More than incentives needed for metals and engineering sector
A focused approach to providing incentives that takes into consideration comprehensive criteria is required
The SA industrial landscape has been challenging in recent years. Companies have had to cope with a shrinking domestic market, declining production, low capacity utilisation levels, weak production sales, a declining contribution to the overall economy, declining employment numbers, increasing real per capital income negatively affecting the cost base, increasing levels of imports, a weak global trade balance position, low investment levels and low product price increases in relation to input prices.
Such as other emerging economies SA has incentives aimed at supporting local manufacturing, but the industry continues to be eroded, with its share to GDP now down to about 12%. By contrast, other emerging economies have increased their manufacturing share of production to as much as 50%...
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