1. Commission 2: Manufacturing S.Sakoschek Gauteng Economic Indaba, 8-9 June 2016

2. Our Business Card The European Union Chamber of Commerce and Industry of Southern Africa is a member-driven, non-profit, fee-based organisation representing European business interests in Southern Africa European contribution to SA: – 77% of Foreign Direct Investments in South Africa, – more than 2,000 companies (strong focus on pre-assembly and manufacturing), – approx. with 500, 000 employees (350,000 direct and 150,000 indirect), and – largest single trading partner (exports 2015: 216bn; 21%)

3. Discussion points How to leverage off a weak exchange rate and relatively low cost, and what is preventing us from taking advantage? Localisation of content?... Immediate opportunities?... How to kick off clusters around a shared agenda to boost skill dvpt., competitiveness, SMME and township economy inclusion in the manufacturing sectors… Export focused SEZ’s to serve multiple value chains? Integrate value chains and expand production facilities to townships to give effect to The Township Economic Revitalisation ?

4. Observations from the Field SA is still the springboard into sub-Saharan Africa Potential manufacturing destination for global supply chains Competitive cost of labour (but sector-dependent) Global standards are applicable in the assessment of local infrastructure, policies and administrative processes Investment/CapEx planning requires stable long-term policies The investment destination is recognised as a whole, not as regions/provinces

5. Strategic Aspects for Consideration Basic and secondary education are a key priority Labour relations as an enabler for growth Constructive engagement between government, labour and business Looking at entire supply chains, not just OEMs Creating rewarding frameworks for job creation (BBEEE pillars) Leveraging international trade agreements (e.g. SADC EU Economic Partnership Agreement, Conformity Assessments)

6. Quick Wins “Getting the basics right” (streamlined and transparent standards, and certification and approval processes) “Empower the experts” (allocate responsibility and accountability to the best placed institutions, ie on national, provincial or municipal level) “Less is more” (focus on a few but relevant policy frameworks based on socio-economic impact assessments) “Benchmark, understand and re-calibrate” (understand SA’s role in the global economy) “A fair market for all” (everyone plays according to the rules)

7. Thank You