South Africa’s industrial policy has been in place for over a decade. It has consistently failed to realise its objectives. Moreover, South African manufacturing has performed poorly as compared with countries at a similar stage of development.
The paper examines the major instrument of South Africa’s industrial policy, namely investment subsidies, and the three major priority sectors, autos and components, clothing and textiles and mineral beneficiation
Since industrial policy has not met its objectives and performance is comparatively poor, alternative policies need to be considered. The paper outlines some new potential directions for industrial policy.