be harnessed through deliberate and
enhanced coordination. This must also
embrace both business and labour
stakeholders through processes of
“self-discovery” that identify measures
each must take in our common effort
to implement identified programmes.
Achieving the necessary coordination
and coherence is imperative if our
efforts are to have the desired impact.
When we launched the first IPAP in
2008 we identified a number of lead
sectors and also a number of “cross
cutting” actions that were needed. We
began, logically by choosing a number
of the “easier to do” things both at
sectoral and cross-cutting level. In the
capital goods and transport equipment
sector we launched the foundry and
tooling initiatives and began work on
the wood and furniture making projects
identified in the first IPAP. We also
introduced important amendments to
the Competition Act.
Key achievements of our first IPAP
include the completion of work on a
new programme for the automotive
sector – the leading manufacturing
sector with critical supply linkages
to about a dozen other sub sectors.
The Automotive Production and
Development Programme will
replace the current Motor Industry
Development Programme. We have
also developed a new programme for
the leading labour-intensive sector in
the form of the Clothing and Textile
Competitiveness Programme.
We are now at the stage where we
The Need for Clear Industrial Policy Action Plan (IPAP)
are preparing the next IPAP. This will
Economic Policy in 2007/2008 marked a significant
be a three-year rolling programme
The new structures in government, achievement in our evolving efforts
aligned to the MTEF. The next IPAP will
in particular the Economic Planning to advance industrial development
be ready in January.
Commission in the Presidency and the in South Africa. The NIPF was widely
In preparing the next IPAP we have
Economic Development Department consulted with stakeholders and within
concluded that we can no longer simply
will be important in helping us government, and outlines our vision,
choose the “easiest to do” things that
achieve the greater coherence and approach and guiding principles to
are identified in sector strategies. The
united action across government industrial policy. The NIPF emphasises
problem with choosing “easier to do”
that is critical in ensuring that we are the strategic objective of altering the
things is that we may miss things that
strategic, focused and consistent in the trajectory of industrialisation and we need to do. We are accordingly
implementation of our economic policy. economic growth to ensure more preparing for a higher impact IPAP.
In embarking on this challenging sustained employment creation, to Preparing for this has required
task, we will clearly build on the defend, diversify and upgrade the that we address a number of critical
good work government has been industrial base, and to shift to high capacity issues. I have been saying
undertaking in the past, while value-added and knowledge-based delivering higher impact industrial
acknowledging shortfalls and learning activities, amongst others. policy requires acting on “3Cs” and an
from them. The NIPF also calls attention to “R”- cadre development, coordination,
the need for synergies and linkages consultation and appropriate
Industrial Policy as the Central between the various policies and
resourcing. We have recently appointed
Plank of our Response programmes of different arms and
a Deputy Director-General for Industrial
The completion and publication of a agencies of government. Indeed it
Development and are busy filling a
comprehensive National Industrial sees these as critical to effective
number of critical posts in sector units.
Policy Framework (NIPF) and the first industrial policy and calls for these to
We will also be approaching higher
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