Moves to protect the SA electronics industry; Invitation: ADEC business breakfast briefing with Alec Hogg

EE-News

News and announcements from EE Publishers

Issue 181, June 2012

Public and private sector moves to protect the SA electronics manufacturing industry

by Chris Yelland, EE Publishers

Significant new initiatives are underway by the Department of Trade and Industry (DTI) and the electronic component and electronics manufacturing sectors in South Africa to make this industry more globally competitive.

Whilst the electronics manufacturing sector is somewhat fragmented in South Africa, there are in fact some strong electronics manufacturing niches in the country, such as prepayment electricity meters, television sets, DSTV decoders and set-top boxes, vehicle tracking and security systems, and contract manufacturing.

A recent workshop hosted on Tuesday 5 June 2012 by the South African Electrotechnical Export Council (SAEEC) together with the Association of Distributors and Manufacturers of Electronic Components (ADEC), the South African Electronics Industries Federation (SAEIF) and the DTI, has identified the need to support and grow this high-technology sector, which could contribute significantly to increased job creation.

The workshop followed an earlier project commissioned by the SAEEC and completed in February 2011 with input from 90 member companies, which looked at opportunities in South Africa for electronics manufacturing and export.

This study highlighted that the cost of electronic components used in manufacturing can account for up to 80% of the total cost. Many of these components carry import duties of up to 15%. Furthermore the majority are not manufactured locally, nor will they be in the future, but are imported via a number of major electronic component distributors. On the other hand electronic subassemblies, PC boards and even many finished electronic products attract no customs duties when imported.

The effect of this is that local electronics manufacturers are prejudiced by having higher component input costs, thus making existing and potential locally made electronics less competitive against imported electronic subassemblies, PC boards and finished electronic products in both local and export markets.

Already a number of meetings have been held between SAEEC, ADEC, SAEIF and DTI, as well as with the International Trade Administration Commission of South Africa (ITAC) and the South African Revenue Service (SARS) in efforts to address these "anomalies".

The purpose of the workshop on 5 June 2012 was to inform companies of the proposed project and consider the way forward with a number of possible interventions, including import tariff reductions on electronic components across a number of tariff headings, and/or import tariff increases on certain electronic PC boards, subassemblies and finished electronic products.

The workshop was also held in an effort to gain agreement on the process, timeframes and costs in identifying the key tariff headings involved and the possible need for new tariff subheadings, for the collation of information required in the applications for tariff changes, and for the submission of the tariff change applications to ITAC.

In this regard, it appears that the various affected industry associations may appoint Danie Jordaan, an independent specialist consultant and adviser to a number of industry associations and companies on trade and tariff matters, to handle the tariff change applications to ITAC, and to manage the process. Jordaan was chairman of the former Board of Trade and Tariffs.

Invitation to the ADEC business breakfast briefing with Alec Hogg

The Association of Distributors and Manufacturers of Electronic Components (ADEC) cordially invites you, your friends, colleagues and all interested persons to a business breakfast briefing entitled:

New insights into developments on the African continent, and how to position your company for the future

by Alec Hogg, executive director, Moneyweb

DATE: Friday 15 June 2012
TIME: 07h00 for 07h30
VENUE: Johannesburg Country Club, Woodmead, cnr Woodland Drive & Lincoln Road, Woodmead, Johannesburg
DIRECTIONS: Click here for map and directions
COST: R155 per person

This is an open industry event, but two seats are available free-of-charge to each ADEC member company.

The event is an ideal opportunity to entertain staff, customers, business colleagues and guests in a cordial and professional environment.

The ADEC business breakfast briefing is supported and sponsored by EE Publishers, EngineerIT magazine.

SYNOPSIS

Alec Hogg recently attended the Africa Economic Summit in Addis Ababa, Ethiopia, in May 2012. From this Alec will give some new and uplifting insights into developments on the African continent. He will discuss why Africa and South Africa are becoming increasingly better placed, and how to position your company for the future.

BRIEF CV

Alec Hogg was educated at Newcastle High and Natal University. He is a media entrepreneur who founded Moneyweb Holdings in 1997. The company's shares are listed on the Johannesburg Stock Exchange and the business is today worth over R70-million. Alec serves as an executive director on the Moneyweb board, and is passionate about investments, a field he has been immersed in for over three decades.

RSVP

Please RSVP soonest by sending an email too Jenny Gooding, jenny.gooding@avnet.eu, indicating the name, affiliation and email address of each person attending.

For further information please contact ADEC Secretary, Jenny Gooding, Tel: 011 809-6249, Cell:083 600-3200, Fax: 011 448-1591; Email: adec@icon.co.za; Website: www.adec.co.za