state of the stainless steel nation
However, it is not all doom and gloom, as monthly indicators for 2024 suggest renewed activity in the local stainless steel sector. For Sassda, the focus remains on growing local stainless steel consumption. Encouragingly, there are signs that local consumption may grow during 2024, potentially at a rate exceeding national GDP growth. While this would be a noteworthy achievement, it is unlikely to elevate the industry to a position significantly better than in 2018. As has been emphasised before, the South African stainless steel industry is resilient and remains optimistic about the future, albeit with slow progress. Growth opportunities exist in renewable energy, electrical transmission, general infrastructure, and agriculture - sectors often highlighted in economic discussions. For now, we must take the bitter with the sweet, echoing Jan Smuts’s observation from 75 years ago: “Still, the worst, like the best, never happens in South Africa.” 2. Please outline Sassda’s discussions with the Department of Small Business Development Department to boost local sourcing of stainless steel cutlery and holloware? The majority of Sassda members are small and medium enterprises (SMEs), making SME growth a critical priority. Beyond serving members, SMEs represent a vital part of the stainless steel value chain, as this is where most jobs are created, and value is added. Sassda has taken certain initiatives to a national level through its participation in the Steel Master Plan. To achieve tangible results, we have now engaged with the Department of Small Business Development (DSBD). Discussions with senior officials in the department revealed a shared vision for supply and value chain development, with initiatives and products available to support some of our members.
One of these initiatives involves revitalising the South African hollowware and cutlery industry. Historically, this labour-intensive sector supplied over 80% of the local demand for these items. There is now an opportunity to localise or reclaim more than 10 000 tons of related finished stainless steel goods currently being imported annually. Sassda, together with industry partners under the Steel Master Plan, has facilitated collaboration between a prominent local retailer and a fabricator in rural Eastern Cape. This partnership is yielding tangible results, with orders now being placed. Given that production volumes are crucial for cost competitiveness in this sector, Sassda believes that collaboration with the DSBD will encourage more retailers to support local production. This effort will also increase government procurement of local products through departments such as Health, Defence, and Correctional Services. 3. Which specific roles or projects has Sassda taken on to encourage retailers to prioritise locally produced stainless steel products? Sassda does not offer direct incentives to retailers to encourage local product purchases. Instead, it appeals to the patriotism and long-term vision of South African retailers, urging them to invest in real growth for the local industry. The argument is simple: by investing in local procurement, retailers contribute to skills development and job creation
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Issue 4 – 2024
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