Adding value is the recipe for SA’s global success

Anna Cox SOUTH AFRICA must compete globally on the basis of value addition, rather than commodities and cost of labour. So said Trade and Industry Minister Mandisi Mpahlwa at the South African Bureau of Standards design awards recently. He said that if South Africa was to grow faster than 6% a year, the dual impact of low skills levels and technological capabilities had to be tackled. Manufacturing growth and technological advances were priorities and could only be achieved through sector-development programmes, he said. “But improving technological capabilities also needs long-term inward investment in the medium-to-high value adding manufacturing sector. Not only will such investments create sustainable jobs, but they will also bring with them new technologies and innovative practices that our country requires in order to be more competitive, as well as contribute towards greater levels of exports,” he said. Growth will be enabled through an economic growth path that incorporates what he calls the ‘knowledge economy’. Industries where this shift is already happening include business process outsourcing, telecommunications, the motor industry, the film industry and the aerospace industry. “Indeed, global supply chains and developing niche areas that fit into these supply chains require value-added production. In this way even our labour-intensive industries such as clothing and textiles can be re-orientated and adapt,” he said.