South Africans involved in the export market could “no longer rely” on a weak currency to drive their businesses, South African Trade and Industry Minister Mandisi Mpahlwa told parliamentarians on Tuesday.
Speaking during his Budget vote, he said his department was “very aware that important sectors are facing a crisis and decline, particularly those that have significant employment and social implications”.
“We therefore need to focus on upgrading our fundamental competitiveness capabilities to engage in a challenging global environment. The Department of Trade and Industry (DTI) will continue to research, analyse and develop strategic options for sectors in distress.
“The DTI is, for example, now actively engaging with clothing and textile employers and unions. On the one hand, the DTI is looking at a combination of short-term safeguards while on the other hand requiring that the industry increases its levels of investment and underlying competitiveness as was achieved in the auto[motive] sector to make the sector sustainable in the long term.”
A clothing and textile task team report is being finalised and will be submitted to the DTI in the next month, he said.
“The DTI, through a combination of social dialogue and sector jobs summits processes, will engage business and trade unions to find appropriate sector strategies to meet the challenge of a transforming economy.” – I-Net Bridge