News


IPAP could create 700 000 jobs

April 2010 News

The Department of Trade and Industry has unveiled South Africa’s 2010/11 Industrial Policy Framework Action Plan (IPAP). Growth consultants Frost & Sullivan expected this plan to have a direct and, hopefully, sustainable impact on the country’s manufacturing productivity.

The IPAP focus is on improving growth in key manufacturing sectors, with the main thrust being the need to create sustainable employment. Overall, Frost & Sullivan estimates that the 2010/11 could create over 700 000 jobs in the next 10 years through the various sector strategies and policy decisions.

“In order to meet these expectations, industrial capabilities need to be developed with an increasing focus on return on investments, skills development and export competitiveness,” says Frost & Sullivan analyst Laura Peinke. “If this IPAP is not successful, the local manufacturing economy cannot expect to compete in the new knowledge-driven global economy.

Manufacturing productivity in South Africa has continued to increase over the last 10 years, but Frost & Sullivan believes that this will not be sustainable. Peinke says that as productivity has increased, local competitiveness has declined. She believes that there are a number of reasons for this. They include the high cost and limited availability of capital, a weak skills system, and unreliable and expensive port and rail systems. These are exacerbated by the further expected electricity price hikes.

One of the core focus sectors in the 2010/11 IPAP is the automotive industry. Traditionally the industry has contributed 7% to the country’s GDP, and made up 13,5% of the country’s exports. In 2008, the industry employed 320 000 people.

“Government is expected to leverage the Automotive Production and Development Programme (APDP) to achieve targets outlined in the previous IPAP, and double production to 1,2 million units by 2020,” Peinke says. “It also wants to increase the local content of components in vehicle production substantially.”

At present, local content only makes up 35% of a vehicle, which adds to increasing manufacturing costs as a result of import tariffs and time delays. Frost & Sullivan believes this sector will have one of the largest impacts on job creation, with over 150 000 additional jobs being created in the next 10 years.

The nuclear, metal fabrication and capital equipment, chemicals and advanced manufacturing industries are also expected to benefit from the new IPAP.

For more information contact Patrick Cairns, Frost & Sullivan, +27 (0)18 464 2402, [email protected], www.frost.com





Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Reinstatement opportunity for ECSA registration
News
In 2023 the Engineering Council of South Africa (ECSA) announced a special opportunity for engineers in South Africa to reinstate their registration status if it had been cancelled. This exclusive offer is available until the end of August 2024.

Read more...
Africa Automation Indaba 2026
News
A bold new chapter in Africa’s industrial evolution begins with the launch of the Africa Automation Indaba, set to take place from 13 to 14 May 2026 at the prestigious Radisson Collection Hotel in Cape Town.

Read more...
EtherCAT Technology Group holds another Plug Fest
News
Recently, the EtherCAT Technology Group (ETG) once again invited its members to a Plug Fest, this time specifically targeting developers and manufacturers of devices with Safety over EtherCAT (FSoE) functionality.

Read more...
BMG powers up at Nampo 2025
News
The BMG team was highly prominent at this year’s Nampo agricultural show, held near Bothaville recently. This prestigious event, which is one of the largest agricultural exhibitions in the southern hemisphere, is a highlight for manufacturers and suppliers of farming equipment, as well as for farmers, families and the entire community.

Read more...
Epiroc rocks youth development programmes
News
Epiroc is not just building equipment - it’s building futures. Through its dynamic internship and learner programmes, the mining equipment and services specialist is shaping South Africa’s next generation of skilled professionals, equipping them with real-world experience, industry knowledge and the confidence to launch successful careers.

Read more...
Schneider Electric drives innovation in Africa
Schneider Electric South Africa News
Schneider Electric has officially launched its first Innovation Hub on the African continent, coinciding with the opening of its new regional headquarters in Midrand, South Africa.

Read more...
Schneider Electric South Africa certified as 2025 Top Employer
Schneider Electric South Africa News
Schneider Electric is proud to announce its South African operation has been awarded Top Employer 2025 certification by a global authority in HR excellence, Top Employers Institute.

Read more...
100 years of safety leadership
News
DEKRA Industrial and its adult-based education and occupational skills training division, the Institute of Learning (IOL) will showcase a milestone at A-OSH 2025, as the company celebrates DEKRA Global’s 100 years of safety leadership.

Read more...
Drakenstein Municipality aces Schneider Electric’s Sustainability Impact Award
Schneider Electric South Africa News
Drakenstein Municipality in the Western Cape has won a Sustainability Impact Award for Schneider Electric’s Anglophone Africa region, shining the spotlight on its unwavering commitment to sustainable leadership and its forward-thinking approach to ensuring a sustainable future for its coming generations.

Read more...
LH Marthinusen launches new industrial fan manufacturing and services factory
News
LH Marthinusen has launched its new industrial fan manufacturing and services factory in Ekurhuleni. THis is a major milestone for South African energy infrastructure growth.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved