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Master Plans Under the Spotlight

March 12, 2021

The Presidency

The Master Plans that have been concluded are paying off.

President Ramaphosa highlighted this during an address at the Proudly South African Summit and Expo 2021.

Master Plans in place include in the automotive; clothing, textiles, footwear and leather; poultry and sugar industries.

Master Plans in the pipeline are in the furniture and plastics industries.

According to the president, the Plans “work to ensure that the respective value chains are localised for the benefit of the South African economy and the creation of jobs”.

They also include “significant investment commitments from both government and stakeholders to drive up productivity and employment”.

Objectives outlined in the Plans include the Automotive Master Plan aiming to double the amount of job opportunities by increasing the level of local content in vehicles assembled in South Africa from 39% to 60%; the Poultry Master Plan contributing to the production of more than a million additional chickens each week; the sugar sector securing the commitment of local manufacturers of soft drinks to procure 80% of their sugar needs from local growers, including small scale farmers and the clothing, textile, footwear and leather sector embracing the localisation drive, pledging half a billion rand to the expansion of local manufacturing sites.

The president emphasized that localisation and local procurement is essential to drive economic growth in the South African economy.

Government is working to lower the barriers to entry to make it easier to establish and grow a business in South Africa and enforcing measures to stop the illegal importation of goods that weaken the local market.

Towards the end of last month, the trade, industry and competition department briefed parliament on the status of the Master Plans.

The department described Master Plans as industry social pacts in which each partner is expected to contribute, shifting away from a state-centric approach to a partnership model.

Disruptions on global supply chains caused by Covid-19 “provide a stronger rationale for the localisation efforts”.

The department indicated that Steel and Furniture Master Plans will be finalised in the next two months.