Department of Trade, Industry and Competition Reports

The National Industrial Policy Framework (NIPF) has a fundamental role to play in achieving the Accelerated and Shared Growth Initiative of South Africa’s (ASGI-SA) goals of accelerating GDP growth to over 6 percent by 2010 and to halving unemployment and poverty by 2014 and the further intensification of industrialisation towards a knowledge economy beyond 2014.The primary objective of the National Industrial Policy Framework (NIPF) is to set out government’s approach to the industrial development of the South African economy. Consequently the NIPF sets out a vision for the industrial economy for both the short-medium and medium-long term.It is important to emphasise that the NIPF is a Framework rather than a blueprint for South Africa’sindustrialisation process. Much of the detail of intervention will flow from existing or future processes that are informed by the document. Therefore it does not attempt to address every question related to our industrial development trajectory. Rather it focuses on principles, processes and a set of strategicprocesses through which structural change will be achieved.Therefore the NIPF aims to provide strategic direction to the economy with respect to the issue of industrial development. First, it is aimed at providing greater clarity and certainty to the private sector and social partners with respect to investment decisions leading up to 2014 and beyond. Second, it is intended to provide a reference point for substantial improvements in intra-governmental coordinationof the numerous and complex set of policies and projects that will form part of the NIPF.

The Industrial Policy Action Plan is a product of the Economic Sectors, Employment and Infrastructure Development (ESEID) Cluster of the South African national government. Both its preparation and its implementation rest not just with the DTI -although this department has a core responsibility in this regard - but with all the economic departments which are part of the cluster and with many other outside contributors.     The launch of this year’s eighth edition of the Industrial Policy Action Plan (IPAP 2016/17 – 2018/19) takes place in tough economic times, characterised bydepressed global economic conditions and great uncertainty. The lingering effects of the great global recession continue to be felt worldwide; most obviously reflected by stagnant demand from developed and developing countries alike.     The contraction and ‘rebalancing’ of the Chinese economy towards a greater focus on domestic demand has had significant and negative consequences for commodity-exporting countries. Growth projections for many African countries will  most likely fall below expectations, mainly as a result of the collapse of the oil price and the wider slump in primary commodity demand. All of these adverse factors underline yet again the crucial point that the National    Development Plan (NDP), the National Industrial Policy Framework (NIPF) and  successive IPAP iterations have repeatedly emphasised (albeit with differing  emphases): namely the pressing need for structural change in the economy to  break out of commodity dependence and move to a more diversified base in which increasing value-addition and export-intensity come to define South Africa’s growth.    trajectory.    

South Africa’s long term vision of an equitable society is defined by the NationalDevelopment Plan (NDP). The IPAP is informed by this vision and is both framed by and constitutes a key pillar of the programmatic perspectives set out in the New Growth Path (NGP). Its core objectives remain as set out in the National Industrial Policy Framework (NIPF) of August 2007: To facilitate diversification beyond our current reliance on traditional commoditiesand non-tradable services. This requires the promotion of increased value-additionper capita characterised particularly by movement into non-traditional tradablegoods and services that are competitive in both export markets and the domesticeconomy. The long-term intensification of South Africa’s industrialisation process, andmovement towards a twenty-first century knowledge economy. The promotion of a more labour-absorbing industrialisation path with a particularemphasis on tradable labour-intensive goods and services and economic linkagesthat catalyse employment creation. The promotion of a broader-based industrialisation path characterised by greaterlevels of participation by historically disadvantaged economic citizens andmarginalised regions in the mainstream of the industrial economy. Contributing to industrial development in Africa, with a strong emphasis onbuilding regional productive capabilities. 

The Department of Trade and Industry (DTI) is a government institution tasked with expanding the economic activity within South Africa through economic empowerment, SMME development, industrial development, trade – export and investment, financial assistance and legislation through one of the many DTI agencies.  In order to meet these objectives, the DTI is continuously seeking to identify and support opportunities for local firms in order to stimulate economic activity through sustainable development and help in creating jobs. This inception report outlines the scope, approach, deliverables and timeframe that we feel closely meets the stated requirements of the DTI. The overall objectives of this project are as follows: To identify global and local technological trends of new energy saving technologies that will be competitive and influence the future development in South African firms, as well as To gather related data for effective policy and strategy formulation and implementation. 

This investigation has been initiated by the dti, in order to identify technology trends both locally and abroad and develop supporting actions for the country’s industries. The report set the objective “to identify global technology trends, which will influence the competitiveness and future development of South African industries, with specific focus on identifying areas for innovation so as to reduce industrial dependency on foreign technology, whilst ensuring that appropriate programmes are offered to promote innovation and technology” (terms of reference of the dti study on technology trends).  The report is based on an extensive national and international literature review; the development of a number of technology related indicators; patent and bibliometric analysis of South Africa and a number of other countries; review of the available technology incentives locally; and a survey of national stakeholders. The literature review is covering trends in technology development; country rankingsaccording to technological and manufacturing performance; best practices in technology support; and identified research/technology priorities. The countries/regions emphasised are USA, Japan, European Union, United Kingdom, Brazil, India, Korea and Malaysia.