Industry organisation the Steel and Engineering Industries Federation of Southern Africa (Seifsa) applauds the establishment of an Industrialisation Think Tank housed within the Department of Trade, Industry and Competition (dtic), but is concerned by the absence of representatives from the steel industry.

The steel industry is critical in the reconstruction and recovery plan for the South African economy, particularly in the manufacturing, mining, construction, engineering and transportation sectors, which are at the centre of industrialisation, localisation and beneficiation programmes, the organisation says.

Seifsa, however, welcomes the appointment of representatives from across the political, business and research spectrum, and says it looks forward to their contribution in formulating and recommending policies to reignite the economy focusing on industrialisation, re-industrialisation and economic transformation.

South Africa is grappling with low growth, high unemployment, widening inequality, entrenched poverty and poor and failing infrastructure, it emphasises.

“The country has been hailed for coming up with impressive policies to reignite the economy, but has been equally criticised for failing to implement them to transform one of the continent's largest and most industrialised economies.”

Trade, Industry and Competition Minister Parks Tau has established the Industrialisation Think Tank with a broad mandate to formulate recommendations on manufacturing plans with the aim of advising and influencing governments industrialisation policies over the seventh administration, Seifsa says.

“The absence of direct steel representatives in the Industrialisation Think Tank, particularly leaders of industry and industrialists who have an intimate and hard-earned understanding of what needs to be done and what needs to be fixed, is disappointing,” it emphasises.

South Africa’s steel sector is the bedrock of the country’s supply chains, and is central to the country’s economic potential and resilience. During times of geopolitical turbulence, the contributions of the homegrown and local steel sector must be part of South Africa’s industrial policy, says Seifsa.