Is South Africa's Industrial Policy a Realistic Growth Strategy or a Dead End? Frost & Sullivan Examines IPAP2

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Mar 25, 2010, 04:04 ET

CAPE TOWN, South Africa, March 25 /PRNewswire/ -- The Department of Trade and Industry (DTI) unveiled South Africa's 2010/11 Industrial Policy Framework Action Plan (IPAP2) to Cabinet on 18 February. While IPAP2 focuses on improving growth in key manufacturing sectors, the main thrust of the policy is to create sustainable employment.

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"Although the support and drive for the implementation needs to remain the DTIs responsibility, industry engagement is an imperative to implementing the plan with a long-term, action-oriented focus," says Frost & Sullivan analyst Laura Peinke. "However, many private sector companies are interested in how they can position themselves to make the most of government's planned expenditure projects."

To offer decision makers a clear perspective on South Africa's industrial policy, Frost & Sullivan will be hosting an online analyst briefing on Tuesday 6 April 2010 at 2:00pm BST/ 3:00pm CAT. The briefing will provide an overview of the key sectors affected by IPAP2 and the opportunities it presents. It will also cover the levers for implementation of the IPAP2 and the restraints to implementation. Finally, the briefing will conclude on whether the plan has the resources and support to effectively support a growth strategy for manufacturing. The discussion will benefit all entities involved in the manufacturing sector in South Africa.

"Manufacturing productivity has continued to increase over the last ten years, but Frost & Sullivan believes that this will not be sustainable," Peinke notes. "A number of factors are responsible for the decline in manufacturing competitiveness, including the high cost and limited availability of capital, a weak skills system, and unreliable and expensive port and rail systems. Therefore, despite some criticism and misgivings regarding the Industrial Policy Action Plan, it is imperative for industry to engage with government and support the implementation of the Plan. In addition, there are numerous opportunities for companies to engage with government and make the most of planned expenditure projects."

To participate in this briefing, please email Katja Feick at [email protected] with the following information: your full name, company name, title, telephone number, e-mail, address, company website and country. Upon receipt of the above information, a registration link will be e-mailed to you. You may also register to receive a recorded version of the briefing at anytime by submitting the aforementioned contact details.

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