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PURPOSE OF THE MEETING

PURPOSE OF THE MEETING. Present background and structural progression of the Natural Fibre Cluster (NFC) Present progress in terms of programme/project implementation and impact Outline the strategic importance of NFC in terms of national and provincial priorities

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PURPOSE OF THE MEETING

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  1. PURPOSE OF THE MEETING • Present background and structural progression of the Natural Fibre Cluster (NFC) • Present progress in terms of programme/project implementation and impact • Outline the strategic importance of NFC in terms of national and provincial priorities • Elicit recognition of NFC and related required support from provincial departments

  2. STRATEGIC IMPORTANCE OF NFC • Alignment with national priorities and programmes: • Industrial Policy Action Plan II • Comprehensive Rural Development Programme • Alignment with provincial priorities and programmes • Provincial Industrial Development Strategy

  3. IPAP II CLUSTERS Cluster 1: Qualitatively new areas of focus • Metals fabrication, capital and transport equipment sectors: leverage Capex programme, rebuild and position as future exporters • Green and energy saving industries: solar water heating, concentrated solar power, wind power, energy efficiency • Agro-processing linked to food security and food pricing imperatives Cluster 2: Scale up / broaden interventions in existing IPAP sectors • Automotives, Components, Medium and Heavy Commercial Vehicles: raise economies of scale and localisation of components • Downstream Mineral Beneficiation: based on establishing minimum beneficiation levels • Plastics, Pharmaceuticals and Chemicals: focused on plastics and value-adding pharmaceuticals • Clothing, Textiles, Footwear, Leather: recapture domestic market share through competitiveness upgrading and tackling illegal imports

  4. IPAP II CLUSTERS Cluster 2: Scale up / broaden interventions in existing IPAP sectors • Biofuels: establish regulatory framework and support agricultural and refining investment • Forestry, Paper & Pulp, Furniture: unblock water licences and promote further processing • Strengthening linkages between Cultural Industries and Tourism • Business Process Services: broaden and deepen SA’s product offerings Cluster 3: Sectors to develop long-term advanced capabilities • Nuclear: leveraging local production and technology transfer • Advanced Materials: feeding into new growth industries such as aerospace, solar and nuclear • Aerospace: strengthening integration into supply chains

  5. IPAP II VALUE ADDED SECTORS

  6. PIDS STRATEGIC OBJECTIVES • Stabilisation of vulnerable and declining sectors as a result of the economic crisis and deindustrialisation. • Protection - safeguard productive capacity of existing industries and retain current jobs. • Diversification - deliberate efforts geared towards spreading employment and investment over a wide range of industrial activities. • Expansion - increase the productive capacity of the province by investing in enabling infrastructure and innovation capabilities. • Transformation - broadening the ownership of capital and assets; income distribution; and spatial distribution

  7. PIDS PRIORITY SECTORS • Agro-processing • Links to rural development • Labourabsoprtion potential • Automotive • Potential for deepening localisation and protection of the current industrial base • Green Economy • New growth sectors such as renewable energy • Significant linkages to other sectors • Capital Goods • Petrochemical • Tourism

  8. PIDS “The PIDSemphasises a central coordinating role to be played by provincial government in ensuring that an enabling support environment is created. This role is defined around the following critical success factors: • Research and development (R&D) and innovation • Training and skills development • Infrastructure and logistics; • Industrial finance • Investment, trade and export promotion • Institutional development “

  9. ROLES & RESPONSIBILITY OF NFC • Reconstitution of NFC into suitable entity • Stakeholder identification and liaison • Public relations and marketing • Comprehensive value chain analysis and potential economic impact assessment • Identification and design of programmes/projects, based on value chain analysis • Research and development • Programme/project implementation (private sector partners) and management (NFC) • Business development/incubation • Programme/project monitoring and evaluation

  10. REQUIRED SUPPORT FROM EC PROVINCIAL DEPARTMENTS • Formal recognition of Natural Fibre Cluster (NFC) as strategic provincial priority • Participation in NFC Programme Steering Committee • Development of provincial policies and programmes to support NFC • Lobbying support – interface for national departments and parastatals • Investment promotion (in collaboration with ECDC) • Funding

  11. FUNDING OPPORTUNITIES • Programme/project specific funding opportunities: • Research and development • Business incubation (industrial finance) • Economic infrastructure • Generic funding opportunities: • Marketing • Investment, trade and export promotion • Institutional development • NFC coordination (post May 2012)

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