The department of trade and industry (dti) will have to fast-track its trade and investment programmes to address challenges in the economy, said Trade and Industry Minister Dr Rob Davies.
This statement comes after the presentation of the dti’s 2014/15 report to the Portfolio Committee on Trade and Industry. “Our conclusion is that our programmes need to move up the value chain. The nine-point plan, which addresses short-term constraints and makes longer-term adjustments in the structural base of our economy, remains important. We just need to move faster to implement it,” Davies said.
He commented that the current economic climate in China was having a knock-on impact on mining economies around the world.
“We’ve seen dramatic falls in prices of iron ore and platinum to the extent that 40% of the platinum mines in South Africa are not profitable at the moment, while 30% of gold mines are not profitable.”
South Africa needs to become not only a producer and exporter of primary mineral commodities but also a producer and exporter of value-added products.
Lionel October, dti director general, added that positive growth had been experienced in the four sectors in which the dti had launched targeted incentive programmes – the automotive industry; clothing, textile and footwear; the film industry; and business process outsourcing.
“In those four sectors we are seeing significant investments and exports,” he added.
Davies commits to fast-tracking trade growth programmes
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