Localisation for Africa
Manufacturing Circle
The manufacturing sector represents around 15 % of GDP and almost 1.7m jobs. We spoke with Coenraad Bezuidenhout, Executive Director of The Manufacturing Circle- an industry lobbying and advocacy group that exists to give a distinct voice to manufacturing in South Africa. Interacting with government and other stakeholders, they review, debate and help formulate policies that will have a positive impact on South Africa’ s manufacturing base.
How did the manufacturing circle come about? The Manufacturing Circle was established in October of 2007, when it became clear that a single voice for manufacturing was absent from the broader organised business spectrum in South Africa.
What are the requirements to be a member? All members must at present be companies with South African-based manufacturing concerns.
At what level of engagement does the manufacturing circle operate? We are currently non-aligned but co-operate with other business organisations to get priority issues related to manufacturing dealt with on a short-turnaround basis at the highest levels in government.
This is done through periodic ministerial level meetings with Treasury, the Department of Industry and the Economic Development Department, as well as meetings with the South African Reserve Bank and other entities. We aim to lobby and advocate for a domestic policy environment that is conducive to manufacturing growth.
Could you elaborate more on export incentives schemes a key initiative of the Manufacturing Circle? At the moment the majority of our efforts are aimed at ensuring a level playing field with our trade partners, as well as addressing the numerous competitive issues that we face.
What would the Manufacturing Circle consider their biggest achievement to date? We have achieved a high level of recognition amongst key ministers and high-level government officials on key issues relating to manufacturing.
At what level are issues such us the cost of electricity, labour and raw materials being dealt with and will there be a meaningful result? We are beginning to see results in the area of electricity costs, where there now is recognition that some form of relief is required in the form of a discount or some form of differentiated rate. The dominance in the energy sector by Sasol and Eskom is still a big cause for concern.
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