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Steel industry’s woes have left a trail of job losses, but prospects of increased intra-African trade exist

Details

seifsaFinancial Mail writes that low domestic demand and a depressed global market are taking their toll on SA’s steel sector — and no easy answers seem on hand to offer relief.  Steel’s woes have left a trail of job losses.  

Between 2007 and the second quarter of 2019, the metals and engineering industry lost about 49,000 jobs — 38,000 of those in the metals sector.  Over five years, the metals sector has shed about 16,000 jobs, according to the Steel & Engineering Industries Federation of Southern Africa (Seifsa).  "The job losses are a huge concern," says Seifsa’s Michael Ade, who believes companies need to start exploring markets beyond SA — and beyond Southern Africa.  "We are encouraging companies to take advantage of the African Continental Free Trade Area agreement [AfCFTA].  There is no demand locally because of various factors, including the constrained economic environment and fiscal consolidation," Ade pointed out.  He believes the East African Community offers growth prospects for the local industry — as do West and Central Africa.  But trade expert Catherine Grant Makokera says while the AfCFTA should in theory provide opportunities for the local steel industry, it is not likely to be a solution in the short term.  But while she has low short-term expectations, several downstream steel companies are optimistic about the prospects of increased intra-African trade.  Nicolette Skjoldhammer, chair of the Southern African Institute of Steel Construction (SAISC) is optimistic about the possible expansion of the SA steel industry and believes the industry is strategically and geographically well positioned to service the requirements of the African continent.

  • Read the full original of the report in the above regard by Siseko Njobeni at BusinessLive (paywall access only)
  • Read too, Saldanha Steel’s demise is just one more falling domino in ongoing decline of the SA steel industry, at BusinessLive (paywall access only)


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