Billions invested in leading industries

CLOSE to R70 billion has been invested to reignite major sectors which drive economic growth and job creation in the country.

This is according to the Department of Trade, Industry and Competition, which was addressing members of the National Assembly committee on trade and industry this week .

According to the department, so far four master plans have been finalised and are being implemented.

They are for the sugar, automotive, poultry, and retail – clothing, textile, footwear and leather (R-CTFL) industries.

Two master plans are still to be finalised – for the steel and furniture sectors.

The total investments include commitments made at the two South African investment conferences as follows: Poultry – R1.5bn Automotive sector – R60bn R-CTFL – R6.7bn

Sugar – R1bn

The department’s deputy director-general of industrial development, Thandi Phele, told members of Parliament the implementation of the master plans was already bearing fruit in the four sectors.

“In the poultry industry, production has increased by 5% during the first eight months of the year 2020, when compared to the same period in 2019, with an additional one million birds per week produced.

“The South African Poultry Association made a R735 million new investment out of a R1.5bn commitment and through these developments, 428 jobs have been created,” said Phele.

The main objectives of the poultry master plan has been to refocus the industry to exports, reclaim the domestic market and change the economic value extraction premium meat (breasts) and discounted meats (bone in/thighs).

In addition, efforts were geared towards the saving of 54 000 jobs and creating an initial 3 600 new jobs, with employment growing beyond this rate as exports grew further.

In the R-CTL sector, 40 jobs were saved in the new flip flop factory at Pep Clothing (PepClo) which came as a result of a R25m investment.

An additional R564m from key players namely Pepkor (R30m), Foschini Group (R350m) and Glodina (R184m) saw 4 300 local jobs being saved. “The department is working with the National Economic Development and Labour Council (Nedlac), National Treasury and provincial authorities to monitor and enforce 100% local content.

“Designated legislation with the public sector procurement and Proudly SA has developed a portal to house local manufactured personal protective equipment including fabric face masks during national lockdown that continues to focus on promoting buy local campaigns,” said Phele.