TIPS - Janet Wilhelm - Results from #190

Thursday, 06 April 2023

Import Tracker - Q3 2022

South Africa’s trade surplus declined to about R51 billion in the year to the third quarter of 2022, from about R109.3 billion in the third quarter of 2021. Although exports have continued to grow, they have done so at a lower rate than during the COVID-driven rise in the price of minerals mainly seen during 2020 and 2021. Imports, having reached their lowest level during the second quarter of 2020, have begun to grow at a higher rate than exports. Exports grew by slightly under 10% to R543 billion in the year to the third quarter of 2022. Imports grew by 27% to R492 billion over the same period, the highest third quarter value between 2010 and 2022. Nevertheless, exports were 24% higher in the third quarter of 2022 compared to the same period in 2020, while imports were 57% higher.

Published in TIPS Import Tracker

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Monday, 03 April 2023

Alignment of local economic development and industrial policy

This Working Paper analyses the linkages between industrial policy and local economic development planning in South Africa in terms of both economics and governance. It outlines the role of four groups of municipalities in the economy: the largest metros (Johannesburg, Tshwane and Ekurhuleni, Cape Town and eThekwini); the five secondary cities in Mpumalanga and the North West that depend on coal and platinum, which have seen an upsurge in the past 20 years; the smaller metros and other secondary cities, where the economic picture is more mixed; and smaller towns in commercial farming and historic labour-sending regions, many of which are struggling. It then asks how municipalities can do more to take forward industrial policy. Answering this starts with an understanding of the authority and capabilities of municipalities around economic development, on the one hand, and the nature of industrial policy on the other. The paper considers each in terms of Constitutional mandates and policy aims; the legal framework; and the systems and capacity for engaging with other spheres. It evaluates the District Development Model, initiated in 2019, which prioritises alignment of national and municipal economic strategies through joint planning at district level. It also reviews the spatial programmes of the Department of Trade, Industry and Competition. These initiatives centre on support for special economic zones and, on a smaller scale, for state-owned industrial parks established as decentralisation points under apartheid.

Case studies of Makhado, Mbombela and uMhlathuze provide a more textured understanding of the lived realities of local economic development planning.

Published in Trade and Industry

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Thursday, 30 March 2023

Export Tracker - Q3 2022

The third quarter of 2022 saw South Africa’s merchandise exports increase by 9.5% from the same period last year, amounting to R543 billion, with a marginal increase of 2.8% from the previous quarter (Q2 2022). Imports experienced a larger increase, growing by 27.1% year-on-year to the value of R491 billion in constant rand terms. The greater increase in imports compared to exports in the third quarter of 2022 resulted in a decline in South Africa’s trade balance which shrunk by 53% from R109 billion (US$6.9 billion) in Q3 2021 to R51.3 billion (US$3 billion) in Q3 2022. In US dollar terms, exports saw a marginal year-on-year increase of 1.2%, amounting to US$31.9 billion, representing a 3.6% decrease from Q2 2022. Imports were up by 17.5% year-on-year to US$28.9 billion.

Published in TIPS Export Tracker

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Monday, 27 March 2023

State of small businesses in South Africa shows how important they are to the country

The Citizen - 26 March 2023 by Ina Opperman

Read online at The Citizen

Published in TIPS In the News

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Thursday, 23 March 2023

FDI Tracker Q3 2022

This quarter 12 projects not previously recorded in the FDI Tracker were registered, and nine existing projects were updated. The total pledged investment value for the quarter was R22.5 billion from nine projects. The values of the remaining three projects have not been announced. The FDI Tracker identified 1 460 employment opportunities from three projects, with Enel Green Powers reporting a combined number of 1 160 temporary jobs created during the construction phase of the Karusa and Soetwater wind farms. Permanent jobs comprise of 300 opportunities announced by Canadian firm CostCertified.

Published in TIPS FDI Tracker

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