THE government plans to use parastatals to diversify the economy by creating "a world class manufacturing" sector that will focus on exporting goods to other countries, Public Enterprises Minister Malusi Gigaba said yesterday.
Speaking at the inaugural Supplier Development Summit in Johannesburg, Gigaba said parastatals such as Transnet and Eskom would be key to achieving this goal through tendering.
In an interview with Sowetan on the summit sidelines, Gigaba said the country's high electricity tariffs would not be a barrier to achieving this goal. He described the high electricity tariffs as an "illusory obstacle".
"We are saying to suppliers here are the needs of Eskom and Transnet in terms of content and to establish whether the companies will be able to set up manufacturing plants to supply parastatals over a long period of time," he said.
Gigaba said the country also needed to decrease its dependancy on the extractive industries.
"The expansion of the manufacturing capabilities will improve the rate of productivity of the economy as a whole.
It will have a positive social developmental impact due to labour absorption and increased demand for skilled workers," he said.
He said SA wanted to develop its capital goods manufacturing capabilities sector to reduce its dependance on imports.
"An increase of equipment imports is associated with deterioration of our balance of payment of current account, which stands at minus 6.2%," he said.
"The development of capital goods manufacturing sector to reduce the imported content of our state-owned companies investment programmes and to increase our exports is an immediate strategic necessity."
State plans on promoting exports
THE government plans to use parastatals to diversify the economy by creating "a world class manufacturing" sector that will focus on exporting goods to other countries, Public Enterprises Minister Malusi Gigaba said yesterday.
Speaking at the inaugural Supplier Development Summit in Johannesburg, Gigaba said parastatals such as Transnet and Eskom would be key to achieving this goal through tendering.
In an interview with Sowetan on the summit sidelines, Gigaba said the country's high electricity tariffs would not be a barrier to achieving this goal. He described the high electricity tariffs as an "illusory obstacle".
"We are saying to suppliers here are the needs of Eskom and Transnet in terms of content and to establish whether the companies will be able to set up manufacturing plants to supply parastatals over a long period of time," he said.
Gigaba said the country also needed to decrease its dependancy on the extractive industries.
"The expansion of the manufacturing capabilities will improve the rate of productivity of the economy as a whole.
It will have a positive social developmental impact due to labour absorption and increased demand for skilled workers," he said.
He said SA wanted to develop its capital goods manufacturing capabilities sector to reduce its dependance on imports.
"An increase of equipment imports is associated with deterioration of our balance of payment of current account, which stands at minus 6.2%," he said.
"The development of capital goods manufacturing sector to reduce the imported content of our state-owned companies investment programmes and to increase our exports is an immediate strategic necessity."
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