The impact of South African automotive policy changes on the domestic leather industry
The South African leather industry has undergone a significant transformation since the 1990’s and this can be attributed primarily owing to two major factors that occurred. The first being trade liberalisation, which meant the fall of trade barriers, and the second being the Motor Industry Devel...
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| Format: | Others |
| Language: | en |
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2016
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| Online Access: | Khan, Faizal (2015) The impact of South African automotive policy changes on the domestic leather industry, University of South Africa, Pretoria, <http://hdl.handle.net/10500/21822> http://hdl.handle.net/10500/21822 |
| Summary: | The South African leather industry has undergone a significant transformation since
the 1990’s and this can be attributed primarily owing to two major factors that
occurred. The first being trade liberalisation, which meant the fall of trade barriers,
and the second being the Motor Industry Development Programme (MIDP), which
was implemented in South Africa on 1 September 1995. The MIDP was implemented
in the context of the country’s political and economic liberalisation, and the major
structural shift in government policy and the trade regime.
South Africa became much more globally integrated and the South African leather
industry benefited because of this, as well as the incentives that was offered under
the MIDP. Automotive exports of stitched leather seat parts responded positively to
the incentives offered under the MIDP and stitched leather seat parts, as a
component under the MIDP, became one of the best performing components being
exported from South Africa.
The MIDP had been terminated at the end of 2012 and is now being followed by
government’s latest rendition of automotive policy, namely the Automotive
Production and Development Programme (APDP). The APDP focuses on value
addition, which pursues beneficiation of the country’s raw materials to the final
stages, to ensure maximum benefit to the South African economy. The findings of
the study entail that the South African leather industry is now in a vulnerable state
because of the new automotive policy. This is mainly because the APDP does not
provide the same level, or type, of incentives that the MIDP had provided to the
industry. === Business Management === M. Com. (Business Management) |
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