Increasing South Africa's contribution to global trade in craft

ENGLISH ABSTRACT: This study proposes to deal with the challenge of getting craft products efficiently and sustainably to the market.The objective of the study is to suggest an integrated framework for interventions led by the state to ensure that the right products reach the right markets at the right price at the right time, thus ensuring that South Africa's contribution to global trade is increased. The South African Government has recognized the importance of the craft sector from the onset of democracy and has developed a number of policies to ensure its growth and development. These policies range from the economic to cultural to social dimensions. The thesis has largely focused on the economic aspects of these policies. Key amongst these is the Customised Sector Programme (CSP) for Craft, developed by the DTI since it focuses on strategies aimed at commercialising the sector. According to the CSP, South Africa's comparative global advantage and strategic positioning lies with its very strong design and innovation skill; its strong global reputation; combined with a relatively sophisticated communication and IT industry and well established infrastructure and logistics environment. However, SA contributes just less than 1 % of global trade in craft because of a number substantive issues constraining it. These include amongst others: • a weak skills base on the manufacturing enterprise side • high and uncompetitive product prices • poor ability to capitalise on market opportunity • lack of research and development • lack of reliable national sector profile data and up-to-date market intelligence. There are many government departments and entities that currently support the craft sector. They have different objectives and approaches ranging from enterprise support and economic development to social, welfare and cultural support. These objectives and approaches have been translated into a number of programmes. These programmes essentially function as separate units and do not necessarily tie up in creating a continuum of support to ensure the development of globally competitive craft enterprises. The Cape Craft and Design Institute, established as a craft development agency, is the exception. Two case studies were undertaken to demonstrate the fact that the South African craft sector is complex, uncompetitive and unable to capitalize on market opportunities. The products are commercial, while the systems supporting them are not. These systems include internal business systems, infrastructure and logistics, language and communication, business development support etc. The case studies highlighted how these factors undermine the sector's ability to contribute to global trade. This is compounded by the fact that the vast majority of enterprises are rural in origin and the support systems do not adopt a Bottom of the Pyramid approach to development. The thesis makes a case for the integration of support and alignment of objectives of stakeholders involved in the sector. This integration is crucial to the South African craft sector's success in the global arena and is envisaged as follows: • The creation of a craft industry cluster to include both government and private sector stakeholders. • The nucleus of this cluster should be a craft development agency. • This agency should drive an economic agenda, but should adopt a holistic approach to development - the triple bottom line approach with a market driven agenda.