Minister of Trade, Industry and Comeptition, Parks Tau addressing the media on the Transformation Fund. The writer argues that alignment between key institutions, the National Treasury, the Sarb, the dtic, the FSCA and the Competition Commission mandatory.
By Dr Nthabiseng Moleko
Escaping South Africa’s low-growth trap will require a sustained effort to increase productive capabilities that drive structural transformation of the economy and promote labour-absorptive growth. Manufacturing contributes about 14% of GDP, yet black participation in industrial ownership and control remains low due to historic exclusion.
With strong spillovers, widening participation is central to inclusive growth. Expanding manufacturing is critical, as it not only drives growth but accelerates it through strong spillover and multiplier effects. Why are we arguing for widespread inclusion?
Exclusion from ownership and capital accumulation in manufacturing, energy and mining entrenched a racially concentrated industrial class and marginalised former homelands.
