Sunday, 31 January 2016

Reflections on the National Industrial Policy Framework and industrial policy implementation in South Africa post-2007

  • Year: 2015
  • Author(s): Mbofholowo Tsedu

The 2007 launch of the National Industrial Policy Framework (NIPF) and the Industrial Policy Action Plan (IPAP) could not have anticipated the impact that the global financial crisis of 2008/2009 and subsequent recession would wreak on South Africa’s economy. With its strong focus on the manufacturing sector as a key driver of balanced development, the NIPF set a framework and an implementation mechanism – in the form of IPAP ­– for addressing cross-cutting and sector-specific constraints (and optimising opportunities) to put South Africa on a stronger growth path. As it turned out, it also assisted in shoring up the South African industrial sector against the worst effects of the recession, particularly through support for industrial upgrading, local procurement designations and export facilitation. This policy brief explores the intended outcomes of the NIPF and assesses some of the progress (and unintended consequences) achieved in implementing IPAP since 2008. It concludes with some recommendations on the need to do a full review of the impact and implementation of IPAP.

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