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South Africa retains ranking in 2015 Ibrahim Index of African Governance

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.


ibrahim index-1

[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.

Tripartite Free Trade Area will Enhance Africa’s Development




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.


Sidwell Medupe-Departmental Spokesperson
Tel: (012) 394 1650
Mobile: 079 492 1774
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Issued by: The Department of Trade and Industry
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Launch of the Industrial Policy Action Plan IPAP 2015/16 – 2017/18


Situating IPAP in the context of overarching government policy

  • If the National Development Plan (NDP) sets the overall vision for South Africa’s economy and society on the road to 2030, then the IPAP provides the targeted actions and rolling implementation framework for sustained and deepening industrialisation. Both the IPAP 2015 and the “IPAP in Brief” brochure clearly spell out the key linkages between the IPAP and the NDP.
  • It is important to stress that the IPAP is not, as is sometimes incorrectly suggested, an “annual change of industrial policy”. Framed by the National Industrial Policy Framework (NIPF), it is, as its name indicates, an annual action plan, which builds on the work defined and initiated in previous iterations. It seeks to continuously strengthen industrial policy instruments, build upon previous plans and jettison any programmes which have in practice been found not to work.
  • Finally, it is also important to note that the IPAP is not the plan of a single government department. It is a joint endeavour of the Economic Sectors, Employment and Infrastructure Development Cluster of Government.

Industrial policy is practised everywhere.

  • Industrial theory, policy and practice is frequently misunderstood and sometimes maligned in South Africa, where it is often negatively and mechanically counter-posed to ‘market imperatives’ and asked to accommodate to ‘one-size-fits-all’ policy prescriptions.
  • In reality, industrial policy is pervasively practiced all over the world within both developing and developed country contexts.
  • Wherever it is practised in a nuanced way, with a realistic grasp of the local/regional context and a strong focus on longer-term outcomes, it provides the foundation stone for the indispensable coordination of government and private sector economic and social actions.
  • Sensible and empirically grounded industrial policy develops traction through a dynamic, complex set of inter-locking and mutually supportive transversal (cross-cutting) and sector-specific interventions.

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:

  • The need for strong policy coherence and programme alignment across all government departments and their agencies, with decreasing reliance on regulatory compliance and a much stronger emphasis on coordinated economic impact.
  • The need to decisively change the nature and tone of the conversation between government, business and labour to ensure that all three parties identify areas in which they can actively work together to secure and strengthen their joint efforts, factoring in the tough realities of extremely difficult global and domestic economic conditions.

Industrial policy works

IPAP 2015 rests on the solid foundation that industrial policy works – but only if, and to the extent that:

  • it is meticulously researched and designed;
  • it is the product of close stakeholder consultation;
  • it is properly resourced;
  • it is continuously subjected to strong monitoring and impact assessment. to secure continuous improvements to its design and implementation.

CTLF sector

  • By way of example: As at 31 March 2015, a total of R 3.7 billion has been approved under the programme, of which R 2.6 billion has been disbursed, since inception in 2010. The Manufacturing Value Addition (MVA) increase, attributable to the CTCP between the base of 2009 and 2014, is R 3.9 billion (exceeding the disbursements by 50% or R 1.3 billion) whilst the overall sector experienced declines in output and Value Added over this period
  • National Employment in the sector, utilising annual averages provided in the Quarterly Employment Survey, decreased by approximately 19 000 formal jobs between 2009 and 2014, whilst during the same period, the increase in employment attributable to the CTCP is approximately 6 900 jobs. MVA per Employee increased substantially, especially for Leather, indicating an improvement in labour efficiency as MVA growth was faster than the growth in employment.
  • Labour Cost as % of Sales has stabilised since 2012, indicating that improved process efficiencies, exceeded the increased cost pressures (wages, fuel, electricity, etc.)
  • On Time In Full (OTIF) deliveries, one of the most important indicators of operational efficiency and customer service, has increased overall, indicating a steadily improving delivery reliability in in all sectors.
  • Thus CTCP interventions have already contributed to improved overall competitiveness, sustainability and employment growth for recipients.

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:

  • Incentives and industrial financing
    • A total of 3,384 private sector enterprises across all provinces were provided with incentive and other support in 2014 to a value of R13.6 billion.
    • A comprehensive bouquet of incentives is structured, in the main, as an ‘open architecture’ system.
    • Increasingly, across all sectors - in an effort to maximise economic impact and critically important export growth - the conditions for access to government support will not only be tightened but increasingly directed towards support for ‘winning’ companies that have demonstrated either the proven capacity or the clear potential to compete in export markets and/or qualify as suppliers to global OEMs.

  • Procurement

    • the dti has designated 16 sectors, sub-sectors and products for local procurement. Although this package of measures still falls below the levels of support deployed in many other countries, if we take into account other local procurement and supplier development programmes such as the National Industrial Participation Programme (NIPP) and the Competitive Supplier Development Programme (CSDP) then it is safe to say that the combined quantum of support is significant.
    • To coincide with the launch of IPAP 2015, the dti announces further designations for local procurement in the following product areas: transformers, power-line hardware and structures, steel conveyance pipes, mining and construction vehicles and building and construction. In the case of the last sector, the first round of construction material designations include cement, fabricated structural steel, pipes and fittings, sanitary ware, glass, frames and roofing materials.

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

  • The lever of designation is as strong or as weak as the level of compliance that can be achieved. Upcoming designations will thus be accompanied by much more sharply focused measures to ensure compliance across all government departments and agencies and concentrated attention to the development of state capacity for local strategic sourcing and supplier development.
  • Across the whole range of IPAP interventions, local content requirements will continue to be strengthened wherever applicable - including in flagship success areas like the latest window of the Renewable Energy Independent Power Producers Programme (REIPPP).

Media Enquiries
Sidwell Medupe-Departmental Spokesperson
Tel: (012) 394 1650
Mobile: 079 492 1774
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Issued by: The Department of Trade and Industry

South African Pavilion at SIAL 2014, France

South African will be present again at SIAL 2014, the world's largest food innovation marketplace, to take place in Paris from 19-23 October 2014. A delegation of 36 South African companies will be present at the SA Pavilion ( hall 4, stand numbers 4Q019 & 4Q020). 

Please contact the Este endereço de email está protegido contra piratas. Necessita ativar o JavaScript para o visualizar. for further information

SA Ranked Top African Emerging Economy


The country ranked ahead of Nigeria as a potential investment destination, coming in at 14th on the index while Nigeria ranked 17th.

South Africa has been ranked as the leading emerging economy in Africa and the only country on the continent to be ranked in the top 15 worldwide, according to the Emerging Markets Opportunity Index conducted by international advisory firm Grant Thornton.

"Although recent events in the mining sector have hurt our country's reputation as a destination of choice for foreign direct investment, there are significant benefits that continue to attract investors," Grant Thornton South Africa's national chairperson, Deepak Nagar, said in a statement.

The index analyses a variety of indicators from Grant Thornton's International Business Report, the International Monetary Fund and the United Nations Human Development Report. Indicators include economic size, population, growth prospects and levels of development to rate the countries' potential to attract business investment.