Industry
From The Report: South Africa 2012
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This section looks at South Africa’s industry sector, which has long supported the national economy. For the first 11 months of 2011 output rose 7.7% in comparison to the same period of 2010, according to Statistics South Africa. The fastest-growing manufacturing sectors included electrical machinery; radio, television and communication equipment; and automobiles and components, each of which expanded by 10% or more. Industrial Development Zones (IDZs) have become a recognisable component of South Africa’s industrial sector. The fact that the country has long positioned itself as gateway to African markets, both financially and physically, has also served its industrial sector well.

This chapter contains interviews with Lionel October, Director-General, Department of Trade and Industry; Geoffrey Qhena, CEO, Industrial Development Corporation (IDC); and Peter Matlare, CEO, Tiger Brands.

Articles from this Chapter

Overview

Action plan: Policy initiatives to bring manufacturing back on a growth track
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The national economy has long been supported by industry, in particular the manufacturing sector. Major successes in both the apartheid and post-apartheid eras have helped build the country. The fact that South Africa has long positioned itself as gateway to African markets, both financially and physically, has also served its industrial sector well. Benefitting from a comparatively strong and clear legal and regulatory environment, and reliable infrastructure, South Africa’s competitive advantages…

Analysis

A pillar of strength: Domestic demand is likely to keep the steel industry moving forward
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Steel has long been a mainstay of South Africa’s industrialised economy and a major export. The country is blessed with large deposits of the basic inputs coking coal and iron ore, as well as a history of accessible electricity, robust domestic demand and significant regional export opportunities, which have helped build the steel market into what it is today. While growth over the next year is relatively assured, the pace at which the sector expands in 2012 may be affected by shaky global…

Interview

OBG talks to Lionel October, Director-General, Department of Trade and Industry
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Interview:Lionel October How will the Special Economic Zones (SEZs) improve upon the Industrial Development Zones (IDZs)? LIONEL OCTOBER: Currently, we have three operational IDZs that, since early 2000, have not met expectations in terms of attracting investments. Following assessments of the strengths and weakness of each, we are developing new legislation and funding models to address the issues. The lack of coordination and unanimity between the government at the municipal, provincial…

Interview

OBG talks Geoffrey Qhena, CEO, Industrial Development Corporation (IDC)
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Interview:Geoffrey Qhena What opportunities exist in the African market and where do you see the potential for growth? GEOFFREY QHENA: If you look at the effort that the South African government puts into peacekeeping and conflict mediation on the continent, the more stable and democratic the continent becomes and the more opportunities there are for the IDC to invest in these newly stabilised markets. Africa provides huge growth opportunities. Given all the available resources and the potential…

Analysis

Shifting gears: The automotive sector is set to increase local manufacturing
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Already one of the largest industrial segments in South Africa, the automotive sector is gearing up for some major changes scheduled to take effect in January 2013, when an import-incentive scheme that successfully expedited the development of the industry will be replaced by a programme designed to foster more local production of components. The step is a crucial one, and while the details have yet to be finalised, it has won the support of major stakeholders. South Africa’s goal is to more…

Interview

OBG talks to Peter Matlare, CEO, Tiger Brands
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Interview:Peter Matlare How competitive is South Africa’s fast-moving consumer goods (FMCG) industry in the global market? PETER MATLARE: In recent years, we have seen an intensification of globalisation strategies implemented by multinational consumer brands. Coordinated supply chain sourcing and global procurement strategies have led to more competitive pricing of international products in the local consumer goods market, while the favourable exchange rate and rise in own-brand products…