South African minister of trade and industry Rob Davies has Iast week launched an Industrial Policy Action Plan (IPAP) for 2013/14 and 2015/16, which includes an investment pipeline of R45 billion (about 4.5 billion USD) in the third quarter of this year that could create over 20 000 jobs.
The investment includes major projects in manufacturing, mining and green economy, among others.
Investors in pipeline include LG, Toyota, Serco, Hi-Sense, Proctor & Gamble, Kimberley Clarke, Nestlé, Unilever, Johnson Controls and Wipro, among others.
“Our economy is import intensive especially with respect to value added products, and is characterised by extensive financialisation. Unfortunately, only a small percentage of investment is channeled towards the productive sectors, Davies said.
“That’s why stronger domestic growth in the manufacturing sector is imperative,” he said.
He also said the country’s high structural unemployment was constant, oscillating between 22.5% and 25% if the narrow definition is used.
The minister said IPAP, located in the vision of the National Development Plan and forms one of the principal pillars of the New Growth Path, is meant to bring about significant structural change to the South Africa economy.
“The existing growth path is led by the consumption driven sectors, which are growing twice as fast as the productive sectors,” he said.