A draft strategy to boost SA's aerospace sector in the way that the Motor Industry Development Programme (MIDP) bolstered the country's car-making sector has been submitted to the trade and industry minister for approval.

Trade and industry department deputy director-general Lionel October says the minister will be "looking at the strategy in the next month or so".

Government targeted the aerospace industry for accelerated development some time ago - based on its growth potential and in line with its aim of increasing value-added manufacturing and exports.

The new plan would not be a replica of the 10-year-old MIDP. The programme saved the vehicle industry from collapse and turned it into a large contributor to SA's gross domestic product. But the MIDP goes against the grain of World Trade Organisation rules and was recently challenged by Australia.

The trade and industry department could not yet disclose details of the new aerospace industry plan, called the Aerospace Industry Support Initiative, but it will aim to achieve improved co-operation and organisation in the industry, says Francois Denner, chief director of strategic competitiveness at the department.

He says several strategies had been developed to bolster the aerospace industry since 2000. But the new initiative, developed together with the six largest aerospace companies in SA, is aimed at linking all previous initiatives to provide a comprehensive implementation plan, Denner says.

It also proposes the formation of an organisation to lubricate the engagement between industry and government, similar to the Motor Industry Development Council, which has proved to be a highly effective interface between government, industry and labour.

A key component of the new initiative would be to use government's controversial plan to buy 14 new aircraft from Airbus Military to fast-track local component suppliers' integration into global supply chains, says Denner.

The aim is for the deal, which is still being negotiated, to incorporate guaranteed contracts for local suppliers to provide components for the lifetime of the Airbus A400M, which is not yet in production.

"If there is one programme that will change the face of the industry, it will be SA taking part in the Airbus Military project, but it won't be the only programme", Denner says. It would enable local suppliers to leapfrog the average 10-year period it took to become a first-tier supplier, he says. SA was looking to secure about 5% of the design and manufacture of all components for the Airbus A400M.

Denner says the trade and industry department has targeted the aerospace industry for accelerated development to illustrate SA's hi-tech capabilities on a significant scale. Job creation is not the main driver as other sectors have higher job creation potential, he says.

With acknowledgements to Carli Lourens and the Business Day.