Session 8: Financing the sustainability transition
Session 8: Financing the sustainability transition
Session 9: Unpacking the water-energy-food nexus
Session 9: Unpacking the water-energy-food nexus
Session 9: Unpacking the water-energy-food nexus
Session 10: Sub-national experiences and sustainability
Session 10: Sub-national experiences and sustainability
South Africa through its Industrial Policy Action Plan (IPAP) identifies local content as a strategic industrial policy instrument, which can be used to leverage the power of public procurement; reduce the country’s trade deficit; address market failures; foster infant industries; and increase the governments tax base (the dti, 2016). Although local content is a commonly used industrial policy lever, and much has been done in South Africa to use this policy instrument, a number of constraints hamper its effective use, including the lack of a common definition, procurement processes, effective monitoring and information sharing. This policy brief paper draws on a recent research project undertaken by TIPS to model the economic multipliers of local content and the maximum price premium the state should consider paying in evaluating the benefits of buying local versus buying imported products. It assesses the key challenges and lessons of local content policies in South Africa. In particular, it analyses the economic rationale driving the argument for the use of local content policies. Furthermore, the brief highlights the reasons why local content policies are not resulting in the desired level of local procurement, and suggests possible measures that could be implemented.
Agro-processing: Manufacturing Circle input to the dti regarding opportunities for transformation and growth through an APSS solution - Philippa Rodseth
Aro-processing: An opportunity for manufacturing growth - value chains - Neva Makgetla and Mbongeni Ndlovu
Manufacturing Circle Investment Tracker (MCIT) Q1 & Q2 findings: Xhanti Payi
In South Africa, the desired outcomes of industrial policy are ultimately sustained, sustainable and increasingly inclusive growth. Can agro-processing contribute to these outcomes through accelerated investment and employment creation? What contribution can it make to government's objectives of support for smaller producers and black industrialists, maintaining food security, and enhancing productivity, competitiveness and industrial diversification? What obstacles does it face?
The Manufacturing Circle Investment Tracker (MCIT) is a quarterly survey of investment taking place by businesses in the manufacturing sector. It is an indexed survey that highlights the growth or contraction in the level of investment by firms. The data on the findings from Q1 & Q2 2017 will be presented.
Presenters
Neva Makgetla is a senior economist at TIPS. Makgetla has published widely on the South African economy and worked for many years in government, most recently as Deputy Director General for Policy in the Economics Development Department, as well as in COSATU.
Mbongeni Ndlovu: Mbongeni is an economist at TIPS. Prior to working at TIPS he worked at Genesis Analytics and the South African Reserve Bank. He has Master of Science Degrees in African Studies and Development Economics from the University of Oxford. He also holds a BSC in Economics from the University of KwaZulu-Natal.
Philippa Rodseth is the Executive Director of the Manufacturing Circle. She has previously worked at Spoke Consulting and FNB. She has an MBA and a B.Arch from Wits.
Xhanti Payi is the MD at Nascence Advisory & Research, a strategy consulting and research outfit. He has worked as an analyst at Investec Wealth & Investment, an Economist at Stanlib Asset Managers and at Standard Bank Corporate and Investment Banking. Payi has academic training from UCT and the University of London.
Date: Thursday 17 August 2017
Time: 9h30 – 12h00
Business Day - 18 July 2017 by Neva Makgetla (TIPS Senior Economist)
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