DA presents a manufacturing rescue plan to grow the manufacturing sector and create jobs
6 August 2018
Today, in response to the continued terminal decline of the manufacturing sector in South Africa and related job losses, the DA presented a manufacturing sector rescue plan, ‘Manufacturing a new economic future’.
The rescue plan was presented following a meeting that DA Shadow Minister of Trade and Industry, Dean Macpherson MP, his deputy, Ghaleb Cachalia MP, DA Member on the Finance Portfolio, Gwen Ngwenya MP, and DA Spokesperson for Economic Development in Gauteng, Janet Semple MPL held with representatives of manufacturing company, Efamatic Machine Tools, and other manufacturing industry players.
Manufacturers present at the meeting pointed out that policy uncertainty, a restrictive regulatory environment, inflexible labour market and a populist drive to expropriate land without compensation were drying up investment in the sector. The effect of all these factors means that jobs have been lost and the sector’s ability to create jobs is crippled.
In addition, manufacturers are facing the added pressure of cost escalations resulting from a potential carbon tax, sugar tax, waste management tax and the generally slow response by the Department of Trade and Industry (DTI) to protect local industry from highly subsidised imports.