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Industrial Development

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Industrial Development

The Industrial Policy Action Plan (IPAP) is firmly entrenched in Government's overall policy and plans to address the key challenges of economic and industrial growth and race based poverty, inequality and unemployment. It is a key component of the President's Nine Point Plan and is aligned to the policy perspective of Radical Economic Transformation. It is guided by the vision of the National Development Plan. IPAP 2017 is aligned to the Medium Term Expenditure Framework (MTEF) as well as the Medium Term Strategic Framework. (MTSF)

The IPAP is a product of the Economic Sectors, Employment and Infrastructure Development (ESEID) cluster. The responsibility for its implementation lies with Government as a whole and a wide range of entities, including SOCs.

IPAP 2017/18-2019/20

Key Focal Areas

  • The need to raise aggregate domestic demand
  • The national Buy Back SA campaign must be energetically implemented, with the full support of the public sector, led by Proudly SA, the SOCs and the private sector
  • The need to ensure a much stronger on-going focus on labour intensity across the value chains
  • A stepped-up export effort - because of the strong economic and employment multipliers which result - with a focus on key existing exporters, emerging and export-ready firms and supporting new black-owned entrants
  • Continuing efforts to achieve a well-regulated, integrated, development-friendly investment framework to raise levels of productive (non-portfolio) capital inflows into the economy
  • " Strengthening of on-going efforts to build a less concentrated, more competitive economic and manufacturing structure in which barriers to entry for new entrants are lowered across key sectors of the economy
  • An understanding that the Fourth Industrial Revolution and disruptive technologies do constitute a clear and present threat to the competitiveness of South African industry and employment; and, therefore, that a concerted, integrated government approach to the issue is imperative

Overcoming constraints - moving forward

IPAP 2017/18 - 2019/20 will be reinstating its efforts to overcome persistent structural hurdles to development and industrialisation, focussing on:
  • enhancing the contribution of manufacturing to a more inclusive economy both by promoting black industrialists and small business;
  • support large, lead and dynamic firms, greater attention will be paid to providing holistic support to emerging enterprises and to concrete measures to maximise the indirect employment benefits of industrialisation;
  • diversifying away from commodity dependence by take advantage of the end of the metal's price boom to promote new industries and activities that are more sustainable, promote higher value add and encourage employment creation;
  • developing integrated regional value chains to open opportunities for industrialisation across the region, including South Africa, and reduce the cost of logistics (including regulatory delays and fees) while at the same time ramping up transport and communications infrastructure;
  • responding proactively to the massive shifts in technology - the fourth industrial revolution - indicated by digitisation, the internet of things and big data capabilities and
  • drawing on all possible state levers based on clear priorities, consistency, and strong alignment across the state

  • Industrial Policy Action Plan (IPAP 2017/18-2019/20) - Part 1
  • Industrial Policy Action Plan (IPAP 2017/18-2019/20) - Part 2