Industrial Policy

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What impact do import tariffs have on the domestic market? The South African poultry experience

In November 2019, the Department of Trade, Industry and Competition (DTIC) published the Poultry Master Plan. The Plan is South Africa’s latest effort to revive the poultry sector and outlines the specific actions that are needed to stimulate local demand, boost poultry sector exports, and protect the local industry. Whilst there are many tools available to the DTIC to improve the functioning of the sector, this blog focuses on the use of import tariffs. The blog considers the impact of an import tariff on the domestic market in respect of consumers, producers, and government.

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Who is brewing my tea? Tea brokers and dominant tea processors

The Kenyan and South African tea cases show that although competition adjudications are made to protect and promote fair competition among companies, competition authorities also protect and promote fair price setting for the benefit of consumers. Consumers should be protected from paying excessive prices for inferior goods, and should be given the freedom to choose from multiple, high quality and innovative products.

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SMME development in South Africa: through the voices of entrepreneurs

Globally, the Small, Medium and Micro Enterprises (SMMEs) sector has long been recognised as a key driver of economic growth, and more importantly, as major source of employment. Given the extraordinarily high unemployment rate in South Africa, and the fact that SMMEs are generally more labour intensive, it is not surprising that this sector has been the subject of significant research and support.

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Export diversification in South Africa

The National Industrial Policy Action Plans (IPAP) released in 2007, 2011, 2012 and 2013 serve to identify and develop the sectors that South Africa should focus on in achieving faster growth and employment. The choice of these sectors in the various IPAP reports is not based on any substantive analysis as to where South Africa’s export potential lies. The ‘product space’ is an easy to use and comprehend analytical instrument which could be used to fill this gap.This blog serves to illustrate how this technique works and what it reveals.

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Bill for big business

Two bills published for comment this year paint a highly contradictory path of economic development policy in South Africa – or may actually point to where the government’s real interests lie.On the one hand the Special Economic Zones Bill aims to replace the stunted Industrial Development Zone programme in an attempt to foster growth and development.

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Grappling with the revised BBBEE codes of good practice

On 5 October 2012 the Minister of Trade and Industry issued revised Broad-Based Black Economic Empowerment Codes of Good Practice for public comment. Much has been written on the impact of these codes for charities and the DTI has already responded on this specific issue. But these revisions could have much wider economic effects and these too need to be understood before these changes are implemented. DNA Economics has identified some potential challenges with the revised codes and has written to the Minister in this regard.

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The myth of South Africa’s manufactured exports

It has become accepted wisdom and the mantra of politicians and economists alike that South Africa exports truck-loads of manufactured goods to the rest of the continent. From Government Ministers (including those responsible for trade), the National Planning Commission as well as the research units of South Africa’s leading Banks, we learn that Africa accounts for a large and rapidly rising chunk of our value-added exports. But has anyone actually done the maths?

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Lights out!

(and previously published as part of their Geekonomics column in the Business Day)
Rolling blackouts and electricity rationing have had a widespread and serious impact. The media are not immune. As part of Business Days’s commitment to cut energy usage by 20 percent, one in every five columnists is to be cut. The Geeks, as major emitters of hot air, have voluntarily agreed to withdraw this column and this will be out last regular contribution to ‘The Exporter’ supplement. As the crisis eases and our own energy levels return, we hope to provide further occasional commentary. We are betting that there will be no shortage of good material.

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