3.2.3 Infrastructure Programme: establishment of Infrastructure SA, providing an important impetus to growth. Ongoing discussions and proposals to localize infrastructure supply chain. This includes the importance of Transnet setting out clear commitments and a roadmap on the procurement of rails for the renewal and maintenance of the railway lines 3.3 Scrap metal interventions 3.3.1 Implemented the Price Preference System (PPS) in 2013 to ensure availability of good quality scrap metals for further processing in the domestic market as a measure to support the steel industry using scrap metal as input and the foundry industry. 3.3.2 Due to the effects of Covid-19 on the availability of scrap metal, a Policy Directive was issued on 3 July 2020 for an interim suspension of scrap metal exports, followed by an investigation of the effectiveness of the PPS. The suspension came to an end on 2 October 2020 and amendments were made to the PPS, which seeks to curtail illegal exports and make quality scrap available to the domestic market. Feedback from industry sources is that the amended PPS of 2 October 2020 has been effective in making affordable quality scrap availability for the domestic consuming industry, addressing most of the concerns raised by industry users of scrap metal. 3.3.3 The longer-term intervention supported by the majority of stakeholders is for an export tax that will be implemented together with an ITAC permit system. The proposed export tax underwent a consultative and parliamentary process and its administration processes are being set up with an expected implementation date of July 2021. 3.4 Covid-19 relief and other financing support measures R200bn Loan Guarantee Scheme, the UIF TERS relief for workers affected by the Lockdown as well as the IDC administered Steel Competitiveness Fund, which provides concessionary funding to the steel industry for plant upgrades, working capital funding and funding to downstream steel industries which are in distress due to Covid. 3.5 African Continental Free Trade Area Agreement (AfCFTA) The SA Parliament has ratified the African Continental Free Trade Area Agreement signed by 54 out of 55 African countries, with trading set to start in 2021. The SACU offer and rules of origin on Chapter 72 and 73 iron and steel products has been developed. Tariff offers from partners are being considered. The African continent represents a significant opportunity for steelmakers and manufacturers to enhance investment and trade in steel products with all members of AfCFTA. African countries (excluding South Africa) purchase nearly R400 billion of iron and steel each year. A combined and integrated effort to promote inter-continental trade and investment in the steel sector will enhance growth within the Continent. 3.6 Investment commitments The interactions among leaders from government, business and civil society at the 2018 and 2019 South Africa Investment Conferences generated investment pledges of R664 billion. The 2020 conference announced new investment opportunities of R109 billion. A number of these are direct investments in the steel sector, but several are in sectors like construction and mining, which will generate demand for steel and steel products. The strengths and comparative advantages South Africa offers investors and trade partners is evident in a period of growing African integration through the AfCFTA. As part of the consultations on finalising the Master Plan, a high-level survey of investments in the steel industry was conducted. It indicated projects in the commissioning or construction stage, or where the investment is committed, to total R12,3 billion. Other planned projects, which in most cases are conditional on factors such as stable energy pricing and supply, regulatory permission and increased demand, total between R34 billion to R42 billion.
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The South African Steel and Metal Fabrication Master Plan 1.0
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