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high-hygiene sectors like food processing, energy, and specialised manufacturing. Basson emphasised that stainless steel’s versatility and durability position it as a key enabler in sectors aligned with sustainability and circular-economy principles. “We’re not just producing metal; we’re supplying the materials that make modern, efficient industries possible, from renewable energy to water treatment and clean manufacturing.” Policy and Production Pressures The breakfast discussion laid bare the multiple headwinds facing local producers: high energy tariffs, logistics bottlenecks, and an uneven playing field against cheap, subsidised imports, particularly from China. Load-shedding and port delays continue to disrupt supply chains, while tariff interventions under the 2021 Steel Master Plan have had mixed results. Rather than boosting competitiveness, they have often inflated input costs and stifled innovation. The sector’s energy intensity remains a major concern. Outdated blast furnace technologies persist in carbon steel production, while the transition toward electric arc furnaces and low-emission processes has been slow. Meanwhile, new environmental regulations, including the EU’s Carbon Border Adjustment Mechanism (CBAM), are tightening the screws on carbon-heavy exports. Stainless Steel Master Plan In response, Sassda is spearheading a Stainless Steel Master Plan (see article on page 10), a roadmap aimed at guiding the sector through 2030. The plan is built around five phases, beginning with comprehensive stakeholder engagement and deep structural analysis by the end of 2025. Subsequent stages will define strategic priorities, design actionable programs, and roll out implementation across the value chain from 2026 onward. The plan’s core message is clear: domestic demand alone cannot sustain the stainless steel industry. Export readiness, market intelligence, and technical excellence will determine long-term survival. “We must become a nation of exporters again,” Basson said. “Our members need access to intelligence, certification, and training that make them globally competitive. The African market is not an afterthought; it’s the growth frontier.” Unlocking Africa’s Industrial Upside The second half of the breakfast focused on that very frontier. Africa House Director Duncan Bonnett delivered an in-depth presentation titled “South Africa’s Steel and Stainless Steel Industry: Strategic Outlook and Opportunities.” His message was both pragmatic and optimistic: Africa’s urbanisation and industrial expansion are rewriting the continent’s demand profile and South Africa has a window of opportunity to capture value.
“Africa is urbanising faster than any other region in the world,” Bonnett noted. “By 2035, the number of large cities will more than double, from 128 to around 300 and their combined population will approach 800 million. That creates enormous infrastructure and supply-chain needs, and stainless steel is integral to meeting them.” He pointed to the rise of agri-processing, food manufacturing, and value-added export industries as particularly promising for stainless steel applications. Africa holds 60% of the world’s unused arable land, yet much of its agricultural output still leaves the continent unprocessed.
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Issue 4 – 2025
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