Call to protect local manufacturers

Kaizer Nyatsumba

Kaizer Nyatsumba

Published Aug 15, 2017

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The Steel and Engineering Industries Federation of Southern Africa (Seifsa) has urged the government to consider additional measures to protect local metal and engineering manufacturers from cheaper and subsidised imports.

Seifsa chief executive Kaizer Nyatsumba said the influx of cheaper ­imports had eroded the competitiveness of local businesses, bringing key sub-sectors within manufacturing to the brink of collapse.

“The government must do more to support fragile sectors from the unfair competition posed by subsidised imports.

“The sector has not fully recovered from the 2008 global financial crisis. Instead, circumstances in the sector have deteriorated, with a number of our members either downscaling their operations or closing down. We need an urgent intervention to protect the sector and create jobs,” Nyatsumba said.

This comes as Seifsa will host the 3rd Southern African Metals and Engineering Indaba next month, where the global competitiveness of manufacturers would be discussed.

Recent economic data paints a picture of subdued conditions in the sector. The seasonally adjusted Absa Purchasing Managers Index (PMI) declined by 3.8 points to 42.9 in July, a level last seen in the second half of 2009.

Manufacturing is one of the largest ­contributors to South Africa’s GDP.

Nyatsumba said the economy needed a vibrant and competitive manufacturing sector.

“That is because, other than supporting other key sectors of the economy, manufacturing has more potential to create jobs and should be on the cutting edge of research and development as well as innovation,” he said. 

- ANA

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