The Manufacturing Circle’s initiatives are aligned with our three goals which span across the industry; to achieve a competitive manufacturing environment, attain a supportive international trade position and promote the reputation of locally manufactured products.
We are implementing priority projects which stem from our members’ requirements. In all cases, our fundamental objective is to support and to grow South Africa’s manufacturing sector.
We achieve this by facilitating effective Public-Private sector engagement. The Manufacturing Circle is represented by the CEOs of our member companies, who we bring together with policy makers at all appropriate levels of government. We support the dti’s Industrial Policy Action Plan (IPAP), and will work to ensure that the Plan is turned into action.
Single Factory Special Economic Zones Policy in South Africa
Assessing the manufacturing sector and its multiplier effects on the South African Economy
The Map to a Million Initiative is being led by a collaboration of manufacturing associations, and facilitated by Trade and Industrial Policy Strategies (TIPS).
Manufacturing presents one of the greatest avenues for job-rich growth and for South Africa’s stage of development could contribute double its current percentage to GDP, however studies show we are lagging far behind other emerging markets. If manufacturing were to contribute more substantially to the share of GDP, an additional one million jobs could be created.
We are currently soliciting input regarding specific issues and key priorities to facilitate industry investment as a first step in an on-going process involving discussion between industry and the public sector. The process will be iterative including recommendations towards the Industrial Policy Action Plan (IPAP), while at the same time initiating working groups to implement tangible, concrete deliverables.
The Vaal Triangle Rejuvenation Project is an initiative to strengthen industrial activity to protect and grow the many large and small firms that make up the steel, fabrication, chemicals and related sub-sectors in the area.
The project forms part of the CEO’s initiative and is being co-ordinated by André de Ruyter, Nampak Ltd CEO and Manufacturing Circle Chairperson. We are currently identifying ways to revitalise the region which will include motivating for a supportive regulatory framework to encourage new investment in the area.
We have established an Agro-Processing Working Group to engage with the dti on the support mechanisms which are required from government, and the reciprocal undertakings which are needed from industry to grow the sector. Our approach involves the assessment of different value chains in which our various members participate, as a proxy for dynamics in the industry as a whole.
Our Priority Projects are implemented through various channels.
• Engagement and dialogue at the highest level with government departments, which include the Departments
of Trade and Industry, Finance, Economic Development, Science and Technology and the SARB;
• Our Quarterly Manufacturing Circle Investment Tracker (MCIT);
• National and Regional Manufacturing Indabas; and
• The BRICS Business Council, which is run through our Manufacturing Working Group.
The MCIT is produced on a quarterly basis as a useful tool to communicate with policy makers. In addition, we work with the media by providing opinion editorials on the challenges and opportunities faced by our sector. Furthermore, we have engaged with Deloitte Africa in the launch of a manufacturing competitiveness survey to gain insights into this topic which is critical to the survival and growth of our sector. Findings will be used to facilitate industry discussion, provide input into policy and actions going into 2017, and benchmark ourselves globally.
The Manufacturing Circle is supported by our collaboration with Trade and Industrial Policy Strategies (TIPS), a not-for-profit economic research organisation. It undertakes research and analysis, and facilitates policy development, dialogue and capacity building. In addition, the Manufacturing Circle is advised by Nascence Advisory and Research, which provides economic analysis of relevance to the manufacturing sector.