5. Bring the entire value-chain together in key areas to promote clear objectives. Attention will be given to the full value-chain with greater focus where there is value-addition and larger job multipliers 6. Promote an integrated SA Inc approach: the Master Plan seeks to align with the policies of other government departments (especially the DPE and the DMRE) and take into account important agreements such as the African Continental Free Trade Area and the agreement by the SADC Council of Ministers on the importance of backwards and forwards linkages of the mining industry in the region, which emphasizes local production of mining equipment and supplies. Increasing SA exports require an amplified SA Inc approach. Many countries, for instance, provide a country package to support their exporters, especially in Africa. This approach should be developed in South Africa. The IDC and the dtic are currently working on end-user financing proposals, for instance. Stronger integration of economic measures and diplomacy is required. Inside South Africa, there is a strong argument for a SA Inc approach on a case by case basis. For instance, the narrow cost-benefit balance for an SOE may provide benefits for the SOE at the expense of continued de- industrialisation of the country. There must be a broader view – a SA Inc cost-benefit analysis, which takes into account the current crisis in manufacturing in the country, the fiscal constraints and the longer-term expected strength of the economy. These focus areas will be evaluated and amended as and when necessary by the Steel Oversight Council to ensure that the Master Plan, the associated programmes and implementation platforms are flexible and agile to take advantage of opportunities and timeously react to challenges. 4.3 THE CRUCIAL ROLE OF INFRASTRUCTURE Although many issues are covered in this Master Plan, the recovery of demand in the economy through a large pipeline of infrastructure projects in South Africa and the region is crucial to the health and growth of the industry. It is especially important to develop two or three mega-projects with real economic merit and viability, which will rebuild confidence in the economy. Strong private-sector involvement in the projects can enhance the impact. The announcement of viable and exciting mega-projects together with viable financing and implementation plans, is likely to have an immediate and high impact in restoring confidence, according to industry leaders. A few mega-projects are under consideration and the industry should consider how to work with the government to accelerate them. The historic peaks in the steel consumption trend have coincided with big construction projects, as shown in the graph below.
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The South African Steel and Metal Fabrication Master Plan 1.0
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