Statistics South Africa (Stats SA) today released the Manufacturing industry, 2014 report which indicates that the total income for the manufacturing industry has increased by 9,4% per annum, from R1,68 trillion in 2011 to R2,20 trillion in 2014. Comparing 2011 and 2014, large increases were reported for ‘coke, petroleum, chemical products, rubber and plastic’ (+R248,1 billion), ‘food products and beverages’ (+R88,6 billion) and ‘transport equipment’ (+R81,3 billion). The contribution of the top 100 enterprises (CR100) has risen from 53,5% in 2005 to 58,1% in 2014.
The report further indicates that employment has declined from a high of 1 436 000 in 2005 to a low of 1 190 000 in 2014 (a loss of 246 000 jobs). The biggest loss in employment was in ‘textiles, clothing, leather and footwear’ (-91 000), ‘food products and beverages’ (-52 000), ‘metals, metal products, machinery and equipment’ (-35 000), ‘furniture, other manufacturing and recycling’ (-32 000) and ‘transport equipment’ (-30 000). Jobs were only gained in ‘coke, petroleum, chemical products, rubber and plastic’ (+20 000).
Also, large enterprises contributed only 46,4% of employment whereas the small, medium and micro enterprises (SMMEs) created 53,6% of employment.
The districts with the largest income from sales of goods and services were ‘Cape Town’ with R366,2 billion (or 17,3% of the industry total), ‘Johannesburg’ (R342,0 billion or 16,2%), ‘Ekurhuleni’ (R268,8 billion or 12,7%), ‘eThekwini’ (R228,7 billion or 10,8%), ‘Tshwane’ (R145,7 billion or 6,9%), ‘Gert Sibande’ (R135,9 billion or 6,4%) and ‘Nelson Mandela Bay’ (R111,3 billion or 5,3%).
However, ‘Johannesburg’ had the highest employment (312 000 or 26,1%), followed by ‘Cape Town’ (157 000 or 13,2%), ‘eThekwini’ (156 000 or 13,1%), ‘Ekurhuleni’ (115 000 or 9,7%), ‘Nelson Mandela Bay’ (61 000 or 5,2%) and ‘Cape Winelands’ (51 000 or 4,3%).
Note to editors:
The manufacturing industry large sample survey is a periodic survey conducted every three to five years covering business enterprises registered for tax in South Africa. Results of the survey are used within Stats SA for benchmarking national accounts (e.g. the gross domestic product (GDP)), compiling supply-use tables. These statistics are also used by the private sector in analyses of comparative business and industry performance.
Since 1996, the survey was previously conducted for the reference years 2001, 2005, 2008, 2011 and 2014
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The full statistical release is available on the Statistics South Africa website: www.statssa.gov.za
Issued by GCIS on behalf of the Statistics South Africa
26 September 2016
South Africa’s economy grew by 3,3% quarter-on-quarter (seasonally adjusted and annualised), according to estimates of real gross domestic product (measured by production). This is the fastest quarter-on-quarter rise in economic activity since the fourth quarter of 2014. Year-on-year growth in the second quarter of 2016 was 0,6%.
The mining and manufacturing industries contributed over half of the 3,3% rise. After contracting by 18,1% in the first quarter of 2016, the mining industry recovered strongly in the second quarter, rising by 11,8%. This was mainly due to increased production in platinum group metals (PGMs).
A rise in the production of motor vehicles helped manufacturing expand by 8,1%, the highest expansion since the fourth quarter of 2013. This is corroborated by data from the expenditure side of the economy, showing a substantial rise in exports of passenger and goods-carrying vehicles.
The agriculture industry continued its sickly run in recession territory, posting its sixth consecutive quarter of economic decline. The real value of the agriculture industry has fallen from R77,8 billion in the fourth quarter of 2014 to R66,7 billion in the second quarter of 20162.
Electricity, gas and water supply was the second industry to contract in the second quarter, falling by 1,8%. Electricity distribution in South Africa has been subdued, contributing to the industry’s contraction. The amount of electricity distributed was 2,0% lower in the first seven months of 2016 compared with the first seven months of 2015, according to Stats SA’s latest Electricity generated and available for distribution release.
Other quick facts from the latest GDP release:
•Real GDP increased by 0,3% in the first six months of 2016 compared with the first six months of 2015
•Nominal GDP (measured by production) was estimated at R1 068 billion.
•Expenditure on real GDP increased by 3,4% quarter-on-quarter.
•Exports of goods and services increased by 18,1% quarter-on-quarter.
•Household final consumption expenditure increased by 1,0% quarter-on-quarter.
•Government consumption expenditure increased by 1,3% quarter-on-quarter.
•Gross fixed capital formation decreased by 4,6% quarter-on-quarter.
•Imports of goods and services decreased by 5,1% quarter-on-quarter.
Source: Statistics South Africa, www.statssa.gov.za/
Cabinet has taken note of the report back by the Minister of Finance to the President on the progress of government’s consultations with the private sector and labour on the economy. The President tasked Minister Pravin Gordhan to lead engagements with these social partners to map out a strategy and come up with measures for growing the economy and preserving the country’s credit rating. “Cabinet is pleased that this work has culminated in concrete initiatives that will improve the country’s economic prospects,” said Acting Minister in The Presidency or Planning, Monitoring and Evaluation, Nosiviwe Mapisa-Nqakula. She was addressing médium during a post Cabinet briefing on Thursday in Cape Town. The President announced several priority initiatives on Monday, which include: •a joint private and public sector fund for small business support; •addressing constraints to increasing investment in order to accelerate inclusive growth; •government and private sector co-investment in infrastructure, drawing on the experience of the successful Independent Power Producer Programme, and strengthening State-owned enterprises to ensure their financial sustainability and reinforcing their role in driving development.
http://africanbrains.net/2016/05/16/sacabinet-pleased-strategy-grow-economy/
President Jacob Zuma says measures have been put in place to ensure the economy’s resilience is sustained, as the world economy continues to experience sluggish growth. South Africa, like all other developing nations, could not emerge unscathed from the turbulent global economic conditions following the 2008 economic crisis. “I appointed an Inter-Ministerial Committee in January this year to further support and assist investors to leverage existing trade and investment opportunities in our country. In the recent past, I dispatched a team of South Africans led by the Minister of Finance to interface with investors abroad. “These efforts, among others, have started yielding positive results,” said the President. He said Government has worked hard to ensure the energy constraints the country experienced last year are addressed.
http://www.sanews.gov.za/business/measures-place-ensure-economys-resilience
https://www.embaixada-africadosul.pt/index.php/en/about-south-africa/best-of-south-africa/209-media-centre/business-news#sigProId564c9056eb
Johannesburg, Tuesday 6 October 2015 – South Africa has retained its position in the 2015 Ibrahim Index on Africa Governance. In the 2015 Index, South Africa has retained its rank of 4 of 54 countries assessed in the Index.
This follows South Africa’s improved performance in the 2015/16 World Economic Forum’s annual Global Competitiveness Index which saw South Africa rise seven places from 56 to 49 of 140 countries.
The Ibrahim Index of African Governance (IIAG) measures the quality of governance in 54 African countries on an annual basis by looking at four areas: Safety and Rule of Law, Participation and Human Rights, Sustainable Economic Opportunity and Human Development. South Africa’s performance in each of these areas earns it the position of 7 (up from position 8 in 2014), 4, 2 and 6 respectively on the continent. Countries in the SADC region have also performed well in the 2015 Index.
Brand South Africa CEO Kingsley Makhubela said, “We welcome South Africa’s performance in the 2015 Ibrahim Index of African Governance particularly in areas where improvements have been noted. The National Development Plan (NDP), together with various other instruments, will guide South Africa’s interventions to address other areas of concern including, amongst others, issues around personal safety.”
“South Africa commends countries in SADC, in particular, on their performance in the Index. Although the 2015 IIAG indicates improved performance by countries on some indicators, we cannot under-estimate the urgency for the continent as a whole to implement Agenda 2063.”
“All countries on the continent should have national programmes to drive their social and economic development. These programmes by African states will collectively contribute towards Africa’s plan for holistic socio-economic development.”
“In this regard, we call on all South Africans in their different sectors to play their part in implementing the NDP which will be South Africa’s contribution to Agenda 2063. Continuous improvements in the various pillars identified in the NDP will translate into better performance by South Africa in various indices that assess our competitiveness and attractiveness as an investment destination,” concluded Mr Makhubela.
[1] Please note that the ranking cannot be compared with previous years’ data. Annual refinements are made to the scores, and the entire IIAG dataset is revised retrospectively. Analysis above therefore draws comparisons between years based entirely on 2015 IIAG dataset. For more details on methodology, please see the methodology section of the IIAG website.
2015-06-12 The Minister of Trade and Industry, Dr Rob Davies, says the launch of the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC) Free Trade Area sends a powerful signal that Africa is serious about its economic integration. The COMESA-EAC-SADC Tripartite Free Trade Area (TFTA) was launched on 10 June 2015 at the 3rd Summit of the Tripartite in Sharm el-Sheikh, Egypt by the leaders of the three trading blocs. Minister Davies led the South African delegation to the launch. The Tripartite Free Trade Area (TFTA) creates a larger market of 26 countries, a combined population of up to 625 million people and a total gross domestic product (GDP) of $1.6 trillion. The launch of the TFTA follows four years of negotiations among the three regional trade blocks. Minister Davies said that the main benefit of the TFTA is a larger, integrated, and growing regional market that can increase the interest of foreign investment and provide a basis for enhanced intra-African trade. He highlighted that the underlying rationale for African economic integration is that African markets are small by global standards, and certainly too small to support economic diversification and industrialisation of the individual countries. “The establishment of the TFTA is not only a political vision but makes business sense. The creation of larger markets with greater critical mass will not only enhance the African investment proposition, it is also the only way Africa will compete effectively in the global economy. Regional integration is therefore critical to accelerated, inclusive and sustainable growth in Africa,” said Davies. He added that the Tripartite Initiative is based on a development integration model premised on three pillars: “The market integration pillar aims to address trade barriers and is to be complemented by cooperation on industrial development; and coordinated infrastructure development. This is essential to enhance productive capacity and the development of regional value-chains. As well as promote inter-connectivity and reduce costs of doing business in eastern and southern Africa." said Minister Davies. Minister Davies added that the launch of the TFTA would be followed by the launch of negotiations on the establishment of a Continental FTA (CFTA) at the African Union Summit, currently taking place in South Africa. “Once established, the CFTA would offer a market of over 1-billion people and a GDP of $2-trillion. The African market is crucial for South Africa’s industrialisation and job creation efforts as one of the key destinations for our value-added exports,” said Minister Davies. The COMESA-EAC-SADC Tripartite initiative is rooted in the African Union’s Lagos Plan of Action and the Abuja Treaty, which aim to establish an African Economic Community. As a first step towards achieving this, the three tripartite regional economic communities are making an effort to integrate their markets and economies by agreeing on the legal text to underpin the TFTA. The launch thus signifies the conclusion of negotiations on the Tripartite Free Trade Agreement. The implementation of agreements such as this requires parliamentary ratification. The agreement will be operationalised once tariff schedules and rules of origin have been agreed and ratification completed. These will be concluded as part of the built-in agenda following the launch. The negotiations towards the Tripartite Free Trade Agreement (TFTA) were launched in Johannesburg on 11 June 2011.
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CONTEXT, THEMES, PURPOSE
Situating IPAP in the context of overarching government policy
Industrial policy is practised everywhere.
Building alignment and cooperation
Successive IPAPs have consistently been premised on an understanding that successful re-industrialisation requires a laser-focused, national industrial effort.
In practice, what this means is:
Industrial policy works
IPAP 2015 rests on the solid foundation that industrial policy works – but only if, and to the extent that:
CTLF sector
At a cost to date of R2.6 billion disbursed, the CTCP facilitated the creation of R3.9 billion of additional MVA as well as 6 900 new jobs, in the short term.
Transversal (cross-cutting) interventions
IPAP 2015 also reflects and highlights steady progress, inclusive of the following transversal programmes:
This means that in the 18 Strategic Integrated Projects (SIP’s) under the auspices of the Presidential Infrastructure Co-ordination Committee (PICC), 645 infrastructure projects across the country valued at R3.6 trillion must procure the types of products listed above (and other products previously designated) from local manufacturers.
This is the strongest signal to date that government intends deploying industrial policy instruments where it believes it can achieve maximum leverage to support the private sector.
Securing compliance
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Issued by: The Department of Trade and Industry