Agenda

9:30 -   9:45: Opening and Welcome
9:45 - 12:00: Presentation and discussion of research findings

Spatial industrial policy, SEZs and cities in SA: Shirley Robinson and Roland Hunter (Cities Support Programme) 

Spatial Dimensions of SEZs and secondary cities: Christopher Wood and Asanda Fotoyi (TIPS)

Tea break

Urbanization, structural transformation and rural-urban linkages in South Africa: Rob Davies (representing IFPRI) 

Industrial Development and spatial planning - lessons from eThekweni Municipality: Neva Makgetla and Mbongeni Ndlovu (TIPS)

12:00 - 13:00 Panel Discussion with presenters: Urbanisation and industrialisation

Lunch: 13:00

Background

South Africa's high rate of poverty and unemployment are significantly worse in the rural areas of the country, in particular the former homelands. There has as a result been an ongoing migration out of rural areas into cities and towns. What happens to people when they arrive in urban areas? Are there jobs and economic opportunities; or does the poverty persist but in a new setting? How are cities managing the influx of people and how does the changing urban / rural dynamic impact on structural transformation in the economy?

The Development Dialogue will share research undertaken on some of these issues and consider support programmes for spatial industrial development as well as the linkages between the spatial dimension and industrial development in urban areas.

AGENDA

Chairperson: Nitin Gunga (the dti)

9:00 - 9:15 Opening and Welcome: Eustace Mashimbye (CEO: Proudly South African)

9:15 - 11:30 Presentation and discussion of research findings

Retail and manufacturing: Andrew Mukandila (the dti)
Supplier development in the retail sector:  Dave Kaplan (UCT and TIPS Research Associate)

Tea break

Adverse Inclusion: Tracy Ledger (TIPS Research Associate)
The spread of supermarkets in the SADC region: Impact on competition and on suppliers: Reena das Nair (CCRED)

Chairperson: Saul Levin (TIPS)

11:30 - 12:30 Panel Discussion: Does South Africa need a retail sector charter or a code of good practice?

• Mike Morris
• Reena das Nair
• Tracy Ledger

Lunch: 12:30

BACKGROUND

Large general grocery retailers and supermarkets have greatly increased their market coverage in South Africa both spatially and in customer numbers over the past 20 years. Estimates are that they now control some 90% of all formal food sales, and more than 60% of total retail food sales. South African-owned supermarket chains have also grown exponentially in the rest of SADC.

Supermarkets are increasingly the gatekeepers between suppliers and end-use customers. They are often the only, or the most important, way in which suppliers, particularly smaller suppliers, can access customers. As more and more consumers purchase most or all of their food from supermarkets, so the supermarkets' power in the chain relative to other participants increases. The procurement practices of supermarkets therefore have a bearing on both small and large businesses, and can contribute or negatively impact on industrialisation efforts.

The colloquium will share research undertaken on the impact of supermarkets, their linkages to the manufacturing sector and supplier development as well as exploring the pros and cons of a code of conduct for the retail sector.

Presentations on two recent books

Inclusive Business in Agriculture. What, how and for whom? Critical insights based on South African cases: presentation by Wytske Chamberlain (University of Pretoria)

An Empty Plate: Why we are losing the battle for our food system, why it matters, and how we can win it back: presentation by Tracy Ledger (TIPS Research Associate)

Discussant: Ms Ncumi Mcata-Mhlauli, Chief Director: Agro-processing, Department of Trade and Industry

Background

Inclusive business is hailed as a win-win scenario for the development of poor communities; yet there is little insight into how these inclusive businesses work and, more importantly, for whom. Wytske Chamberlain examines the structures of IBs, the actors involved and aims to answer the question, are they effectively inclusive of smallholder farmers?

An Empty Plate analyses the state of the South African agri-food system. Tracy Ledger demonstrates how this system is perpetuating poverty, threatening land reform, and entrenching inequality with negative outcomes for our social fabric.

Presenters

Wytske Chamberlain is a PhD Candidate in Rural Development, University of Pretoria, where she conducts research on inclusive businesses. She holds an Honours degree in Economic Geography from Utrecht University and a Masters degree in Human Geography from the University of the Witwatersrand. Wytske is also the Coordinator of the Regional Focal Point Africa - Land Matrix Initiative, which monitors large-scale land acquisitions.

Tracy Ledger is a TIPS Research Associate. She is a Development Economist. She has Honours and Masters degrees in Economics and Agricultural Economics from the University of the Witwatersrand and Stellenbosch respectively, and a PhD in Economic Anthropology from the University of the Witwatersrand. Tracy has worked in macroeconomic analysis, development policy analysis and design, and the management of development interventions. She has a particular interest in agri-food systems, small farmer inclusion and food security.

Presentations

Practical Ideas in Heterodox Industrial Policy Thinking: Sandy Lowitt (TIPS Research Fellow)
South Africa's Industrial Policy - by the Numbers: Neva Makgetla (TIPS Senior Economist)

Discussant: Garth Strachan (DDG: Industrial Development Division, Department of Trade and Industry)

Background

Industrial Policy in the 21st century has fundamentally changed in nature. (Largely) gone is the achingly abstract discussion of the motivations behind industrial policy and whether it is a good idea or not. In its place is a recognition that industrial policy is undertaken everywhere in the world, even if it is not openly called industrial policy. It is now widely accepted that industrial policy is a response to market failure just as education policy or health policy are responses to such failures. This normalisation of industrial policy has allowed economists to stop focusing on defending and justifying the pursuit of industrial policy (especially in lagging economies). Instead they can now focus on extant, fine-grained, real world problems facing incumbent policymakers operating in difficult situations. Through this lens, problems with industrial policy design and implementation are viewed - not as insurmountable - but merely the normal course of business which any sensible policy framework must address.

The presentation by Sandy Lowitt will cover her recent Paper on Industrial Policy and she will present three pragmatic industrial policy implementation ideas based on recent heterodox thinking, which is the subject of her recent Policy Brief.

The presentation by Dr Makgetla will look at the overall patterns of industrial development since 1994 and cover key sectors in the economy that have been targeted for industrial policy. Given the shifts in the context of manufacturing since the transition to democracy, a review of key trends in the sector over the past two decades should yield important insights for policy in the coming period. Key questions include the evolution of the structure of production and investment within manufacturing; the impact of the commodity boom and exchange-rate fluctuations on manufacturing profitability and production; and the shifts in ownership and control since 1994.

Presenters

Sandy Lowitt is a TIPS Research Associate. She holds a Master of Commerce from Wits University in Economics. She established the Economics Department in the Gauteng Provincial Government in 1995 and remained at with GPG until 2006. While specialising in economic research and industrial policy and strategy she also created and ran Blue IQ, which delivered projects such as the Gautrain, the Innovation hub and the automotive supplier park. Since leaving the government, Sandy has remained active in public policy research and strategy development.

Neva Makgetla is a senior economist at TIPS. Makgetla has published widely on the South African economy and worked for many years in government, most recently as Deputy Director General for Policy in the Economics Development Department, as well as in COSATU.

Presentation and Panel Discussion

Rod Crompton and Judith Fessehaie (CCRED)
Simon Roberts (CCRED)
Neva Makgetla and Asanda Fotoyi

Discussant: Edwin Ritchkin

Background 

The presentation by Rod Crompton will discuss the impact of public procurement policy on Transnet's procurement of 1064 railway locomotives as an instrument to develop local rail rolling stock manufacturing capacity in South Africa. The research forms part of a broader research programme under the Industrial Development Research Programme (IDRP) of the Department of Trade and Industry.

Neva Makgetla and Asanda Fotoyi will present findings on the factors that tend to exclude small business from government procurement.

Presenters 

Rod Crompton: Dr Rod Crompton is an independent consultant specialising in industrial policy, energy and economic regulation and a part-time research associate at TIPS. He has a PhD in industrial policy from the University of Natal. He was previously a full-time board member of the National Energy Regulator (Nersa) for 11 years and was senior manager at the Department of Minerals and Energy responsible for energy, hydrocarbons and energy planning for nine years. He has also worked at the Department of Trade and Industry and was managing director of the Minerals and Energy Policy Centre.

Simon Roberts: Professor Simon Roberts is the Director of the Centre of Competition, Regulation and Economic Development (CCRED). He is a professor at the University of Johannesburg, in the Economics and Econometrics Department. He held the position of Chief Economist and Manager of the Policy & Research Division at the Competition Commission from November 2006 to December 2012. Prior to joining the Competition Commission he was Associate Professor of Economics at the University of the Witwatersrand, where he established and directed the Corporate Strategy and Industrial Development research programme examining firm decision-making and economic outcomes.

Neva Makgetla and Asanda Fotoyi are economists at TIPS. Makgetla has published widely on the South African economy and worked for many years in government, most recently as Deputy Director General for Policy in the Economics Development Department, as well as in COSATU. Asanda Fotoyi worked at Statistics South Africa before joining TIPS in 2016.