S.Africa to raise impact of the industrial policy - CNBC Africa

S.Africa to raise impact of the industrial policy

Southern Africa

by Trust Matsilele 0

S.Africa's Rob Davies says, as the most industrialised economy SA is having challenges with positioning itself. PHOTO: Paragon

Rob Davies, minister of trade and industry, noted that beneficiation was also one of the key drivers of the industrial policy. 

Davies says there were other targets which included more localisation due to the rising infrastructure development programme.

“The infrastructure programme, which has been coordinated by the presidential infrastructure coordinating commission, has achieved a significant improvement,  and an increase in our spending on infrastructure that has gone to support our local industry,” Davies told CNBC Africa.

(READ MORE: We need to be value-adders: Davies)

Davies added that South Africa also needed to promote integration within the continent, but has nevertheless already taken steps to do so.

“We are also working on development integration particularly across existing regional communities to create large regional markets, and a platform to support industrialisation not just in South Africa but in other countries,” Davies explained. 

“South Africa has a challenge as the most industrialised nation in Africa of positioning itself for the continental value chains as other countries begin to industrialise.”

Davies said South Africa needed to explore for other opportunities in the region as the continent’s other economies begun industrialising.

(READ MORE: Intra-Africa trade still hampered by infrastructure deficit)

“We have being seeing some case by case issues we have begun to confront, to find our way through for example our work with Nigeria on supporting them to launch their motor industry,” noted Davies.

“Let’s start with the free trade area, reaching beyond the reach of our existing regional community,” added Davies, adding that South Africa needs to address a number of real economy constrains, such as cooperating on building infrastructure, currency convertibility and industrial development.