This title slide is titled "Prioritising Industries for Industrial Policy." Its subtitle describes a "Strategic Framework for Aligning Resources with Economic Priorities."

Prioritising Industries

for Industrial Policy

Strategic Framework for Aligning Resources with Economic Priorities

Source: Enhanced dtic Presentation

This agenda slide outlines a presentation on industry prioritization amid limited resources and mining dependency. It covers the problem and rationale, challenges and trade-offs, data analysis methodology, strategic process options, and key findings.

Presentation Agenda

1. Problem & Prioritisation Rationale

Limited resources demand prioritising industries over arbitrary processes.

2. Challenges and Trade-offs

Balancing employment, growth, equity amid mining dependency.

3. Data Analysis & Methodology

SIC codes, value chains, qual/quant data for analysis.

4. Process & Strategic Options

Three-phase approach with GDP, employment maximisation choices.

5. Key Findings

Consensus, rigorous appraisal, change management required. Source: Prioritising industries for industrial policy

Limited resources demand strategic industry prioritization, but current processes are arbitrary and inefficient. A structured approach is needed to maximize impact.

Problem Statement

• Limited resources necessitate strategic industry prioritisation
• Current processes are arbitrary and inefficient
• Structured approach required for maximum impact

Source: Presentation Context

Prioritizing industries addresses structural challenges at macro, meso, and micro levels while aligning policies with economic realities. It also enables targeted resource allocation and overcomes arbitrary prioritization processes.

Why Prioritise Industries?

• Addresses structural challenges at macro, meso, and micro levels
• Aligns policy with economic realities
• Enables targeted resource allocation
• Overcomes arbitrary prioritisation processes

The slide outlines key challenges with a 32.9% unemployment rate (youth over 60%) and 1.1% GDP growth well below the global average. It also highlights an 8% mining share in GDP amid declining over-reliance and a weak 1.2% R&D as GDP.

Key Challenges

• 32.9%: Unemployment Rate

Youth exceeds 60%

• 1.1%: GDP Growth

Well below global average

• 8%: Mining GDP Share

Declining over-reliance

• 1.2%: R&D as GDP

Weak technological base Source: Stats SA, World Bank, 2023

Industrial policy grapples with diverging objectives, as rapid growth conflicts with equity and employment goals, impeding strategic alignment. It emphasizes balancing trade-offs among productivity, employment, equity, and sustainable growth, symbolized by scales.

Conflicting Aims & Trade-offs

Source: Prioritising industries for industrial policy

The slide "Data Analysis: Current DTIC Priorities" presents key stats on economic performance. It shows a 4.1% GDP share with minimal contribution, 1.2% annual growth rate for slow-growing sectors, and 2.8% employment share with low job creation impact.

Data Analysis: Current dtic Priorities

• 4.1%: GDP Share

Minimal economic contribution

• 1.2%: Annual Growth Rate

Slow-growing sectors

• 2.8%: Employment Share

Low job creation impact Source: Stats SA & dtic Reports

The Methodology slide uses SIC codes for industry classification and adopts a value chain perspective. It also integrates qualitative and quantitative data.

Methodology

• SIC codes for industry classification
• Value chain perspective
• Integration of qualitative & quantitative data

The slide outlines a three-phase workflow for industry prioritization: Initial Prioritisation using quantitative data (e.g., SIC codes, GDP shares) by the dtic Analysis Team; Final Prioritisation refining selections qualitatively (e.g., consultations, trade-offs) by the Inter-departmental Committee; and Implementation (e.g., action plans, monitoring) by the Implementation Unit.

Three-Phase Process

{ "headers": [ "Phase", "Description", "Key Activities", "Owner" ], "rows": [ [ "1: Initial Prioritisation", "Narrow down industries using quantitative data", "• SIC codes analysis

• GDP/employment share
• Value chain mapping

(Funnel icon)", "dtic Analysis Team" ], [ "2: Final Prioritisation", "Refine selection with qualitative inputs", "• Cross-government consultation

• Address trade-offs (productivity, employment, equity)
• Consensus building",

"Inter-departmental Committee" ], [ "3: Implementation", "Execute and monitor priorities", "• Develop action plans

• Rigorous appraisal
• Change management & tracking",

"Implementation Unit" ] ] }

The "Strategic Options" slide presents a feature grid contrasting pros (✅) and cons (❌) of economic strategies. It highlights policy continuity and job creation as advantages, offset by limited impact and productivity trade-offs, alongside GDP acceleration tempered by jobless growth risks.

Strategic Options

{ "features": [ { "icon": "✅", "heading": "Policy Continuity", "description": "Builds on established priorities with minimal disruption to initiatives." }, { "icon": "❌", "heading": "Limited Impact", "description": "Slow-growing sectors with small GDP and employment contributions." }, { "icon": "✅", "heading": "Job Creation Focus", "description": "Prioritises industries maximising employment and self-employment opportunities." }, { "icon": "❌", "heading": "Productivity Trade-off", "description": "Favours labour-intensive over high-productivity growth sectors." }, { "icon": "✅", "heading": "GDP Acceleration", "description": "Targets high-growth industries to drive overall economic expansion." }, { "icon": "❌", "heading": "Jobless Growth Risk", "description": "Rapid GDP gains may not yield broad employment benefits." } ] }

The slide's key findings emphasize that effective industrial policy requires cross-government consensus, rigorous appraisal, and strong change management, with prioritization driven by consensus for success. It closes with a call to unite for impact and align cross-government efforts now.

Key Findings

• Requires cross-government consensus

• Rigorous appraisal needed
• Strong change management essential

Closing: Unite for impact. Call to action: Align cross-government efforts now for effective industrial policy! ✅

Prioritisation: Consensus drives success

Source: Prioritising industries for industrial policy