OVERVIEW
Manufacturing Incentives aim to stimulate the sector.
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he Manufacturing Circle reported in 2018 that the manufacturing sector, in which Gauteng Province is preeminent, contributes 13% of South Africa’s GDP, significantly down from 24% in 1980. The sector employs 1.8-million people. For every direct manufacturing job, another 3.8 indirect jobs are created. Employer organisations like the Manufacturing Circle and government at national and provincial levels are engaging in initiatives to grow the sector. Chief among these are the incentives such as the Manufacturing and Competitiveness Enhancement Programme (MCEP) of the Department of Trade and Industry (dti). The dti is the state’s lead promoter of the sector. Sectors that have received support include plastics, pharmaceuticals, chemicals, metal fabrication, transport equipment and agri-processing. The Support Programme for Industrial Innovation (SPII), run by the Industrial Development Corporation (IDC) on behalf of the dti, promotes technology development. Another IDC initiative has allocated R23-billion over three years to support the Black Industrialist Programme to help existing entrepreneurs grow their businesses. The Provincial Government of Gauteng has tabled plans to bolster manufacturing capacity in the province’s western areas. The priorities are mining and mineral beneficiation, capital equipment and machinery, agriculture and agri-processing, tourism, retail and economic development in townships. Manufacturing contributes 14% to Gauteng’s real economy output and provides 40% of South Africa’s manufacturing overall. Manufacturing GAUTENG BUSINESS 2019/20
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SECTOR HIGHLIGHTS Packaging company Nampak celebrated a half-century on the JSE in 2019. related to the mining industry, historically the lynchpin of the Gauteng economy, is still important. Ekurhuleni Metrop olitan Municipality has the greatest concentration of manufacturing enterprises, especially between Wadeville and Alrode, south-west of Alberton. Germiston is the country’s biggest rail junction and Transnet Engineering has invested hundreds of millions of rands in new equipment at its facility there. New technology has been embraced by some innovative manufacturers. Desert Wolf’s Skunk Riot Control Chopper is an unmanned light aerial vehicles (UAV) that has proved popular in the world market. Desert Wolf operates out of Pretoria.
