The Deputy Minister of Trade and Industry on 12 October, addressing the Proudly South African (Proudly SA) Conference, said that government had provided policy interventions to minimise import leakages which represented an outflow of funds whilst at the same time attempting to increase both aggregate demand and supply in the South African economy.
The Minister listed interventions such as the Broad-Based Black Economic Empowerment Act and the Black Industrialists Policy as key to stimulating a culture of procuring locally manufactured products, growing the economy and creating sustainable jobs in South Africa.
The Minister stated further that it was through government’s manufacturing incentives, localisation and designation that we had been able to strengthen the economy, despite the negative global and domestic trading conditions.
He concluded that the challenges related to compliance with the requirements of local content by government departments and state-owned entities, and the net effect of the low demand for South African manufactured products. The Minister acknowledged that the government was working on reforming procurement policies and strengthening remedies for non-compliance on local content.