Ayanda Mdluli
About R102 billion has been earmarked for investments in key manufacturing, labour intensive, technological and innovative industries by the Department of Trade and Industry (dti) and the Industrial Development Corporation (IDC), it was announced yesterday.
This comes as both parties seek to implement objectives highlighted in the second Industrial Policy Action Plan (Ipap) for 2012/13 to 2014/15.
At the launch of the Ipap in Sandton yesterday, dti industrial development division deputy director-general Nimrod Zalk said R102bn over the next five years would be put aside for investment in the government’s New Growth Path (NGP) and Ipap sectors.
The first industrial policy action plan was launched in the 2007/2008 financial year. The government had since launched a revised three-year rolling Ipap on an annual basis.
The government’s NGP aims to create 5 million jobs by 2020 through focusing on labour-intensive sectors believed to have the potential to stimulate economic growth.
These include infrastructure, transport, energy, water, communications, housing, agriculture, mineral beneficiation, the green economy, manufacturing and tourism.
However, Zalk said the department was drafting an integrated monitoring and evaluation reporting system that would quantify the government’s shortcomings and achievements with Ipap.
He blamed the post-2008 unfavourable global economic conditions, which led to the projected target of 850 000 direct jobs failing to materialise in the projected time frame.
“In many cases we achieved our objectives, which were implemented in a challenging environment. In more favourable economic conditions we would have seen more growth and job creation,” he said.
Sectors that were earmarked for financing include the automotive industry, clothing and textiles, agro processing, the green economy, as well as industries that produce metal fabrication, capital and transport equipment.
Trade and Industry Minister Rob Davies revealed plans to speed up regulation and support mechanisms to start up a large-scale biofuels industry.
“The identification and promotion of export market opportunities to net food importing countries and product development and standards support will provide further impetus to this sector,” he said.
IDC chief executive Geoffrey Qhena said the institution would play a major role in identifying various projects and carrying out feasibility assessments where investments were concerned.
He highlighted that the IDC would conduct economic and industrial research as well as assist with advice and support for policymakers.
