key pillar, and through this, the government is intervening decisively “to drive strategic localisation, repurpose South Africa’s manufacturing as well as strengthen regional and global trade”.
“Ultimately our goal is to significantly increase South Africa’s manufacturing output, reduce the proportion of imported intermediary and finished goods and expand the capacity of local suppliers,” Minister Godongwana noted.
Discussing the recent decline in the manufacturing sector, he noted that they reaffirm the fact that South Africa’s economy continues to “suck-in” imports. “The manufacturing sector’s capital base has shrunk – from R677.7 billion in 2008 to the current R545.9 billion in real terms. These numbers speak of the decimation of our industrial base. They also speak to significant job losses, widening income inequality and poverty,” he pointed out.
In his address, the Finance Minister also highlighted several initiatives launched by the government in restructuring of the economy aimed at “high growth, high productivity and greater labour”.
“[Economic] policy is a powerful instrument, capable of influencing and shaping the orientation and structure of the economy… Equally, [government] investments in new technologies, innovation, health, education, training and up-skilling of the workforce – all of which are linked to the outcomes of fiscal policy – also have a direct bearing on competitiveness and inclusion,” Godongwana added.
