10.4 AfCFTA To take advantage of the African Continental Free Trade Area (AfCFTA) to utilise opportunities for infrastructure programmes in sub-Saharan Africa, South Africa must work with the various countries to develop well- structured specialisations and cross-border value-chains in the manufacture of these supplies. As pointed out above, some competitors in Africa (particularly Chinese firms) enjoy export rebates, giving them a 12-15% price advantage. Primary steel producers must be engaged on providing competitive pricing to exporters. This rebate was previously provided by the primary steelmakers for value-added exports. The cost of risk cover, especially the forex cover required because of rand volatility, is a significant problem in winning large projects in other countries. While some of this is unavoidable, the whole area of credit cover, forex cover and end-user financing will need to be addressed by the dtic with the ECIC, the DFIs, the banks and the National Treasury, taking into account the country strategies and packages which support the exporters of other countries. The National Treasury notes that the Export Credit Insurance Corporation of South Africa (ECIC) is a key player and that “the availability of instruments that cover key risks is critical to the development of large projects to ensure they are executed in a globally competitive manner. Anecdotal evidence suggests that exporters often find these products expensive and inaccessible within the very quick turnaround times required to facilitate the successful negotiation of large international projects. The ECIC should also be consulted in this regard”. The recommendation of the Presidential 4IR Commission for the development of block chain technology should be leveraged to enhance the export initiatives.
10.5 USA and EU: Action plans will be developed in respect of these markets. CROSS-CUTTING ISSUES
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The South African Steel and Metal Fabrication Master Plan 1.0
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