SUNConferences, Southern African Institute for Industrial Engineering 2014

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THE TRANSNET MARKET DEMAND STRATEGY (MDS) AND CONTRADICTIONS ARISING FROM ITS IMPLEMENTATION - IMPLICATIONS FOR GOVERNMENT POLICY
Bruno Emwanu

Last modified: 2014-06-26

Abstract


The MDS to which Government has committed an unprecedented 300billion Rands is central to the South African government’s New Growth Path and Industrial Policy Action Plan  with expected outputs being, among others, job creation, increased national capacity to manufacture, creation and development of indigenous supply chains.  Kingsburgh  conducted a survey of component suppliers to one of Transnet’s divisions  and investigated  among  other things how the MDS was perceived among suppliers. The findings revealed unexpected results. A key finding and concern is that while Transnet is building its capacity to become a manufacturer of choice for the future, it appears not to be developing its supply chain accordingly. This raises the question whether the current approach to implementing the MDS even if successful in terms of meeting quantities targeted is aligned to the spirit and intentions of Government expressed policies indicated earlier. This paper argues that  that there is deviation in purpose pointing to vagueness and inadequacy in Government policy that allows  possible  conflicting interests. This has important implications for Government policy regarding how conflicting interests can  arise from implementation of policy and how the unintended consequences need to be managed.


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