61.   Imports were led by raw materials, capital equipment and consumer goods.

62.   Investment in capital equipment, however, has continued to decline.

63.   Instead, it said, imports of capital equipment such as factory machines will result in greater production and higher exports in the future.

64.   It said a low tariff on imported capital equipment would help protect the local iron and steel industry from fluctuations in the foreign exchange market.

65.   Much of the capital equipment will go into factories, where it is expected to help increase production and help pay for imports in the future.

66.   On the other hand, PEZA firms are entitled to a maximum of eight years of income tax holiday, and tax and duty free importation of capital equipment.

67.   Partly as a consequence, retail sales and business spending on capital equipment have weakened appreciably.

68.   South Africa exports mostly ferro alloys, steel, fruit and vegetables to Japan while it primarily imports automobiles, auto parts and capital equipment.

69.   The board is one of several government agencies granting investment incentives such as duty-free importation of capital equipment and income-tax holidays.

70.   The finance department earlier opposed moves to extend for two years a low tariff rate on imported capital equipment.