The Deputy Minister of Trade, Industry and Competition, Mr Zuko Godlimpi says South Africa’s industrial policy in the new administration will be anchored on the transformation agenda.
He was speaking in Parliament as the department tabled its Budget Vote for 2024/25.
He said the three critical pillars that will underpin the strategic focus of transformation are demographic, industrial and spatial transformation.
“We intend to intensify work already achieved on Broad-Based Black Economic Empowerment, Black Industrialists Programme and Worker Share Ownership. On industrial transformation, we want to shift from a pit-to-port mining paradigm, to higher domestic processing, beneficiation, and the manufacturing of final consumer goods for the world markets,” said Deputy Minister Godlimpi.
He added that the shift will include improving the structural profile of the South African economy, such that its output is based on a distributional platform that is sustainable, that helps with income distribution, helps address high unemployment levels, and makes the South African economy compete effectively in global markets.
He emphasised that the focus on spatial transformation will seek to address the problem of South Africa’s economic profile, where the bulk of industrial and economic activity is concentrated in five metropolitan areas of the country.
“The Special Economic Zones strategy seeks to transform this distortive character of our economic geography,” he stressed.
Deputy Minister Godlimpi also said while the department accepts that it would have to drive the industrial policy from a constrained budget, it must be understood that viewing the implementation of the industrial strategy only from public financing is limiting.
“When we say that the Statement of Intent of the Government of National Unity foregrounds economic policy on industrial policy, we understand that we are in the current position in the country because the macro economic coordination has been without industrial policy as its underpinning platform. One of the problems with that is that macro economic policy is effective if it has industrial policy as its transmission channel. This means that decisions about where fiscal allocations are directed in terms of public infrastructure programmes must be informed by an industrial strategy,” he said.
For media enquiries and interview requests:
Bongani Lukhele – Director: Media Relations
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E-mail: BLukhele@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
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