SOUTH Africa must develop its manufacturing sector in order to industrialise, Science and Technology Minister Naledi Pandor said.

In order to promote development, South Africa had recently introduced policies on beneficiation and localisation.

"South Africa is the second largest supplier of the mineral ore that can produce titanium metal," she said.

"However, we add little value to the mineral before export."

South Africa could produce titanium metal from its mineral resources.

Pandor's department was championing the development of a titanium industry which would produce not only the raw mineral, but ultimately metal mill products and components.

The titanium metal powder industry was estimated to have income-generating potential of R3-billion to R5-billion a year, which could increase to R10-billion to R30-billibn a year when a downstream industry was established.

The industry had the potential to create 450 jobs for workers, engineers and technologists in metal production, and about 2000 workers, engineers and technicians in the downstream component manufacturing.

"These efforts mean that South Africa will have a new industry built around titanium," Pandor said.

Platinum was another example.

"Four years ago we launched the Hydrogen SA programme," she said.

This marked the initiation of research and development activities, and the establishment of a South African fuel cell company, Clean Energy.

In partnership with Anglo Platinum and Altergy Power Systems, Clean Energy would initially market and eventually assemble and manufacture fuel cells in sub-Saharan Africa.

It was still in development, but had already sold 18 fuel-cell back-up power systems to Vodacom.

A deal was being negotiated with a Norwegian partner for the commercialisation of hydrogen storage material. The parties had agreed to co-fund the pilot plant and upscale it into a fully-fledged manufacturing plant.