DTI - Department of Trade and Industry

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GTAC - government Technical Advisory Centre

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City of Johannesburg

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TIPS’s central activities are economic research and analysis, dialogue facilitation on relevant economic issues, capacity building and project management. It undertakes research or projects either on a commissioned basis (funded by an external partner) or as in-house thought leadership (funded internally). A portion of TIPS’s core funding is provided by the Department of Trade and Industry.

TIPS research and analysis draws on its own as well as a network expertise in the fields of industrial development, trade, inequality, green economy, electricity and mining as well as a number of industry subsectors.

As part of its dialogue work TIPS organises regular Development Dialogue Seminars and the TIPS Annual Forum. Having built up experience of running over 15 economic conferences over the past 20 years, TIPS can also be contracted to organise economic conferences for other organisations.

As part of its capacity building work, TIPS runs over 10 training workshops for individuals and groups on economic related issues. These workshops draw on a number of experts in their field. TIPS co-facilitates the annual African Programme on Rethinking Development Economics (APORDE) programme, and co-hosts a number of seminars with APORDE.

TIPS’s main strengths are:

• Its technical capacity especially for economic analysis and research;
• Its understanding of the policy environment in government and its ability to facilitate dialogue on key economic issues at a high level within and outside of government;
• Its ability to provide research, analysis, dialogue and capacity building services under one roof in a continuous and seamless process.

This allows the organisation to assist partners and beneficiaries at all stages of a policy life cycle and to participate in forward-looking thinking and future agenda setting.

TIPS’s work is backed by support services that allow for flexible, high-quality administration of complex programme management, large rolling budgets and extensive monitoring, evaluation and reporting requirements. TIPS’s support processes have specific experience in dealing with governmental and donor agency contracting.

TIPS@25 and beyond: A celebration of 25 years of support for policy development through research and dialogue

This anniversary publication celebrates and reflects on TIPS and its 25 year history. TIPS, like the country, has evolved significantly over the past 25 years. It looks at the organisation's journey, the people involved over the years, as well as its current role and future challenges, with messages from board members and staff.

CHAPTERS INCLUDE:

1991-1995: The early years

1996-2002 The Trade and Industrial Policy Secretariat gets going

2003-2008: TIPS faces changing terrain

2009-2013: TIPS seeks to refocus to survive

2014-2021 Growth and consolidation

Download a copy or read online: TIPS@25 and beyond 

Neva Makgetla has undertaken extensive research into South African economic issues, published widely, and contributed to a number of national economic policy processes and debates from 1994. Until 2015, she was Deputy Director General for economic policy in the Economic Development Department. Before that, she was Lead Economist for the Development Planning and Implementation Division at the Development Bank of Southern Africa. She has worked at a senior level in the Presidency and other government departments, and for seven years was head of the COSATU Policy Unit. She has a PhD in economics and before 1994 worked for over 10 years as an economics lecturer.

The industry contributed 0,8% of total manufacturing production in the third quarter of 2015, with its share remaining fairly constant from 2010.

Production fell by 3,7% from third quarter 2013 to the third quarter of 2015, compared to an increase of 11% from the third quarter of 2010 to the third quarter of 2013. From the second to the third quarter, production rose by 1,1%.

Employment was 45 000 in the third quarter of 2015, around the same as five years earlier. The figure is too small for most reported changes to be statistically significant.

Capacity utilisation rose in the past quarter, from 76,6% in the second quarter of 2015 to 77,3% in the third quarter. It had however been reported at 90% two years earlier, in the third quarter of 2013.

The most up-to-date trade data do not provide separate figures for furniture.

This industry covers a highly varied set of products, including most telecommunications equipment as well as medical and other precision instruments. It contributed 1,1% of total manufacturing production in the third quarter of 2015, with the share remaining stable from 2010. It appeared to be very strongly and successfully export oriented, but imports remained around four times as high as local production.

The industry reported strong growth over the past two years, but it was off a relatively small base. Production grew by 11,6% from third quarter 2013 to third quarter 2015. Even this relatively rapid rate of growth represented a slowdown from the 26% growth in the industry from the third quarter of 2010 to the third quarter of 2013. From the second to the third quarter of 2015 alone, production rose by 7,8%.

Employment was 15 000 in the third quarter of 2015. It had reportedly dropped by around half in the previous five years, but the figure is so small that reported changes are statistically insignificant.

Capacity utilisation has been around 82% for the past two years.

The up-to-date data for exports relate only to precision and professional equipment, with telecommunications included in the broader machinery category. Still, the figures suggest a strong and growing export orientation. Exports of precision equipment accounted for just 1,4% of total manufacturing exports in the third quarter of 2015, up from 1,2% two years earlier. They equalled 92% of total production of radio, television and communication apparatus and professional equipment in the third quarter of 2015, compared to 73% two years earlier.

In dollar terms, exports of precision and professional equipment earned US$154 million in the third quarter of 2015, up from US$123 million two years earlier. In the second quarter of 2015, they amounted to US$157 million. In rand terms, they climbed from R1,2 billion in the third quarter of 2013 to R1,9 billion in the second quarter of 2015, then increased to R2,0 billion in the third quarter. That said, the quarterly trade data are not seasonally adjusted, so the changes may not be significant.

Imports of precision and professional equipment came to 3% of all manufactured imports in the third quarter of 2015, compared to 4% in the third quarter of 2013. They were four times as large as local production of telecommunications and professional equipment combined in the third quarter of 2015. In rand terms, they climbed from R7, 0 billion in 2013 to R7,6 billion in the third quarter of 2015. In the second quarter, they were at R6,9 billion, but the figures are not seasonally adjusted.

The industry contributed 2,5% of total manufacturing production in the third quarter of 2015, down from 3,1% in the third quarter of 2013 and the third quarter of 2010. It appeared to be a decline, however, presumably in part because of the shift to digital distribution of media.

Production fell by 21% from third quarter 2013 to third quarter 2015, compared to an increase of 16% from the third quarter of 2010 to the third quarter of 2013. From the second to the third quarter of 2015, the industry’s output fell by 2,6%.

Employment was reported at just under 100 000 in the third quarter of 2015, virtually the same as five years earlier despite the fall in production. The data suggest a long-term decline to around 70 000 workers followed by a sharp rise in the past quarter. Given the reported fall in output, the reported increase in 2015 is more likely to reflect the process of reweighting the data in the Quarterly Labour Force Survey in that year, not an actual reversal of the downward trend in employment.

Capacity utilisation fell in the past quarter, from 74,3% in the second quarter of 2015 to 73,6% in the third quarter. This reflected a sharp fall from 82,0% two years earlier.

Separate data are not available through the third quarter of 2015 on exports and imports of published material.

The industry includes textiles and wearing apparel as well as leather (much of which goes into the auto industry) and footwear. It contributed 2,7% of total manufacturing production in the third quarter of 2015, virtually the same as in the third quarter of 2013 but down from 3,1% in the third quarter of 2010. Within the industry, textiles and textile products accounted for over 40% of production; wearing apparel for 30%; knitted articles for 5%; leather for 14%; and footwear for 10%.

Production was almost unchanged in volume terms the third quarter of 2010. From the second to the third quarter of 2015, however, output rose by 0,7%. The product groups within the industry showed considerable divergence, however, with a 50% decline in knitted goods from 2010 and, in the past two years, stagnation in textiles, leather and footwear. In contrast, clothing has seen fairly steady growth, although very slow, rising only 1% in the two years to the third quarter of 2015. This may result in part from a dedicated dti support programme.

The industry showed a long-term fall in employment from 2010, despite significant quarterly variations. Employment was 232 000 in the third quarter of 2015, down from 252 000 five years earlier. It reportedly climbed from 213 000 in the second quarter of 2015.

Capacity utilisation remained essentially unchanged from the second quarter of 2015 at 76,0%. It had been 77,3% two years earlier, in the third quarter of 2013.

Exports of clothing and footwear came to 4% of total manufactured exports in the third quarter of 2015, up from 3% two years earlier. But they accounted for around 44% of total production of textiles, clothing, leather and footwear in the third quarter of 2015, compared to 33% two years earlier. The growth in export orientation apparently reflected a combination of stagnant domestic demand, a more competitive currency, and the dti’s incentive scheme for clothing, which encouraged production for export.

In dollar terms, exports by the industry came to US$416 million in the third quarter of 2015, up from US$339 million two years earlier. Compared to the second quarter of 2015, they had dropped from US$455 million. In rand terms, they climbed more rapidly, rising from R3,4 billion in the third quarter of 2013 to R5,5 billion in the second quarter of 2015, but declined to R5,4 billion in the third quarter. That said, the quarterly trade data are not seasonally adjusted, so the changes are not necessarily very meaningful.

Imports of clothing, footwear, leather and textiles came to 7% of all manufactured imports in the third quarter of 2015, compared to 6% in the third quarter of 2013. They exceeded local production by around 25%. In rand terms, they rose from R12,8 billion in 2013 to R16,4 billion in the third quarter of 2015. The increase probably reflected depreciation more than an increase in the volume of imports.

The industry produces a range of building products and ceramics as well as glass. It contributed 3,1% of total manufacturing production in the third quarter of 2015, down from 3,4% in the third quarter of 2013 and 3,6% in the third quarter of 2010. The industry reported growing exports, however, which may have reflected at least in part an effort to compensate for weak local demand and rising imports.

Production in the industry fell by almost 7% from third quarter 2013 to third quarter 2015, compared to an increase of 5,3% from the third quarter of 2010 to the third quarter of 2013. From the second to the third quarter of 2015, however, production rose by 0,4%.

Employment was 105 000 in the third quarter of 2015, virtually unchanged from five years earlier. Employment in glass and non-metallic mineral production reportedly fell from 120 000 in the second quarter of 2015, but this apparently reflected an increase in the second quarter compared to the first rather than a longer-term decline.

Capacity utilisation rose in the past quarter, from 79,2% in the second quarter of 2015 to 79,7% in the third quarter. It had been 87,5% two years earlier, in the third quarter of 2013.

Exports of glass and related prodcuts came to 1% of total manufacturing exports in the third quarter of 2015, virtually the same as two years earlier. They accounted for around 11% of total production of the industry in the third quarter of 2015, compared to 8% two years earlier. In dollar terms, exports by the industry came to US$117 million in the third quarter of 2015, from US$90 million two years earlier. Compared to the second quarter of 2015, however, they had dropped from US$126 million. In rand terms, they climbed from R0,9 billion in the third quarter of 2013 to R1,5 billion in the second quarter of 2015, and remained almost unchanged through the third quarter.

Imports of glass and non-metallic mineral products came to 2% of all manufactured imports in the third quarter of 2015, compared to 1% in the third quarter of 2013. They equalled about 23% of local production in the third quarter of 2015, up from 24% in the third quarter of 2013. In rand terms, they had risen from R2,8 billion in 2013 to R3,4 billion in the third quarter of 2015.

Electrical machinery comprises a range of equipment used in generating and distributing electricity. As such, it appears to have benefited from the national build programme over the past two years. Production grew by 10,7% from third quarter 2013 to third quarter 2015, which meant growth accelerated over the previous three years, when it had climbed 5,5%. From the second to the third quarter, production reportedly rose by 13,2% in seasonally adjsuted terms.

The industry contributed 3,3% of total manufacturing production in the third quarter of 2015, down from 3,1% in the third quarter of 2013 and virtually the same as in 2010.

Employment was 36 000 in the third quarter of 2015. It had reportedly increased by around a third in the previous five years, but the figure is so small that reported changes are generally statistically insignificant.

Capacity utilisation rose in the past quarter, from 79,8% in the second quarter of 2015 to 82,0% in the third quarter. It had been 81,2% two years earlier, in the third quarter of 2013 and around 83% in 2008.

Electrical machinery trade is included under the broader machinery and equipment category in current trade statistics. The grouping is analysed under machinery and appliances above.