DRAFT REGIONAL INDUSTRIAL DEVELOPMENT STRATEGY

1

• DRAFT REGIONAL INDUSTRIAL DEVELOPMENT STRATEGY
• SOUTH AFRICA
• Promoting industrialization through
  partnerships

This report is solely for the use of dti
personnel. No part of it may be circulated,
quoted, or reproduced for distribution outside
the dti without prior written approval from the
dti.
2
SPATIAL DISTRIBUTION OF GVAper 50km
MesozoneThe map below shows the heavily biased
distribution of economic activity in South Africa
with the majority of Gross Value Added (GVA)
clustered around three major metropoles
3
PROBLEM STATEMENT

• Sharpest regional disparities at present are
  between the three main metropolitan complexes and
  the rest of the country
• Three broad categories of regions are considered,
  these will be applied in determining potential
  impact scenarios for the RIDS
• 52 Districts and Metros, in the nine provinces
• main services hubs of a wider functional region
  or macro-region, in regions where potential and
  latent potential exists.
• main production complexes of a cluster or
  corridor of inter-related industries

4
STRATEGIC INTENT OF RIDS

• TO ENABLE ALL AREAS IN OUR SA ECONOMY TO ATTAIN
  THEIR OPTIMAL ECONOMIC POTENTIAL
• BY FACILITATING LOCAL DEVELOPMENT EMBEDDED IN A
  REGION/DISTRICT THROUGH LINKAGES WITHIN EXSTING
  AND LATENT INDUSTRIAL AND ECONOMIC BASE

5
STRATEGIC INTENT

• To stimulate investments that will promote
  sustained high growth in a local community
• To focus on a regions potential and identify
  what local stakeholders can and need to do to
  ensure their local community reaches its
  potential
• To assess a communitys comparative advantage,
  identify new or existing market opportunities for
  businesses, and reduce obstacles to business
  expansion and creation
• To have an impact on the economic viability
  districts
• To create new jobs, help communities retain
  existing jobs, help businesses access capital
• To contribute to a broader national framework
  with a spatial dimension, in order to increase
  each regions global competitiveness.

6

• UNEMPLOYMENT TRENDS
• SourceLabour Force survey, September 2005

7

• GROWTH DISPARITIES(GDP)

8
The dtis APPROACH TO LED

• To bring together resources from within and
  outside the
• Community to address
• local governments challenges on land management
  practices, outdated infrastructure, limited
  business planning and management skills, poor
  access to markets and market knowledge , and
• to promote economic growth in a systematic and
  organized manner at the local level
• To become a catalyst for promoting LED as a key
• ingredient to achieving broad-based and equitable
  economic
• growth by assisting
• the local community to research its own economic
  strengths, agree upon a common strategy (Regional
  Industrial Road Map) and organize itself to
  implement the strategy (Indicative Industrial
  Business Plan).

9
LED INTERVENTION PROPOSITION

• The dti, in conjunction with the dplg and the
  presidency will assist district municipalities
  to,
• formulate their industrial road maps,
• form local growth coalitions,
• build local capacity and,
• finalise local growth business plans
• Each regions respective plan can serve as a
  national development trajectory promoted to
  guide all sector departments interventions in
  that region.
• Bringing local stakeholders around one table in a
  form of a PPP helps to build trust, encourages
  innovation , fosters social cohesion, and thus
  decreases the risk of further conflict.

10
(No Transcript)
11
(No Transcript)
12
RIDSs THREE INTERLINKED GOALS
13
INVESTMENT PROMOTION

• Trade and Investment South Africa Division (TISA)
• Promotes investment in the following sectors
• Agro-processing
• Automotive
• Aquaculture
• BPO
• Capital Equipment
• Chemicals
• Cultural Industries
• Tourism
• Mining mineral beneficiation
• Hand-holds the investor (domestic and
  international) to ease
• the investment decision-making process
• Match-make the investor with stakeholders within
  areas of potential,
• where opportunities can be optimally exploited in
  the interest of all
• stakeholders involved

14
THANK YOU!