President Cyril Ramaphosa says expanding local production and manufacturing is pivotal to creating more opportunities for entrants and making the economy more inclusive.
On Friday, the President attended the launch of the Sandvik Khomanani Manufacturing Site in Kempton Park on Friday.
The Swedish company is a manufacturer of mining and mineral processing equipment.
Sandvik’s new facility is a manifestation of the R350 million investment commitment it made at the South African Investment Conference held earlier this year – a conference which raised some R332 billion in investment pledges into the country.
“This investment therefore extends beyond the financial. It is an investment in skills, technologies and capabilities. It is an investment in people and productivity. The investment by Sandvik in local manufacturing capacity is an important vote of confidence in South Africa and its mining sector.
“The expansion of local production will make our economy more inclusive and create more opportunities for new entrants into the industrial sector,” the President said.
He explained that manufacturing, particularly localised manufacturing, means greater exports and a boost for the South Africa’s Economic Reconstruction and Recovery Plan.
“This [facility] supports our aim to build domestic production capacity to supply local and foreign markets, to support broader economic development and to create more jobs. A growing local capital goods manufacturing sector will have a positive impact on other sectors of the economy, like agriculture and construction, and further strengthen sectors such as banking, hospitality and tourism.
“Increasing local production will contribute significantly to the revival of South Africa’s manufacturing industry,” he said.
According to the President’s remarks, with collaborative efforts from all sectors of society, South Africa’s envisioned economy growth is possible.
“Our economy, like many across the world, is struggling to recover from the devastating effects of the COVID-19 pandemic. Yet, through such investments, through the expansion of our productive capacity, through the implementation of far-reaching economic reforms and through our efforts to reduce the cost of business, we are laying a firm foundation for growth and employment.”