433369666-The-Case-for-Investing-in-South-Africa

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INDUSTRIAL POLICY SUPPORT
Attractive support system for
industrial development and investment promotion
• A more focused and purposeful industrial strategy has
been adopted, and Master Plans are being developed by
government in conjunction with business and labour for
sectors with high potential for growth.
• The national priority sectors are:
(i) Industrial sectors: automotive; clothing, textiles, leather
and footwear; gas, chemicals and plastics; renewables/
green economy; steel and metal fabrication.
(ii) Agriculture and agro-processing.
(iii) Mining sector: minerals and beneficiation.
(iv) Tourism.
(v) High tech sectors / knowledge-based: digital economy;
ICT and software production; health economy (including
pharmaceuticals); defence and aerospace industry.
(vi) Creative sector: film and television, games (electronic),
music and craft industries.
(vii) Oceans economy.
• Industrial financing support system, including the
deployment of conditional incentives and assistance from
state-owned development finance institutions (DFIs).
• Localisation initiatives, including product designations, to
maximise the benefits of public sector procurement for
the domestic economy.
• Spatial interventions such as special economic
zones (SEZs); the revival of local industrial parks; the
establishment of business centres, smart youth centres,
incubation hubs and digital hubs; as well as initiatives to
support township and village enterprises.
• SEZs are designated in areas set aside for targeted
economic activities. These are supported through special
arrangements (including legislation) and systems that often
differ from those applicable in the rest of South Africa.
• A wide variety of demand- and supply-side industrial policy
levers are designed to secure higher levels of investment
and raise the competitiveness of the productive sectors of
the economy. These include:
- Developmental trade policies, including the technical
infrastructure institutions that support the industrial effort;
- Efforts to stem the tide of illegal imports, working with
Customs;
- Technology support measures; and
- Competition policy (which addresses anti-competitive
behaviour and lowers barriers to entry).
Industrial financing
• Availability of attractive incentives (e.g. incentives
provided under the Manufacturing Investment
Programme, Automotive Production and Development
Programme, Clothing and Textiles Competitiveness
Programme, Critical Infrastructure Programme,
Aquaculture Development and Enhancement
Programme).
• Various instruments available from a range of stateowned
development finance institutions such as the:
- Industrial Development Corporation;
- Development Bank of Southern Africa; and
- Land Bank.
• Export assistance (e.g. export credit insurance, export
marketing assistance).