Plans have been rolled out to construct several industrial parks in South Africa aimed at boosting the country’s economy. The Chairman of the Economic Sectors, Employment and Infrastructure Development cluster and also Rural Development and Land Reforms Minister Gugile Nkwinti said in a media briefing that the roll out will stir up key economic sectors such as clothing, textile, footwear and agro-processing that have been showing signs of recuperation in the recent months.
This announcement is one of the government’s plans and program of action in implementing the Nine Point Plan that focuses on economic recovery and growth in South Africa. “Going forward, we will upscale the revitalization of local industrial parks from four to 20 locations. All these industrial parks are located in former homelands or are adjacent to large townships,” the minister said.
He said a total of R3.7bn had been approved to give support to private sector investment since the inception of the Clothing and Textiles Competitiveness Program in 2010 and March 2015, an initiative that has helped save 68,000 jobs as well as creating 6,900 new ones.
The minister said the government has successfully stabilized the leather and footwear sector and were steadily regaining domestic market share and also growing in terms of export. This has seen 22 more factories opened and the rolling out of more industrial parks is a boost to business.
“This intervention will unlock economic activities and link small township businesses into established domestic and global Original Equipment Manufacturers (OEMs) supply chains’, he said
Additionary, the minister said the government’s effort to re-industrialize the economy was bearing fruits. This has been demonstrated by the over R25bn in private sector investment, which has been leveraged over the last five years. New investments amounting to R12 bn, R6bn and R4.5bn were announced by Beijing Auto Works, BMW and Volkswagen respectively in the second half of 2015. This is a show of confidence by global multinational firms in the South African economy and its advanced industrial capabilities.
This was possible as a result of a strong partnership between the government and the private sector in renewable energy generation.
As a result of this partnership, over R194bn worthy of private sector investment has been unlocked. “Our insistence on local content within the Renewable Energy Independent Power Producer Program (REIPPP) has ensured that contracts of over R21bn have been allocated to local suppliers.
“A further R65bn is expected to be contracted from local suppliers in the next two years.”
South African potential in rail manufacturing also got a boost after the African Union designated the country as the rail production hub in the continent.
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