SEIFSA ANNUAL REVIEW 2018
CHIEF EXECUTIVE’S
REPORT
Another Good Year for SEIFSA
S
outh Africa continued to under-perform economically during the year under review. While the global economy improved for the better and other African countries generally recorded better performances, here at home a host of factors ensured that no more than marginal improvement in economic growth was recorded. The first half of the financial year in 2017 was characterised by even more reckless political actions and pronouncements from the country’s leadership, as the governing party’s focus remained on its 54th national conference in Nasrec, Johannesburg in December, at which a new leadership was to be elected. Corruption continued to bedevil the country and the relationship between the Government and business was dangerously strained. It is no wonder that international ratings agencies like S&P downgraded the country’s credit rating to junk in November 2017. Following the election of Cyril Ramaphosa as ANC president in December 2017 and as Head of State in February 2018, a new sense of optimism swept through the country. Given President Ramaphosa’s solid business credentials and his oft-repeated determination to crack down on corruption, for a while it appeared that South Africa had timeously pulled back from the precipice. That is the context within which SEIFSA conducted business in the 2017/18 financial year. Once again, manufacturing – and, within it, the metals and engineering sector – continued to struggle. As in other economic sectors, companies continued to struggle and even fold and thousands of jobs were lost. That context notwithstanding, SEIFSA again managed to meet its revenue target for the year, thanks, among other things, to our ongoing cost-containment
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measures. For the second year in a row, after five years of losses, the Federation recorded a surplus and contributed towards the rebuilding of its reserves. Four of our five Divisions exceeded their revenue targets and our commemorative publication, SEIFSA At 75, was a run-away success. Details of our financial performance in 2017/18 are provided in Chief Financial Officer Rajendra Rajcoomar’s Report in this publication. We hope to continue to maintain this good performance in the years to come in order to shore up the Federation’s reserves.
Corporate Events A Success During the year under review, our various corporate events were a great success. The 2017 SEIFSA Golf Day was over-subscribed, as usual, with watering holes throughout the Reading Golf Club in Alberton. The SEIFSA Awards for Excellence showed immense growth in popularity, with more companies sending in entries for the seven categories of the Awards, and our third Southern African Metals and Engineering Indaba at the IDC Conference Centre had an impressive list of speakers from business, Government and labour. Next year (2019) will mark the fifth year of the Southern African Metals and Engineering Indaba and the 25th year of South Africa’s democracy. We look forward to our best conference yet to date, both in terms of the programme put together and in terms of the number of delegates in attendance.
Stability Returns to the MEIBC The Metals and Engineering Industries Bargaining Council (MEIBC), which had come perilously close
