Summary: Report on the South Africa Steel Industry
Reflecting on 2021 and Outlook for 2022
We’re excited to share our inaugural 2022 Steel Report with you. A lot of preparation and study went into making this document with the intention of building awareness of our industry, the importance of which cannot be understated as the steel value chain is a supporting pillar in the South African economy.?
At SAISI we believe it is central to our industrialisation path. In fact, I quote our Trade and Industry Minister, Ebrahim Patel, who recently said at the Steel Master Plan conference: “The steel industry is the base of industrialisation and our ability to successfully reindustrialise South Africa requires that we must also make progress in the steel value chain.”
As our population continues to gravitate towards urban areas, this provides us with a golden opportunity and our industry can play an integral part in the country’s economic growth. We know that more than half of the steel produced worldwide goes into buildings and associated infrastructure, including housing, hospitals, schools, water reticulation, sewage systems, roads, bridges, ports, railways, and airports - proving once again that steel is at the heart of the economy.
There are few that would argue against the role that the steel sector can and should play in the country’s economic recovery plans. The challenge is securing a commitment from all those who are part of the South African steel value chain. It is imperative that we work toward a common goal of growth and development for the benefit of South Africa and her people in the context of the many issues which continue to divide rather than unite our industry.?
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We address some of these in this report – topics such as localisation and imports, as well as global issues, including the impact of the Russia/Ukraine war on the industry. We also take an in-depth look at the Steel Master Plan, which Minister Patel described as “a partnership” – working together to shift our future.?
One thing I know is that we are resilient and determined to work towards an operating environment that can successfully contribute to a growing economy. Combine this with some progress in structural reforms in economic policymaking, and we should see some fixed investment activity in the near future.?
We look forward to the steel sector playing an increasingly important role in the country’s economic growth and recovery plans.