Minister of Trade and Industry Rob Davies has unveiled the long-awaited Industrial Policy Action Plan (Ipap), which kicks into action in April. The plan promises to increase SouthAfrica’s manufacturing capacity and in so doing create 2.47 million jobs in the next decade.

The aim of Ipap is to shift South Africa’s economy from a consumption-driven to production-driven growth path. According to Davies, the consumption-driven path has been unsustainable thus far and new path will assist in the absorption of more labour.

Aside from increasing the economy's capacity to absorb labour, Davies said the revised Ipap would significantly improve the country's trade balance, mitigate the balance-of-payments threat to the public capital expenditure programme as well as to diversify and grow exports, especially in areas of capital equipment, automotive components and agro-processing.

The new strategy is based on four cornerstones, including greater concessional industrial financing, an overhaul of the procurement system, more strategic trade policies and concentrating on new sectors that South Africa has capabilities in.

For information about the new Ipap see the full Fin24 article here.