Industrial policy implementation : the case of the bus industry in South Africa

Abstract

The South African bus industry has been neglected for a very long time in the main automotive sector support programs such as the Motor Industry Development Programme (MIDP) and the Automotive Production Development Programme (APDP). The need for rehabilitation of the industry has been triggered by the increasing demand for public transport in the country which was not being met by the supply. Industrial policies such as investment incentives, public procurement and local content were introduced to stimulate the development of the industry. The study sought to assess the industrial policy implementation mechanisms of these instruments. The in depth assessment of the implementation processes of the industrial policy targeting the bus industry reveal some weaknesses with regards to the way in which the policy that governs the sector has been implemented. There are important lessons that can be learned by the government for consideration with regards to other designated sectors that are targeted for industrial policy support. The findings suggest a need for a review of the Medium and Heavy Commercial Vehicles - Automotive Investment Scheme (MHCV-AIS), improved monitoring and evaluation of public procurement and localisation policies as well as improved enforcement capability by the respective institutions.