This document provides an overview of industrial development strategies in South Africa from the 1940s to present. It discusses policies and programs from apartheid like the Bantustan system, to post-apartheid initiatives such as the Reconstruction and Development Programme, Growth Employment and Redistribution policy, Black Economic Empowerment, Broad-Based Black Economic Empowerment, National Development Plan, Spatial Development Initiatives, and Industrial Development Zones. Centralization and decentralization of industry is also examined.

2. Learning objectives
Overview of apartheid and post-apartheid industrial
development strategies.
The National Development Plan
The concept of Industrial Development Zones (IDZ’s) and
their distribution.
Spatial Development Initiative (SDI’s)
Case study of two SDI’s
Issues associated with industrial centralisation and
decentralisation.

3.  In the 1940’s the Industrial development Corporation
(IDC) was established by the new government to
promote economic growth through developing a
broad-based industrial sector.
 The main aim was to ensure that SA could be
industrially independent and not have to rely on
imported goods from the UK and Europe.
 It aimed to Provide finance for start-up industries and
to bring partnerships together for larger industrial
needs.

4.  Apartied was proving to be an expensive policy to
implement because of the racial separation and
separate development which impacted on the
development of the landscape, water , health care,
education, sanitation and housing..
 Apartied meant South Africa was to be a “white”
republic in which black people did not feature as
citizens. The Bantustan policy south to place all black
Africans in a “homeland” according to their ethnic
identity.

5.  Up until 1970’s economic development is SA was
highly centralised, occurring predominantly around
urban areas.
 By the 1980’s there was a shift of focus to more even
economic growth and a number of growth models
were proposed E.g.. The Good Hope Plan (1981)
 And in 1994 the policy of apartied was abolished
leaving the country with without a policy and not in
a very good economic state.

6.  The unsound economic and development policies were
replaced with the Reconstruction and Development
Programme or RDP in 1994.
 The RDP came to an end in 1998 but did achieve
significant success by improving water supplies in
rural villages, creating new jobs in the water supply
programme and provide 400,000 new houses.

7.  GEAR – Growth, Employment and redistribution.
 This policy was put in place from 1996 – 2003
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It aimed to expand the private sector, encourage
trade, the use of better business practises, to improve
output and to increase investment.
The GEAR succeeded in attracting foreign
investments and increasing demand but failed to
reduce poverty and unemployment.
Because of these failures many favoured the BEE
policy.

8.  BEE – Black economic empowerment policy
 The BEE began in 1995
 It was introduced to rectify inequalities by giving
economic opportunities to disadvantaged groups.
 It did so by increasing the number of previously
disadvantaged people who manage, own and control
the countries economy.
 The were many critics on this policy – see Pg. 299 in
Focus text book

9.  B-BBEE – Broad-based Black Economic Empowerment
 Introduced in 2007
 This policy was introduce to meet some of the critics
about the BEE and specifies codes of good practice to
measure conformity with BEE in all sectors of the
economy

10.  The National Development Plan (NDP) offers a long-term
perspective. It defines a desired destination and identifies
the role different sectors of society need to play in reaching
that goal.
 According to the plan, South Africa can realize these goals
by drawing on the energies of its people, growing an
inclusive economy, building capabilities, enhancing the
capacity of the state, and promoting leadership and
partnerships throughout society.
 http://www.youtube.com/watch?v=wfr6ft4cUu0

11.  The NDP identifies the task of improving the quality of
public services as critical to achieving transformation.
Provinces must focus on identifying how to overcome
obstacles. This will be reinforced by local governments
requirement to fulfill their role.
 Planning and implementation will be followed by the
national government to make sure it is on track.
 The President and Deputy President will be in charge of
this initiative. Premiers and Mayors will need to be visible
and active participants of the plan with their offices being
the catalytic agencies to drive implementation at provincial
and municipal levels.

12.  The NDP and its proposals will need to be implemented in
the right order over the next 17 years. Four stages have been
identified as will be seen in the image.
 The Government has already started a process to join the
long term plans of departments with the NDP and to
identify areas where policy change is required to ensure
positive results.
 The NDP is a plan for the whole country. Government will
engage with all sectors to understand how they are
contributing to implementation and particularly to identify
any obstacles to them fulfilling their role effectively.
 The Plan will shape budget allocation over the next 17
years.

13.  The Spatial Development Programme (SDI) are used
to initiate and support a series of development
corridors stretching across parts of SA and in some
cases, other countries.
 The SDI’s are an extension of the existing GEAR policy,
which focused on growth, employment and
redistribution.
http://www.mcli.co.za/mcli-web/mdc/sdi.htm

14.  To developed and improve existing transport
infrastructure
 To correct some of the damage done by the
apartheid strategies
 To create an attractive environment for private
sector investment
 To initiate and support economic activities along
transport corridors.

15.  Maputo Development Corridor (which helped
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agriculture, Transport, mining, tourism and port
development)
Wild Coast and Lubombo SDI’s (helping agriculture
and transport infrastructure)
Fish River SDI’s ( helping agriculture, manufacturing,
tourism and port development)
Platinum and Coast to Coast SDI’s (supporting
transport corridor)
For more examples go to Pg. 302 of Focus textbook

16.  The Initiatives in the previous slide are expected to
increase the range of economic activities performed in
each area.
 This will increase the productivity and wealth of the
marginal areas of SA and raise the standard of people
living there.

17.  The Industrial Development Zones (IDZ) concept was
founded in 1996
 It was to be supervised by 2 goverment departments
 These are the core within SDI’s
 The plan is to develop and upgrade the infrustructure
and services that are needed to make the towns
involved world class competitors with modern
industrial zones

18.  IDZ’s are either in prots or near airports
 The goverment offered some incentives to new investors as
well as offered assistance to the IDZ’s by developing new
road and rail links where needed
 By 2012, three IDZ’s were operating: Richards Bay, East
London and Coega ( which is the most successful one)
 These IDZ’s help to minimize international trade barriers,
enabling importers and exporters to operate under better
economic conditions.
 The costs of IDZs are high. The government contribute to
investment and to attracting foreign and domestic
private/public investment by creating very good
infrastructure. This infrastructure includes roads and
railway connections and building harbors.

19. http://www.coega.co.za/

20.  This is the largest and the most successful
development corridor in SA.
 It connect SA’s economic hub Gauteng with
Mozambique's capital, Maputo.
 The corridor also has links to agricultural products and
minerals of Mpumalanga and Limpopo.

21.  The reconstruction of the Maputo N4 toll road
 Better customs posts at the boarder for quicker transits
 Expansion
 The new Mozal aluminium smelter near Maputo with
a capacity of 500.000 tons a year
 A gas pipline from Mozambique to Secunda, Where
Sasol converts natural gas to diesel and aviation fuel.

22.  The successful MDC is an example for other SDI’s
 A reason for its success was the efficient NGO
overseeing all aspects of the initiative.

23.  Centralisation is the concentration of industries in urban
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areas.
It refers to the fact that there must be something on the
surface that is attractive to people.
Can lead to uneven distribution of wealth, opportunities and
development.
Centralisation in SA has occurred around four industrial core
regions (Gauteng, Durban-Pinetown, PE, CT)
The problems with industrial centralisation include lack of
housing, lack of piped water, lack of jobs and traffic
congestion. On the positive side, industrial centralisation of
economic activities provides competition for goods and
assists businesses.

24.  Decentralisation was started in 1948 by the national party
and was ended in 1994 at the end of aparthied.
 It was used mainly as racial segregation making it hard for
black people to move to from rural to urban areas as well as
forcing urban black people to go back to rural areas.
 The issue with decentralization was that it encouraged
racial segregation and not many people in urban areas.
 So now rural towns are losing people due to urban sprawl,
resulting in closure of very expensive infrastructure
(hospitals, schools etc.) All of this infrastructure now has
to be rebuilt in major centers to accommodate for the
influx of people from rural towns.