The release of the most recent manufacturing data today shows the continued decline in production in the manufacturing sector, resulting in high numbers of job losses, and indicating Minister Davies’ failure to lead in this regard.
Today, StatsSA revealed that production in the manufacturing sector declined by 2.3% in January 2015 compared with January 2014. Seasonally adjusted manufacturing production decreased by 0.6% in the three months ending in January 2015 compared with the previous three months.
The manufacturing sector has also consistently shed jobs. Since the first quarter of 2009, 290 000 manufacturing jobs have been lost.
The manufacturing sector ought to be one of the leading job creating sectors in our economy, yet under Minister Davies the opposite is occurring.
Policy confusion, spearheaded by the clash between the IPAP and the NDP, has discouraged investment in South Africa. This lack of investment, along with severe electricity shortages, labour costs, and business regulations has made South African industry comparatively less profitable than our developing counterparts around the world.
The DA would make the following key interventions to reverse the decline and get our economy growing:
– Boost trade with the rest of Africa through trade-focused diplomacy and cutting the costs of trading across borders;
– Provide R7 billion in additional funding to the Manufacturing Competitive Enhancement Programme (MCEP);
– Provide political leadership and restore investor certainty by speaking with one voice on the economy and implementing one plan;
– Make it easier for South Africans to start and grow their own businesses by cutting red tape and providing more support for entrepreneurs;
– Invest 10% of GDP in infrastructure to reduce the cost of doing business.
Instead of fighting industry, our government should be working with industry to create jobs for unemployed South Africans.
Geordin Hill-Lewis
Shadow Minister of Trade and Industry