Andrew Whitfield Advocates for Manufacturing-Led Growth and Export Expansion in SA

Whitfield outlined the department’s strategy to enhance local manufacturing capacity, improve competitiveness, and identify new export markets.

Deputy Minister of Trade, Industry and Competition Andrew Whitfield has underscored the importance of focusing on manufacturing-led growth and developing an export-oriented economy to bolster South Africa's economic prospects. Speaking during a debate on the Budget Vote of the Department of Trade, Industry and Competition (the dtic) in the National Council of Provinces (NCOP) on Tuesday, Whitfield emphasized that a strong manufacturing sector is crucial for sustainable economic development.

"It is essential that South Africa's economic growth is grounded in manufacturing-led growth," Whitfield stated. He highlighted that manufacturing is less susceptible to economic fluctuations and is vital for creating sustainable, well-paying jobs. Furthermore, he stressed that an export-oriented approach is critical for economic expansion and resilience.

Whitfield outlined the department's strategy to enhance local manufacturing capacity, improve competitiveness, and identify new export markets. He emphasized the need for a renewed focus on exports to mitigate the risks associated with slow domestic growth and to seize high-growth opportunities.

"The creation of an export-oriented economy can be achieved through measures to boost local industries' competitiveness, streamline export processes, lower trade barriers, provide financial and technical support to exporters, and build strategic trade alliances," Whitfield explained.

He noted that South Africa's exports in May this year amounted to over R178 billion, with a trade surplus of more than R20 billion, marking the widest surplus in six months. This positive trade balance underscores the significant role exports play in the country's economy.

"To support local industries, we will build a competitive ecosystem for manufacturing growth, identify key intermediate goods to enhance competitiveness, and target products with strong demand in growing markets," Whitfield added.

Earlier in the month, dtic Minister Parks Tau reaffirmed the government's commitment to a "smart industrial policy," aimed at reinforcing industrial growth and supporting development imperatives. This policy will focus on beneficiation, export-led growth, and leveraging legislative tools like the Public Procurement Act to promote localization and transformation.

Tau highlighted that South Africa's high import propensity, which accounts for 25% of national wealth, needs to be addressed. The government aims to reduce this dependency by focusing on key sectors such as pharmaceuticals, green industries, food products, and manufactured goods. The dtic will also respond to global trends, including the shift towards electric vehicles, with targeted smart industrial policies and programs.

The concerted effort to boost manufacturing and exports is seen as a pivotal strategy for ensuring long-term economic stability and growth in South Africa.