From the Chief Executive Officer’s Desk - September to October 2017

The Third Southern African Metals and Engineering Indaba – which featured very senior and high-profile business executives, labour leaders and Government representatives on the programme – took place at the IDC Conference Centre on 14-15 September 2017. All these men and women had in common was a desire to change South Africa’s fortunes and to make the country a success.

Now in its third year, the conference was born out of the need to arrest and eventually reverse the ongoing decline of manufacturing in general and the metals and engineering sector in particular. According to the South African Reserve Bank, the manufacturing sector is 29% larger today than 10 years ago, 66% larger than 20 years ago and 71% larger than 30 years ago. However, its share of the economy declined first from 20% in 1983 to 19% in 1993, and then further still to 18% in 2003, 16 % in 2013 and now around 13%.

Manufacturing exports represent an estimated 35% of production, while imports have captured nearly 45% of the domestic market. On the other hand, the metals and engineering sector exports 60% of its products and competes with imports for 60% of the domestic market.

Yet again, the Southern African Metals and Engineering Indaba offered all stakeholders – business executives and captains of industry, policy makers and Government Ministers, as well labour leaders – a vital opportunity to discuss matters of common interest calmly, robustly and yet constructively in order to improve the performance of the sector and grow the economy.

Although a detailed report on the Metals and Engineering Indaba 2017 is carried in this issue of our magazine, it is worth pointing out here that among the speakers at this year’s conference were very senior business, labour and Government representatives like:

  • Economic Development Minister Ebrahim Patel;
  • Labour Minister Mildred Oliphant;
  • National Association of Automobile Manufacturers of South Africa Director Nico Vermeulen;
  • National Association of Automotive Components and Allied Manufacturers (NAACAM) Director Renai Moothilal;
  • Business Unity South Africa CEO Tanya Cohen;
  • Business Leadership South Africa (BUSA) CEO Bonang Mohale;
  • Southern African-German Chamber of Commerce and Industry Chief Executive Officer Matthias Borddenberg
  • Bowmans Gilfillan Partner Graham Damant;
  • Department of Labour Chief Director Thembinkosi Mkalipi;
  • NUMSA General Secretary Irvin Jim;
  • Solidarity General Secretary Gideon du Plessis;
  • International Trade and Administration Commission Chief Commissioner Siyabulela Tsengiwe;
  • Voith Turbo Managing Director  Charl Folcher
  • Massmart Chairman Kuseni Dlamini;
  • ANC Treasurer-General and Former KwaZulu-Natal Premier Dr Zweli Mkhize; and
  • Many others of similar pedigree.

It is not easy to have such revered, high-calibre individuals in one room to discuss matters that deeply concern manufacturing in general and the metals and engineering sector in particular. Their inputs and debates were of the highest level, with participation by and questions from the delegates being equally good.

It was, by all accounts, a very successful conference. In a subsequent e-mail, BUSA CEO Tanya Cohen wrote: “Thanks to SEIFSA for the opportunity [to speak at the conference]. It was an exceptionally well organised event. The quality of topics and presenters identified was top class and it was a pleasure for BUSA to participate in such an event.”

Perhaps we can count on you, dear reader, also making an effort to be part of the Indaba in its fourth year in 2018?

For three years in a row now, we have enjoyed great support from some of South Africa’s leading companies, which have been among our sponsors from the very beginning. Some of them joined us in the second year. These are MerSeta, Standard Bank, Investec, Novare, Sanlam, SMS Group and Africa Steel Holdings. We are infinitely grateful to them and look forward to a growing partnership in the years to come.

We have also enjoyed a fantastic media partnership with Engineering News, finweek and Independent Newspapers. In the past two years, we have been involved in an invaluable partnership with the Industrial Development Corporation, which has been so crucial over the years in South Africa’s industrial development. We are immensely grateful to all these partners and hope that they will continue to support us in the years to come.

For more details on the Indaba and on opportunities to become one of our sponsors/partners in future, please, visit www.meindaba.co.za.

Kaizer M. Nyatsumba

Chief Executive Officer

by SEIFSA .

AUTOMOTIVE PLAYERS LAUD APDP AT INDABA

Johannesburg, 14 September 2017 – Major players in the South African automotive industry today lauded the success of the Automotive Production and Development Programme (APDP), saying it had contributed to the resilience of the sector.

Speaking at the 3rd Southern African Metals and Engineering Indaba in Sandton, Renai Moothilal of the National Association of Automotive Components and Allied Manufacturers said the APDP was a success despite difficult global economic conditions. “The APDP stabilised production that could have gone significantly south if there was not that kind of support,” Mr Moothilal said.

He said the programme was designed in 2007/08 when there was a view that automotive production in South Africa could grow to 1.2 million. “It did not turn out that way. We all understand what happened in the global economy,” he said, referring to the global economic crisis.

Speaking during a session on the APDP at the two-day conference, National Association of Automobile Manufacturers of South Africa (Naamsa) Director Nico Vermeulen said the automotive industry had grown significantly since 2000. He said the industry represented one third of all manufacturing in South Africa. “The industry is heading for a million vehicles produced in this country, the bulk of which will be exported, within the next four to five years.

“The important point is, as the automotive production expands and as exports expand, the metal and engineering sector will benefit. As localisation deepens, the metal and engineering industry will benefit,” Mr Vermeulen said.

He said the automotive industry was fortunate that government had provided support and policy certainty, enabling multinational companies to make significant investments. He, however, highlighted the importance of labour stability for the industry to reach the one million units mark.

Mr Vermeulen was also optimistic about prospects of exports to the rest of Africa. Most African countries were reeling from the effects of the low oil price and poor policy choices. “That will change. Africa will offer opportunities going forward,” he said.

Speakers in the first day of the conference included ANC Treasurer-General Dr Zweli Mkhize, Minister of Economic Development Ebrahim Patel, ANC Member of Parliament Dr Makhosi Khoza, independent director of companies Dr Mamphela Ramphele, Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA) CEO Dr Raymond Patel, Manufacturing Circle CEO Philippa Rodseth and Aurik Business Accelerator CEO Pavlo Phitidis.

ENDS

Issued by:

Siseko Njobeni

Communications Manager

Tel: (011) 298 9411 and 082 602 1725

Email: siseko@seifsa.co.za

Web: www.seifsa.co.za

by SEIFSA .

SOCIAL PARTNERS MUST UNITE AGAINST CORRUPTION AND STATE CAPTURE

Johannesburg, 14 September 2017 – Business, labour and other social partners should work together to punish those involved in corruption and state capture, Mapungubwe Institute for Strategy Reflection (MISTRA) CEO Joel Netshitenzhe said today.

Netshitenzhe was among a list of high-profile speakers at the two-day 3rd Southern African Metals and Engineering Indaba which is currently underway at the Industrial Development Corporation (IDC) conference centre in Sandton.

Addressing the delegates, Mr Netshitenzhe said: “If you looked at the National Industrial Policy Framework, the Industrial Policy Action Plan and the outcome of the recent ANC policy conference, you will find that there are very rational ideas about how to ignite growth, how to eliminate weaknesses in state-owned enterprises, how to ensure close cooperation among social partners and how to punish those who are involved in corruption and state capture. In the South African context, there is no shortage of visions, policies and rational articulation on what needs to be done. The challenge is with implementation.”

Mr Netshitenzhe said there were numerous deficits in political leadership in South Africa and across the region and this applied to state capacity and political legitimacy.

“We need to pose the question – in instances where the state is weak, where government has got serious deficits, what should business, labour and other social partners do? It would be wrong in my view of us to throw our hands up in despair. Rather we need to soldier on and pursue what is in the best interest of our companies, sectors and the economy as a whole. By doing so, we will be strengthening the healthy forces in government and making life difficult and uncomfortable for those who are bent on illicit accumulation. South Africa is fortunate because we have got a noisy civil society and an independent and autonomous private sector,” he said.

In her address to the conference, ANC Member of Parliament Dr Makhosi Khoza called for a brutally honest engagement about the problems facing South Africa especially with regard to the restoration of human dignity and unemployment in South Africa. Khoza said the extent to which local industries were protected and the content of trade agreements depended to a large extent on political leadership.

“Political leadership matters because behind the unemployment statistics are people. There is no way our people can have their restored for as long as long as they are unemployed. There is no dignity in unemployment,” Dr Khoza said. She said the country’s political leadership was indifferent about the plight of the unemployed.

She said South Africa should go back to some of the trade agreements and ponder if these were in the interest of South Africans. “Are they serving the interest of our people?”  she said.

Commenting on the influx of cheap imports mainly from China, Dr Khoza said local entrepreneurs felt let down by authorities. “We do not seem to understand the extent of the impact of the Chinese imports,” she said.

Speakers in the first day of the conference included independent director of companies Dr Mamphela Ramphele, Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA) CEO Dr Raymond Patel, Manufacturing Circle CEO Philippa Rodseth and Aurik Business Accelerator CEO Pavlo Phitidis.

ENDS

Issued by:

Siseko Njobeni

Communications Manager

Tel: (011) 298 9411 and 082 602 1725

Email: siseko@seifsa.co.za

Web: www.seifsa.co.za

by SEIFSA .

INVESTIGATE STATE CAPTURE URGENTLY, SAYS ANC’S MKHIZE

Johannesburg, 14 September 2017 – The judicial commission of inquiry into allegations of state capture should be set up without delay, African National Congress (ANC) Treasurer-General Dr Zweli Mkhize told delegates at the 3rdSouthern African Metals and Engineering Indaba in Sandton today.

Delivering an Opening Address at the two-day conference, Dr Mkhize said: “There are concerns around issues of clean governance and the fight against corruption. In this case, we must always state our commitment to deal with those issues and accept that, where there is criticism in that front, it is not necessarily misplaced,” Dr Mkhize said.

He said there were various allegations that the government and the ANC were soft on corruption. “Of late, looming large has been the issue of state capture. This terminology came from the ruling party. An attempt initially by the ANC to investigate this quickly proved that this issue is too large for the ANC to investigate. It was quickly abandoned. We agreed that it needed to be taken up by various institutions with the necessary capability and resources,” he said.

Dr Mkhize said, as far as the ANC was concerned, there was a need for a judicial commission of inquiry. He said the commission should be set up expeditiously andacknowledged the delay in the finalisation of the Commission’s terms of reference. He said the commission was an opportunity to deal with all the allegations of state capture, saying such an investigation should be open to public scrutiny. Dr Mkhizesaid statements and allegations against the Gupta family and the recent emails with alleged details of the family’s improper business dealings needed to be investigated properly “so that we do not have to contend with the speculation about the veracity or lack thereof of such emails.”

In his address, Dr Mkhize also commented on the upcoming ANC national conference in December. He said the ANC acknowledged its weaknesses. These, he said, included divisions within the party, factionalism, and the manipulation of the organisation’s structures. “It is not what happens within the party that becomes a challenge. It is when the issues inside the party spill over into the instruments of governance,” he added.

Meanwhile, in his address at the conference, Minister of Economic Development Ebrahim Patel highlighted the need for a new national deal with four components – a credible growth story that places emphasis on sectors with high growth potential,integrity in governance and decision making, transformation and prudent fiscal management that inspires confidence.

Mr Patel told the conference of the various steps government had taken to support the metals and engineering sector. These included industrial funding, local procurement, beneficiation and actions against cartels, transformation and collusion as well as connecting people with opportunities.

ENDS

Issued by:

Siseko Njobeni

Communications Manager

Tel: (011) 298 9411 and 082 602 1725

Email: siseko@seifsa.co.za

Web: www.seifsa.co.za

by SEIFSA .