure for providing industrial finance in South Africa, notably through The EnterpriseOrganisation (TEO) division of the dti, and the Industrial Development Corporation (IDC). The suitability ofcurrent financing mechanisms – most of which were designed in the immediate post-1994 period – are beingre-evaluated, taking into account evidence about their effectiveness, changed conditions and global bestpractice.
There are also specific areas of weakness in the current industrial financing that need to be addressed. Theyinclude the need for greater scale and more prioritisation, higher levels of reciprocity, greater emphasis onmore labour-intensive and value-adding activities and a focus on stimulating new or quantitatively higherlevels of economic activity. In addition to these issues of the design, the quantum of industrial financing alsoneeds to be re-visited. Firstly, industrial financing will play a critical role in leveraging the levels of privatesector investment necessary to meet the ASGI-SA target of raising gross fixed capital formation to 25 per-cent of GDP by 2014. Secondly, as the evolution of the global trading system generates diminishing spaceto use tariffs as an instrument of industrial policy, the role of industrial financing becomes correspondinglymore important. Thirdly, in the context of a volatile and often overvalued currency, industrial financingbecomes critical.
32Industrial Policy Action Plan
Phar
mac
eutic
als
Whi
te G
oods
Ret
ail
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Lead
/re
port
ing
depa
rtm
ent
Dev
elop
gov
ernm
ent
posi
tion
on th
epr
omot
ion
ofsu
stai
ned
loca
lpr
oduc
tion
ofph
arm
aceu
tical
s
Dev
elop
men
t of a
sect
oral
per
spec
tive
Dev
elop
men
t of a
sect
oral
per
spec
tive
Phar
mac
eutic
als
deve
lopm
ent s
trate
gyto
resp
ond
to th
edo
mes
tic d
eman
d fo
rdr
ugs
incl
udin
g AR
Vs
Doc
umen
t ind
icat
ing
curre
nt ro
le o
f the
indu
stry
in th
eec
onom
y, po
tent
ial fo
rac
hiev
ing
ASG
I-SA
targ
ets,
and
whe
ther
gove
rnm
ent
inte
rven
tions
are
desi
rabl
e or
nece
ssar
y
Doc
umen
t ind
icat
ing
curre
nt ro
le o
f the
indu
stry
in th
eec
onom
y, po
tent
ial fo
rac
hiev
ing
ASG
I-SA
targ
ets,
and
whe
ther
gove
rnm
ent
inte
rven
tions
are
desi
rabl
e or
nece
ssar
y
Proc
ess
unde
rway
at N
EDLA
C to
anal
yse
the
pote
ntia
lan
d co
nstra
ints
of
the
indu
stry
ISFG
to d
evel
opbr
ief d
ocum
ent
base
d on
exi
stin
gre
sear
ch
ISFG
to d
evel
opbr
ief d
ocum
ent
base
d on
exi
stin
gre
sear
ch
the
dti
the
dti
the
dti
Broa
d ag
reem
ent o
nw
heth
er a
nd h
owgo
vern
men
t sho
uld
supp
ort l
ocal
prod
uctio
n of
phar
mac
eutic
als
Broa
d ag
reem
ent o
nth
e ro
le o
f the
indu
stry
in a
chie
ving
ASG
I-SA
targ
ets,
esp
ecia
lly fo
rem
ploy
men
t cre
atio
n
Broa
d ag
reem
ent o
nth
e ro
le o
f the
indu
stry
in a
chie
ving
ASG
I-SA
targ
ets,
esp
ecia
lly fo
rem
ploy
men
t cre
atio
n
Tim
efra
mes
(for
ach
ievi
ngou
tput
s)A
rea
of P
rior
ity
Pres
iden
cy, D
ST,
DoH
, NT
Pres
iden
cy
Pres
iden
cy
NED
LAC
pro
cess
tode
liver
a fi
nal r
epor
tin
Jun
e
Stra
tegy
to b
eco
mpl
eted
in M
arch
2008
Subm
issi
on o
f a d
raft
repo
rt to
Clu
ster
by
Nov
embe
r
Doc
umen
t to
Janu
ary
Lekg
otla
Subm
issi
on o
f a d
raft
repo
rt to
Clu
ster
by
Nov
embe
r
Doc
umen
t to
Janu
ary
Lekg
otla
35Industrial Policy Action Plan
3.6.2 Leveraging public procurementLarge-scale plans are being implemented to both upgrade and install new infrastructure (electricity, rail, andports) as well as broader expenditure plans in areas such as ICT, health, housing, 2010 FIFA World Cup, andthe taxi re-capitalisation programme. This public expenditure will provide a massive investment injection intothe economy over the coming decade.
On the back of this investment arises a major opportunity to leverage the public expenditure, by ensuring thatdomestic firms are sufficiently competitive to capture significant portions of it; without compromising price andquality. However, substantial coordination will be required in order to maximise the linkages from the publicexpenditure programme. Industries and firms that previously supplied the parastatals have lost substantialcapabilities with some no longer active due to low levels of investment over the last two decades. As a result,a range of coordination activities need to take place: between public procurement managers and potentialsuppliers; amongst firms that can potentially form supply consortia; and between government departmentsparticularly linking the dti’s Customised Strategy Programmes (CSPs), DPE’s expenditure plans and DOL’straining plans.
2007/8 KAPs are:Development of supplier development strategies for each major government stream spending. For this year, the priorities will be focused mainly on the development of supplier development strategiesfor the following stream of expenditure programmes: energy, rail and ports, public transport, and ICT– linked to the implementation of the digital migration strategy, local manufacturing of Set Top Boxes (refer to KAP under capital goods, metal fabrications and transport equipment and also underICT services and electro-technical products). The work would require clear definition of supplier development targets and associated conditions.In order to ensure that public spending results in maximum benefits for the economy, state procurementmust be aligned to industrial policy imperatives. This would require that all government departmentsinclude domestic production perspective in their procurement plans and develop mechanisms for monitoring and evaluating the roll-out thereof.
3.6.3 Reducing intermediate input costsThe cost of intermediate inputs has been identified as a key constraint retarding the growth and employmentpotential in a number of sectors due to, inter alia, lack of competition in a number of key intermediate industries.The effectiveness and the enforcement of the competition policy and law, therefore, assume importance giventhe uniquely concentrated nature of the South Africa economy.
The KAPs from the above sector-specific activities include measures to be undertaken in this financial yearto address this issue of input costs. These mainly encompass: the finalisation of the competition policy andlaw review, which is aimed at strengthening the Competition Act; and the review of import duties on a numberof upstream products. Tariffs on upstream input industries may be reduced or removed, in the interests oflowering input costs into downstream manufacturing, taking into account issues such as domestic productioncapabilities and the levels of global distortions in these products. Tariffs on downstream industries, particularlythose that are strategic from an employment or value-addition perspective, will be retained in a manner thatensures long-term sustainability and global competitiveness. Such tariff determinations will be conducted ona case-by-case basis, taking into account the specif ic circumstances of the sector involved.
34Industrial Policy Action Plan
Fast
-trac
k pr
oces
s w
ithN
atio
nal T
reas
ury
to fi
nalis
eim
prov
ed s
uite
of i
ncen
tives
Up-
scal
ing
of th
e ID
Zpr
ogra
mm
e
Mod
aliti
es w
ith th
e In
dust
rial
Dev
elop
men
t Cor
pora
tion
(IDC
)
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Ensu
re th
at in
dust
rial
finan
cing
dis
pers
ion
lead
s to
the
desi
red
stru
ctur
alch
ange
s in
the
econ
omy
impr
ove
the
mon
itorin
g an
dev
alua
tion
of s
uppo
rtm
easu
res,
incl
udin
gm
onito
ring
the
qual
ity o
f the
adm
inis
trativ
e pr
oces
ses
Expa
nsiv
e pr
ogra
mm
e to
faci
litat
e an
d in
crea
se F
DI
and
empl
oym
ent a
cros
s a
rang
e of
sec
tors
Ensu
re g
reat
er a
lignm
ent
betw
een
IDC
fina
ncin
g an
dth
e na
tiona
l ind
ustri
al p
olic
ypr
iorit
ies
Inte
ract
ions
with
NT
Cab
inet
app
rova
l of t
he re
gion
alin
dust
rial d
evel
opm
ent s
trate
gyan
d th
e ne
w p
olic
y fra
mew
ork
arou
nd th
e ID
Zs
Stak
ehol
der c
onsu
ltatio
ns,
parti
cula
rly w
ith p
rovi
nces
Enga
gem
ents
and
con
sulta
tions
with
rele
vant
sta
keho
lder
s
DST
, Pre
side
ncy
Prov
ince
s, lo
cal g
over
nmen
t,N
T, D
PE, D
HA,
SAR
S, N
PA,
IDZ
oper
ator
s
DST
Mar
ch 2
008
Mar
ch 2
008
On-
goin
g
Agre
ed m
etho
dolo
gy w
ith N
T on
finan
cing
ince
ntiv
es
Rei
ntro
duct
ion
of ta
rget
ed a
nd u
p-sc
aled
of t
ax in
cent
ives
Rev
ised
SM
EDP
Up-
scal
ing
of C
ritica
l Infra
stru
ctur
eFu
nd
Dev
elop
men
t of I
ndus
trial
Upg
radi
ng P
rogr
amm
e
Expa
nd th
e nu
mbe
r of I
DZs
Fina
lise
gove
rnan
ce a
nd fi
nanc
ing
mec
hani
sms
for I
DZs
Agre
ed m
odal
ities
with
the
IDC
KA
Ps
(to
be le
d by
the
dti T
reas
ury)
are
:
37Industrial Policy Action Plan
3.6.4 Improving support mechanisms for innovation, technology and R&D supportGreater support for innovation and technology is necessary in order to contribute to the national target ofincreasing and sustaining R&D expenditure to 1 per-cent of GDP. South Africa has pockets of technologiesand capabilities that can be leveraged in order to narrow the gap with a range of technologically sophisticateddeveloped and developing countries. Although it is difficult, risky and costly, there is a long-term need todevelop domestic technologies and bring them to market. In this regard, substantial work has been done withrespect to tracking global technology trends and relating them to areas where South Africa could lead withrespect to proprietary technologies or where it should focus on technology transfer, adoption and adaptation.The National Research and Development Strategy, from DST, provides the overarching framework fortechnological interventions, particularly on the research side of R&D.
The focus from the NIPF is, therefore, weighted heavily towards the development side of R&D. This requiresthat technology financing be expanded in order to meet our national R&D targets, which in turn impliesincreased support measures for process and product innovation, and commercialisation of technologies. Thereis, therefore, a need for greater coherence and collaboration between the dti and DST in developing suchsupport measures. There is also a broader policy need to strengthen systems to protect and develop SouthAfrica intellectual property (IP) and to encourage its commercialisation domestically in favour of licensingabroad. This is particularly with respect to IP that is developed through the public purse, such as the ScienceCouncils.
36Industrial Policy Action Plan
Fina
lise
the
com
petit
ion
polic
yan
d la
w re
view
Rev
iew
of i
mpo
rt du
ties
of k
eyin
dust
rial i
nput
s in
tom
anuf
actu
ring
(incl
udin
gup
stre
am c
hem
ical
s,al
umin
ium
and
text
iles)
Rev
iew
of i
mpo
rt du
ties
onm
achi
nery
and
equ
ipm
ent n
otpr
oduc
ed a
nd n
ot li
kely
to b
epr
oduc
ed in
Sou
th A
frica
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Shift
the
man
date
of t
heco
mpe
titio
n au
thor
ities
to a
stro
nger
pol
icy
advo
cacy
info
rmed
by
the
NIP
F an
dst
reng
then
it to
dea
l mor
e w
ithan
ti-co
mpe
titiv
e pr
actic
es a
ndou
tcom
es in
the
econ
omy.
Red
uce
cost
s in
puts
into
sele
cted
man
ufac
turin
gin
dust
ries
thro
ugh
revi
ewin
gun
due
trade
pro
tect
ion
Red
uce
the
cost
s of
the
inpu
tsto
feed
into
the
publ
ic a
ndpr
ivat
e in
vest
men
tpr
ogra
mm
es
Con
sulta
tion
betw
een
stak
ehol
ders
on th
e po
licy
and
draf
t am
endm
ents
Initi
ate
inve
stig
atio
ns w
ith IT
AC
Initi
ate
an in
vest
igat
ion
with
ITAC
com
petit
ion
auth
oriti
es,
Pres
iden
cy,
DPE
ITAC
, NT
ITAC
, Pre
side
ncy,
NT
July
200
7 fo
r Com
petit
ion
Polic
y D
oc
Dec
embe
r 200
7 fo
r Dra
ftam
endm
ents
Mar
ch 2
008
Mar
ch 2
008
Com
petit
ion
Polic
y D
ocum
ent t
o be
appr
oved
by
Cab
inet
Dra
ft am
endm
ents
to s
treng
then
Com
petit
ion
Act a
ppro
ved
byC
abin
et.
Impo
rt du
ties
on s
elec
ted
upst
ream
chem
ical
s, a
lum
iniu
m a
nd te
xtile
sre
view
ed
Impo
rt du
ties
on m
achi
nery
and
equi
pmen
t not
pro
duce
d an
d no
tlik
ely
to b
e pr
oduc
ed in
Sou
th A
frica
revi
ewed
KA
Ps
(to
be le
d by
the
dti)
are:
39Industrial Policy Action Plan
3.6.5 Improving infrastructure and logisticsThere have been difficulties with both the price and quality of the infrastructure necessary for trade anddevelopment. The efficiency of the basic rail and port infrastructure, public transport, as well as the availabilityand cost of broadband telecommunications infrastructure, have emerged as major cross-cutting constraints.Similarly, there is a need for sufficient and cost-effective energy supply via a reliable distribution system.
The decline in annual infrastructure investment since the late 1970s has been reversed. There are large-scaleplans implemented to both upgrade and install new infrastructure (ICT, roads, public transport, electricity, rail,and ports).
38Industrial Policy Action Plan
KA
Ps
(to
be le
d by
the
dti)
are:
Dev
elop
mec
hani
sms
toop
erat
iona
lise
and
mon
itor
the
R&D
tax
ince
ntiv
ear
rang
emen
ts.
Impr
ove
polic
y ar
rang
emen
tsw
ith re
gard
to th
e tre
atm
ent
of IP
on
publ
icly
-fund
ed R
&D
Dev
elop
the
inst
itutio
nal
plat
form
s re
quire
d to
sup
port
cutti
ng-e
dge
indu
strie
s in
Sout
h Af
rica
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Tim
efra
mes
(for
ach
ievi
ng o
utpu
ts)
Effe
ctiv
e ar
rang
emen
ts in
plac
e th
at fa
cilit
ate
incr
ease
in p
rivat
e se
ctor
inve
stm
ent
in S
outh
Afri
ca.
Incr
ease
leve
ls o
fco
mm
erci
alis
atio
n fro
mpu
blic
ly-fu
nded
rese
arch
Incr
ease
num
ber o
fkn
owle
dge-
base
d in
dust
ries,
engi
neer
ing
firm
s, a
ndin
dust
ries
base
d on
hig
h-va
lue
prod
ucts
DST
to d
evel
op th
e ap
prop
riate
adm
inis
trativ
e sy
stem
s to
geth
erw
ith th
e SA
RS,
and
indu
stry
DST
to d
evel
op d
raft
legi
slat
ion
follo
wed
by
cons
ulta
tion
with
inte
rest
ed s
take
hold
ers
afte
rw
hich
it w
ill be
intro
duce
d in
toth
e le
gisl
ativ
e pr
oces
s
Fina
lisat
ion
of a
det
aile
d bu
sines
sca
se a
nd th
e de
velo
pmen
t of
enab
ling
legi
slat
ion
for t
he T
IA.
Fina
lisat
ion
of d
etai
led
busi
ness
case
and
the
deve
lopm
ent o
fen
ablin
g le
gisl
atio
n fo
r SAS
A.
the
dti,
NT,
SAR
S
the
dti,
DM
E, D
oH, D
oA
the
dti,
DPE
, DoC
, DoE
, DM
E
Firs
t rep
ort –
Nov
embe
r 200
7
Subm
it in
to th
e le
gisl
ativ
epr
oces
s by
the
end
of J
uly.
Proc
ess
ther
eafte
r will
depe
ndon
the
Parli
amen
tary
cal
enda
r.An
ticip
atio
n th
at th
e le
gisla
tion
will
be in
pla
ce b
y M
arch
200
8
TIA
busi
ness
cas
e by
Jun
e20
07 a
nd le
gisl
ativ
e pr
oces
sto
follo
w
SASA
bus
ines
s ca
se b
y Ju
ne20
07 a
nd le
gisl
ativ
e pr
oces
sto
follo
w
Stra
tegy
for s
pace
indu
stry
by M
arch
200
8
R&D
stra
tegy
for t
heH
ydro
gen
Econ
omy
by J
une
2007
Indu
stria
l sup
port
stra
tegy
for
Mee
rKAT
by
Dec
embe
r 200
7
Reg
ular
repo
rt on
the
impa
ct o
fth
e R
&D ta
x in
cent
ives
Legi
slat
ion
gove
rnin
g th
etre
atm
ent o
f IP
from
pub
licly
-fu
nded
R&D
Appr
oval
of d
raft
legi
slat
ion
byC
abin
et
Esta
blis
hmen
t of T
echn
olog
ical
Inno
vatio
n Ag
ency
(TIA
)
Esta
blis
hmen
t of t
he S
outh
Afri
caSp
ace
Agen
cy (S
ASA)
Stra
tegy
to d
evel
op a
n in
dust
rial
base
for s
pace
-rela
ted
infra
stru
ctur
e, p
rodu
cts
and
serv
ices
Res
earc
h, d
evel
opm
ent a
ndin
dust
rial s
uppo
rt st
rate
gy fo
r the
deve
lopm
ent o
f hyd
roge
n-ec
onom
y re
late
d pr
oduc
ts (e
.g.
cata
lyst
s ba
sed
on th
e Pl
atin
um-
grou
p m
etal
s –
and
cost
-co
mpe
titiv
e hy
drog
en)
Indu
stria
l sup
port
stra
tegy
for t
hede
velo
pmen
t of M
eerK
AT
41Industrial Policy Action Plan
3.6.6 Linking skills development to sector strategiesSkills development and training has emerged as one of the key constraint holding back a number of, if notall, sector development. Although the educational and skills development framework are led by the DOE andDOL respectively, and therefore the related interventions falls under the skills focus group of the EconomicCluster, there is however, a need for greater and stronger integration between industrial and skills policy andimplementation, particularly with respect to sector strategies. This is critical in areas such as ensuring thatsector and SETA strategies and implementation are better aligned; and that scarce skills and immigrationissues are appropriately prioritised.
The projects for this year are therefore focused on improving institutional arrangements around skills policyand skill development and training for enhanced alignment to the economic needs. The work around theestablishment of centres of excellence and competence to develop South Africa skills, technology and sciencebase will continue and as more refinements are achieved this year, critical actions emanating from this areaof focus will inform IPAP in future years.
40Industrial Policy Action Plan
Incr
ease
acc
ess
to IC
Tin
frast
ruct
ure
Dev
elop
a m
onito
ring
syst
em fo
r inf
rast
ruct
ure
impl
emen
tatio
n an
dex
ecut
e im
pact
asse
ssm
ent i
n ar
eas
incl
udin
g en
ergy
, wat
er,
ICT,
por
ts, r
ail,
air-
trans
port,
road
as
refle
cted
in A
SGI-S
A
Fina
lise
ports
and
rail
inve
stm
ent p
lan
Impl
emen
t the
pub
lictra
nspo
rt ac
tion
plan
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Lead
/re
port
ing
depa
rtm
ent
Impr
ove
cost
s an
dac
cess
ibilit
y of
ICT
tech
nolo
gies
in th
eec
onom
y
Con
tinuo
usim
prov
emen
t in
infra
stru
ctur
e
Expa
nd c
apac
ity fo
rco
mpe
titiv
e po
rts a
ndra
il sy
stem
s th
at a
lso
serv
e de
velo
pmen
tal
need
s
Impr
oved
pub
lictra
nspo
rt’s
effic
ienc
yan
d af
ford
abilit
y on
am
ass
scal
e
DPE
to e
stab
lish
mon
itorin
g sy
stem
and
com
plet
e im
pact
asse
ssm
ents
Rel
evan
t dep
artm
ents
to d
evel
op p
lan
with
stak
ehol
ders
DO
C
Pres
iden
cy
DPE
and
DO
T
DO
T
Rol
l-out
Sen
tech
Wire
less
Bro
adba
ndan
d In
fraco
and
impl
emen
ting
Dig
ital
Mig
ratio
n St
rate
gy
Enha
nce
acce
ss to
high
-spe
ed b
road
band
by th
e re
sear
chco
mm
unity
thro
ugh
the
esta
blis
hmen
t of
SAN
ReN
(Sou
th A
frica
nN
atio
nal R
esea
rch
Net
wor
k)
Rep
ort t
o C
abin
et o
nes
tabl
ishm
ent a
ndna
ture
of m
onito
ring
syst
em a
nd o
n im
pact
asse
ssm
ents
Plan
sub
mitt
ed to
Clu
ster
and
then
Cab
inet
Acce
lera
teim
plem
enta
tion
of ta
xire
cap
prog
ram
me
Acce
lera
teim
plem
enta
tion
ofre
form
ed b
us s
ubsi
dysy
stem
Inve
stm
ent p
lan
for
publ
ic tr
ansp
ort t
o 20
11(fo
r 6 m
etro
s an
d 6
seco
ndar
y ci
ties)
Tim
efra
mes
(for
ach
ievi
ngou
tput
s)
DPE
, the
dti,
DST
,Pr
esid
ency
, NT
DPE
, DW
AF, D
PLG
,N
T, D
OT,
DM
E, D
OC
Pres
iden
cy, t
he d
ti, N
T
Pres
iden
cy, t
he d
ti, N
T
Dec
embe
r 200
7
Augu
st 2
007
July
200
7
Nov
embe
r 200
7
June
200
8
Mar
ch 2
008
2007
/8 K
AP
s ar
e:
GLOSSARY
ASGI-SA Accelerated and Shared Growth Initiative for South Africa
ACSA Airports Company of South Africa
BBBEE Broad Based Black Economic Empowerment
BPO&O Business Process Outsourcing and Offshoring
DAC Department of Arts and Culture
DCCS Duty Credit Certificate Scheme
DEAT Department of Environmental Affairs and Tourism
DHA Department of Home Affairs
DME Department of Minerals and Energy
DoA Department of Agriculture
DoC Department of Communications
DoE Department of Education
DoL Department of Labour
DoT Department of Transport
DPE Department of Public Enterprises
DSS Department of Social Services
DST Department of Science and Technology
the dti Department of Trade and Industry
DWAF Department of Water Affairs and Forestry
FRIDGE Fund for Research into Industrial Development, Growth and Equity
GDP Gross Domestic Product
IDC Industrial Development Corporation
ISFG Industrial Strategy Focus Group
IPAP Industrial Policy Action Plan
KAP Key Action Plan
MIDP Motor Industry Development Programme
NIPF National Industrial Policy Framework
NT National Treasury
POA Programme of Action
SABS South African Bureau of Standards
SACU Southern African Customs Union
SAT South Africa Tourism
SOE State Owned Enterprise
STATSSA Statistics South Africa
43Industrial Policy Action Plan
42Industrial Policy Action Plan
Asse
ss th
e ef
fect
iven
ess
ofth
e ex
istin
g in
stitu
tiona
l skil
lsge
nera
tion
syst
ems
Asse
ss th
e ef
fect
iven
ess
ofth
e ex
istin
g oc
cupa
tiona
lsk
ills g
ener
atio
n sy
stem
Rev
iew
targ
ets
and
stre
ngth
en in
tegr
atio
n an
dco
ordi
natio
n of
Nat
iona
lH
uman
Res
ourc
eD
evel
opm
ent S
trate
gy(in
cludi
ng N
SDS
and
JIPS
A)
Ref
ine
and
impr
ove
the
impl
emen
tatio
n of
the
scar
ce s
kills
impo
rtatio
nfra
mew
ork
Esta
blis
hmen
t of f
orum
betw
een
the
Skills
Foc
usG
roup
(SFG
) and
the
Indu
stria
l Stra
tegy
Foc
usG
roup
(ISF
G) t
o de
velo
p a
stra
tegy
to lin
k th
e ed
ucat
ion
and
skills
dev
elop
men
tpo
licy
to th
e N
IPF
Pro
ject
s/ K
AP
sO
utco
me
Ben
chm
arks
Out
put
Pro
cess
es to
achi
eve
outp
uts
Sta
keho
lder
depa
rtm
ents
Lead
/re
port
ing
depa
rtm
ent
Addr
ess
capa
city
in G
ener
al,
Furth
er a
nd H
ighe
r Edu
catio
nin
stitu
tions
to m
eet t
he s
kills
requ
irem
ents
Addr
ess
gove
rnan
ce a
ndop
erat
iona
l mat
ters
perta
inin
g to
SET
As, N
SFan
d ot
her o
ccup
atio
nally
rela
ted
skills
dev
elop
men
tst
ruct
ures
to a
ccel
erat
eoc
cupa
tiona
l ski
llsde
velo
pmen
t
Ensu
re lo
ng-te
rm p
rovi
sion
of c
ore
and
criti
cal s
kills
espe
cial
ly in
prio
rity
sect
ors
Bette
r alig
nmen
t of e
cono
mic
scar
ce s
kills
and
imm
igra
tion
quot
a lis
t
Ensu
re th
at th
e ed
ucat
ion
and
skills
dev
elop
men
t pol
icyar
e al
igne
d to
the
NIP
F
Inte
ract
ions
bet
wee
ngo
vern
men
t dep
artm
ents
,fin
alis
e im
plem
enta
tion
plan
on
the
criti
cal a
reas
iden
tifie
d by
the
JIPS
A
Inte
ract
ions
bet
wee
ngo
vern
men
t dep
artm
ents
,fin
alis
e im
plem
enta
tion
plan
on
the
criti
cal a
reas
iden
tifie
d by
the
JIPS
A
Inte
ract
ions
bet
wee
n ke
yde
partm
ents
Inte
r-dep
artm
enta
lco
ordi
natio
n to
dev
elop
the
mas
ter l
ist a
nd a
lso
the
quot
a lis
t
Form
al in
tera
ctio
nsbe
twee
n tw
o Fo
cus
Gro
ups
to a
gree
on
Foru
m’s
Ter
ms
ofR
efer
ence
and
oper
atio
nalis
atio
n
DO
E
DO
L
DO
E
DH
A
the
dti
Rep
ort w
ith c
lear
reco
mm
enda
tions
toC
lust
er a
nd th
en C
abin
et
Rep
ort w
ith c
lear
reco
mm
enda
tions
toC
lust
er a
nd th
en C
abin
et
Rev
ised
NH
RD
S an
dta
rget
s
Mon
itorin
g an
d ev
alua
tion
fram
ewor
k
Rev
ised
quo
ta li
st
SFG
and
ISFG
For
um
Tim
efra
mes
(for
ach
ievi
ngou
tput
s)
Pres
iden
cy, D
OL,
the
dti,
DPE
, DST
, DH
A
Pres
iden
cy,
DO
E, th
edt
i, D
PE, D
ST, D
HA,
DPS
A
DO
L, P
resi
denc
y, th
edt
i, D
OC
, DPE
, DST
,D
HA,
DPS
A
Pres
iden
cy, D
OE,
DO
L, th
e dt
i, D
ST,
DO
H
Pres
iden
cy D
oL,
DoE
, DPE
, D
ST,
DH
A, D
PSA
Dec
embe
r 200
7
Dec
embe
r 200
7
Dec
embe
r 200
7 fo
r adr
aft t
o be
dis
cuss
edw
ith k
ey s
take
hold
ers
Janu
ary
2008
for
Cab
inet
sub
mis
sion
Nov
embe
r 200
7Au
gust
200
7
2007
/8 K
AP
s ar
e:
LAYO
UT
& D
ESIG
N: N
DO
FIRE
CRE
ATI
VE
CO
MM
UN
ICA
TIO
NS.
TEL
: 011
534
372
4