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You are here: Home / Archives for Manufacturing

Manufacturing

24 September 2024

Understanding Forklift Solutions: Rental, Sales, and Hire Options

Location: MyPR

Forklifts are essential in a wide range of industries, including manufacturing, warehousing, and construction. They are used for moving heavy materials over short distances and play a crucial role in improving operational efficiency. Whether you’re looking for a forklift for short-term use or a long-term investment, there are several options to consider, including rentals, sales, …

Read moreUnderstanding Forklift Solutions: Rental, Sales, and Hire Options
23 September 2024

African leaders meet on Mpox

Location: News

African leaders meet on Mpox

President Cyril Ramaphosa says as the continent tackles Mpox, Africa needs to learn from the COVID-19 pandemic.

“We need to ensure equitable distribution of medical countermeasures based on transparent criteria and readiness to initiate vaccination. We ask Africa Centres for Disease Control and Prevention (Africa CDC) to lead the consultation with member states to ensure equitable distribution of vaccines and other medical countermeasures,” said the President.

He was delivering South Africa’s statement at the African Union Heads of State virtual meeting on Mpox on Sunday.

“We need a finance plan that is evidence-based, with sound forecasting of needs. The Africa CDC mandate on data sharing is the bedrock of global health security. This will help to ensure that public health threats are detected and shared across borders and with other continental and global stakeholders,” said the President.

He said countries would only be able to effectively mobilise and direct funds if supported by reliable data.

“We call on all African countries to make use of this instrumental system that has been created by our own institution. We call for the urgent operationalisation of the Africa Epidemic Fund as the primary vehicle for epidemic response financial management.”

He said as with COVID-19, Africa is still struggling to get the Mpox vaccine and treatment.

The President said the continent needs to manufacture Mpox vaccines in Africa to reduce costs and improve access.

“We must co-develop these medical countermeasures, share intellectual property and ensure technology transfer. In this regard, we welcome the agreement between Africa CDC and Bavarian Nordic to transfer the Mpox vaccine technology to African manufacturers,” he said.

With the financial support from the Coalition for Epidemic Preparedness, the African Vaccine Manufacturing Accelerator, Afreximbank, the European Union and other partners, President Ramaphosa said the continent should be able to start vaccine manufacturing by 2025.

“In the meantime, we appreciate the support from a number of countries to get vaccines in Africa.

“The COVID-19 experience taught us that we need predictable demand and off-take guarantees for the vaccines, medicines and diagnostics manufactured in Africa. African countries should therefore buy vaccines and other health products manufactured in Africa to ensure sustainable manufacturing on our continent.”

He said this could be achieved through the African Pooled Procurement Mechanism.

Surveillance systems must be enhanced and healthcare delivery and infrastructure strengthened.

“We must ensure that frontline health workers have the necessary diagnostic tools, vaccines and antiviral treatments. We need tested public health messages that promote awareness and prevention.

“Beyond the targeted vaccination responses to outbreaks, we should explore the feasibility of continuing vaccinations in high-risk populations. This dual approach will help create a buffer against future outbreaks and protect our most vulnerable communities,” he said.

The World Health Organisation (WHO) has declared Mpox  as a Public Health Emergency of International Concern.

The President commended the fact that Africa CDC had partnered with the WHO, UNICEF and other partners to develop the Mpox continental preparedness and response plan and to build, for the first time in Africa, one Continental Incident Management Team.

The total number of positive cases recorded in South Africa since the outbreak in May this year stands at 25 cases, including three deaths. Twelve of these were reported in Gauteng, 11 reported in KwaZulu-Natal and two in the Western Cape.

Africa CDC has signed a partnership agreement with the European Commission’s Health Emergency Preparedness and Response Authority (HERA) and Bavarian Nordic to provide over 215 000 doses of the MVA-BN vaccine.

Africa CDC will oversee the equitable distribution of these vaccines, prioritising local needs across the affected member states. – SAnews.gov.za

 

Janine
Mon, 09/23/2024 - 11:17

760 views
Read moreAfrican leaders meet on Mpox
23 September 2024

CCTCLaunches Origin8 Programme to Accelerator Sme Growth in the Clothing, Textile, Footwear and Leather Industry

Location: MyPR

The Cape Clothing & Textile Cluster (CCTC) is excited to announce the launch of “Origin8: From Start-up to Scale-up”, a programme that is designed to support small and medium-sized enterprises (SMEs) in South Africa’s clothing, textile, footwear, and leather (CTFL) sector. Supported by the City of Cape Town’s Growth Coalitions Branch, the programme is the …

Read moreCCTCLaunches Origin8 Programme to Accelerator Sme Growth in the Clothing, Textile, Footwear and Leather Industry
20 September 2024

Cabinet welcomes positive economic numbers

Location: News

Cabinet welcomes positive economic numbers

Cabinet has welcomed the positive economic indicators following the slight growth in the country’s gross domestic product (GDP), slowing inflation and the drop in the repo rate.

This is according to Minister in the Presidency, Khumbudzo Ntshavheni, who briefed the media on the outcomes of the Cabinet meeting held this Wednesday.

South Africa’s GDP increased by 0.4% during the second quarter of 2024 following a 0.0% growth in the first quarter. Additionally, inflation dropped to 4.4% in August from 4.6% in July while the repo rate also dropped for the first time since 2020 to reach 8%.

“We are seeing positive economic indicators and therefor Cabinet welcomed the positive economic indicators as per the data released by Statistics South Africa. This increase [of the GDP] was influenced by the improvement in the manufacturing sector of 1.7% growth year on year. The revival of the manufacturing sector is a critical success factor in the re-industrialisation of South Africa. 

“There has been a consistent improvement in the CPI since March 2024. We must also extend our appreciation to the cut on the interest rate by 25 basis points…that is [a] welcome[d] relief to all South Africans,” the Minister said at Friday’s briefing.

READ | Government welcomes repo rate cut

State owned companies

Ntshavheni said steady progress in revitalising and improving the performance of State owned companies (SOCs) is welcomed.

She added that this will “positively contribute to South Africa’s industrialisation drive”.
“In this regard, it is worth noting that Denel posted a profit of R390 million before interest and tax for the 2023/24 financial year with irregular expenditure declining by a whopping 98%.

“Prasa [Passenger Rail Agency of South Africa] is making strong headway in getting passenger trains back on track with 31 of the 40 rail corridors now operational. 

“Eskom’s recovery plan continues to deliver positive outcomes with load shedding remaining suspended for more than 175 days as of the 18th  of  September 2024,” she said. – SAnews.gov.za

NeoB
Fri, 09/20/2024 - 11:51

90 views
Read moreCabinet welcomes positive economic numbers
18 September 2024

Local company sets sights on international markets 

Location: News

Local company sets sights on international markets 

A Mamelodi-based detergents company is determined to take full advantage of the Partnering in Business with Germany Programme and export their products to international markets. 

This was said by the Founder and Managing Director of TOSH Detergents, Lufuno Rasoesoe. 
She was speaking during the recent alumni event of the programme that was hosted by South Africa and Germany in Sandton.

According to Rasoesoe, participating in the Partnering in Business with Germany Programme has been of significant benefit to her Gauteng company.

In April, the Department of Trade, Industry and Competition (the dtic) and the German Federal Ministry for Economic Affairs and Climate Change signed a Joint Declaration on Cooperation to formalise a programme to train and mentor emerging exporters from South Africa to access the German market.

“Through the business-to-business meetings and visits to various manufacturing plants in Germany, I gained valuable insights into how we can improve our own manufacturing plant.

“The exposure to advanced processes and operational standards inspired the factory plans that we are currently developing, as well as the implementation of more efficient standard operating systems. This experience has given us a clearer vision of how to elevate our production capabilities and meet global standards,” Rasoesoe said.

She explained that after participating in the programme, her company was invited to participate in the Africa Start-up Connect Week in Berlin, Germany.

At that event, she met entrepreneurs from across the African continent and was exposed to a wealth of export opportunities within the continent.

“This has broadened my network and opened doors for potential collaborations and expansion into various African markets, bringing us closer to our goal of growing TOSH Detergents' presence internationally."

She added that her participation in the Partnering in Business with Germany Programme and the Rand Show Exhibition, both with the assistance of the dtic has impacted positively on her business. 

“Both experiences were incredibly valuable for my business. The Rand Show Exhibition provided us with great exposure to a wider audience, allowing us to showcase our products and build new connections.

“The Partnering in Business with Germany Programme offered insights into international markets, manufacturing best practices, and potential export opportunities. 

“These experiences have been instrumental in growing our brand and expanding our market reach,” Rasoesoe said.

TOSH Detergents was formed in March 2021 as a business initiative aimed at addressing the need for affordable, high-quality cleaning products in South Africa. 

The company was inspired by the desire to create a sustainable business that could provide essential household products while also empowering local communities. 

“TOSH Detergents does not only fill a gap in the market, but also promotes job creation and economic development, particularly in the previously disadvantaged areas,” she said. 

READ | SA-Germany to place trade and investment under the spotlight

The company currently employs 15 people, nine in the production area, and six as merchandisers and sales agents. 

TOSH Detergents products can be found at Shoprite, Checkers, Makro Online, Takealot, Zulzi and distributors in various provinces. – SAnews.gov.za

 

Edwin
Wed, 09/18/2024 - 15:12

221 views
Read moreLocal company sets sights on international markets 
18 September 2024

Green Hydrogen programme makes progress 

Location: News

Green Hydrogen programme makes progress 

Since the gazetting of nine Strategic Integrated Projects (SIPs) by Infrastructure at a Capex value of R300 billion, the Green Hydrogen National Programme (GHNP) has attracted projects with the Capex value of over R800 billion with about 20% of the total investments at the bankable feasibility stage.

This is according to Public Works and Infrastructure Deputy Minister, Sihle Zikalala, who was speaking at the Green Hydrogen Devac conference in Sandton, Johannesburg on Wednesday.

The gazetting of the SIPs was done by Infrastructure South Africa (ISA) which is an entity of the Department of Public Works and Infrastructure in 2022.

According to Zikalala, most of these projects are at different stages of development ranging from prefeasibility to execution.

These projects include the Isondo Precious Metals (IPM) in Johannesburg which entails a fuel cell and electrolyser component manufacturing facility in Gauteng, the Prieska Energy Cluster Green Ammonia Production facility in the Northern Cape, Boegoes Bay Green Hydrogen Port Rail and Infrastructure Project driven by the Northern Cape provincial government.

Other projects include the Hive Green Ammonia export project in the Eastern Cape, Arcelor Mittal South Africa (AMSA) Saldanha Green Steel Project in the Western Cape and the Sasolburg 60MW H2 production in Gauteng.

Zikalala said South Africa only needed one percent of the country’s land area to support green hydrogen economy initiatives, creating jobs and improving the economy. He said this was unusable land for agriculture and human settlements.  

The Deputy Minster said ISA acted as one of the government enablers for the South African green hydrogen opportunity.

He said that by gazetting the GHNP as a SIP, ISA enabled projects to be placed on an expedited path to development with prescribed and shortened timeframes for various project approvals and authorisations.
‘The seventh administration has identified three priorities: driving inclusive growth and job creation, reducing poverty and tackling the high cost of living and building a capable, ethical and developmental state," said the Deputy Minister.

He called on green hydrogen players to work with government in the creation of jobs in the green hydrogen economy.

“We look up to you to take a lead in facilitating green hydrogen manufacturing capability in a manner that localises the production of upstream and downstream value-added products. Working together, South Africa can realise its potential to produce six to 13 million tons of green hydrogen and derivatives per year by 2050.  

“We reiterate that South Africa as a green hydrogen investment destination still offers substantial additional investment opportunities including green shipping, green fertiliser production, electrolyser manufacturing, pipeline development, green field port developments’, said Zikalala. - SAnews.gov.za

Edwin
Wed, 09/18/2024 - 15:26

27 views
Read moreGreen Hydrogen programme makes progress 
15 September 2024

A Call for Productivity SA to Increase Its Footprint

Location: MyPR

The Deputy Minister of Employment and Labour (DEL) Mr Jomo Sibiya has urged one of the Labour Department ‘s entities, Productivity SA to increase its visibility amongst South African businesses and also widen its reach to SMMES in the country. Delivering the keynote address at the 2024 Productivity SA Annual General Meeting (AGM), Mr Sibiya …

Read moreA Call for Productivity SA to Increase Its Footprint
13 September 2024

Factory Forced to Relocate From Free State to Gauteng Because of Electricity Outages

Location: News

NLG Gloves has been in Harrismith since 1993 and employed 71 people from surrounding communities.

Read moreFactory Forced to Relocate From Free State to Gauteng Because of Electricity Outages
13 September 2024

Manufacturers pleased with AllFashion Sourcing Exhibition

Location: News

Manufacturers pleased with AllFashion Sourcing Exhibition

Clothing, textile, footwear and leather manufacturers who showcased their proudly South African products at the AllFashion Sourcing Exhibition in Cape Town this week have expressed satisfaction with the quality of meetings they held and leads they acquired during the show.

The group received support from the Department of Trade, Industry and Competition (dtic) to showcase their products at the Cape Town International Convention Centre (ICC) from 10-12 September 2024. 

The Sales Manager of Genuine Connection Promotions, Elaine Köhne, described the experience as amazing and beneficial as it offered an opportunity to showcase their clothing line, gather market insight, connect with industry professionals and attract new business. 

“We managed to network, interact with visitors and other companies that were showcasing at the show,” Köhne said. 

“We had good conversations and exchanged contacts which we will definitely follow up on. We will invite these new contacts to our premises for further engagements that could lead to new business opportunities and partnerships. Importantly, the show gave us an opportunity to also see what is on the international market,” she said.

According to the Project Manager of the South African Retail–Clothing Textile Footwear Leather Master Plan 2030 Master Plan Programme, Courtney Barnes, it was great to see local manufacturers showcasing their capabilities at the show. 

She said what stood out from the master plan perspective was the variety of the local capabilities, although there is still a need to upscale and showcase more of the local capabilities with real capacity.

“If we want retailers to localise, we need to show them that we have the supplier capabilities and capacity. The show is the first step and I am excited to see its offerings next year and to bring more local manufacturers to the table and have more international buyers to come and appreciate what South African manufacturers can do,” Barnes said.

Sales Manager of Freudenberg Non-Wovens, a global manufacturer and innovative pioneer in the field of technical textiles, nonwovens and fibre, Heidi Smith, expressed her gratification with the outcomes of the show. 

She said the participation was remarkable, as it provided a platform for engagements with retail partners and current partners. According to her, they have started sending emails for the expansion of the engagements. 

“It was wonderful to engage with various partners and other designers coming to see what we do. It was more pleasing to engage with smaller designers and manufacturers who came to learn and understand how we are doing our business and what they can learn from us,” Smith said.

She said the panel discussions on the African Continental Free Trade Area (AfCFTA) focusing on boosting intra-African trade through regional value chains in the textile and clothing industry, the journey to sustainability focusing on green manufacturing, ethical sourcing, among others, were beneficial.

The Director of Leather and Footwear at the dtic, Dr Jaywant Irkhede, congratulated the event organiser, Messe Frankfurt SA, for a world class event. 

“The dtic and Industrial Development Corporation officials attended to the needs of the international and local exhibitors, and visitors with the aim of developing investment leads. The event offered an opportunity for scaling up, to showcase and promote manufacturing capabilities of South Africa and Africa. 

“Parallel events at the show brought together international community of manufacturers, designers, retailers, buyers, educational institutions, associations, investors, financiers and service providers to the textile, apparel, footwear and fashion industry,” Irkhede said. – SAnews.gov.za

Edwin
Fri, 09/13/2024 - 10:23

254 views
Read moreManufacturers pleased with AllFashion Sourcing Exhibition
12 September 2024

Sector master plans critical to investment, boosting exports, creating jobs

Location: News

Sector master plans critical to investment, boosting exports, creating jobs

By Edwin Tshivhidzo 

Trade, Industry and Competition Minister Parks Tau has consistently emphasised the need to accelerate the implementation of the sector master plans as one of the key priorities of the seventh administration.

Since his appointment two months ago, the Minister has reiterated the critical role of the master plans in increasing investment, boosting exports, creating jobs, promoting localisation and facilitating transformation.

One of the interventions initiated by partnerships in the Retail–Clothing Textile Footwear Leather Master Plan, where more than 20 000 jobs have been created as a result of its roll-out, is the redesigned Clothing Textile Footwear Leather Growth Programme (CTFLGP), which was launched in 2022. 

Import substitution, creation of new jobs, transformation and competitiveness improvement are the main objectives of the programme.

One of the beneficiaries of the programme that is being implemented by the Department of Trade, Industry and Competition (the dtic) through the Industrial Development Corporation, is R and L Apparel. It is a woman-owned company based in Newcastle, KwaZulu-Natal. 

The company received financial support for the purchase of equipment and machinery, as well as for initial working capital, in order to grow their Cut, Make, Trim (CMT) manufacturing capacity.

Managing Director of R and L Apparel, Solis Benjie Dolores, said the support from government has enabled the company to increase its production, improve product quality, create jobs and extend its clientele, which now includes The Foschini Group, which they supply through Celtico, one of the CMT suppliers in the Newcastle clothing industry.

“The funding assisted us greatly in creating additional jobs. We had only 17 workers when we applied for the programme. As of August 2024, we were able to reach a staff complement of 103 employees, 98 of whom are women. As a matter of fact, we are looking forward to achieving the additional 150 jobs that we have committed to,” Dolores said.

“The CTFLGP is a great initiative. The programme opened new doors for our company's growth. Without the funding, we might have just stayed on 17 workers, because our machinery and working capital were very limited. 

“Before we received the funding, we were running a hand-to-mouth operation that was kept going only by the dedication and endeavours of our team.  Now the company is on a positive growth trajectory,” she said. 

Dolores said the company is planning to acquire automated machinery to expand its production capacity based on the market demands, as local retailers are increasingly embracing Proudly South African products.

“We are happy to contribute in import substitution, growing the economy, and more importantly, creating jobs for the local people, both skilled and unskilled, assisting them to earn a decent living,” she said. 

Managing Director of Argento, Joudalle Govender, also bears testimony to the positive impact of the CTFLGP on her company, which is based in Mandeni, KwaZulu-Natal. 

The company manufactures apparel and corporate clothing for a major retailer and numerous corporate clients. 

“We used the funding for operational expenses and to re-tool the factory with new machinery. The funding allowed us to create 45 new jobs. 100 people are currently employed in our company, 80 of whom are women.

"Our profit margins increased and we had a rapid growth in production due to the extra capacity,” Govender said.

She said the company is planning to expand its product lines, adopting sustainable practices, improving its manufacturing efficiency and exploring new markets.

“Our future plans include expanding our current building and creating 100 more jobs. We are also looking into exporting our local garments and creating more awareness on local manufacturing with South Africa,” Govender said.

She emphasises the importance of the Retail-Clothing, Textile, Footwear and Leather (R-CTFL) Masterplan in promoting sustainability and innovation within the industry, which she said  is crucial in adapting to the changing market demands and consumer preferences.

“I love the fact that the plan focuses on several key objectives, such as job creation and increasing local production. Argento is a local champion because we produce our own local fabric in the rural area of Isithebe. 

“My favourite part is that the plan enhances competitiveness in the global market, by fostering collaboration between government, labour, and industry stakeholders. That is important for our economy,” said Govender.

The stories of two companies that operate in the clothing and textile sector undoubtedly illustrate the critical importance of the master plans, and the positive impact of the collaboration between government, business and labour on the South African economy.

According to the Director of Clothing and Leather at the dtic, Dr Jaywant Irkhede, more than R1.87 billion had been approved for 154 businesses employing almost 24 000 people and R1.41 billion was disbursed by July this year. – SAnews.gov.za

Edwin
Thu, 09/12/2024 - 11:03

300 views
Read moreSector master plans critical to investment, boosting exports, creating jobs
12 September 2024

Westlake Shopping Centre Reopens with New Shops, More Convenience

Location: Entertainment, MyPR

Westlake Shopping Centre Reopens with New Shops, More Convenience Cape Town, [11 September 2024] – Situated in the heart of Cape Town’s vibrant Westlake community, the newly revamped Westlake Shopping Centre is ready to welcome shoppers from the southern suburbs and beyond. Visitors will delight in several upgrades designed to bring more convenience to their …

Read moreWestlake Shopping Centre Reopens with New Shops, More Convenience
11 September 2024

Nelson Mandela Bay partners with Zhuhai City

Location: News

Nelson Mandela Bay partners with Zhuhai City

The Nelson Mandela Bay Municipality and Zhuhai City from the People's Republic of China have expressed their intention to collaborate and cooperate in various fields to carry forward friendly exchanges and cooperation.

Nelson Mandela Bay Municipality Mayor, Gary van Niekerk, and Vice Mayor of Zhuhai Municipal Government, Yang Chuan, signed a letter of intent which establishes a relationship between the two municipalities, which will bring mutual beneficial business investment opportunities.

Through constructive discussions, both cities have expressed their intention to collaborate and cooperate in various fields to carry forward friendly exchanges and cooperation.

Both cities, under the principles of mutual respect, trust, fairness, and benefit, will proactively engage in various forms of exchanges and cooperation.

According to the agreement, the cities will prioritise exchanges and cooperation in various areas to facilitate tangible results.

These include strengthening economic ties and industrial collaboration to create job opportunities and boost economic growth, enhancing port operations and promoting tourism to benefit both cities, and fostering educational exchanges to enrich cultural understanding and knowledge sharing.

The cities will also exchange and cooperate in promoting cultural exchange and cooperation in the manufacturing sector to drive innovation and development, emphasising technology exchange to advance innovation and technological progress, and focusing on sustainable development to ensure long-term environmental and economic sustainability.

City leaders and relevant government departments of both cities will maintain frequent contacts to discuss and address issues of mutual concern, ensuring continuous and effective cooperation.

To facilitate communication and information exchange, both sides agree to explore appointing the Nelson Mandela Bay and the Zhuhai Foreign Affairs Office.

Speaking at a signing ceremony at Gqeberha City Hall, Van Niekerk said the partnership represented a significant step towards enhancing the city’s international relations and creating opportunities for the communities.

"I am thrilled that we are embarking on this journey of collaboration with Zhuhai. By working together, we can share knowledge, drive economic growth, and promote cultural understanding.

“I am confident that this cooperation will bring about positive changes and strengthen the bonds between our cities," Van Niekerk said.

He added that the intention to collaborate and cooperate marks a significant milestone in the relationship between Nelson Mandela Bay and Zhuhai, emphasising the critical importance of international relations and cooperation.

“By working together, both cities aim to create job opportunities, strengthen economic ties, promote cultural exchange, enhance trade and investment, education, drive innovation in manufacturing, advance technological progress, and ensure sustainable development,” the Mayor said. – SAnews.gov.za

GabiK
Wed, 09/11/2024 - 13:11

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Read moreNelson Mandela Bay partners with Zhuhai City
11 September 2024

Textile industry remains a priority for government 

Location: News

Textile industry remains a priority for government 

Due to their labour-absorbing character, the textile, clothing, footwear, leather and general goods sectors remain priority sectors for government.

These sectors have always been supported by the Department of Trade, Industry and Competition (the dtic), with an objective to sustain and grow employment, grow output, and enhance their competitiveness.

This is according to the Director of Leather and Footwear at the dtic, Dr Jaywant Irkhede, who was delivering a keynote address at the opening of the AllFashion Sourcing Exhibition held at the Cape Town International Convention Centre. 

A group of manufacturers supported by the dtic are showcasing their proudly South African products at the exhibition.

READ | SA manufacturers to showcase products at the AllFashion Exhibition in Cape Town

The department’s support of the local manufacturers to show off their wares at the exhibition is part of a continuous support to the industry to boost sustainable job creation and to increase exports of locally manufactured products. 

The show which kicked off on Tuesday, also offers the dtic an ideal opportunity to engage with a select audience of textile, clothing, footwear, leather and fashion orientated exhibitors and visitors.

Irkhede highlighted the manufacturing sector’s tenacity, resilience and the know-how that enabled the sector to withstand various internal and external economic shocks. 

One of the measures that government introduced in order to mitigate the negative impact of the external shocks on the clothing and textile industry was the introduction of two trade remedies, namely the imposition of import quota on clothing imports from January 2006 to December 2008 and an increase in tariffs from 40% to the World Trade Organisation bound rate of 45% on a number of clothing product lines. 

These remedies provided some relief.

“The dtic also developed Customised Sector Programmes for Clothing and Textile and Footwear and Leather sectors in consultation with the industry for stabilisation and development of the CTFL (clothing, textile, footwear and leather) sectors. A suite of measures that were introduced as part of the sector programmes contributed immensely in stabilising the sectors and improving their competitiveness,” Irkhede explained.

He said the department was currently in the process of implementing the Retail–Clothing Textile Footwear Leather Masterplan (R-CTFL Masterplan 2030). 

“The R-CTFL Masterplan is aimed at encouraging structural changes in the value chain to grow the domestic market, increase purchases from domestic suppliers, access and grow export markets and enhance value chain competitiveness.

“Its vision is to develop a competitive, sustainable and dynamic R-CTFL value chain that provides its customers with compelling products and that is invested in growing employment and advancing inclusion and transformation,” he explained. 

The masterplan is aimed to grow employment to 330 000 R-CTFL jobs through growing local retail sales to R250 billion, to expand local retail procurement of local CTFL products from 45% to 65%, equalling an increase from R32 billion to R 66 billion in ten years, and to improve competitiveness, technology, skills and transformation.

Irkhede added that to support the Economic Reconstruction and Recovery Plan, the dtic announced a Clothing, Textiles, Footwear and Leather Growth Programme in 2022. 

R2.28 billion was allocated and 154 entities were supported and these employ almost 24 000 people. 

“The programme is well-subscribed, indicating the demand for capital to achieve growth, import substitution, new jobs and transformation,” said Irkhede. – SAnews.gov.za

Edwin
Wed, 09/11/2024 - 09:53

120 views
Read moreTextile industry remains a priority for government 
9 September 2024

SA to participate in WorldSkills International Competition

Location: News

SA to participate in WorldSkills International Competition

The WorldSkills Team South Africa has jetted off to France, where they will represent the country at the 47th WorldSkills International Competition taking place this week in Lyon.

The competition provides an opportunity to exchange skills, experience and technological innovations.
In South Africa, the WorldSkills initiative is championed by the Department of Higher Education and Training (DHET).

The competition serves as an effective platform to raise awareness about apprenticeships and artisanal skills, enhancing the standard of vocational education and training, and promoting artisanal skills.

The initiative aligns with the department’s Decade of the Artisan' programme, addressing the critical shortage of skilled artisans in the country.

The World Skills Competition aims to encourage young people, including high school learners, and tertiary students to consider artisanship as a career choice, thereby alleviating the skills shortage in the country.

The DHET said the South African competitors, under the banner of World Skills SA come from Technical and Vocational Education and Training (TVET) colleges or Technical High Schools, or students undertaking studies towards a Diploma at a University of Technology, and private training colleges.

The department said the 47th WorldSkills International Competition will feature over 1 500 competitors from 65 countries across the world, competing in 61 skills from 10-15 September.

The skills will be divided into six sectors, including construction and building technology, social and personal services, creative arts and fashion, information and communication technology, manufacturing and engineering technology and transportation and logistics.

The department highlighted that competitions offer participants, not only those from South Africa, huge benefits and opportunities.

“It is about more than just winning and taking the prize home. WorldSkills competitions in general, including the WorldSkills International Competition, create opportunities for learners to become the very best version of themselves possible.

“They offer life changing pathway and opportunities that involve additional study and work experience. The WorldSkills South Africa (WSZA) programme plays a critical role in building bridges between all stakeholders within the apprenticeship and artisan development arena,” the department said.

WSZA’s aim is to further develop the skills of the many young people who participate in WorldSkills South Africa events and to build their networking and communication skills. This is through taking direction from industry peers and benchmarking their skills against those they compete with in the industry. – SAnews.gov.za
 

GabiK
Mon, 09/09/2024 - 14:36

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Read moreSA to participate in WorldSkills International Competition
9 September 2024

‘New era of opportunity’ for China, South Africa cooperation

Location: News

'New era of opportunity' for China, South Africa cooperation

President Cyril Ramaphosa says the relations between South Africa and China have entered a new “era of opportunity”. 

The President was addressing the nation through his weekly newsletter following an official State Visit to the People’s Republic of China last week.

“During the state visit, China and South Africa agreed to upgrade our relationship to an All-Round Strategic Cooperative Partnership in a New Era. This signifies the strengthening of the political, economic and social ties between the two countries.

“The strengthening of ties with major trading partners like China continues to yield benefits for the South African economy and people. It is clear that relations between South Africa and China have entered a new era of opportunity. 

“Our visit has strengthened trade and investment ties and cemented our shared commitment to grow our economy, create jobs and advance prosperity for the people of our two countries,” he said.

Trading partners

The President revealed that during the visit, Chinese President Xi Jinping expressed that he would like to see more finished goods from South Africa entering Chinese ports.

The Asian country is South Africa’s largest trading partner but, President Ramaphosa pointed out, there is an “imbalance in the structure of our trade”. 

“South Africa exports mainly minerals and agricultural products to China and imports largely manufactured products from China. 

“During our discussion, Chinese President Xi Jinping expressed his support for the development of South Africa’s manufacturing capacity and to receive greater volumes of finished goods from South Africa.

“President Xi has committed China to open its markets to more South African products and would seek to further broaden the frontiers for Chinese investment in the South African economy,” President Ramaphosa said. 

The President added that government is buoyed by potentially increased cooperation between the two countries in “pursuit of low-carbon, climate resilient economic growth” and infrastructure.

“For example, South Africa has investment opportunities in the electric vehicle sector, renewable energy, green hydrogen and energy storage – and China has a proven track record in developing innovative solutions in these areas. 

“There is also great potential, and much interest, for Chinese private commercial firms, state-owned enterprises and banks to invest in our country’s infrastructure build programme. This aligns with our plans to modernise our infrastructure by investing in the expansion of ports, rail and road networks,” he said.

Beyond our shores

President Ramaphosa emphasised that enhanced relations between China and South Africa can bring opportunities beyond the two countries.

While on the State Visit, the President attended the Forum on China-Africa Cooperation (FOCAC) where the African Continental Free Trade Area (AfCFTA) and its potential were discussed.

“The [AfCFTA], which will provide access to a market of over 1.3 billion people, provides an even greater incentive for investment by China and other countries in Africa’s manufacturing capacity.

“This was underlined during the FOCAC summit attended by more than 50 African countries, where President Xi announced ten partnership actions that China would take together with African countries to support the modernisation of their economies. These actions cover areas like trade, industrial development, agriculture, health and infrastructure. 

“At a time when African economies are growing closer together, China’s technological capabilities can support Africa’s industrialisation and enable the continent to export more than just raw commodities,” the President said. – SAnews.gov.za

NeoB
Mon, 09/09/2024 - 10:07

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Read more‘New era of opportunity’ for China, South Africa cooperation
9 September 2024

SA manufacturers to showcase products at the AllFashion Exhibition in Cape Town

Location: News

SA manufacturers to showcase products at the AllFashion Exhibition in Cape Town

A group of manufacturers from the clothing, textile, footwear, leather and general goods sectors have received support from the Department of Trade, Industry and Competition (the dtic) to showcase their proudly South African products at the AllFashion Sourcing Exhibition.

The exhibition will take place at the Cape Town International Convention Centre (ICC) in Cape Town from 10 to 12 September 2024.

The Allfashion Sourcing Exhibition is a business-oriented marketplace for the textile and fashion industry, combining African creativity, design and manufacturing with international sourcing options.

The show will bring together an international community of manufacturers, designers, retailers, buyers, educational institutions, associations, financiers and service providers to the textile, apparel, footwear and fashion industry.

The primary objective of the event is to promote African clothing, textile, footwear, leather and general goods and to encourage interaction on a regional and international level. 

Additionally, the event aims to boost investment into the region and ensure sustainable job creation within the sector.

Acting Deputy Director-General of Sectors at the dtic, Thandi Phele, said the department’s support is part of a strategy to strengthen the ability of manufacturing and other sectors of the economy to create decent jobs, promote inclusion and increase value addition and competitiveness, in both domestic and export markets.

“This will be a valuable opportunity for the manufacturers to showcase their products to the wider fashion community in South Africa and abroad. We are certain that this collaboration will deliver fantastic results and that the manufacturers will receive quality enquiries from prospective clients and generate trade leads. 

“This sector has a long history, employs a significant number of people, and remains important to the manufacturing sector. However, the recent period, especially with COVID-19, has been characterised by serious structural and associated crises resulting in a decline in the sectors over the last number of years,” she said.

While the sector is stabilising, more interventions are required. 

Importantly, government is determined to increase exports and promote locally produced products.

“The AllFashion Sourcing is a vehicle that the dtic is using to achieve an objective of ensuring sustainable job creation and increasing exports of locally manufactured products. 

“The show will afford the dtic an ideal opportunity to engage with a select audience of textile, clothing, footwear, leather and fashion orientated exhibitors and visitors,” said Phele. – SAnews.gov.za

Edwin
Mon, 09/09/2024 - 09:12

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Read moreSA manufacturers to showcase products at the AllFashion Exhibition in Cape Town
6 September 2024

Two declarations inked in China to boost construction sector in SA

Location: News

Two declarations inked in China to boost construction sector in SA

South Africa has signed two declarations of intent with the China Communications Construction Company (CCCC) and ASI Global during the State Visit to China.

South Africa’s Public Works and Infrastructure Minister Dean Macpherson was one of the Ministers who joined President Cyril Ramaphosa on his State Visit to China to help achieve the vision of turning South Africa into a construction site, growing the economy and creating thousands of new jobs.

READ | SA to transform economy into manufacturing hub

According to the Department of Public Works and Infrastructure, the declaration of intent with the CCCC will work towards inviting the company to bid through the Public Management Finance Act (PMFA) in the construction and development of municipal works and public-owned buildings, fishing harbours and small ports. 

Meanwhile, the declaration of intent with ASI Global will work towards the entity helping to develop construction talent in South Africa, as well as their professional development.

“Shortly after I was appointed as Public Works and Infrastructure Minister roughly two months ago, I vowed that I will aim to use the portfolio to turn the country into a construction site for us to grow the economy and create thousands of new jobs. 

“The two declarations of intent signed during bilateral meetings in China, therefore, mark an important step towards us achieving that goal,” Macpherson said in a statement.  

He described the CCCC and ASI Global as two “very important” players in their respective fields. 

“The declarations of intent means that we can now invite them to make their expertise available to help develop our infrastructure and construction capabilities in South Africa, which will benefit the South African people across the country.” 

The Minister said that in the months ahead, the department will build on these declarations of intent to further develop agreements towards unblocking any challenges which may stand in the way of launching construction projects in South Africa.

“I look forward to inviting the CCCC and ASI Global to join us as we work towards our dream of turning the country into a construction site. 

“If we truly want to see rapid economic growth and job creation, the assistance of entities such as the CCCC and ASI Global, and many others across the world, will be crucial. I look forward to seeing how they work to help us improve South Africa. Let us build South Africa.” – SAnews.gov.za

Gabisile
Fri, 09/06/2024 - 13:02

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Read moreTwo declarations inked in China to boost construction sector in SA
5 September 2024

Citizens called to help keep criminals off the streets

Location: News

Citizens called to help keep criminals off the streets

Cabinet has called on South Africans to continue to work with law enforcement agencies by reporting illegal acts to help keep criminals off the streets.

“The fight against crime is a shared responsibility, and government will continue to champion all initiatives that will mobilise all people in society to work together towards a better and safer South Africa,” acting Minister in The Presidency, Maropene Ramokgopa, said during a post-cabinet media briefing on Thursday.

The public can report criminal activities to the police on 10111.

Consistent with the commitments made by President Ramaphosa during his Opening of Parliament Address on 18 July 2024 to build a safer country, Ramokgopa said South Africa’s law-enforcement agencies have stepped up the fight against crime.

Some successes of law enforcement include the arrest of 673 suspects by the Hawks. Of the 573 arrested, 506 were convicted and 77 court orders were granted for the seizure of assets connected to criminal activities.
The police also arrested 14 422 suspects for various crimes through Operation Shanela from 19 to 25 August 2024.

“A multidisciplinary raid operation by the police, metro police, correctional services, Home Affairs and other law-enforcement agencies in six hijacked buildings in Durban led to the discovery of R4 million in counterfeit United States dollars, seizure of drugs, 117 rounds of ammunition and liquor, and [the] arrest of more than 150 allegedly undocumented foreign nationals.

“These successes follow significant inroads made in dismantling a transnational crime syndicate in the country since the beginning of the year. The Directorate for Priority Crime Investigation (Hawks) has uncovered 10 clandestine drug laboratories and arrested 34 persons for manufacturing, dealing and possession of illicit drugs,” Ramokgopa highlighted.

Extortion incidents

Ramokgopa also noted that South Africa is learning from international best practices to develop strategies to deal decisively with incidents of extortion.

She said a whole-of-society approach and a unified effort from government, law-enforcement agencies, businesses and communities are needed to create a united front to combat this crime.

“Extortion does not just harm individuals; it undermines our entire economy. By fighting this crime, we are protecting jobs, encouraging investment, and promoting economic growth. We are empowering communities to stand up against extortion through education, support networks, and confidential reporting systems. We are making it safer for people to say no to criminals.

“The SAPS is being equipped with the latest tools and techniques to combat extortion, including advanced intelligence gathering and specialised task forces, to staying ahead of criminal tactics. Extortion often thrives where there is a lack of economic opportunity,” Ramokgopa said.

The Minister added that government is addressing root causes by investing in education, job creation, and community development alongside law enforcement efforts.

“Government is working closely with international partners to share intelligence, track criminal networks and bring offenders to justice. Our efforts are particularly focused on protecting vulnerable individuals and businesses who are often the primary targets of extortion.

“No one should have to live in fear in their own community. Government is committed to a sustained, long-term effort to root out this crime and create lasting safety and security for all South Africans,” Ramokgopa said. – SAnews.gov.za
 

GabiK
Thu, 09/05/2024 - 13:11

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Read moreCitizens called to help keep criminals off the streets
5 September 2024

Economic spinoffs of direct Munich-Joburg flight

Location: News

Economic spinoffs of direct Munich-Joburg flight

The significance of a direct flight from Munich in Germany to Johannesburg is “incalculable” for Gauteng’s economy, according to the Gauteng Department of Economic Development (GDED).

This follows the inaugural landing of the Lufthansa direct flight from Munich to Johannesburg on Wednesday.

The airliner is expected to operate at least three weekly flights between the two cities.

“The significance of this route to the Gauteng provincial economy is incalculable. Munich, the third largest metropolitan region in the European Union by gross domestic product is the nerve centre of the south German economy and a global city that serves as the headquarters for many international companies in the manufacturing, finance, telecommunications, automotive, media and logistics sectors. 

“Thus, this new direct Johannesburg-Munich flight brings better connectivity to corporate companies who are headquartered in southern Germany, facilitating the further economic development and strong business relations between Germany and South Africa in general, and the Gauteng City Region in particular,” the department said in a statement.

The GDED said the launch of the route during South Africa’s Tourism Month is also significant.

Last year, some 245 259 German tourists visited South Africa – a rise from 173 146 the previous year.

“[This is] a period dedicated to shining a spotlight on tourism, its impact on the economy and livelihood. Munich is a particularly popular destination amongst tourists visiting Germany, as such, this direct flight will offer residents of Gauteng and South Africa broadly, an opportunity to explore the world with greater ease.

“Destination Gauteng is also positioned to welcome more international tourists from Germany and the broader European Union, where they will explore and enjoy the many diverse tourism offerings that the province has to offer including paleo-sciences, gastronomy, sports tourism, and quality township tourism experiences,” the statement read.

The department revealed that since the devastation of the COVID-19 pandemic, which caused a “severe loss of airlift and new routes development work”, it has been hard at work to implement a programme of, among others, route development.

“Together with our marketing partners, the [department] has implemented a protracted programme of air routes development, aggressive recruitment of new airline routes into the destination’s main international airports and support for freight, cargo and film crews, private charters, and medical rescue services.

“The Tourism Business Council of South Africa…supported this targeted work by the Gauteng Provincial Government in improving airlift capacity in the province. 

“With their R5 million injection, we managed to power our marketing and coordination work resulting in the province welcoming new routes from Sao Paulo in Brazil, Abidjan in Ivory Coast, Lusaka in Zambia, Perth in Australia, eSwatini Airways, Qantas Airline and now Munich in Germany,” the GDED statement said. – SAnews.gov.za

NeoB
Thu, 09/05/2024 - 13:27

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Read moreEconomic spinoffs of direct Munich-Joburg flight
5 September 2024

Over one thousand permits issued for hemp cultivation

Location: News

Over one thousand permits issued for hemp cultivation

A total of 1 110 permits have been issued for hemp cultivation since the declaration of hemp as an agricultural crop.

This follows the approval of the Cannabis for Private Purposes Bill by President Cyril Ramaphosa in May 2024.

READ | Permits to change the lives of farmers

Briefing media on Thursday following Cabinet's regular meeting on Wednesday, Acting Minister in The Presidency, Maropene Ramokgopa, said Cabinet received a briefing on the progress on the development of the Cannabis Master Plan, which aims to provide a framework for the establishment, growth and development of the cannabis and hemp industry in South Africa, to contribute to economic growth, poverty alleviation and job creation.

The Master Plan is anchored on nine pillars, including Effective Regulatory Services; Sustainable Seed Supply Systems; Research and Technology Development; Producer Support Systems; Market Development; Enterprise and Supplier Development; Manufacturing and Product Development; Education and Training, and Communication and Awareness.

Ramokgopa said the Department of Justice and Constitutional Development has initiated the process of drafting the regulations in support of Cannabis for Private Purposes.

“The Department of Health, through the South African Health Products Regulatory Authority, has concluded consultations on changes to the Schedules of the Medicines and Related Substances Act, 1965 (Act 101 of 1965).

“The Department of Trade, Industry and Competition (dtic) concluded situational and value chain analysis on the Hemp and Cannabis sector in South Africa. The dtic will soon commence consultations on the Cannabis Commercialisation Policy,” Ramokgopa said.

The Agricultural Research Council (ARC) has also developed two hemp varieties and with the support of the Department of Agriculture, Land Reform and Rural Development (DALRRD), is currently undergoing a second season of seed multiplication to make it available for the 2025 planting season.

“In May 2024, the Minister of Agriculture, Land Reform and Rural Development approved the Hemp Certification Scheme to regulate the varietal integrity and quality of hemp propagation material towards supporting the sustainable seed system of hemp. The DALRRD has commissioned research to the value of R124 million with the ARC, which focuses on Cannabis breeding for medicinal, fibre and other uses; Cannabis plant disease surveillance, indigenous germplasm collection and Cannabis seed system development.

“In Gauteng, in collaboration with the Council for Scientific and Industrial Research, 10 small, medium and micro enterprises were supported for product development. The DALRRD continues to consult provinces on commitments thus far. 

"To improve the capacity of the department to monitor the cultivation of hemp by permit holders, the ARC developed a detailed training programme for inspection services,” the Minister highlighted. – SAnews.gov.za

GabiK
Thu, 09/05/2024 - 13:41

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Read moreOver one thousand permits issued for hemp cultivation
5 September 2024

Slight GDP increase sets ‘a positive tone’ – Ramokgopa

Location: News

Slight GDP increase sets 'a positive tone' - Ramokgopa

Cabinet has called on all sectors of South Africa to build on the momentum of the slightly increased Gross Domestic Product (GDP).

This is according to Acting Minister in the Presidency Maropene Ramokgopa who briefed the media on Thursday, following a regular meeting held by Cabinet this week.

Earlier this week, Statistics South Africa reported that the economy has grown by some 0.4% during the second quarter of 2024.

“Cabinet noted the slight increase in the growth of the South African economy…which sets a positive tone for our overall economic performance for the year. South Africa’s economy remains robust and Cabinet encourages all sectors of society to build on this momentum going forward.

“When all sectors build on this momentum as a nation, we will realise the creation of more jobs and improve the living standards of all South Africans. 

“Cabinet has prioritised inclusive economic growth and job creation for the Seventh Administration and therefore existing interventions will be intensified to achieve this objective,” Ramokgopa said.

Investment and infrastructure development

Ramokgopa told the briefing that government remains focused on growing the economy, reducing unemployment and creating a more resilient investment climate.

In that regard, she said, Cabinet welcomed the launch of the R1.1 billion automotive components manufacturing facility at the Dube Trade Port Special Economic Zone in KwaZulu-Natal.

“The massive investment by Toyota Tsusho Africa (Pty) Ltd and Ogihara Thailand Corporation Ltd is a vote of confidence on South Africa’s position as a formidable destination for foreign direct investment. 

“The investment also underscores the progress that has been made under the stewardship of President Cyril Ramaphosa, who has championed an investment drive that has attracted more than R1.51 trillion in investor commitments since 2018.

“South Africa’s investment appeal continues to draw catalytic investments that affirm the government’s intent to drive economic growth and create jobs,” she said.

Furthermore, Ramokgopa noted that the recently approved R17.8 billion funding from the BRICS New Development Bank (NDB) will accelerate infrastructure development in water and sanitation.

Transnet has also signed a R5 billion loan agreement with the NDB in support of the public entity’s improvement and modernisation efforts in freight rail. 

“The recently approved R17.8 billion funding…for infrastructure projects in water and sanitation will reduce infrastructure backlogs and ensure the provision of basic services to poor households.

“Cabinet expressed appreciation for the funding, which will greatly accelerate infrastructure development in our nation and contribute to improving the lives of people,” Ramakgopa noted. – SAnews.gov.za

NeoB
Thu, 09/05/2024 - 11:45

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Read moreSlight GDP increase sets ‘a positive tone’ – Ramokgopa
4 September 2024

SA to transform economy into manufacturing hub

Location: News

SA to transform economy into manufacturing hub

By Nosihle Shelembe

Beijing, China - President Cyril Ramaphosa says South Africa is working towards transforming the economy by turning the country into a “manufacturing hub”.

“We plan to move from being a large importer of manufactured products to being a major exporter,” the President said on Wednesday.

Addressing the South Africa-China Business Forum on the occasion of the State Visit to China, President Cyril Ramaphosa said Chinese companies will find there are innumerable business opportunities to manufacture products in South Africa using the country’s excellent industrial experience.

“We have seen this happen in our automotive industry. We have ambitious plans to modernise our infrastructure by investing in the expansion of ports, rail and road networks. 

“We are on a path to revolutionise our energy sector in pursuit of low-carbon, climate resilient development,” the President said.

He said South Africa is actively seeking investment in the energy sector, with a particular focus on renewables and green hydrogen.

“China has a proven track record in developing innovative renewable energy solutions. 

“Together, we can create sustainable and environmentally friendly energy solutions that benefit both our countries.

“By working together, we can create value chains that are mutually beneficial, leading to job creation and economic growth.

There is also vast untapped potential in technology,” President Ramaphosa said.

He said South Africa and China can collaborate to promote innovation, technology transfer and skills development. 

“By leveraging our respective strengths and exploring new avenues of collaboration, we can create mutually beneficial partnerships.

“Our focus must now be on building stronger business relationships, promoting cultural exchanges and tourism, and creating a favourable business environment.

“The growth of the South African economy will support the success of the African Continental Free Trade Area, which opens access to a market of over 1.3 billion people,” the President said.

He said African economic integration is fast becoming a reality that creates enormous opportunities to expand production on the continent and to stimulate much greater economic activity.

“We are a country with enormous potential for growth and development. We are advantageously placed for companies looking to expand into the rest of the African continent.

“South Africa and China have vibrant, diverse and growing economies, with a wealth of opportunities for businesses wishing to expand into new markets,” the President said.

China is currently South Africa’s largest trading partner.

Bilateral trade between China and South Africa has increased by a third since 2019. 

South Africa exports mainly minerals and agricultural products to China, and imports largely manufactured products from China. 

“We are seeking to shift the structure of our trade profile and deepen our investment relationship.

“South Africa has one of the most advanced and diversified economies on the African continent. It has a vibrant business environment and a strong regulatory framework. It has a diverse, competitive and well-regulated financial sector,” the President said.

Since the start of South Africa’s major investment drive in 2018, Chinese companies have made investment pledges to the value of over R18 billion in the manufacturing, resources, finance and agro-processing sectors. This is the equivalent of US $1 billion.

“In the last six weeks, a number of Chinese companies have increased investments to support the expansion of their operations. 

“These investment commitments are testament to the resilience of the South African economy and the many opportunities for foreign and domestic investors. 

“It is up to us to seize these opportunities and take the economic relationship between our two countries to the next level,” the President said.

He said South Africa has investment opportunities in the electric vehicle sector, renewable energy, green hydrogen and energy storage.

It has further opportunities in infrastructure, manufacturing, mining, beneficiation of critical minerals, and the digital economy.

“Let us work together to seize this opportunity and continue to build a more prosperous future for our respective countries,” the President said. – SAnews.gov.za

Matona
Wed, 09/04/2024 - 13:10

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Read moreSA to transform economy into manufacturing hub
4 September 2024

Government welcomes positive GDP growth

Location: News

Government welcomes positive GDP growth

Government has welcomed the country's positive economic growth, as reflected in the latest Gross Domestic Product (GDP) figures. 

According to data released by Statistics South Africa (Stats SA), the GDP increased by 0.4% in the second quarter of 2024, following a 0.0% growth in the first quarter. 

On expenditure, real GDP rose by 0.5% in the second quarter, an improvement from the 0.1% decrease in the first quarter of 2024. Household consumption emerged as the largest positive contributor to overall growth, demonstrating the renewed confidence and spending power of South African households. 

From a production perspective, the finance, real estate, and business services industry played a pivotal role, contributing 0.3% to the overall GDP growth. Other notable contributors include the manufacturing sector, trade, and the electricity, gas, and water supply industry, which saw a remarkable growth of 3.1%, driven by increased electricity generation and water distribution.

Acting Government spokesperson, Nomonde Mnukwa, said the second quarter's economic growth was a clear indication that South Africa’s economy is on a solid path to recovery. 

“The positive trajectory also speaks to the effectiveness of the measures that have been implemented to support recovery and growth. The absence of load shedding has played a crucial role in revitalising key sectors, particularly the electricity, gas, and water supply industry. 

“The government remains committed to implementing policies that will sustain and accelerate growth, ensuring that the benefits are felt by all South Africans,” Mnukwa said.  

Government further acknowledges that sectors such as agriculture, mining, and forestry and fishing are experiencing challenges, but work is being done to provide relief that will ultimately restore growth in these sectors. 

Mnukwa said government continues to support and foster an environment that encourages sustainable economic development. – SAnews.gov.za

DikelediM
Wed, 09/04/2024 - 11:14

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Read moreGovernment welcomes positive GDP growth
3 September 2024

SA economy grows by 0.4%

Location: News

SA economy grows by 0.4%

South Africa’s Growth Domestic Product (GDP) grew by 0.4% in the second quarter of 2024 with finance, real estate and the business services industry contributing most to the growth.

This is according to Statistics South Africa (Stats SA) which released the GDP results on Tuesday.

“The finance, real estate and business services industry increased by 1.3%, contributing 0.3 of a percentage point to the GDP growth. Increased economic activities were reported for financial intermediation, auxiliary activities, real estate activities and other business services.

“The trade, catering and accommodation industry increased by 1.2%, contributing 0.1 of a percentage point. Increased economic activities were reported for wholesale trade, retail trade and accommodation,” Stats SA said.
According to the institution, manufacturing increased by some 1.1%, “contributing 0.1 of a percentage point”.

“Six of the ten manufacturing divisions reported positive growth rates in the second quarter. The following divisions made the largest positive contributions: motor vehicles, parts and accessories and other transport equipment; food and beverages; and basic iron and steel, non-ferrous metal products, metal products and machinery.

“The electricity, gas and water industry increased by 3.1%, contributing 0.1 of a percentage point. This was largely due to increases in electricity production and consumption, as well as water consumption,” Stats SA explained.

Decreases in transport, storage and communication contributed a -0.2% of a percentage point.

“Decreased economic activities were reported for land transport and transport support services.
“The agriculture, forestry and fishing industry decreased by 2.1%, contributing -0.1 of a percentage point. This was primarily due to decreased economic activities reported for field crops and animal products,” the institution added.

In terms of expenditure on GDP, Stats SA reported that expenditure on GDP grew by 0.5% during 2024’s second quarter after a decrease of some 0.1% in the first quarter.

“Household final consumption expenditure [HFCE] increased by 1.4%, contributing 0.9 of a percentage point to the total growth. The highest growth rates were reported for services and semi-durable goods."

The main positive contributors to the increase in HFCE were expenditures on the ‘other’ category (4.5% and contributing 0.6 of a percentage point), clothing and footwear (3.2% and contributing 0.2 of a percentage point) and food and non-alcoholic beverages (1.2% and contributing 0.2 of a percentage point).

“Final consumption expenditure by general government increased by 1.0%, contributing 0.2 of a percentage point. This was mainly driven by increases in purchases of goods and services and compensation of employees,” Stats SA explained.

A decrease in exports out of South Africa was also noted.

“Net exports contributed negatively to expenditure on GDP. Exports of goods and services decreased by 0.4%, largely influenced by decreased trade in vegetable products; mineral products; vehicles and transport equipment excluding large aircraft; and base metals and articles of base metals.

“Imports of goods and services increased by 1.7%, largely influenced by increased trade in vehicles and transport equipment excluding large aircraft; vegetable products; mineral products; and textiles and textile articles,” Stats SA said. – SAnews.gov.za

NeoB
Tue, 09/03/2024 - 12:06

228 views
Read moreSA economy grows by 0.4%
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