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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