This paper examines selected policies, programmes and institutions that are central to industrial and trade policy in South Africa. Attention is principally focused on policy measures designed to strengthen the operation of market-based incentives, in particular through trade reform and competition policy. However, a number of measures designed to underpin the ability of firms to respond to these incentives are also examined: the so-called 'supply-side measures'. The policy measures and programmes analysed in this paper are part of the armoury of the Department of Trade and Industry.