President Jacob Zuma
Photo by: Duane Daws
The developing Black Industrialists Policy Framework is the “right policy” to transform South Africa’s industrial landscape and get the nation’s struggling manufacturing sector back on track, President Jacob Zuma said on Wednesday.
Speaking at the Department of Trade and Industry- (DTI-) hosted Black Industrialists Indaba, in Midrand, he said that, while gains had been made in terms of transformation, much was still needed to change the structure of the country’s economy.
With over 100 black industrialists expected to be developed over the next three years, there was room for their participation in the manufacturing sector as industrialisation and reindustrialisation progressed.
Despite a decline of 19% since 1993, the manufacturing sector contributed 15.2% to gross domestic product. However, regardless of its importance to the economy, the manufacturing industry was one of the least-transformed sectors, Zuma pointed out.
The government aimed to provide financial and nonfinancial support to spur the participation of black industrialists in key sectors of the economy and stimulate rapid industrialisation through a “customised”, somewhat “unique” programme, given South Africa’s unique history.
Gauteng MEC for Economic Development Lebogang Maile said the programme would enable black industrialists to revive the manufacturing sector, which was critical for long-term growth.
Zuma said the next few years would be geared towards more visible action to achieve government’s development goals and democratise the economy by putting South Africa’s historically disadvantaged persons into active decision-making roles.
“It is not reversed racism – it is an eradication of racism in our society,” he assured, adding that the end goal was ensuring equitable and mutually beneficial development.
“The vehicle to achieve these goals [to bolster economic development] is a mixed economy,” he concluded.