He was speaking during the two-day Manufacturing Indaba held at Emperors Palace from May 19 to 20.
“The perceived high development costs (especially the bulk services costs), low business confidence, cumbersome decision-making processes, neglect of business as a strategic developmental partner, and limited access to strategic and land that could be developed are some of the challenges faced,” Gungubele stated.
Discussions held at the Inaugural Manufacturing Indaba included challenges and opportunities facing the South African manufacturing sector in the near future, advanced manufacturing and the impact and trends of mechanisation, including innovation, procurement for manufacturing growth, and skills development, industrial financing, incentives and private sector investment to name a few.
The programme also included a half-day workshop on the business case and practical benefits of resource efficiency and cleaner production hosted by the National Cleaner production Centre of South Africa (NCPC-SA).
Gungubele said that despite the city recording an unemployment rate of 38 per cent, Ekurhuleni’s economic profile as the manufacturing hub of Gauteng highlights enormous potential for trade, investment and tourism.
“The manufacturing sector’s contribution to job creation has been consistent between 2008 and 2012. Thus, the manufacturing sector remains the important sector of the economy and we as a city have taken a strategic and well-thought through decision to revive the manufacturing sector in our space,” said the mayor.
The city partnered with organising company Siyenze in hosting the Indaba.
The mayor announced that a new strategy would be implemented to revitalise the manufacturing sector, namely the 13 Pillar Programme.
“The programme has also attracted a number of strategic stakeholders.
“Some of the key stakeholders and partners include Productivity SA, Proudly SA, Manufacturing Circle, Department of Trade and Industry, National Cleaner Production Centre, Department of Public Enterprise, Department of Science and Technology, Gauteng Department of Economic Development, Gauteng Growth and Development Agency, and also the Gauteng Department of Agriculture and Rural Development.”
He pointed out that R19-billion worth of industrial investments was in the process of being facilitated.
“A 10 year Economic Development Strategy and Programme has also been commissioned to assist us to formulate an overall economic development strategic direction as we seek to grow the economy, fight poverty and grow jobs in line with our GDS 2055 objectives,” said Gungubele.
In closing, Gungubele said the city has been chosen to host the R51-b Prasa-Gibela investment for the new rolling stock.
“The project is expected to create 8 300 direct jobs and an estimated 22 000 indirect jobs.
“The project has had full support from the city and will continue to get more support through the Revitalisation of the Manufacturing Sector programme.”
