Segmentation

•	Power generation (ESCOM)
•	Power distribution (ESCOM and local authority level) eg.power cables
•	Power reticulation (on street level)
•	Household Electric Durables (HED) eg. white goods (fridges), brown goods (video players), small goods (kettles) and component manufacturers.

Vision

•	To attain international competiveness in manufacturing and distribution
•	To provide competitive financial returns on investment within the industry to attract new investment
•	Human resource development and the provision of secure long-term employment
•	To meet the needs of Southern African consumers
•	To participate meaningfully in selected export markets.

Production Capacity
The household electrical durables industry is worth about R3 billion per annum and employs approximately 10 000 people. The Industrial Development Corporation (IDC) identified the electrical appliances manufacturing sub-sector as one of the most competitive sub-sectors in South Africa. The growth of the HED sector is closely linked to the overall economic health of the country, particularly movements in personal disposable income and the availability and cost of credit to the consumer. Newly electrified homes are slow to take up appliances such as stoves, fridges and freezers, instead rapid growth is seen in areas such as consumer electronics (TV, Audio,etc).

Imports
Imports of electrical machinery decreased by 8,3% in the first semester of 1997, compared to the first semester of 1996. This represents 13,2% of total manufactured imports.

The top seven countries of origin of imported manufactured electical machinery for the first semester of 1997 were: (in order of descending volumes)
1) Germany2) USA3) United Kingdom4) Italy
5) France6) Japan7) Sweden.

Exports
Exports of electrical machinery increased by 33,7% during the first semester of 1997, compared to the first semester of 1996. This represents 3% of total manufactured exports.

The top seven export destinations for South African manufactured electrical machinery for the first semester of 1997 were: (in order of descending volumes)
1) Hungary2) Zimbabwe3) United Kingdom
4) Germany5) Netherlands6) Zambia7) USA.

Investment
The Household Electrical Durables (HED) industry got a boost recently with US$25 million investment from the Turkish company, Cankurtaran Holdings. This will involve the setting up of a major manufacturing operation for domestic appliances, joining forces with the local MBS group. The plant near Atlantis, will create 300 jobs. South Africa will also be the base for exports to Australia, South America and the USA.

Objectives

•	Customs control
•	Competitiveness
•	More emphasis on exports to increase volumes and lower costs
•	Sustainable employment creation and retention
•	Home-grown technology / R&D
•	Safety and quality standards

Export Promotional Assistance

•	Finalize the establishment of a possible export council
•	Outward trade and investment missions: (one mission by the end of 1998)
•	Exhibitions: To attend one exhibition by the end of 1998.
•	Market surveys: To be undertaken by the DTI foreign offices
•	Primary market research: To be undertaken by DTI foreign offices on specific markets with potential with the assistance of the EMIA Scheme.