To achieve economic growth, South Africa aims at a more outward-oriented economic framework. However, as is discussed in the study, the transition to a more outward-oriented economy is made difficult by the constraints created by past industrial policies. Protectionism, the apartheid system, and other regulations have contributed to a generally, noncompetitive manufacturing sector, a weak macroeconomic position, and distorted factor markets. Social unrest compounds the problem, as does lack of skill and capital.
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