Over the past 20 years, there has been persistent concern about deindustrialisation in South Africa, thus affecting the volume of locally produced manufactured products which have been increasingly displaced by imports and or products from other provinces. The province has experienced significant decline in employment and production output within in the manufacturing sector.  And this has been exacerbated by the reliance on the auto manufacturing sector.  Government has endeavoured to find mechanisms to shift towards service sectors, so that manufacturing has a lower share of total output or employment. But this has also been a challenge. The very future of manufacturing has been called into question, despite a series of government interventions designed to not only stem the deindustrialisation tide, but to place the manufacturing sector back on a positive growth path. The burden of growth cannot be carried by manufacturing or any sector in its entirety, but attention must be given to issues affecting economic growth such as Business development, transformation and barriers to entry.  There is a huge correlation between the non-effectiveness of small businesses and the binding constraints apparent in the Eastern Cape that hinder the ability for small business to grow and thrive. 

In light of the economic challenges especially in the Eastern Cape, the province require a focus on these SMME’S, their business development and nurture their growth potential.  Towards that business intelligence must be obtained by the identification and diagnosis of the binding constraints of industrial growth, and the barriers to entry for emerging industrialists and entrepreneurs. This will inform us on how to better support these sectors. We endeavor to strike a balance in assisting both the SMME and Large scale business, as well as continue work as part of the Provincial advisory group within the companies in distress programme.  And most importantly this is a mechanism to the implementation of the inclusive economic development and growth transformation agenda. 

This project aims to 

  • Generate the necessary dialogue in and around black business, its philosophy, history and informal vs formal characteristics
  • Identify black Industrialist and flagship projects for the SMME sectors 
  • Support DEDEAT in the rationalisation of the Black Industrialist programme for the Eastern Cape 
  • Understand and stimulate debate on the constraints preventing SMME’s and Industry growth 
  • Support and promote local manufacturing 
  • Support the province in the retention and creation of jobs. 
  • Assist in identifying solution towards new innovative, and globally competitive manufacturing industry.

Project manager: Ms Cingashe Nogaya




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