Industry organisation the Steel and Engineering Industries Federation of Southern Africa (Seifsa) says an aggressive industrialisation programme can be driven through the repair and rebuild of existing infrastructure, says Seifsa CEO Lucio Trentini.

Critical indicators, including bond yields, the country's risk-premium and exchange rate have started pointing in a favourable direction since the country's peaceful elections, and there have been 250 days without loadshedding, which have provided stability.

Further, inflation has moderated to 2.8% in October, which allowed the South African Reserve Bank to cut the repo rate by 25 basis points, bringing it to 7.75%.

However, the latest economic growth number was an anemic 0.4% for the second quarter followed by a 0.3% contraction in the third quarter of 2024.

The government's aim to reach growth of 2% to 5.4% by 2029, according to its draft policy blueprint for the medium term, will only be achieved with serious and focused reform, Trentini avers.

In the metals and engineering sector, production for the nine months to September is estimated to have contracted by 1.6%, which is indicative of the persistent headwinds faced by the sector in the form of low economic growth and pedestrian demand.

"As long as decent economic growth is unattainable, joblessness across the economy remains an unsolvable problem. Third-quarter unemployment came in at 32.1%, indicating an increase of 294 000 to 16.9-million unemployed.

The metals and engineering sector shed 6 293 jobs in the six months to June 30.

The de-industrialisation trajectory seen in the metals and engineering sector can be attributed to the lack of a holistic metal, steel and engineering sector policy that balances the needs of up- and downstream, he notes.

The most immediate challenge facing the sector is navigating pedestrian demand and consumption in an environment of overcapacity.

"Policy makers and industry need to craft a balanced, forward-looking steel strategy that protects all players in the sector, while ensuring a competitive industry that aligns with global trends," he says.

"Our focus is on ongoing constructive and collaborative engagement between business and government."

Seifsa is ready to collaborate with all sector stakeholders and government to ensure that policy decisions are made in the best interest of the entire steel value chain, Trentini commits.