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Radebe: SA economy poised to forge ahead despite global challenges

  • by Piet Rampedi
  • 1 year ago
  • 0

WORKING together with business and labour, government says it remains focused on reigniting economic growth, preserving existing jobs and creating more sustainable jobs.

“Through our programme of structural reforms and fiscal consolidation, government will remain within its expenditure ceiling to ensure that our economy emerges stronger when the global economy recovers,” Minister in the Presidency for Planning, Monitoring and Evaluation Jeff Radebe said on Thursday.

He was briefing media following Cabinet’s fortnightly briefing.

Minister Radebe said President Jacob Zuma has led several effective interventions through partnerships, both domestically and internationally to boost economic growth and job creation.

“Despite global economic headwinds, the South African economy is poised to forge ahead,” said the Minister.

Cabinet has also noted the growing number of investment initiatives that have been announced in the country, which demonstrate confidence by the international investment community in South Africa’s economy.

This is a signal that South Africa is on a path to recovery and continues to be a viable investment destination, said Minister Radebe.

“The magnitude of the following investments demonstrates the continued confidence that global automotive producers have in South Africa as an investment destination, and the supportive policy environment that government is providing,” said Minister Radebe.

Recent investments in the country include the investment by Toyota for a new Toyota Hilux and Fortuner manufacturing plant in Prospecton, Durban. The Japanese car maker’s R6.1 billion investment in the country supports over 4 000, jobs while total employment at the plant exceeds 8 000 jobs.

Toyota has increased local procurement in its supply chain to support local component suppliers. The company has also focused on recruiting female technicians and providing more opportunities to women in the workforce.

This was made possible through the support provided by the Department of Trade and Industry, which has attracted investments of over R25 billion in the automotive industry in the past five years.

Another investment is the R6 billion construction of a new state-of-the-art body shop by BMW. The expansion will enable BMW to produce and export the next generation of the BMW X3.

“This demonstrates that the Rosslyn Plant is highly competitive within the global BMW production network, both in terms of cost of production and quality,” Minister Radebe said.

In another investment, the Minister of Trade and Industry launched the R100 million Dursots & All Joy Tomato Processing Plant in Modjadjiskloof, near Tzaneen.

The factory currently employs 70 people with a potential increase of 300 by next year. It would also create a further 900 seasonal jobs.

The company has also initiated an export structure and plans on exporting 25% of its products to the Middle East, China and the rest of Africa.

“These investments showcase the steady implementation of the Nine-Point Plan and the Industrial Policy Action Plan (IPAP) that focus on increasing manufacturing-based value addition, employment creation and export-intensity to grow the economy and create jobs,” said Minister Radebe. – SAnews.gov.za

 

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