2014 year, The South African government recently proposed a three-year industrial policy to enhance the capacity and increase employment opportunities, as well as to improve the trade balance. These policies are accepted by local garment labor unions. The president of Southern African Clothing & Textile Workers’ Union (SACTWU) Andre Kriel said that South Africa can no longer continue to go the old way over the past 15 jaar, and there must be some new initiatives.
The Industrial Policy Action Plan (IPAP), wat verantwoordelik is vir 3.6 billion rand, naamlik $467 miljoen, was submitted by the Trade and Industry Minister in February. This plan aims to promote a few key industries, including garment, textile, footwear and leather.
Daarbenewens, this scheme puts emphasis on local procurement. If manufacturers can provide more employment opportunities, they will get low interest loans from government. The government also formulates strategic trade policy and tries to crack down on fake goods and clamp down on illegal smuggling import at the customs.
Andre Kriel said South Africa’s unemployment rate ranks highest in all developing countries despite the economic growth. The reason is that South Africa has the world’s most unequal social class differences. Behalwe, there are numerous factories closed, insluitend tekstiel, garment, footwear manufacturers etc. But he believes that the commitment of this industrial policy will help to solve these problems.
The industrial policy, which will last for three years, should be very care about resource allocation problem. Op dieselfde tyd, the government should provide a complete monetary policy measures to solve the problem of inflation and currency soaring sharply, which is far more important than creating job opportunities.
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