This is a response to the question of what set of policies are required for successful industrialisation in South Africa. The approach is focused on how the institutional, economic and policy challenges related to industrial development. Therefore, the paper argues that policies intended to successful establish industrialisation South Africa need to address the sectorial bias, the fact that mining sector success was based on the sector’s exploitation of cheap labour through the system of migrant labour, and establish self-sufficiency that can allow for economic linkages within the economy without exclusion of certain sectors and population groups. This includes coherent support by the state in labour-intensive sectors to establish competitiveness of our labour- intensive industries. But more importantly this includes sensitivity to previously and currently marginalised groups such as women and children. In addition the state needs an extensive industrial policy that is coherently supported by trade policy in order to promote labour-intensive production and industrial growth. This requires an understanding of how liberalisation or protection is needed, and within which sectors and for how long. In addition, this requires co-ordinated effort by the state and not just government or business. Moreover, policy regime coherence and reciprocal control mechanisms are vitally important in order to minimise state failure and promote developmental market functioning. Lastly, I argued that the state needs to restrain financial capital, which would reduce profitability in the financial sector, making other sectors more profitable in order to stimulate investment in those sectors. However this is a highly contentious area of policy because of the power of embedded interests within the state. But this is not something that cannot be negotiated piecemeal and despite the many examples of success and failure there are things the state will only learn through experience.