Manufacturing is the backbone of any successful industrial economy, but domestic demand is typically insufficient to develop sustainable industrial sectors. To achieve the industrial development Africa, and South Africa, is aiming for, industrial ecosystems must be created, speakers said during the first day of the thirteenth Manufacturing Indaba, held in Sandton, Gauteng, on July 14.
“In the future, we want to be processing our own resources, making higher-value products, expanding supply chains and creating industries and jobs and wealth. To achieve this, we need to develop stronger regional trade, form strategic partnerships and ensure sustained investment in productive capacity, modern technology and critical skills,” Deputy President Paul Mashatile told delegates.
Industry was the engine room that enabled economies to transform raw materials into products, strengthened domestic capabilities and built economic resilience, said Trade, Industry and Competition Deputy Minister John Steenhuisen.
All countries that have successfully industrialised have done so with government support, which is why governments deliberately support manufacturing.
However, South Africa's industrial future would not be built on domestic demand, and regional and continental markets presented the greatest growth prospects. The opening of markets created catalytic effects on industries but required local value chains to unlock these opportunities, he said.
