Domestic employment trends have shown a significant growth in the last quarter and the country is almost at a stage where we were before the global recession. This was said by the Director-General of the Department of Trade and Industry (the dti), Mr Lionel October at a presentation to the Trade and Industry Portfolio Committee in Parliament.
October was presenting on the department’s performance in the first quarter of the 2013/14 fiscal year. He said that the positive factor that had contributed to the growth was Africa’s growth outlook.
“Africa’s growth outlook is strong and South Africa is well-positioned to benefit if its structural features of the manufacturing sector are addressed. The economy continued to create jobs in the first quarter of 2013 even while unemployment rose due to new job seekers entering the market,” he added.
October further said that the manufacturing sales grew modestly - weak global conditions and consumer spending in South Africa and that merchandise exports subdued - although demand for commodities such as coal and platinum have begun to recover. He said that solid auto exports have helped to sustain manufactured export levels.
According to October, the growing number of applications for the dti’s incentives suggests a higher level of optimism in manufacturing and a number of leading business and multilateral publications have pointed to the improving and positive South African investment environment.
October emphasised that the department had done significantly well in the management and roll-out of incentive schemes which are under its auspices. He announced that during the first quarter, the Business Processing Outsourcing sector had received an award for best off-shoring destination in the world from the European Outsourcing Association. This award followed the one received from the United Kingdom last year.
“I believe this sector is a solution to the challenge of youth unemployment that we are currently having as a country,” he added.
Citing some of the key achievements in industrialisation, October explained that to improve competitiveness of the Clothing, Textile, Leather and Footwear (CTLF) sector R1.029 billion was disbursed to 362 clients from the Production Incentive Programme (PIP), R59. 696 million disbursed to 27 companies from Competitiveness Improvement Programme (CIP) and approvals made for R365. 6 million and R1.75 billion from CIP and PIP respectively.
“With regards to trade, investment and exports, exports of R295 million facilitated. We also achieved R12.7 billion pipeline of investment in manufacturing, green economy and resource based sectors,” he added.
Enquiries:
Sidwell Medupe
Departmental Spokesperson
Tel: 012 394 1650
Cell: 079 492 1774
E-mail: MSMedupe@thedti.gov.za
