With industrial policy back in fashion in many economies, business and policy specialists expect new Trade, Industry and Competition Minister Parks Tau to prioritise measures to support key sectors, including those aligned to the emerging green economy.

The former Department of Cooperative Governance and Traditional Affairs Deputy Minister and City of Johannesburg Executive Mayor has been appointed to the position in the government of national unity (GNU) together with two deputies, Zuko Godlimpi, also of the African National Congress, and Andrew Whitfield, of the Democratic Alliance.

The position was held by Ebrahim Patel, who retired at the end of his term, and debate regarding who would occupy the key economic portfolio was intense ahead of President Cyril Ramaphosa’s June 30 announcement, as it was reportedly offered to the Democratic Alliance before being withdrawn.

The Department of Trade, Industry and Competition (dtic) is responsible for a range of economy-shaping policies, including those seeking to redress racial imbalances that persist in the business environment, and it also has implementation responsibilities, through various agencies, in areas as diverse as industrial financing and company registrations, to standards and competition enforcement.

In welcoming the appointments, Business Unity South Africa (Busa) CEO designate Khulekani Mathe told Engineering News that he expected dtic’s new political leaders to prioritise the enhancement of the country's industrial policy to support key sectors, while also promoting innovation and ensuring sustainable industrial development.

“Given the ongoing challenges posed by economic downturns and global disruptions, Busa emphasises the need for policies that support economic recovery and growth.

“This includes measures to attract investment, boost industrial productivity, and enhance trade competitiveness,” Mathe said.

Black Business Council VP Gregory Mofokeng expressed confidence that Tau would show the necessary political leadership and will to make a meaningful contribution towards turning the fortunes of our economy around.

“The immediate priorities will be to partner with the private sector to enhance measures to re-industrialise our economy, localisation and the effective implementation of the broad-based black economic empowerment legislation to ensure redress and economic inclusivity,” Mofokeng told Engineering News.

Meanwhile, Trade and Industrial Policy Strategies executive director Dr Saul Levin told Engineering News that, because industrialisation had been highlighted as a priority for the parties that signed up to the GNU Statement of Intent, an immediate focus would likely be on supportive industrial policy, including at a sector level.

He said this could be pursued through the sector master plans or reviving the industrial policy action plans and that the new leadership team would also need to come to grips with how the different functions of the department interfaced and could be used to stimulate industrial development.

“There is also an important priority in working with industry to take forward inclusive growth that creates much-needed jobs in our economy.

“The third priority will be on the impact of the transition away from carbon-intensive energy and strategies to green our industrial development pathway,” Levin said.

Busa, meanwhile, would also like to see the dtic supporting a more business-friendly regulatory environment, by simplifying regulations, reducing bureaucratic hurdles and ensuring policy stability.

It also believed priority should be given to strengthening trade relations and ensuring market access for South African products.

“Given our geopolitical positioning, South Africa needs to proactively engage in trade negotiations and efforts to remove barriers to trade.

“The new dtic leadership should prioritise the proper running of institutions supporting trade to function efficiently and be responsive,” Mathe added.

It would also be supportive of efforts to enhance competition enforcement and prevent anti-competitive practices that harm consumers and businesses.

Levin, meanwhile, argued that three key measures of success for the GNU would be higher rates of investment, employment growth and exports.

For Mofokeng a successful term would be determined by a “sustained economic growth trajectory underpinned by a substantial increase in the output of the country’s manufacturing sector due to the decisive implementation of the country’s re-industrialisation strategy resulting in a transformed and inclusive economy reflective of the country’s demographics”.