SEIFSA .

Vaccine roll-out programme

Dear Members
Through Business for South Africa (B4SA), Business Unity South Africa (BUSA) is working with the Government to increase the number of vaccination sites in the country as part of phases 2 and 3 of the vaccination programe. They are calling on companies which have sites which could be used for this purpose, in order to enable the country to inoculate as many as 200 000 people a day, to volunteer their services.
This is what the communication from BUSA said:
A critical element of ensuring we have sufficient vaccination sites to vaccinate large numbers of people is to get data on available private sector infrastructure that could be utilised for administering the vaccine. This is a national effort that needs the support of the private sector if we are to vaccinate up to 200 000 people a day.
 The following is pertinent in this regard: 

1. We need information on small, medium and large sites. These include GP practices, pharmacies, community clinics, employer facilities and OHS facilities.
2. It would be great if members could indicate detail on location of sites, potential capacity of intake and availability
3. The sites must be registered with the relevant health authority
4. Members of SAPOA should indicate if parking facilities at malls could be made available for mass vaccination sites.
5. We need to get this initial set of data together as soon as possible, so that we can coordinate facilities and be ready to distribute vaccines as soon as we land them.

Are you able to help? If so, please contact my Personal Assistant, Lerato Lebeko (lerato@seifsa.co.za), as soon as possible. BUSA needs this information not later than Friday, 19 March 2021.
Yours Sincerely
Kaizer M. Nyatsumba
Chief Executive Officer

by SEIFSA .

Implementation of the government’s infrastructure plans is key to boosting manufacturing activity

JOHANNESBURG, 11 MARCH 2021 – The decline in manufacturing production, at a time when increased industrial activity is important to revive the ailing economy, is very concerning, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA)  said today.
SEIFSA Chief Economist Chifipa Mhango said the decline once again highlights the negative impact COVID-19-induced lockdown regulations had on the manufacturing industry and the economy in general, and that this situation needs to reversed urgently.
According to figures released by Statistics South Africa (StatsSA), total manufacturing production declined by 3.4% year on year in January, with a slight 0.5% month-on-month increase from December 2020. Total manufacturing sales increased by 1.4% year on year in January 2021 and by 0.9% from December 2020.
However, Mr Mhango welcomed the 5,3% year-on-year increase in January 2021 in the performance of  the Metals and Engineering (M&E) sector, which accounts for 29% of manufacturing production. Total sales across the sector’s 13 sub-industries increased by 10.6% to reach R68.3-billion. He said this performance would need to be sustained through the speedy implementation of the Government’s infrastructure plans if the sector and the economy as a whole are to recover.
StatsSA figures also showed that total capacity utilisation in the manufacturing sector was 72.3%, down from 81% in 2019. In the M&E sector, average total capacity utilisation for 2020 was only 68%, again demonstrating how COVID-19 has inhibited production within the sector.
Mr Mhango noted that with the economy having contracted by 7% in 2020, it is imperative that the Government intensifies its efforts to revive the ailing economy and focuses on the implementation of its recovery plans. He said while the Government’s policies were attractive on paper, more needed to be done to speed up the implementation of critical interventions such as the Steel Master Plan in order to  benefit both the upstream and downstream of the M&E sector.
Mr Mhango said the current state of the M&E sector remains dire, with declining levels of employment and investment, as well as a weak trading position with the rest of the world. He said with the country’s unemployment rate now at 32.5%, it is important to ensure that the industrial base is not eroded any further.
“Fixed investment is key to reviving the sector. To grow the country’s industrial base, the fixed investment share of GDP needs to move to levels above 40%, from the current level where it is below 20%,”” he said.
Mr Mhango said while the Government’s commitment to spend R791.2 billion in the next three years on various infrastructure projects is commendable, the slow rate of implementation and the mismanagement of funds have derailed progress towards achieving a higher ratio of fixed investment to GDP.
“The M&E sector is heavily reliant on demand from key Government infrastructure projects to boost its production and sales, especially for products such as steel and other related downstream products such as roofing material. The lack of progress towards the implementation of these projects will only serve as a hinderance to reviving the South African economy,” Mr Mhango said.

by SEIFSA .

Final GDP data outcome for 2020 in line with expectations, says SEIFSA

JOHANNESBURG, 9 MARCH 2021 – The rise in economic activity in the fourth quarter of 2020 is very encouraging, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said today.
Commenting on the announcement by Statistics SA (StatsSA) that real GDP rose at an annualised rate of 6.3% in the fourth quarter of 2020, which was lower than the second quarter’s growth rate of 67.3%, SEIFSA Chief Economist Chifipa Mhango said signs of recovery were already evident, with production declines easing in key sectors such as manufacturing and mining, and purchasing managers’ index numbers moving into expansionary territory amid the relaxation of COVID-19 lockdown restrictions.
The growth rate in the fourth quarter of 2020 was attributed to mainly eight sectors recording positive growth between the third and fourth quarters. Of these, manufacturing registered the biggest positive growth rate with 21.1%, while the construction sector grew by 11.2%. Mr Mhango said he was particularly encouraged by the growth in these two sectors as they are key market segments for Metals and Engineering (M&E) sector products, accounting for more than 70% of the industry’s production sales volume in South Africa.
However, overall total GDP for South Africa in 2020 declined by 7% when compared to 2019 as a result of COVID-19 lockdown measures, with the construction, mining and manufacturing sectors declining by 20.3%, 10.9% and 11.6% respectively. These figures are in line with what SEIFSA had projected for these sectors.
Mr Mhango noted that Gross Fixed Capital Formation (GFCF) figures were also on a positive trajectory, increasing by 12.1% in the fourth quarter of 2020, although this was lower than the third quarter’s increase of 26.9%. This was mainly attributable to the increase in construction work, residential buildings, machinery and other equipment, as reported by StatsSA. However, on an annual basis, GFCF declined by 17.5% in 2020 when compared to 2019.
Mr Mhango said the M&E industry is heavily reliant on the performance of the mining, construction and building industries.
“Therefore, we are encouraged by the increased demand for our products as the Government commits to its R791.2-billion public infrastructure spending plan over the next three fiscal years. However, to guarantee stock availability, the industry needs to move back to higher levels of capacity utilisation than the current pandemic-driven level of 68% due to working restrictions at plant level,” Mr Mhango said.
He said it would be important for the country to avoid a third wave of infections by observing COVID-19 safety protocols.
Also positive for the M&E industry, Mr Mhango said, is the 26,6% fourth-quarter increase in exports of goods and services, which is mainly attributable to an increase in vehicle and other transport equipment, precious metals, stones and base metals, which form part of the M&E industry.
“This is encouraging, since with local demand still relatively weak, export markets offer opportunities for the M&E industry. However, there has to be policy intervention by the Government to address the challenges faced by the industry in order for it to be competitive internationally. A speedy implementation of the Steel Master Plan remains key,” he concluded.

by SEIFSA .

Final GDP data outcome for 2020 in line with expectations, says SEIFSA

JOHANNESBURG, 9 MARCH 2021 – The rise in economic activity in the fourth quarter of 2020 is very encouraging, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said today.

Commenting on the announcement by Statistics SA (StatsSA) that real GDP rose at an annualised rate of 6.3% in the fourth quarter of 2020, which was lower than the second quarter’s growth rate of 67.3%, SEIFSA Chief Economist Chifipa Mhango said signs of recovery were already evident, with production declines easing in key sectors such as manufacturing and mining, and purchasing managers’ index numbers moving into expansionary territory amid the relaxation of COVID-19 lockdown restrictions.

The growth rate in the fourth quarter of 2020 was attributed to mainly eight sectors recording positive growth between the third and fourth quarters. Of these, manufacturing registered the biggest positive growth rate with 21.1%, while the construction sector grew by 11.2%. Mr Mhango said he was particularly encouraged by the growth in these two sectors as they are key market segments for Metals and Engineering (M&E) sector products, accounting for more than 70% of the industry’s production sales volume in South Africa.

However, overall total GDP for South Africa in 2020 declined by 7% when compared to 2019 as a result of COVID-19 lockdown measures, with the construction, mining and manufacturing sectors declining by 20.3%, 10.9% and 11.6% respectively. These figures are in line with what SEIFSA had projected for these sectors.

Mr Mhango noted that Gross Fixed Capital Formation (GFCF) figures were also on a positive trajectory, increasing by 12.1% in the fourth quarter of 2020, although this was lower than the third quarter’s increase of 26.9%. This was mainly attributable to the increase in construction work, residential buildings, machinery and other equipment, as reported by StatsSA. However, on an annual basis, GFCF declined by 17.5% in 2020 when compared to 2019.

Mr Mhango said the M&E industry is heavily reliant on the performance of the mining, construction and building industries.

“Therefore, we are encouraged by the increased demand for our products as the Government commits to its R791.2-billion public infrastructure spending plan over the next three fiscal years. However, to guarantee stock availability, the industry needs to move back to higher levels of capacity utilisation than the current pandemic-driven level of 68% due to working restrictions at plant level,” Mr Mhango said.

He said it would be important for the country to avoid a third wave of infections by observing COVID-19 safety protocols.

Also positive for the M&E industry, Mr Mhango said, is the 26,6% fourth-quarter increase in exports of goods and services, which is mainly attributable to an increase in vehicle and other transport equipment, precious metals, stones and base metals, which form part of the M&E industry.

“This is encouraging, since with local demand still relatively weak, export markets offer opportunities for the M&E industry. However, there has to be policy intervention by the Government to address the challenges faced by the industry in order for it to be competitive internationally. A speedy implementation of the Steel Master Plan remains key,” he concluded.

by SEIFSA .

The SEIFSA and RMA Supplier Development Programme

Your Opportunity to Lend a Helping Hand to a Fledgling Business – At No Cost to You or Your Supplier

The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) and Rand Mutual Assurance (RMA) are pleased to announce the launch of an Enterprise Supplier Development Programme aimed at supporting and mentoring black-owned (and preferably black female-owned) SMMEs.
We invite you, as a company operating within the Metals and Engineering Sector, to join us in this exciting journey to support small businesses within our sector by nominating SMMEs already in your value chain to participate in this programme.
SEIFSA will work with the SMME, perform a needs analysis and roll out all the necessary services, interventions and/or training that may be required to move the SMME from good to great.
Through this initiative and assistance, our aim is to turn these emerging enterprises into profitable and reliable businesses with the potential to scale up their offerings to you.
To raise their profiles within our sector, SEIFSA intends to showcase theses success stories at the prestigious Annual SEIFSA Awards for Excellence Gala Dinner on 20 May 2021.
For more information or to nominate an SMME that you may already be doing business with, please contact Nuraan@seifsa.co.za
This is your opportunity to lend a helping hand to a fledgling business –  at no cost to you or your supplier.
 
The closing deadline to nominate a SMME already on your value chain is Friday, 12 March 2021.

by SEIFSA .

Metals and Engineering Sector needs to deepen partnerships to address artisanal and engineering skills shortage, says SEIFSA

JOHANNESBURG, 4 MARCH 2021 – The Critical Skills List recently released by the Department of Home Affairs for public comment is indicative of South Africa’s failure to close the gaps in artisan and engineering training in the country, Sumaya Hoosen, Human Capital and Skills Development Executive at the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), said today.
Among the skills listed on that list are metal machinist, industrial machinery mechanic, electrical equipment mechanic, lift mechanic, fitter and turner and quality controller (manufacturing), industrial engineers and technologists, civil and mechanical engineers – all artisanal trades and engineering qualifications that are among many others that are in shortage in South Africa.
Ms Hoosen said the shortage of artisans, technicians and engineers has been well documented, with the Government saying as recently as 2017 that the country had a shortfall of 40,000 artisans. This was despite the Government’s efforts to promote artisanal careers among school leavers through its Decade of the Artisan campaign launched in 2014.
“More needs to be done to address this skills shortage and promote engineering and technical vocational training as a career option, especially among female students,” she said.
Ms Hoosen called on businesses in the Metals and Engineering (M&E) sector and the wider manufacturing industry to ramp up their training efforts by deepening their partnerships with the Government and funding entities such as the sector and training authorities to train artisans, technicians and engineers. She said this would help to meet the National Development Plan’s aim of creating 30,000 artisans per year by 2030.
She said these efforts, together with entrepreneurial and SME development, will help address township and rural development challenges and stimulate job creation. At present, she noted, the country produces about 12,000 artisans per year, but this figure could be higher much sooner if more businesses in the M&E sector join the Government’s efforts.
“SEIFSA believes in the power of partnerships to overcome the obstacles facing the economy. In the context of training and development, we need to work together to create a pipeline of skilled artisans, technicians and engineers,” Ms Hoosen said.
She said SEIFSA is committed to doing its part to address the shortage of artisans through the SEIFSA Training Centre (STC), which is an accredited training and trade test centre and offers apprenticeships in 10 trades. The STC aims to be a centre of excellence in artisan, technical and advanced engineering skills.
Ms Hoosen said the programmes provided by the STC, through its network of Centres of Specialisation across the country, harness skills development through economies of scale. Furthermore, the STC is able to address future-of-work challenges by addressing green skills and 4IR technologies and has already incorporated e-learning in a blended approach for its theoretical training delivery.
“The SEIFSA Training Centre has a long and proud history of producing qualified artisans, many of whom have gone on to become leaders in the M&E sector. We know that companies which use it have been very pleased with the quality of their graduates,” Ms Hoosen said.
Ms Hoosen encouraged companies to join efforts to produce quality artisans, technicians and engineers by focusing funding for training on these programmes that also provide benefit on the skills development element of their B-BBEE scorecard.
“We have been engaging with SEIFSA-affiliated companies to take on apprentices, particularly those from historically disadvantaged backgrounds, and train them at the STC, thus benefiting from the sector-specialised training capability of the centre,” she said.
“We have also been encouraging our affiliated companies to optimise the efforts in providing bursaries to eligible students who wish to study engineering, with emphasis on the scare skills highlighted,” she concluded.

by SEIFSA .