Seifsa president sees new political climate as opportunity to revive metals sector

Steel and Engineering Federation of Southern Africa (Seifsa) president Elias Monage has described the establishment of the Government of National Unity (GNU) as an opportunity to revive the metals and engineering sector by fixing the basics and raising infrastructure spend.

In an address reviewing the past year, he said attracting the investment needed for higher levels of growth would require an ongoing stabilisation of electricity supply, alongside efforts to “fix the very basics” in the areas of water, freight logistics, crime, and visa administration.

“These are the elementary elements of a viable economy,” Monage said.

Speaking only days after organised business and government launched a second phase of a partnership to address the electricity, logistics and crime crises, and announced a goal to raise growth to 3% by 2025, Monage argued that the country was at a “hugely significant moment”.

“After a gruelling election season, the agreement to form a GNU has been hailed as the emergence of a new centre in our heavily polarised political landscape.

“[This] is clearly a hugely significant moment and an opportunity for new beginnings.”

He urged business to engage with the GNU in a way that held it to account while building a partnership for mutual growth.

“The secret of change is to focus all our energies not just on fighting the old but on building the new.”

He said Seifsa should also use the opportunity to convince the GNU to urgently speed up infrastructure spend to boost demand.

For the metals and engineering sector, where investment had stagnated for years and where employment had slumped, action plans were required to drive demand.

“The Steel Master Plan aims to reverse negative perceptions regarding the steel industry and address constraints to demand by prioritising designation and local procurement, localisation, public and private sector projects, transformation and competitiveness.

“These and other initiatives, as outlined in the plan, will ensure that there is increased output and demand for the metal and engineering sector’s intermediate and final products.”