Incentives for manufacturers
A R5.8-BILLION injection into the manufacturing industry could not have come at a better time, Trade and Industry Minister Rob Davies said yesterday.
"The first recession in 2008/2009 resulted in a loss of about one million jobs, 200000 of which were in manufacturing," Davies said at the Manufacturing Competitiveness Enhancement Programme (MCEP) launch in Cape Town.
"Entities that had neglected to invest in competitiveness were the most affected by the recession. It was mostly factories with obsolete and antiquated machinery and equipment that were forced to close."
The manufacturing sector has been in decline since the mid-1970s.
Davies said developing countries had made the leap from low-income to middle- and upper-income status by relying on the manufacturing sector as their main growth engine. It was hoped that by offering production incentives, the stagnant growth rate could be revived.
"The MCEP is aimed at encouraging our firms to make investments in competitiveness now rather than later."