TIPS_Services_and_inclusive_industrialisation_

As a whole, the share of the services sector in the South African GDP stabilised in the 2010s. [...] To assist in understanding the role of the service industries in inclusive industrialisation in South Africa, this paper undertakes the following: • It outlines the factors behind the changing role of services in the economy. [...] The analysis points to five broad groups from the standpoint of industrial policy: the professional business services including finance; the services needed for human capital development (mostly education and health); cultural and personal services and hospitality; logistics and retail; and cleaning and security. [...] In the case of logistics and construction, the distinction between services and goods production corresponds to the line between the organisational set up, on the one hand, and the physical equipment, infrastructure and buildings involved, on the other. [...] Of the service industries, only logistics declined as a share of the GDP in the 2010s, falling from 10% in the 2000s to 9% in the 2010s, and then to 7,5% in 2021 as the pandemic slashed global trade.