Policy madness: SA’s industrialisation policies have slowed economic growth

Albert Einstein once famously said, ‘Insanity is doing the same thing over and over again and expecting different results.’ Does this relate to South Africa’s localisation policies? As government doubles down and more “aggressively” pursues localisation policy, the Small Business Institute (SBI) and researchers SBP (Small Business Project), funded by Exxaro, looked at the data to see how well South Africa has been served by the localisation policies during the three planning “eras” of Gear, AsgiSA and the NDP. Have we effectively seen the same results over and over again,…

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How to save the sinking manufacturing ship

  Give companies an efficient, effective environment and SA will get growth without any further interventions. By Busi Mavuso 19 Apr 2021  11:09 Since 1994, manufacturing has shrunk as a proportion of GDP from 21.5% to 13.3%. In part, this deindustrialisation stems from a rationalisation of the Apartheid economy, which was inefficiently producing goods behind sanctions barriers. The economy adjusted in favour of services upon our readmission into the international trading system, which improved our overall competitiveness and drove the economic growth we saw in the decade and a half up to the 2008…

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Dti pushes ahead with localisation to boost domestic growth

Government is working towards a more effective monitoring and enforcement of localisation, Trade and Industry Minister Rob Davies said on Tuesday. Briefing reporters after the Department of Trade and Industry (dti) presented its 2016/17 Annual Report to the Portfolio Committee on Trade and Industry, Minister Davies said localisation and incentives are two policy tools that are the most impactful when coming to supporting industrialisation. “[When coming to localisation] we are saying that we are working towards much more effective monitoring and enforcement of localisation because once localisation and designations are…

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