(AsgiSA) Annual Report 2008 - South African Government Information
(AsgiSA) Annual Report 2008 - South African Government Information
(AsgiSA) Annual Report 2008 - South African Government Information
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Accelerated and Shared Growth Initiative for <strong>South</strong> Africa<br />
ANNUAL REPORT<br />
<strong>2008</strong><br />
<strong>AsgiSA</strong> also said government should do more to support labour-intensive sectors with the potential<br />
for rapid growth, suited to <strong>South</strong> <strong>African</strong> circumstances, and open to opportunities for BBBEE and small<br />
business development. Specifically, it suggested tourism, BPO and biofuels as high priorities. Additional<br />
priority sectors include agriculture and agro-processing; chemicals; metals fabrication; the creative industries;<br />
clothing and textiles; consumer equipment; and forestry, wood and paper.<br />
6.2 Summary of progress<br />
A major step toward a stronger industrial policy occurred with the adoption of the National Industrial<br />
Policy Framework and the Industrial Policy Action Plan (IPAP) in 2007. IPAP reflected the <strong>AsgiSA</strong> priorities<br />
of encouraging new industries while improving overall efficiency through cross-cutting measures.<br />
During <strong>2008</strong>, the Competition Commission adopted a more strategic approach to the economy, focusing<br />
on sectors where the lack of competition had a particularly negative impact.<br />
In the three top priority sectors in <strong>AsgiSA</strong> – tourism, BPO and biofuels – progress was made in developing<br />
policy frameworks as well as providing limited and targeted subsidies. In addition, progress was<br />
made in supporting other sectors, notably the forestry, pharmaceutical and auto industries.<br />
The electricity shortfall at the start of <strong>2008</strong> and the steep economic downturn toward its end posed<br />
major challenges. The electricity emergency pointed to the need both for better alignment of infrastructure<br />
provision with economic imperatives, and for more sensitive management of the mining<br />
value chain. The worldwide economic downturn in the second half of the year alleviated the electricity<br />
crisis, thanks largely to a fall in demand from mining and refineries. However, it posed new and pressing<br />
problems, especially for export industries.<br />
More generally, it has become increasingly obvious that an effective industrial policy able to achieve inclusive<br />
and sustained growth requires much stronger alignment of government policies and functions,<br />
including infrastructure provision and skills development. That, in turn, demands a stronger central<br />
co-ordination function, increased funding and greater consensus among all stakeholders about the best<br />
path to achieve economic development over the longer run.<br />
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