Nearly R 70 billion invested towards the revival of key sectors in the economy

Up Money

Close to R70 billion has been invested towards re-igniting major key sectors which drive economic growth and job creation in the country.

Officials from the Department of Trade, Industry and Competition (the dtic) told members of the Portfolio Committee on Trade and Industry.

According to the dtic, so far four master plans have been finalised and are currently being implemented.

They are the for the Sugar, Automotive, Poultry, Retail – Clothing, Textile, Footwear and Leather (R-CTFL) industries. Two Master Plans are still to be  finalised and they are in the Steel and Furniture sectors. 

The total investments include commitments made at the two South African Investment Conference, and the breakdown is as follows:

— Poultry – R1.5 billion;
— Automotive sector – R60 billion;
— R-CTFL – R6.7 billion; and
— Sugar – R1 billion.

The Deputy Director-General (DDG) of Industrial Development at the dtic, Ms Thandi Phele, told Members of Parliament (MPs) today that the implementation of the Master Plans is already bearing fruit in the four sectors.

“In  the Poultry industry, production has increased by 5% during the first eight months of the year 2020, when compared to the same period in 2019, with an additional one million birds per week produced.  The South African Poultry Association made a R735 million new investment, out of R1.5 billion commitment and through these developments 428 jobs have been created,” said Phele.

The main objectives of the Poultry Masterplan has been to re-focus the industry to exports, reclaim the domestic market and change the economic value extraction premium meat (breasts) and discounted meats (bone in/thighs). In addition, efforts were geared towards the saving of 54 000 jobs and creating an initial 3 600 new jobs, with employment growing beyond this rate as exports grow further.

In the Clothing and Textile sector (R-CTL)  40 jobs were saved in the new flip flop factory at Pep Clothing ( PepClo)  which came as a result of a R25 million investment. An additional  R564 million from key players namely, Pepkor (R30 million), Foschini Group (R350 million) and Glodina (R184 million) as a result 4 300 local jobs have been saved .

Phele said work was being done to promote localisation in this sector.

“the dtic is working with the National Economic Development and Labour Council (NEDLAC), National Treasury and provincial authorities, to monitor and enforce the CTFL 100% local content. 

“Designated legislation with the public sector procurement and Proudly SA has developed a portal to house local manufactured Personal Protective Equipment (PPE) including fabric face masks during national lockdown that continues to focus on promoting buy local campaigns,” added Phele.

In the sugar industry, the South African Sugar Association set aside R1 billion over FIVE years, towards industry transformation, and R575 million has been allocated to remedy inequalities experienced by black sugarcane growers.

Phele highlighted the recent investment of R15 billion by Ford Motor Company South Africa at the Tshwane Automotive Special Economic Zone as one of the major moves in the automotive sector. The investment is towards the production of the new Ford Ranger bakkies.

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