The main objective of the colloquium is to identify the blockages to value addition and recommend proposals that will directly address these impediments. The Committee is convinced that it needs to engage with practitioners, specialists, and other relevant stakeholders to share their views around value addition broadly, in particular through mining and manufacturing beneficiation of South Africa’s mineral and natural resources, and how import parity pricing and other factors limit opportunities for beneficiation.
 
Committee Chairperson, Ms Joanmariae Fubbs, said the discussion is intended to lead to possible solutions, such as the application of licensing conditions, to address the identified constraints. The colloquium forms part of ongoing oversight over the implementation of the revised Industrial Policy Action Plan (IPAP), which started in the Fourth Parliament. According to the Committee, import parity pricing and high administered prices constrain the development of the manufacturing sector.
 
Currently, South Africa’s largest exports are raw mineral resources, yet the country import processed or finished goods manufactured from these very same resources at substantially higher prices. Said Ms Fubbs: “It is critical that we move up the value chain and add value to the country’s mineral and natural resources. This is a key driver of industrialisation.” Mineral resources include polymers, ferrous metals, platinum group metals and titanium; while natural resources include primary agricultural, forest and fishery products. However, other areas of value addition are also possible through technological developments and the advancement of the knowledge economy in advanced manufacturing sectors such as the software and aerospace industries.
 
In the 2014/15 financial year, the Department of Trade and Industry intends to focus on the iron ore/steel, polymers and titanium value chains. The IPAP also highlights the development of the agro-processing; biofuels; aquaculture; and forestry, timber, paper, pulp and furniture industries as areas for beneficiation of the country’s natural resources.
 
Although there is general agreement that beneficiation is critical, the Minister of Trade and Industry Dr Rob Davies has also indicated that it is not an easy endeavour. Some of the initial constraints identified to achieve this are import parity pricing to local industries, especially in terms of steel and polymers, the cost of doing business in terms of administrative prices and logistics services, the reliability and affordability of the energy supply; availability of technology and skill shortages; and transport costs that have incentivised the export of raw materials.
 
Details of tomorrow’s meeting are as follows:

Date: 26 August 2014
Venue: Good Hope Chamber, Ground Floor, Good Hope Building
Time:  08H30


For media enquiries or interviews with the Chairpersons, please contact:
 
Name: Ms RajaaAzzakani
Parliamentary Communication Services
Tel: 021403 8437
Cell: 082 560 9610
Email: razzakani@parliament.gov.za