Automotive Stakeholders Celebrate Record Exports in Final Executive Oversight Committee Meeting of the Masterplan of 6th Administration

The South African automotive industry achieved a record-high level of vehicle exports in 2023, reflecting the positive impacts of regulatory changes and increased investment in the sector. In total, 399 594 vehicles were exported, with overall production reaching 633 332 vehicles, marking a significant recovery from the 2020 production level of 441 822 vehicles. The industry generated R270.8 billion in revenue from vehicle and component exports in 2023, representing a robust 19.1% growth compared to the previous year. Notably, exports to African countries totalled 25 381 vehicles, signalling promising opportunities for further expansion under the African Continental Free Trade Area (AfCFTA).

Today, key stakeholders in the automotive sector, including CEOs of major OEMs, component manufacturers, and the Minister of Trade, Industry, and Competition, convened in Gqeberha, Eastern Cape, to review the industry’s progress over recent years.

Despite facing significant challenges such as the COVID-19 pandemic, global recession, supply chain disruptions, floods, and semiconductor shortages leading to production challenges, the South African automotive industry has continued its growth.

Commenting on the developments in the industry, Minister Ebrahim Patel remarked:

“Our automotive industry has shown remarkable resilience and growth, in the face of considerable global challenges, highlighting its pivotal role in driving economic growth and fostering regional trade opportunities under the AfCFTA. Over the past five years, the dtic has spearheaded key interventions to bolster the automotive sector, including implementing the Masterplan, securing market access agreements, and facilitating over R60 billion in investments.

“Stellantis’s arrival in South Africa will create more jobs and consolidate South Africa’s position amongst the top 25 car producers globally. Already South Africa accounts for more than 50% of vehicles produced on the African continent. Today’s gathering of industry leaders reflects our collective commitment to furthering the success of South Africa’s automotive sector.”

Over the past five years, the Department of Trade, Industry, and Competition (the dtic) has spearheaded ten key interventions to bolster the automotive sector:

Implementation of the Masterplan from 2021, following refinements to the Plan and Regulations.

Agreement on modalities for African Market Access under the AfCFTA, including kit exports in the Automotive Production and Development Programme (APDP).

Securing a UK free-trade deal post-Brexit to preserve preferential market access.

Agreement on a R6 billion Auto Industry Transformation Fund with OEMs and subsequent implementation.

Auto component deal in 2023 with up to R690 million in grants and R1.5 billion procurement for black manufacturers.

Facilitation of over R60 billion in investments for plant upgrades, new models, and component manufacturing.

Plans for a new auto factory by Stellantis for Peugeot vehicle production in South Africa.

Commencement of new car production by BAIC through semi-knock down assembly.

Launch of the Tshwane Automotive Special Economic Zone (SEZ) with 11 factories employing 3,300 workers.

Completion of the Electric Vehicle (EV) Policy in December 2023, with new incentives announced in February 2024.

Several noteworthy projects have also been launched during this period, with the following announcements in the just the last year:

On 29 June 2023, BMW SA announced that it will invest R4,5 billion over five years to prepare the manufacturing plant in Rosslyn for the production of the X3 Plug-in Hybrid. This will make the BMW SA Rosslyn plant the second in the world to produce and export its X3 plug-in hybrid model.

On 31 August 2023 at the NAACAM show, 16 companies made investment pledges worth more than R4.8 billion between now and Dec 2024. The investments expected to support more than 10 000 jobs.

On 13 September 2023, Stellantis announced an investment of R3 billion to develop a new car manufacturing facility in Coega to produce in SA from 2026. The investment will create 1 000 jobs.

On 02 October 2023, Sumitomo Rubber SA announced an investment of R1,7 billion for the upgrading of the manufacturing plant in Ladysmith.

On 08 November 2023, Ford Motor Company of Southern Africa announced an investment of an additional R5.2 billion in the Silverton Assembly Plant for PHEV production. This follows R16 bn previously announced.

On 27 November 2023, Mercedes-Benz South Africa announced the investment of R100 million for the expansion of the photovoltaic renewable energy project for the East London Manufacturing Plant.

On 18 April 2024, Volkswagen South Africa (VWSA) announced an investment of R4 billion in their assembly plant in Kariega, EC to introduce a new SUV model built on the polo platform. This investment will sustain 3500 direct jobs and support 50 000 indirect jobs.

These investments reflect a strong commitment from key players in the automotive industry to expand production capacity, drive innovation, and create sustainable job opportunities in South Africa’s automotive sector.

The automotive manufacturing industry accounts for 3.2% of South Africa’s GDP, while the retail value chain adds another 2.1%, according to figures compiled by the National Association of Automobile Manufacturers of South Africa. The industry employs 116 069 people, largely across the provinces of the Eastern Cape, Gauteng and KwaZulu-Natal, growing by 6 214 in the sector since the masterplan came under implementation.

The South African automotive manufacturing industry is the 22nd largest in the world in terms of number of vehicles produced, and is the largest on the African continent, accounting for more than 54% vehicles assembled on the continent in 2023.

Minister Patel with Billy Tom, CEO of Isuzu Southern Africa and President of NAAMSA, at the Isuzu Manufacturing facility in Gqeberha, Eastern Cape

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Issued by: The Department of Trade, Industry and Competition (the dtic)
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The final building blocks for the establishment of South Africa’s latest automotive manufacturing site have been laid, paving the way for construction to begin shortly at the Coega Special Economic Zone (SEZ) in Gqeberha, Nelson Mandela Bay the Eastern Cape.

Stellantis, the world’s third biggest automotive manufacturer by volume, and South Africa’s largest development funder, the Industrial Development Corporation (IDC) have concluded key milestones that will lead to a Joint Venture (JV).  The investment estimated at R3-billion is expected to facilitate the creation of massive employment opportunities in the Eastern Cape. The Coega Development Corporation (CDC), which is supplying the ground on which the factory will be built, has begun preparing the site for the start of construction.

“I welcome the progress made with concluding all modalities with Stellantis that will enable construction to commence this year and start of production of a new auto model to roll off the assembly-line by the end of 2025. The SA auto industry is Africa’s largest producer of cars, bakkies and trucks and this new investment by Stellantis will consolidate the country’s position, helping us to achieve the goal of producing 1, 4 million vehicles by 2035. The biggest attractions for new investors are the size of the domestic market together with the auto industry masterplan, which supports local production for both South Africa and export markets.  Stellantis has a strong growth vision with an excellent range of vehicles in its global stable and we look forward through this investment to increasing the range of locally manufactured cars available to motorists,” said Ebrahim Patel, Minister of Trade, Industry and Competition.

“It’s heartening to see the manner in which the combination of expertise within the collective of the Department of Trade, Industry and Competition (DTIC), the IDC, CDC and Stellantis have united to form a cross functional team that is making excellent progress,” said Minister Patel “It’s this teamwork that will realise not only having Stellantis as SA’s eighth OEM, but most importantly in realizing the plans for employment and investment in South Africa and support our industrialisation drive. We look forward to a long and mutually beneficial relationship between Stellantis and South Africa.”

Stellantis Middle East Africa (MEA) COO, Samir Cherfan; Stellantis SA MD Mike Whitfield; IDC interim CEO David Jarvis; including CDC Acting CEO Themba Khoza echoed Patel’s sentiment stating that the progress made thus far was in line with their respective organisation’s strategic development goals.

“The construction of this plant is critical to Stellantis’s Dare Forward 2030 strategy. This strategy also speaks to the South African industrialization plan which is a very important tool in helping us achieve our target to produce a million units in the MEA region by 2030 – a factor that will help us attain 22% market share in this region. Our medium to long-term objective is to ensure that 90% of vehicles sold in the MEA region are sourced from our production plants in this region,” said Mr Cherfan.

The project is a major vote of confidence in South Africa as an investment destination and as a gateway into Africa. “We are very proud of being involved in this; the construction of this plant is a major statement of faith in this country and the capacity of South Africans to be entrusted with running a project of this magnitude. This is a factory of which we can all be proud of, not just because of what it will represent to the people of the Eastern Cape, but also because of the technological advances that it will incorporate and the environmentally conscious way that it has been planned, will be built and will be operated.” Cherfan added.

All fauna and flora have been successfully removed from the site and rehomed as per the environmental impact study conducted by Coega. “Coega is focused on delivering the finest plant for Stellantis, reinforcing the Coega SEZ as an automotive hub in the country, in line with its vision to be the leading catalyst for the championing of socio-economic development” said Coega Acting CEO Themba Koza. The impending construction of the Stellantis factory has acted as a catalyst to other investors, he said. “We have had numerous requests to support the automotive sector in Coega and to rapidly grow our planned supplier park.”

“The new company to house the Stellantis-IDC JV is on track to be registered. The milestones concluded thus far will help to kick start a project that will significantly improve the economic fortunes of the Eastern Cape,” said IDC’s Jarvis. He added that the IDC is pleased to be partnering with such a reputable automotive manufacturing company of Stellantis’s stature. “Stellantis’s success with other manufacturing plants around the world is well-known. Together, we are highlighting the IDC’s intent to continually participate and drive investment to develop the regional automobile value chain,” Jarvis commented.

The Stellantis Greenfield project in brief:

• It will be built in a South African Special Economic Zone (SEZ) in Coega, situated near Gqeberha in the Eastern Cape province of South Africa.
• Construction will be completed by the end of 2025.
• A high level of localization is targeted at launch (35%)
• Ultimate production volume of 50 000 units a year, with the majority destined for export
• 1 000 new jobs to be created directly
• Thousands of hours to be invested in training to develop local teams to global standards

Enquiries:
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Issued by: The Department of Trade, Industry and Competition (the dtic)
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Stakeholders representing government, labour and industry have today launched the Medical Technology (“MedTech”) Master Plan committing themselves to jointly implementing concrete interventions that will improve the industrial performance,  sustainability and competitiveness of the sector. The launch and signing ceremony, which took place at the Industrial Development Corporation offices in Sandton today, follows the success of Master Plans in several sectors, including the Sugar Value Chain, Automotive, Poultry, Retail–Clothing Textile Footwear Leather and Furniture.

The Minister of Trade, Industry and Competition, Minister Ebrahim Patel, said the signing of the MedTech Master Plan set the foundation and commitment for the development and growth of the medical technology sector.

“The medical technologies sector offers a unique and significant opportunity for growth in South Africa. The sector has emerged as an increasingly innovative sector, developing technologies that can service both our local market and abroad. With the modalities for the African Continental Free Trade Area (AfCFTA) agreed, the African market provides a significant opportunity for growth in the sector. The African continent is currently a significant importer of medical technologies, with much of this demand within the scope of South African producers.”

He explained that the long-term viability of the South African MedTech value chain was a priority for the country and the continent as a whole. The MedTech industry is currently valued at R21 billion, with more than R4 billion in exports. The industry has the potential to be an important economic contributor, not only because of its economic impact but also because it helps to develop security of supply in key medical products. Over the next 3-5 years, the Master Plan seeks to expand the numbers of workers in the sector by at least 1 000 jobs with an opportunity to localise up to an additional R1 billion worth of goods that are currently imported.

Work has already started in the implementation of the plan, since the MedTech Master Plan was approved in December 2023, and would get even harder as all stakeholders began to collectively tackle actions that are very difficult but necessary for the long-term development of this industry.

Minister Patel further remarked:

“This action-oriented plan is based on identified competitiveness improvements, measures to reduce levels of imports, drive demand and re-position the industry to become resilient under the intense global competition and pressure. The master plan places greater attention to effective implementation and impact to improve industrial performance and enable the sector to become more sustainable and competitive,”

The MedTech Master Plan was intended to establish a stable and predictable trajectory for the industry, so that businesses and investors can invest with confidence in building production capacity, innovation, skills and expertise.

The master plan encompasses a partnership and joint commitments of all the social partners across the value-chain, including Government, represented by both the dtic and the National Department of Health; manufacturers and procurers of medical technologies; and organised labour, to work towards a sustainable, globally competitive and job-rich value chain.

The master plan will be implemented over a five-year period under the stewardship of the MedTech Executive Oversight Committee. Stakeholders across the value-chain in the sector have committed to working together to achieve five pillars of the plan, namely Regulatory Framework; Market Growth; Skills Development; and Research, Development, Innovation and Data.

The objectives of the MedTech Master Plan are to:

• Grow a proficient and competitive medical technology industry over the next three years, with a special focus on small business development, that will supply domestic and international markets.
• Reduce the trade deficit by 5% over the next five years.
• Generate employment and build productive and technical skills with the aim of creating 1000 new jobs over the next three years.
• Digitalise and use artificial intelligence to enable proficient regulatory processes.

Signatories to the MedTech Master Plan included the dtic, National Department of Health, Medical Device Manufacturers of South Africa (MDMSA), South African Medical Technology Industry Association (SAMED), Southern African Laboratory Diagnostic Association (SALDA), Council of Scientific and Industrial Research (CSIR), National Hospital Network (NHN), Lenmed Group and Congress of South African Trade Unions (COSATU).

The MedTech Master Plan is the 12^th master plan to be finalised since the start of the administration, and 8^th dtic-administered master plan to be finalised.

Enquiries:
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Issued by: The Department of Trade, Industry and Competition (the dtic)
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The Department of Trade, Industry and Competition (the dtic) has taken note of reports that it has objected to the Procurement Bill tabled at the National Council of Provinces (NCOP). the dtic advises that it has no objection to the Bill and looks forward to its expeditious  adoption and implementation.

The Bill constitutes a significant step forward in promoting localisation and Broad-Based Black Economic Empowerment (B-BBEE). An email submission that was sent to the Standing Committee on Finance constitutes the view of an official and was not authorised by the Department.

Enquiries:
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Issued by: The Department of Trade, Industry and Competition (the dtic)
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The Minister of Trade, Industry and Competition, Mr Ebrahim Patel, has released the dtic’s Industrial Policy and Strategy Review in an event which took place yesterday at a manufacturing facility at the Tshwane Automotive Special Economic Zone (TASEZ) in Gauteng. Minister Patel was joined by Gauteng MEC for Economic Development, Ms Tasneem Motara; the Acting Director-General of the dtic, Malebo Mabitje-Thompson; and the Chair of TASEZ Board, Mr Lionel October, for the launch.

The Industrial Policy and Strategy Review maps the measures and action of the South African government over the past five years under the Reimagined Industrial Strategy laid out by President Ramaphosa; reflecting further on the evolution of policy actions during democratic period from 1994.

Commenting on the choice of TASEZ for the launch, Minister Patel noted:

“We chose to launch our policy and strategy review here at the Tshwane Automotive Special Economic Zone as an embodiment of the new approach to industrial policy and SEZ implementation adopted by Government as part of the Reimagined Industrial Strategy. Industrial policy during this period has been characterised by increased collaboration and partnership with social partners.

“Just five years ago, this was all veld. The SEZ was approved by Cabinet in October 2019 as the pilot of our new approach to SEZ development and management, with the dtic and national government playing a much stronger coordination role between the anchor investor – in this case the Ford Motor Company – and the three spheres of Government – local, provincial and national – in order to create a world-class facility ready to meet the needs of the industry.

“Today – less than five years after Cabinet approved the SEZ for construction – there are 11 component manufacturing facilities in full production at the Tshwane Automotive SEZ, employing more than 3 200 people, producing sophisticated components which will be part of the Ford Ranger and VW Amarok bakkies being exported around the world.”

In addition to the launch of the Industrial Policy and Strategy Review, attendants also witnessed the signing of an agreement between the multinational investment bank, Citibank, and the Industrial Development Corporation (IDC), which will see Citibank contributing R200 million into a fund to be managed by the IDC, providing grants to black industrialists in the Vaal Special Economic Zone. The investment by Citibank has been facilitated in terms of the Equity Equivalent Investment Programme (EEIP) under the Broad-Based Black Economic Empowerment (BBBEE) Act, which drives investment in BBBEE objectives in instances where multinational companies are unable to facilitate local ownership.

Commenting on the signing, Minister Patel remarked:

“In addition to industrial funding for black industrialists from Government, we are working with the private sector to mobilise additional funding and market access support that can further make the black industrialist programme a success. More than 1 700 black industrialists have already benefitted from the programme of the dtic and its agencies, employing more than 161 000 South Africans and generated in excess of R183 billion in turnover annually. This highlights the importance of this programme not simply as a matter of historic redress but as one which can accelerate growth and job creation.

“This R200 million investment from Citibank, which is part of a larger R1.37 billion investment, will be used to catalyse urban and commercial development in the Vaal area, and can stimulate another growth node in Gauteng. The support specifically for black industrialists will ensure the participation of black entrepreneurs in the SEZ, enabling more South Africans to drive economic growth.”

The case studies of industrial policy action with TASEZ and Citibank were accompanied by a series of live crossings to facilities and senior executives from across the country, highlighting the impact of the dtic and Government’s work. Live crossings, which showcased projects completed or in construction from companies which participated in the Investment Conferences, included:

• Aspen Pharmacare, which recently invested R3.4 billion to expand vaccine production in Gqeberha, Eastern Cape;
• Ardagh Glass Packaging (formerly Consol), which has invested R1.5 billion to increase glass manufacturing capacity in Nigel, Gauteng;
• Defy appliance, which has invested nearly R1 billion on its washing machine and fridge manufacturing facilty in KwaZulu-Natal;
• PG Bison, which has invested R1.8 billion in its Mkhondo, Mpumulanaga facility to increase medium-density fibre board capacity for the furniture and builing market;
• Sappi, which invested R7.7 billion to increase pulp production for textiles in Umkomaas, KZN;
• Scatec, which has invested R16 billion to construct 150 MW of dispatchable renewable energy in Kenhardt, Northern Cape;
• Scaw Metal, which is investing R3 billion in a new flat-steel complex in Germiston, Gauteng;
• Shatterprufe, which has expanded jobs and production from its automotive glass facility in Ga-Rankuwa, Gauteng; and
• Unica Steel, which has invested R250 million to increase steel making capacity from its electric arc furnace facility in Babelegi, Gauteng.

The Industrial Policy & Strategy Review includes a series of such case studies from actions taken over the Sixth Administration, setting out the goal and purpose of industrial policy in South Africa; the history and context for policy setting; and discusses the way forward for industrial policy in the context of changing global and local conditions.

Commenting on the implementation of industrial policy in the Sixth Administration, Minister Patel remarked:

“We set off with rapid speed at the start of the administration in 2019. In just 9 months, leading up to COVID-19 pandemic, we finalized masterplans in key sectors—poultry, sugar, clothing/textiles, and automobiles. At the same time we commenced institutionalisation of the goal of the single African market, establishing support infrastructure under the oversight of an AfCFTA Council of Ministers that was established in this period. Competition reforms, which commenced with implementation in July 2019, drove inquiries in grocery,  retail, and data, resulting in major telecoms reducing prices with a R20.5 billion benefit to consumers. A new Special Economic Zones policy framework was approved, piloted with Tshwane SEZ. The 2nd SA Investment Conference in 2019 secured R363 billion in new pledges, signaling growing business confidence.

“We further implemented targeted tariff adjustments to support industries like poultry and washing machines, along with anti-dumping duties on glass, PET products, wheelbarrows, and soda ash to spur investment. We concluded a Free Trade Agreement with the UK post-Brexit to enhance market access; launched the BizPortal for streamlined online business services; and introduced a R6 billion support plan for black automotive entrepreneurs.

“However this pathway on implementation was dirupted by six shocks, which changed our priorities and the way we needed to work to achieve the industrial outcomes we wanted. The economy faced challenges from March 2020 with severe COVID-19 lockdowns, followed by the worst civil unrest in post-apartheid history in July 2021. The conflict in Ukraine from February 2022 led to soaring fuel and food prices. Durban floods in April 2022 and ongoing load shedding and strained logistics further constrained industry operations. It’s estimated that between 2020 and the third quarter of 2023, the economy lost as much as R850 billion in GDP as a result of these shocks, resulting in GDP of between 3% and  5% lower today than it may have been.

“Still, we continued to implement with purpose in the wake of these shocks, bringing together an increasingly innovative and collaborative toolkit of masterplans, trade policy, competition policy, industrial funding, transformation efforts, and investment facilitation in order to increase output and jobs, while greening the economy and weathering adversity.

“We have seen the dividends of this action over the Administration. For example, South African manufactured goods exports exceeded R1.1 trillion in 2023, the highest since 2014 and second highest in the democratic period (in real terms). African manufactured exports also rose significantly, cementing Africa as the largest market for our manufactured goods. Foreign direct investment reached R1.1 trillion from 2019 to 2023 (in 2023 rands), 3.5 times the previous five-year period (in real terms). We have extended worker ownership in the economy to now cover more than 551 000 workers. And 1 in 8 South African workers (totalling 1,28 million) in the private formal sector are now covered under programmes of support  or partnership actioned by the dtic.”

The Minister also reflected on the new forces which will shape industrial policy choices for the period ahead:

“Global geopolitical tensions, fueled by economic slowdowns and conflict around the world, will continue to challenge South Africa’s economic growth. Rising protectionism in the global north will require careful navigation to ensure that markets remain open for South African exporters. Climate adaptation and digital transformation require substantial investment, reshaping industries and skills. Mineral beneficiation sees increased demand for critical minerals, offering an opportunity  to leverage these for African industrialisation, and avoid Africa simply being a supplier of raw materials.

“In this changing context, agility is essential amid the turbulence; and rigid plans risk obsolescence. Our policies will need to adapt to external changes. Practical partnerships and flexible collaboration are needed. State alignment, both horizontal and vertical, will be crucial for effective response and sustained growth; and scaling up successful pilots – like the Tshwane Automotive SEZ – is key to inclusive industrialization.”

The document outlines key aspects of a future agenda and sources of growith in the South African economy.

Growth could be catalysed though high infrastructure investment of at least half a trillion rand a year, drawing on public and private investment; productive sector investment aligned to securing commitments of R2 trillion over 5 years; green industrialisation to refocus sources of energy, green component manufacturing and greener industrial and consumer products; and a pivot to an African-led growth drive off the back of the African Continental Free Trade Area (AfCFTA).

Six priorities are identified, namely deeper economic and other policy coordination, better alignment at institutional level, addressing energy security, strengthening skills development in a number of identified areas, developing the capacity to respond to a changing global and technological environment, improved policy innovation; and scaling up actions that have proven successful such as the sector masterplans.

The review proposes that industrial policy be integrated into a broader economic policy synchronised with other policies such as foreign policy initiatives and education and skills development strategies and to establish an Industrial Policy Coordination Council, chaired by the President, to enable an all-of-government focus on growing the industrial sectors, enable a shift up the industrial value-chain and help create jobs in South Africa.

Please find below, the link to the Industrial Policy and Strategy Review:

http://www.thedtic.gov.za/wp-content/uploads/dtic-industrial-policy-review.pdf

Enquiries:
Bongani Lukhele – Director: Media Relations
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Issued by: The Department of Trade, Industry and Competition (the dtic)
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The Minister of Trade, Industry, and Competition, Mr Ebrahim Patel, today opened a new state-of-the-art laundry facility at Celrose, in Tongaat, KwaZulu-Natal. The investment in the new laundry facility, will be used to increase manufacturing capacity for Celrose’s denim line.

Celrose, a large manufacturer of apparel employing 1 559 at its facility in Tongaat and Isithebe, invested in the line in order to improve its denim processing capacity, as the company prepares for increased demand of locally-produced denim by South African retailers.

The new laundry facility also improves the water and energy usage of the production process, thereby reducing the environmental footprint of production. Celrose currently has four factory lines producing automated core denim product, making it one of the largest producers of denim in South Africa. The new lazer technology machines recently procured by Celrose replaces hand grinding creating authentic wearing characteristics on the denim jeans.

The Industrial Development Corporation (IDC) which is a 55% shareholder in Celrose, acquired its stake from Edcon in 2019 in order to save Celrose and its workers as Edcon faced liquidation and closure.

In addition the IDC’s 55% shareholding, workers of the Company own 32% through a staff trust which has been established for their benefit.

Minister Patel remarked “This factory faced closure and through partnerships, 1 500 jobs have been saved. It is now prepared for further growth, producing more than a million denim items and well-positioned to become one of the largest producers of denim on the African continent.”

Celrose is covered by the Retail-Clothing, Textile, Footwear and Leather Masterplan.  The Masterplan, which was signed in November 2019, was developed together with business, labour and government in the spirit of partnership and renewal. The Masterplan included a series of commitments from Government, Business and Labour.

According to the CEO of Celrose, Mr John Comley, “This cutting edge facility not only represents a significant milestone for Celrose but also serves as a testament to our shared commitment towards employment generation. The inauguration of this facility holds immense promise for job creation and economic empowerment within our community. By providing employment opportunities and fostering skills development, we are contributing to the socio-economic upliftment of our region, in line with the aims of the CTFL masterplan. We are grateful to the dtic for the support provided in attaining this milestone.”

Minister Patel’s visit to Celrose comes a day after a meeting with stakeholders in the clothing industry, including CEOs of major retailers, manufacturers and labour. Stakeholders reported that more than 20 000 jobs had been created in the past five years since the clothing, textile, footwear and leather industry’s Masterplan was launched.

In addition, major retailers have sourced 371 million more units of clothing items from local manufacturers over the same period, a 51% increase on the baseline of units bought locally; and the volume of clothing imported from China has dropped in major clothing categories, and the value of the clothing imported increased, showing success in the fight against under-invoicing.

The CTFL sector now employs more than 500,000 South Africans, including 250,000 manufacturing jobs and more than 280,000 retail jobs.

Enquiries:
Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
Mobile: 079 5083 457
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Email: BLukhele@thedtic.gov.za    or Mediarelations@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
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The Department of Trade, Industry and Competition (the dtic) has adopted several employment generation initiatives with a view to promoting economic transformation and inclusive growth in the South African economy.

The work of the dtic and its agencies covers more than 1.28 million workers in the economy, representing approximately 1 in 8 private sector formal jobs in the economy.

These South African workers have been covered by a number of programmes of the dtic and its agencies, including 743 000 workers covered by actions across the seven Masterplans administered by the dtic.

Additional workers are covered by other programmes of the dtic and its agencies, including:

• the work of the competition authorities in market inquiries and merger proceedings;
• industrial funding and incentives from the dtic, Industrial Development Corporation (IDC) and the National Empowerment Fund (NEF);
• investment facilitation by InvestSA for the Presidential Investment Conferences and Special Economic Zones;
• work to support South Africans manufacturing through trade measures such as tariffs and rebates; and
• Market access facilitation for South African exporters.
• A further 50 000 jobs have been created through the Social Employment Fund, which is part of Presidential Employment Stimulus, administered by the IDC.

Minister Ebrahim Patel, Minister of Trade, Industry and Competition emphasised the importance of these initiatives, stating:

“Workers are at the centre of the programmatic work undertaken by the dtic and its agencies. The comprehensive work programme includes interventions to support 1.28 million workers across various sectors of the economy, from manufacturing, like the automotives industry, food and beverages, chemicals and steel, to productive services, like business process operators and film. This work extends across all nine provinces of South Africa, and further to the eight metropolitan and 44 district municipalities.”

Recently the dtic hosted two conferences, namely the Black Industrialists and Exporters Conference held on 20 March 2024 and the Worker Share Ownership Conference held on 23 April 2024.

The Black Industrialists and Exporters Conference, in particular, highlighted the number of workers employed by black industrialists supported by the dtic and its agencies, with 161 300 workers employed in these companies. Notable too is the number of workers now covered by worker share ownership programmes, with 551 000 workers beneficiaries covered in these structures, many of which have come about as a result of agreements with the dtic and its agencies.

Minister Patel further emphasised:

“The industrial policy actions of the dtic and its agencies are fundamental to driving economic growth by fostering an environment where industries can thrive and jobs are created. In recent years, we have shifted our key performance indicators to a set of outcomes-based indicators, which don’t just measure the efforts of Government, but rather the fruits of our coordinated labour. This holistic approach ensures that our industrial policy approach becomes a cornerstone of a comprehensive, growth-oriented, job-rich, and inclusive economic strategy.”

Enquiries:
Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
Mobile: 079 5083 457
WhatsApp: 074 2998 512