2 1 South Africa The Context and Growth Straregies
2 1 South Africa The Context and Growth Straregies
Strategies
Ebrahim Patel
Minister of Economic Development
Republic of South Africa
October 2014
Bali, Indonesia
Background to SA
South Africa - a country of 52 million
people, culturally diverse
More than 300 years of colonialism
and 20 years of democracy
Dutch occupation from 1652 to set
up a half-way station for ships to
Batavia
Colonialism interrupted economic
development of pre-colonial
societies
Racial oppression defined the
labour market and the pattern of
industrialisation
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The 6 Is
Infrastructure needs to address complementary national goals so that the
very significant spending leaves not only a legacy of ports and power
stations. We identified five i's:
Industrialisation - component and rolling stock manufacturing
Investment - in enterprises which need energy, good logistics systems,
broadband access
Inclusive growth - covering jobs, youth enterprise, rural development
Innovation - using infrastructure to stimulate new R&D investment
Integration - of the African continent through active focus on projects that
promote trade and investment in the continent
The National Infrastructure Plan (2012) has become the key instrument to implement
the New Growth Path
economic infrastructure such as transport and logistics, energy generation,
transmission and distribution, water supply, broadband rollout
Social infrastructure such as health, education and sanitation as well as basic
services to household and rural level
Industrial infrastructure including agro-logistics
Presidency-led, with a Presidential Infrastructure Coordinating Commission (PICC),
bringing together half of Cabinet, all provincial governors and mayors of major cities
Adopted 18 Strategic Integrated Projects that pulled together 100s of separate
construction sites into a coherent Plan
470
377
363
360
1998-2003
279
2008-2013
2003-2008
1983-1988
1978-1983
1973-1978
634
621
440
1968-1973
604
1963-1968
1,029
1993-1998
1,100
1,000
900
800
700
600
500
400
300
200
100
-
1988-1993
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Example of transport
Transport
A major construction programme to integrate
urban centres to reduce commuting times
and cost and improves safety.
333 new buses were assembled locally for
the new integrated transport systems for two
cities.
9880 new train coaches or wagons and 319
locomotives were locally assembled, helping
to create jobs and expand industrial
capacity.
25 000 mini-bus taxis were assembled
locally in two new factories. In contrast,
before 2012 all taxis in South Africa were
fully imported.
New rail-car to transport new automobiles
across the country
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Results
Largest infrastructure spending for last 50 years, with investment in physical
platforms for growth and jobs
1,4 million new jobs created over past 3,5 years, bringing total employment to
15 million people
GDP at end 2013 about US dollars (PPP) $662 billion
Growth rate since democracy roughly 3.2% a year on average, up from 1.2%
in the preceding 20 years
SA now a member of BRICS and a growing part of manufactured exports is
to neighbouring countries
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Results
Competition: tenfold increase in fines and penalties, with first steps now in
ordering breakup of monopolies and steps to regulate prices for private
monopolies
State procurement outcomes: compulsory local public procurement in
selected products where we have the potential to develop
Industrial funding up by more than 100% over past five years, with public
investment agency approving industrial support loans of $6 billion and
attracting double that from private co-investor partners
Trade reoriented to the rest of Africa: example of the Ford Ranger pickup
vehicle
Extensive social security system, covering retirement and child grants, to
complement employment strategy, in order to address poverty and inequality
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Terimah Kasih!
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Annexures
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