ETD Collection

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Subject: search.filters.subject.Industrial policy--South Africa

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    South Africa's industrialisation strategy and import substitution
    (2017) Maleka, Francis Malesela
    The role of the state and how it drives industrialisation has received renewed attention in the wake of the global economic meltdown. The purpose of this study was to determine if industrial policy implementation in South Africa is geared towards import substitution, with specific focus on the plastics sector. The study was undertaken as a qualitative research with one on one semi structured interviews with policy makers and analysts from Department of Trade and Industry (DTI), independent research body The Centre for Competition Regulation and Economic Development (CCRED), independent consultant and representative of industry from Plastics SA and documentary analysis of strategic documents from CCRED, DTI and Industrial Development Corporation (IDC). Industrialisation in the plastics sector has in the main been export oriented the study found. Furthermore, the study found that there is a need to target plastics sub sectors with high value to spur the growth of the plastics sector and create much needed jobs. Financial incentives are available to the sector but accessed mainly by fewer big firms.
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    An investigation into sector designation, prescribed in the Preferential Procurement Policy Framework Act (PPPFA), as a policy instrument for broadening the transformer industry's industrial base
    (2016) Chibanguza, Tafadzwa C
    The paper identifies that due to the historic evolution of the South African economy, particularly the emphasis placed on energy provision as a catalyst for successful mineral extraction; the seeds were sown for South Africa to be an industrial hub in transformer manufacturing. However, this opportunity has not been realised. Domestic transformer manufacturers have continued to lose market share both domestically and globally. The research identifies a lack of demand, locally, for domestically manufactured transformers as an inherent cause of the challenges faced by the local transformer industry. This lack of demand is also recognized as the reason constraining the potential growth of the industry. The paper identifies a virtuous cycle between capacity utilization and expansion, wherein; higher capacity utilization favourably influences price competitiveness, which increases market share and induces investment into additional capacity. As greater market share is 2 | P a g e attained due to price competitiveness, even higher capacity utilization is achieved; therefore further inducing investment on the expanded capacity and the cycle continues with further expansion. The paper investigates sectoral designation as an industrial policy instrument to achieve this model, that is; increase demand, capacity utilization and ultimately broaden the industrial base of transformer manufacturing. The paper advocates that, while growing in the export market is the ideal end point, the industry would grow its current production capacity threefold if it were provided the opportunity to fully satisfy domestic demand1. As a result, this should be the first market to conquer. It is also identified in the research that sectoral designation as a policy instrument is not without shortfalls, particularly given the unique characteristics inherent in the transformer industry. The paper concludes with policy recommendations to overcome the identified shortfalls and proposes a model for consideration. This dissertation is submitted for the completion of a Master of Commerce in Development Theory and Policy degree. I would like to express utmost gratitude to Dr Paul Jourdan for his supervision, guidance and valuable contribution in the preparation of this research report.
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    Business unusual in the steel industry: capturing South Africa's industrial policy in transition through the lens of reciprocal control mechanisms (RCMs)
    (2016) Basaya, Tiego
    Aims and objectives: The objective of this study is to unpack the processes that the South African government has embarked upon with a view to averting a deepening crisis in the ailing steel sector. This study specifically investigates the parts of the package that have been launched to date, namely the tariff support requested by the steel industry and designation of the steel industry for government procurement. [No actual abstract provided]
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    How is the South African state promoting investiments that increase local content in the production of automobiles? : a critical evaluation of investment promotion and industrial policy (1994-2014)
    (2016) Biniza, Siyaduma
    South Africa’s industrial policy is fundamentally aimed at transforming the domestic economy into a labour-intensive growth path in order to create jobs (the dti, 2013a, p. 10). In pursuit of this aim the industrial policy takes a transversal approach to promote particular types of economic activity or particular economic sectors (the dti, 2013a, pp. 15-17; Zalk, 2014, p. 335). Using the case of the automotive sector, this study analyses the role played by the state and how institutional aspects of the industrial policy and investment promotion affected policymaking and the outcomes. The findings were that, due to incoherent institutional support and informational asymmetry, industrial policy has supported export growth in spite of the continued dependence on imports; and did not support employment, because it was biased towards OEMs and did not differentiate between the different categories of components according to job-creation potential. Institutional aspects of industrial policy-making and implementation then – not the ownership power of multinational corporations – has entrenched unequal power relations within the automotive value-chain, which undermines the broader socio-economic goals of industrial policy. Hence, due to both the policy measures and the institutional design South Africa’s industrial policy has not been oriented towards more labour-absorbing activities, especially in the impact on local components manufacturing. The result has been growth in exports with limited integration of local producers into the global value-chains of multinational OEMs, except in the case of vertically integrated multinational component producers, at the expense of local value-addition and job-creation.
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    Coherence in innovation and industrial policy in South Africa
    (2016-08-04) Magolego, Tando
    It has been stated in literature on National Systems of Innovation, growth theory and competitive advantage, that there has been an emergence of a consensus on the impact of technology on economic prosperity and competitiveness. The systems approach, with its emphasis on knowledge, learning and institutions has stressed the need for institutional change and greater integration between technology policy, industrial policy, and other aspects of public policy. There is also a need for greater coordination and integration between technology and industrial policy, and of employment and income distribution policies on each other. The ability of the government (policy makers and implementers) to achieve this intergration and coherence is key in ensuring achievement of the goals. The study assessed and evaluated the processes set up by the South African government to achieve coherence in the formulation and implementation processes. Research Questions:  Does coherence exist between the Innovation and Industrial Policy? What is the extent of the coherence?  What are the factors hindering or promoting coherence?  What is the impact of coherence or lack thereof on the achievement of goals? The methodology used in this study was document review and analysis, combined with elite interviews of senior managers in the government departments that are custodians of the policies being studied. Having coherent policies leads to achievement of set objectives and priorities. In order to achieve this coherence, there must be political leadership and commitment. It must be a general objective in all action taken by government. In South Africa, the intention is there and the structures have been set up. The evidence of Political leadership is in the Constitution, the highest law of the land. It is stipulated in the Constitution (RSA, 1996) that the policies of the government-of–the day should be executed in a cooperative manner, because in the Republic of South Africa, government is constituted as national, provincial and local spheres that are distinctive, interdependent and interrelated. The Constitution further stipulates that all spheres of government and all organs of state within each sphere must exercise their powers and perform their functions in a manner that does not encroach on the geographical, functional or institutional integrity of government in another sphere, and co-operate with one another in mutual trust and good faith. In order to manage and address the challenges of policy coherence and coordination, the South African Government has established a cluster system. These clusters are called Ministerial Clusters, which were established to foster an integrated approach to governance that is aimed at improving government planning, decision making and service delivery. The main objective is to ensure proper coordination of all government programmes at national and provincial levels. The main functions of clusters are to ensure alignment of government wide priorities; facilitate and monitor the implementation of priority programmes; and provide a consultative platform on cross-cutting priorities and matters being taken to Cabinet (SA Government, 2015). Regulations have been also put in place to foster intergovernmental relations through the Intergovernmental Relations Framework Act, Act No. 13 of 2005. Challenges of capacity and resources exist in the goverment in terms of policy coordination. Monitoring, evaluation and reporting structures have been created in the form of a ministry in the presidency, the Department of Performance Monitoring and Evaluation (DPME). This monitoring is confined to the monitoring and evaluation of the performance of the departments and the clusters against the outcomes stated in the Plan of Action. More reviews need to be undertaken by policy scholars to assess the impacts of the policies on the overall governmental goals.