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Industrial Policy in South Africa: From 1994 to now

Author

Listed:
  • Trudi Makhaya

    (Boston Consulting Group)

Abstract

This policy paper critically examines South Africa's industrial policy evolution from 1994 to 2024, assessing its alignment with developmental objectives in a middle-income country context. The Paper explores the transition from apartheid-era policies to post-apartheid frameworks, focusing on the tension between liberalisation and state-led interventions through initiatives, such as the Industrial Policy Action Plans (IPAPs), master plans, and the Black Industrialists Programme. The analysis identifies persistent structural challenges, including stagnant performance on economic complexity and structural change. Through a comparative lens, the Paper situates South Africa's industrial strategy within global best practices, offering policy recommendations to take advantage of new opportunities presented by the green economy and continental integration.

Suggested Citation

  • Trudi Makhaya, 2025. "Industrial Policy in South Africa: From 1994 to now," ERSA Working Paper Series 186, Economic Research Southern Africa.
    • Handle: RePEc:rza:ersawp:186
    as

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    File URL: https://ersawps.org/index.php/working-paper-series/article/view/186/136
    File Function: First version, 2025
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    References listed on IDEAS

    as
    1. Reda Cherif & Fuad Hasanov, 2019. "The Return of the Policy That Shall Not Be Named: Principles of Industrial Policy," IMF Working Papers 2019/074, International Monetary Fund.
    2. Tristan Reed, 2024. "Export-Led Industrial Policy for Developing Countries: Is There a Way to Pick Winners?," Journal of Economic Perspectives, American Economic Association, vol. 38(4), pages 3-26, Fall.
    3. Panle Jia Barwick & Myrto Kalouptsidi & Nahim Bin Zahur, 2024. "Industrial Policy: Lessons from Shipbuilding," Journal of Economic Perspectives, American Economic Association, vol. 38(4), pages 55-80, Fall.
    4. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    5. Andreoni, Antonio & Tregenna, Fiona, 2020. "Escaping the middle-income technology trap: A comparative analysis of industrial policies in China, Brazil and South Africa," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 324-340.
    6. Lawrence Edwards & Ayanda Hlatshwayo, 2020. "Exchange rates and firm export performance in South Africa," WIDER Working Paper Series wp-2020-1, World Institute for Development Economic Research (UNU-WIDER).
    7. Reed, Tristan, 2024. "Export-Led Industrial Policy for Developing Countries : Is There a Way to Pick Winners?," Policy Research Working Paper Series 10902, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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