A focus on supporting marine manufacturing

Closing the gap between policy and practice

SOUTH AFRICA: Hosted by the Department of Trade, Industry and Competition (dtic), the Marine and Associated Services Industry Day held in Durban last week aimed to close the gap between policy and practice in the industry by bringing together government and industry to discuss existing initiatives to support localisation and growth in marine manufacturing.

“Our industry – from ship repair to boat building – is the cornerstone of the ocean economy and a powerful engine for local job creation and growth,” said, programme director, Dr Natasha Botha as she welcomed delegates.

“The intention for today is simple: we want to close the gap between policy and practice,” she added, noting that the programme aimed to provide a clearer understanding of policies, funding, regulations and skills development programmes that are currently available to the industry through existing programmes.

Joining a panel to outline how government policy supports marine manufacturing and localisation through designation for local procurement, Andrew Mukandila of the dtic provided some background to the National Industrial Participation Programme (NIPP) as well as the department’s focus on skills development, financing, transformation, infrastructure development, technology enhancement and localisation. He provided specific information on the successful interventions in assisting the industry attain certification and accreditation.

The panel and the event in general aimed to create more awareness around these existing programmes that are already supporting growth and job creation within the marine manufacturing sector. Additionally, it is hoped that more companies will seek assistance via these initiatives.

Input from one of the largest shipyards in the country, Sandock Austral Shipyards (SAS) highlighted the need for localisation and the benefits for local companies that take advantage of the available resources. Sharona Patel, Business Unit Head at SAS spoke on behalf of the shipbuilder.

Ultimately, the panel highlighted the need for the country to remain competitive within the international landscape.

Jumping into the complex regulatory world that companies need to navigate, the second panel included input from Oatlhotse Madito and Donovan Mitchell of the International Trade Administration Commission (ITAC) alongside Vanessa Davidson of the South African Boat Builders Export Council (SABBEX).

Aiming to clarify the purpose and benefits of the regulations in the sector, the panel also provided a crucial opportunity for delegates from the industry to engage directly with regulators for a better understanding.

Given the current tariff landscape and the geopolitical tensions that exist specifically between South Africa and the United States of America, the panel helped ground future strategies within the current framework that underpins ITAC’s function to foster economic growth and promote investment.

Davidson, who has been at the centre of discussions around the new tariffs instituted by the USA on South African boats since the inauguration of the new president, was able to provide input highlighting the very collaborative approach taken by government in engaging with the industry to work towards an equitable solution.

The panel highlighted this need for engagement as key for the development of regulations and response to trade disruptors or enablers.

Finance is and will always be a challenge for many companies. Panelists from the dtic including Wiseman Myen and Ramona Muthan were joined by Hlengiwe Mkhize of the Industrial Development Corporation and Livison Mashoko from the Aerospace Industry Support Initiative (AISI) to discuss this thorny issue and unpack the available financial support.

As a capital-intensive sector, marine manufacturing’s access to affordable financing is essential to support retooling, and product development or provide working capital. Many of the dtic and AISI’s programmes aim to help bridge the gap, and panelists helped demystify the application process for all sizes of businesses.

With specific programmes aimed at the Small Medium and Micro Enterprises (SMME), there are lifelines for entrepreneurs and existing companies who are keen to enter the international market and require assistance in financing their accreditation or certification initiatives.

Oftentimes it is lack of awareness of the available options that inhibits access. As such industry awareness days such as this are important tools for the dtic and AISI to engage directly with companies that could potentially benefit from the programmes.

As an initiative of the dtic, the AISI is hosted by the Council for Scientific Research (CSIR) and focuses specifically aerospace and defence, marine and sector wide industries. It has proved itself as an important tool to drive advanced manufacturing capability in the country.

Panelists were frank in their discussions around the challenges being faced by smaller companies that often struggle to draw up detailed business plans that will enable access to finance.

As the day drew to a close, the final panel stepped up to discuss how skills impact the growth of the marine manufacturing sector in the country. “Without skilled, local hands, none of the policies, regulations, or financing matters,” noted Botha as she introduced the panel, adding that the intention of the discussion was to provide a platform to engage on challenges and establish suitable responses.

The topic was ably handled by Nondumiso Mfenyana from the South African International Maritime Institute (SAIMI), Dusty-Lee Donnelly of the University of KwaZulu Natal (UKZN) and Shantal Marajah of the Transport Education Training Authority (TETA).

The context of the discussions centred on the 2022 marine manufacturing skills audit report which provides a clear understanding of where the skills gaps are situated – as well as how institutions are responding to these findings in a manner that ensures alignment with industry needs.

Delegates were brought up to speed on interventions to address the gaps being adopted by both SAIMI and TETA. Despite this, challenges still exist including the need for curriculum reviews which are oftentimes laborious as well as time-consuming and unable to meet immediate needs.

Skills retention was also identified as a challenge. Many yards and marine engineering firms that invest in extensive training are faced with the impact of poaching from local as well as international competitors.

It is clear that ongoing efforts are needed to promote existing support structures available to industry. Clear and consistent engagement between industry, academia and the government is also key to building on successes while future-proofing the sector for additional growth in international markets.

PHOTO: Adobe Photo Stock Licence

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