South Africa’s machinery and equipment industries have recently come under huge pressure. Falling demand after the 2008 financial crisis and rising energy costs have harmed the sector. These trends are concerning as the sector employs 10% of the country’s total manufacturing workforce.
At the heart of the upheaval in SA in recent years is the poor performance of the economy, underpinned by an evolving political settlement that has not benefited the majority. In his inaugural state of the nation address President Cyril Ramaphosa made industrialisation and increasing investment the main priorities for reviving the economy, announcing an investment conference and jobs summit to take place later this year. He has just kicked off an international drive to lure investors.
The economy must reverse decades of deindustrialisation if it is to tackle the country’s urgent challenges
South Africa must develop its production capacity and cut its reliance on resource exports, a report says
Simon Roberts, author of Industrial Development Think Tank, CNBC Africa to discuss its report on the necessary structural transformation of the South African economy.
State policy should encourage partnerships between established and small-scale producers
South Africa has to abandon its “naive” variant of inflation targeting, says a new report from the Industrial Development Think Tank, which is supported by the department of trade and industry and the University of Johannesburg’s Centre for Competition, Regulation and Economic Development.
Mugabe Ratshikuni says the Ramaphosa presidency has ushered in an age of opportunity for SA
A new no-holds-barred study of South Africa’s economic transformation over the past two decades concludes that the country has not only deindustrialised prematurely, but has also failed to materially transform its economic structure to one that encourages inclusive growth and development.
The South African economy looks uncomfortably the same to the one inherited when the country transitioned from apartheid to democracy in 1994. Which is why it’s time for a robust economic policy agenda to make it more open, productive and inclusive.
The economy remains highly concentrated and existing firms have substantial advantages over entrants and smaller rivals. These firms can use their power to block rivals, also by influencing regulations in their favour. Changing the structure and the ownership of the economy simultaneously requires a package of measures to tackle the abuse of market power by large firms, change regulations to open up markets, and effectively support the development of the capabilities of smaller firms.