Cape town: As South Africa navigates an increasingly complex global environment, Minister of Trade, Industry and Competition Parks Tau has assured the public that the country remains firmly on course, with government focused on stimulating investment, industrialisation, and combating illicit trade.
According to South African Government News Agency, the global environment has been deeply unsettled by the ongoing Middle East War and its associated disruptions to supply chains of energy, fertilizers, and petrochemicals, as highlighted by Minister Tau. Presenting his department's Budget Vote in Cape Town on Tuesday, the Minister emphasized that as a net oil importer, South Africa faces real recessionary risks and threats to industrial competitiveness.
Tau acknowledged the headwinds but expressed optimism, stating that South Africa is turning the corner and that the work of the Department of Trade, Industry and Competition (dtic) remains central to this momentum. He noted that South Africa's policy environment is now consistent and forward-looking, with the recent adoption of the Industrial Development Strategy (IDS) by the Cabinet, directing the country's industrial policy agenda.
The IDS is anchored on pathways of decarbonisation, diversification, and digitalisation, reflecting the reality that South Africa cannot compete in the future using outdated tools. Tau also mentioned the review of the Automotive Production Development Plan (APDP2) to stimulate new investments and support the growth of component manufacturers.
The Minister highlighted the progress in localisation, with R86.6 billion in locally manufactured goods and services procured in the 2025/26 financial year. He set a target of R100 billion for the current financial year, achievable through collaboration with social partners.
Addressing the challenge of the illicit economy, which costs the South African economy an estimated R700 billion, Tau announced critical interventions by the National Consumer Commission. A Track-and-Trace mechanism on goods will be published this financial year, targeting illicit trade in tobacco, alcohol, food, and consumer appliances.
Tau also reported that the 2026 South African Investment Conference (SAIC) secured the highest-ever value of investment commitments since its inception in 2018. Domestic firms led the charge, with two-thirds of investments coming from South African companies, signalling strong confidence in the local economy. The conference launched South Africa's second investment mobilisation drive, targeting R3 trillion in new investment by 2030.
Despite the challenging global trading environment, the country's Special Economic Zone (SEZ) Programme continues to contribute meaningfully to attracting fixed capital investments. To date, spatial transformation efforts have resulted in 224 operational investments valued at more than R31 billion, creating 28,821 active jobs.
The dtic and its entities have been entrusted with consolidated resources amounting to approximately R130.6 billion over the medium term to advance South Africa's industrialisation, economic transformation, and investment agenda.
