Sector Overview
Introduction
The South African electrotechnical industry is made up of a large number of technical industries including IT, communication, electronic and electrical manufacturing. Each of these is made up of various subsectors with their own areas of specialisation. However, they have in common a high level of technological and knowledge application with a significant value addition to the South African economy.
Power (Electrical) Engineering
This subsector includes transformers, cables, switchgear, metering, substations and Renewable Energy Solutions.
Electronics
This subsector (consumer and defence electronics) includes military, aerospace, automotive subsystems, access control and security equipment as well as white good (e.g. tv's and fridges).
Information Communication and Digital Technology
This subsector includes software, hardware, artificial intelligence, IoT, big data and blockchain.
The DTIC Electrotechnical Sector Desk
The focus of the sector desk in the Industrial Competitiveness and Growth division is on supporting the development of the manufacturing of the products and components in the relevant industry subsectors.
The sector has an important role to play in the South African economy because of its direct and indirect contribution to high value production and highly skilled employment, as well as its contribution to increasing the competitiveness and value-add of related subsectors such as the automotive, defence, power generation, power distribution and aerospace.
There is also an internal interdependence within the sector, with outputs of one subsector providing inputs or complementary services to other parts. The sector is an important global sector that is likely to represent significant future growth opportunities.
The future development of the local Electrotechnical industry is dependant on its adapting continuously to new technology applications and market opportunities, growing exports and manufacturers securing large contracts in public, private and multilateral markets.
Objectives of the Directorate
The work done includes developing and reviewing sector strategies and action plans, monitoring progress on implementation and continuously engaging stakeholders to strengthen the ability of the sector to create employment, retain existing jobs and increase value addition and competitiveness in both domestic and export markets. In addition, the purpose is to address various Industry challenges and to take advantage of opportunities that arise.
Transformation is central to the work of the directorate as most of the subsectors require it. This is done through convening and chairing various fora which have been established in partnership with the industry. Currently the existing fora include the Cables forum, the White Goods Manufacturers forum and the metering forum. We continually conduct research in house and on an outsourced basis and partner with Industry Associations and export Councils on initiatives to grow and protect the local manufacturing industry.
The objective is also to support the development of both human and technological capabilities by the industry and enhance the competitiveness of the sector to contribute to economic growth, employment creation and transformation. This includes:
- Regular research and analysis of the industry.
- Supporting the local electronics manufacturing industry to take advantage of the growing aggregate demand for electronics products.
- Supporting the development of local ICT manufacturing capability and capacity to drive modernisation of both domestic and global economies.
- Building high-level human and technological capabilities associated with the sector and the knowledge economy.
- Promoting safety, quality and recognised certification/accreditation requirements for the sector.
- Facilitating investments in activities that are under provided in the market, such as technological infrastructure upgrading, skills development and alignment.
Key focus areas for the next three years
Building on past achievements, the directorate will prioritise the following:
- Producing an annual Electrotechnical sector profile.
- The implementation of the White Goods Supplier Development Programme.
- Review of the White Goods export development strategy in order to get White Goods manufacturers to participate in the global economy, especially the African supply chain.
- Conducting regular market studies for the cables industry, possibly on an annual basis.
- Designation of tablets (especially educational tablets), laptops, Smartphones and All-In-One PCs.
- Conduct a review and impact assessment of the local procurement designation of Cables and Metering (Electricity and Water).
- Annually publish the Electrotechnical sector profile.
- Develop an Industrial Strategy for the Printed Circuit Board (PCBs) industry.
- Re-visit the designation report on LED lights to protect and ensure growth of the local LED light industry.
- Contribute to the finalisation of the local procurement circular for the designation of Lead Acid Batteries.
- Support technical quality and safety within the industry through the facilitation of working relationships with other agencies such as South African Revenue Services, International Trade Administration Commission, South African Bureau of Standards and the National Regulator for Compulsory Specifications to ensure an effective regulatory framework that counters illegal and substandard imports.
- Continue working closely with a number of industry associations through fora, such as the Association of Electrical Cable Manufacturers of South Africa (AECMSA), the Metering Industry (both Electricity and Water) and the White Goods manufacturers forum, including the South African Domestic Appliances Association to grow, transform and increase exports within the sectors; and
- Strengthening partnership with the South African Electrotechnical Export Council (SAEEC) to drive export opportunities for domestic manufacturers. One of the programmes which is being implemented through this partnership is the development of a White Goods export programme and implementation of the White Goods Supplier Development Programme.
Importance of the SAEEC
The South African Electrotechnical Export Council represents a wide range of companies producing a very wide range of products. The companies and products have a large degree of overlap, both within the overall sector itself as well as providing critical inputs into the manufacture and functionality of a wide range of products in other sectors as well. As such, it is a very important part of South Africa’s overall manufacturing and industrial sector.
Important Statistics
The South African Electrotechnical sector has a local value of US$58 billion and employs around 280,000 people (2017 study by Analytix for the dti-Electrotechnical Sector Desk). The sector comprises electrical engineering, electronics, information technology and telecommunications. The sector covers a diverse range of products and services that each contributes directly to the sector itself as well as the broader manufacturing and value-added technology sector in South Africa. The dtic estimates that the industry contributes in the region of 12,5% to South African gross domestic product (GDP).
Sector Masterplans
South African Renewable Energy Masterplan
Download the background to the South African Renewable Energy Masterplan (SAREM). You can also visit the SAREM website HERE.
ICT and Digital Economy Masterplan
Download the ICT and Digital Economy Masterplan for South Africa.
Power (Electrical) Engineering
This sub sector comprises solution providers (goods and related engineering services) for electricity infrastructure covering generation, transmission and distribution. South Africa has significant local production facilities and extensive project and product design experience that can be utilised for African markets.
Electronics
This sub-sector primarily comprises companies involved in the design, development, and manufacture and testing of electronic products and subsystems. At a primary manufacturer level or as a subcontractor to local and international firms. Industries involved include inter alia medical, transport, power, security, avionics, process control, instrumentation, defence and consumer electronics.
South African companies have a proven capability to develop innovative solutions and have developed customised embedded software and electronic solutions for leading international firms.
Information Communications and Digital Technology
South Africa’s IT industry has for a long time been characterised by large international suppliers that were suppliers of hardware (e.g., IBM, Dell, Lenovo, Cisco) or software (SAP, Oracle, Microsoft). In recent years there has been convergence between the IT and telecommunications industries which has resulted in a shift away from the traditional hardware and software markets to a services market. The Internet of Things (IOT), Cloud Computing and Big Data are the main drivers behind the convergence.
South African companies are looking at the rest of Africa as a key market, especially for trade in value-added products that will form part of the Fourth Industrial Revolution value chains.