MAP-to-a-Million Initiative: CEO Meeting

Transcription

1 29 May 2017 MAP-to-a-Million Initiative: CEO Meeting Dear [NAME], Manufacturing presents one of the greatest avenues for much needed job-rich growth in South Africa. The [Manufacturing Circle] in collaboration with a number of manufacturing industry associations is undertaking the MAP-to-a-Million initiative which aims to create a million jobs by strengthening and growing the manufacturing sector in South Africa. Manufacturing performance is lagging when compared to other emerging markets. For South Africa s stage of economic development, manufacturing should contribute at least double the current 13% of GDP. As we well know, there are challenges to achieving this growth. The first step in initiating this process is to identify the specific bottlenecks and constraints that need to be addressed in order for us to commit to investments. The [Manufacturing Circle] is inviting you to participate in this Map-to-a-Million initiative and join us at a meeting where we will present the background to the initiative and discuss (1) investments that could be made by manufacturing firms and (2) what needs to be resolved, unblocked or addressed in order for these investments to take place. The meeting is scheduled for Tuesday 4 th July, 9h00-11h00 at Business Unity South Africa s (BUSA) Offices, Bentley Office Park, 67 Wessels Road, Rivonia. Or The meeting is scheduled for Thursday 20 th July, 9h00-11h00 at the offices of Plastics SA, 18 Gazelle Ave, Corporate Park South, Midrand. Trade and Industrial Policy Strategies (TIPS), a not-for-profit economic research institute, will facilitate this discussion. TIPS works on industrial policy research, dialogue and training, and is well placed to partner with us in this initiative. Once we have obtained industry input, we will embark on a public sector engagement process that will include discussions with the Ministers of Trade and Industry, Economic Development, and Finance, as well as with the full Economic Cluster. The aim is to align the investment industry will make that will result in job creation and economic growth, with the unblocking required. We envisage that many of those actions would inform the government s Industrial Policy Action Plan (IPAP), and where necessary working groups will be established. In preparation for the industry meeting, please find below a schedule of possible barriers or constraints that if addressed would result in greater investment by your firm. We look forward to you joining the meeting and strengthening the voice of the manufacturing sector. In the event that you are unable to attend the meeting, a nominated representative or comments by would be greatly appreciated. Yours sincerely, André de Ruyter Chairperson Manufacturing Circle Philippa Rodseth Executive Director Manufacturing Circle Postal address: PO Box 868 Ferndale 2160 South Africa Tel: Website:

2 Map-to-a-Million CEO Workshop: Discussion Document A. Schematic for Discussion of Blockages in the South African Manufacturing Sector Rating Legend 1 Lowest Priority 2 Low Priority 3 Medium Priority 4 High Priority 5 Highest Priority 1. Education and Labour 1.1 Shortage of Skills (Shop-Floor Level) 1.2 Shortage of Skills (Management Level) 1.3 Labour Productivity (Shop-Floor Level) 1.4 Labour Productivity (Management Level) 1.5 Cost of Labour (Shop-Floor Level) 1.6 Cost of Labour (Management Level) 1.7 Continuity of Labour Supply (Strike Action & Labour Demand) 1.8 Continuity of Labour Supply (Staff Turnover) 2

3 2. Structure of Society 2.1 Small Middle-Class 2.2 Domestic Demand for Final Consumption Goods 2.3 Inequality and Workplace Conflict 3. Infrastructure 3.1 Electricity 3.2 Water 3.3 Telecoms 3.4 Transport: Road 3.5 Transport: Rail 3.6 Transport: Ports 3

4 4. Structure of Market 4.1 Competition 4.2 Pricing 4.3 Finance 5. Governance and Red Tape 5.1 Procurement 5.2 Regulatory Compliance 5.3 State Owned Enterprises 5.4 Technical Standards 5.5 Crime, Policing and the Courts 4

5 6. Manufacturing Value Chains 6.1 Availability of Local Inputs (Diversity of Products in Upstream Processing) 6.2 Quality of Local Inputs (Level of Refinement in Upstream Processing) 6.3 Cost of Local Inputs (Efficiency of Production in Upstream Processing) 6.4 Alignment / Linkages to Downstream Demand for Intermediate Processed Goods 6.5 Silo Approach to Industry 7. International Trade 7.1 Trade Tariffs 7.2 Exchange Rates 7.3 Global Demand 5

6 No. B. Schematic for Discussion of Investment Opportunities in the South African Manufacturing Sector Proposed Project Project Linkages Project Type Investment Value (ZAR Million) R&D Component (% of Investment) (Sub-Sector in Manufacturing) (Value Chain Position i.e. Up- / Downstream) (Brownfield, Greenfield, OR Expansion) 1. R R 2. R R 3. R R 4. R R 5. R R 6. R R 7. R R 8. R R 9. R R 10. R R GDP Impact (ZAR Million) Employment Impact (Thousands of Jobs) 6