The Manufacturing Circle has called for the re-instatement of rail subsidies on export containers and a reduction in port tariffs to enhance South Africa’s export competitiveness. These are some of a raft of interventions proposed by the manufacturing body to boost industrialisation, up demand for domestic goods and enhance South Africa’s export competitiveness. Chairman of the industry body, Andre de Ruyter, pointed out that de-industrialisation in South Africa was imminent due to a lack of domestic demand and export competitiveness in the face of an influx of cheaper foreign imports and a lack of government intervention to subsidise and support local production. He said that in the past two decades the manufacturing sector had shed over half a million jobs. “Furthermore, the sector currently only contributes 13% to the country’s gross domestic product – less than half of what is appropriate for South Africa’s stage of development.” The objective of the Manufacturing Circle’s ambitious ‘Map to a Million New Jobs in a Decade’ initiative – which it launched to industry, government, regulators and policy writers recently – is to ensure the sector contributes 30% to the GDP by 2027. “If we reach this target, around 800 000 to 1.1 million jobs could be created,” said De Ruyter. With many manufacturers based inland, in order to achieve this objective the plan needs to redress South Africa’s transport and logistics costs which are among the highest in the world. “Futhermore, government should investigate its options to invest in catalytic projects, such as a new pipeline to bring natural gas in from Rovuma, Mozambique to lower the cost of natural gas,” he said.
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In the past two decades the manufacturing sector has shed over half a million jobs. – Andre de Ruyter
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