Covid And Ukraine War, Demand Revisiting Regional Manufacturing Hubs Such As S Africa

The experience of the Covid-19 pandemic and the Russia-Ukraine conflict has reemphasised the need to regionalise manufacturing hubs and supply chains, a South African official has said. Yunus Hoosen, Head of Investment South Africa at the Department of Trade, Industry, and Competition, said at the CII-Exim Bank Regional Conclave on India-Southern Africa Growth Partnership Africa, which was hosted here on Tuesday.

Hoosen said that in deciding where companies should base their manufacturing hubs in the regionalisation that had now become necessary, South Africa provided a unique opportunity, especially with the Africa Continental Free Trade Agreement (AfCFTA) now in place. Hoosen said (AfCFTA) was the largest such agreement in the world and boosted these opportunities for India to invest in South Africa as a gateway to the rest of the continent. "South Africa is well-positioned.

We have an industrial base. India is a significant partner for us in investment with the major multinationals set up here. We have an economic recovery plan; a range of incentives; special economic zones; and the setup to export into the rest of the continent as well as to other markets," Hoosen said. He highlighted four areas in which India and South Africa could work together - the agriculture and food processing value chain; the pharmaceutical sector; the automotive sector, especially the transition to electric vehicles; and the beneficiation of minerals.

"If we can build on these value chains, with Indian partners, I think we can make significant gains in direct investment, joint ventures, and partnerships with local companies," Hoosen said. Sachin Ahuja, CEO of Alfeco Holdings (Pty) Ltd, said Indian pharmaceutical companies that have already had a presence in South Africa for several years now were doing well and were poised to benefit further by the World Health Organisation recently granting the country Level 3 status.

(PTI)