Hot on the heels of his visit to the White House as part of President Cyril Ramaphosa’s South African delegation, Trade, Industry and Competition Minister Parks Tau has emphasised the need to diversify South Africa’s exports to other markets, especially in Africa.

“The implementation of the Africa Continental Free Trade Agreement is paramount to the growth of South Africa . . . This multilateral trade agreement is a necessary platform to assist us to unlock opportunities in the rest of Africa as the foundation of our global engagement,” he said on May 26.

He was speaking at the launch of chemicals and explosives company AECI’s Centenary Legacy book, which looks back at the past 100 years of the company’s existence and the role it has played in the industrialisation of South Africa. The book was compiled and written by Jeremy Maggs and Cheryl Hunter.

However, with the deindustrialisation of the South African economy becoming a growing concern over the past few years, Tau said it was necessary for successful industrial companies such as AECI to play a role in promoting the industrial capabilities of the country.

“This is an exemplary story which legitimately we must use to . . . form part of our G20 and B20 as a showcase to the world that, not only does South Africa have critical minerals, but we have the requisite capabilities to process our minerals,” he said, adding that South Africa was left with “no choice” but to improve the competitiveness of its manufacturing capabilities.

That would include supporting investment in new industries and building on South Africa's mineral and resource endowments.

“The geopolitical landscape is shifting and South Africa must navigate these tectonic shifts by positioning itself as a destination of choice for trade, investment and innovation.

“It is for this reason that the [Department of Trade, Industry and Competition] has put in place an export strategy that enables all of us to work together with our social partners in strengthening our trade relations with our current trade partners, while diversifying our offerings to other markets,” he said.

However, despite criticism from the US government about South Africa’s race relations, Tau continued to emphasise the need for more stringent implementation of economic policies to effect transformation.

“As you expand, reinvent and reinnovate yourself, we urge you sincerely not to forget about the existential need of transformation. Our very future as a country depends on correcting the injustices of the past. A new growth path is needed. This should constitute a new iteration of industrial policy, integrating lessons learned over the past three decades of the democratic era to boost national industrial efforts,” he said.

Aside from doubling down on transformation efforts, Tau said the reindustrialisation of South Africa could be achieved by building relations with countries that had a similar export basket, while also pursuing long term market potential and capitalising on strategic trade agreements.

He added that it would also involve assessing the nature of market access and the challenges to developing export potential, by understanding conditions in targeted countries, attracting investment to support South African private-sector interests, and evaluating South Africa’s competitiveness in selected markets.