working group to speed up key issues in the Industrial Policy Action Plan

Government and Manufacturing Circle form a working group to speed up key issues in the Industrial Policy Action Plan and New Growth Path

17 Aug 2011

Government and members of the manufacturing sector have agreed to form a working group to expedite key issues in the Industrial Policy Action Plan (IPAP) which will nurture the manufacturing sector. The decision was taken during a meeting that was held by the Minister of Trade and Industry, Dr Rob Davies, Minister of Economic Development Mr Ebrahim Patel and a delegation from the Manufacturing Circle.

The meeting was called to discuss the critical situation in the manufacturing sector which has seen a continued trend of deindustrialisation, job reductions and plant closures since the start of the recession in 2009. The strong currency, coupled to local input cost increases has placed significant strain on this sector. The Circle is also very concerned at the influx of imports (again partly related to the strong currency) and the reduction in manufactured exports, both these factors have reduced demand and led to job reductions on an ongoing basis. The Ministers agreed that they were very concerned at the situation in the manufacturing sector.

Manufacturing is seen as key to the recovery of the economy and direct and indirect job creation.

The parties reaffirmed their support to the New Growth Path, Industrial Policy Action Plan and the amended Preferential Procurement Policy Framework Act (PPPFA) Regulation and requested that the private sector also support this initiative.

Enquiries:
Head of Media Liaison: Sidwell Medupe 
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E-mail: MSMedupe@thedti.gov.za

Issued by: Department of Trade and Industry
17 Aug 2011

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I hope this Action plan includes the