11. Steel and fabrication master plan highlights of key policy interventions
As has been demonstrated in the report, the M&E sector in South Africa is in a recovery phase from the negative effects of COVID-19 lockdown measures. SEIFSA has also taken note of the various policy interventions from the Government, accommodating some of the proposed areas as presented by SEIFSA above in its input process to the drafting the Steel Master Plan, which has since been launched. Infrastructure drive: South Africa has a renewed focus on infrastructure, with the establishment of the Infrastructure Fund. The Office of the Presidency is managing the drive directly, providing an important impetus to growth. Localisation: State-owned entities Transnet purchase significant quantities of steel products, such as rails. Transnet has committed to review their requirements and to work with the local industry on building
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local supply chains for large-scale projects and consumables. Commitment to promote localisation set out in the Nedlac Economic Recovery Plan covering the 2021 implementation of the localisation commitments made by social partners on the identified value-chains, including steel-intensive products for construction, tools and implements, household goods, capital equipment, transport auto, rolling stock and railway lines, based on a set of targets; a set of products; and champions at CEO level. Export promotion: The African continent represents a significant opportunity for South African steel makers and downstream processors. African countries (excluding South Africa) purchase nearly R400 billion of iron and steel each year and promotion activities must focus on opening these markets for SA steel, while at the same time promoting local partners in those countries. The Master Plan proposes that consideration be given to combined and integrated efforts to promote exports, particularly to the rest of the continent – an approach described as South Africa Inc.
State of the Metals & Engineering Sector Report - First half of 2021 review 2021-22
