Johannesburg | Wednesday
INVESTMENT and export contract targets under the Defence Industrial Participation (DIP) and National Industrial Participation (NIP) projects flowing from South Africa’s arms acquisition deal are on course, MPs were told on Wednesday.
Briefing Parliament’s trade and industry committees, trade and industry department deputy director-general for industry and enterprise development, Bahle Sibisi, said in some cases targets had been exceeded.
NIP projects were expected to generate $5-billion in investments and exports by 2004.
About 38 local companies were engaged in DIP manufacturing and export activities, and investment and export contracts worth R2,1-billion had been placed with South African-based firms to date.
Additional spin-offs had been the integration of local firms into Agusta and BAE/SAAB global supply chains.
Sibisi said DIP contractual targets were set at six-monthly and annual intervals.
The accumulated target set for March was R1,9-billion, while orders placed amounted to R2,1-billion.
The target had thus been exceeded by more than R200-million.
NIP targets were set at three, five and seven-year intervals.
Currently, the level of exports and investments stood at about US400-million.
This excluded confirmed export orders of more than $500-million placed with SA Chrome, Evertrade and Forest Products.
The investment and construction phases in a large number of projects were completed between 2000 and 2001, with more than 18 projects launched in this period.
A total of 5_050 jobs had been created in the first phase.
”The next two years should see a significant increase in exports as plants reach full capacity and the next phase of projects is launched,” Sibisi said.
The finalisation of additional projects in the aluminium, automotive and tourism sectors was also at an advanced stage and would be reported once all contractual arrangements had been completed. – Sapa