SEIFSA PRESIDENT SERIOUSLY CONCERNED ABOUT SLOW PACE OF TRANSFORMATION IN THE SECTOR AND THE GOVERNMENT’S FAILURE TO ARREST CORRUPTION
Johannesburg, 16 October 2017 – Steel and Engineering Industries Federation of Southern Africa (SEIFSA) President Michael Pimstein has bemoaned the slow pace of transformation in the metals and engineering sector and called on companies to embrace change in the best interest of the country.
Delivering his presidential address in Parktown on Friday morning, shortly after the Federation’s annual general meeting, Mr Pimstein said the slow pace of transformation in the sector continued to be a matter of concern, and urged companies “to embrace change and advocate for transformation”. He said that the manufacturing industry in general and the metals and engineering sector in particular were desperately in need of thorough-going transformation “not only when it comes to general business ownership, but also with regards to occupation of senior leadership.”
“As a sector, we need to embrace change and advocate transformation. Not only is it in South Africa’s interest for that to happen, but it is also fundamentally in business’s own long-term interest. It is of critical importance that a concerted effort is made by the sector towards creating meaningful opportunities for all South Africans to play a crucial role in taking our industry to new heights,” Mr Pimstein said.
He said that it reflected very poorly on South Africa that the country was placed number 165 out of 175 countries currently reflecting an economic growth rate better than zero. This growth rate, he said, was around the same position as that of the Republic of Congo, but significantly below rates experienced in Ethiopia (7,5%), Tanzania and Senegal (6,8%), Ghana (5,8%), Malawi and Mozambique (4,5%), Botswana (4,1%), Namibia and Egypt (3,5%) and even Zimbabwe (2%).
He said South Africa’s share of the global economy was declining year on year, with the country’s position aggravated by the fact that “our economic growth continues to weaken whilst the rest of the world’s is improving”.
Mr Pimstein said that business in South Africa operated in an environment challenged by weak economic conditions “and a radical disregard for good governance throughout the governing hierarchy.”
“Failure to respond to allegations of State capture and corruption, ineffective Boards and delinquent management, political (and other) appointees that disregard accountability, integrity and competence as non-negotiable elements of office, selective law enforcement, absence of a sound strategic plan to recover from junk status, inability and/or reluctance to eliminate wasteful expenditure by organs of the State, shocking audit revelations from the Auditor General, ill-considered regulatory impositions and attacks on independent institutions such as the South African Reserve Bank would be alarming if considered individually.
Together, they indicate contempt for good and responsible governance,” he said.
He said that it was time for business, labour, civil society, community bodies and
politicians to take South Africa country back: “Ultimately, we must recognise the
resilience, character and goodwill of most South Africans. Standing together against all
the evils permeating our activities would be a good start.”
Mr Pimstein said SEIFSA’s strategic role in influencing policy could not be underestimated. He said that it was important for all stakeholders within the sector to work together, with Government, business and labour partnering to find solutions to increase the country’s GDP significantly and, in the process, South Africa’s apparent steel consumption “beyond the moribund five million tons level”.
He said South Africa also needed to reposition for growth in key areas such as agriculture and agro-processing, mining and related beneficiation, manufacturing, urban development and rural infrastructure and development, water supply and storage, desalination and recovery, transport and logistics, as well as energy and tourism.
“We simply have to create decent jobs and, to sustain them, we have to grow oureconomic pie,” Mr Pimstein said.
Mr Pimstein welcomed the fact that the 2017 wage negotiations in the sector were concluded without any strike action, marking the fourth time in SEIFSA’s 74-year history that a three-year agreement was concluded with labour and “the first time in the last 10 years that this has been achieved without industrial action.”
Guest speaker JP Landman told the gathering how South Africa’s increase in population growth and a concomitant 1.23 percent increase in immigration had contributed to the decline in economic growth from 1.5 percent in 2014 to a possible 0,7 percent in 2017.
“I’ve seen this movie before. In 1985 South Africa faced similar economic challenges,” he said. “But despite the country’s economic and political woes, South Africa has an “open society that will enable it to make an about turn”.
Professor Landman said he remained optimistic about the country’s future because of a number of institutional and open-society forces in the country, such as the ability to replace the government, a free and pluralistic media, an independent judiciary and an outspoken civil society, among others.
“The bottom line for growth in South Africa would be a journey from traditionalism to modernism.To get onto this journey, the country needs to embrace the world by selling the world what it wants and taking what it can give you,“ he argued.
The Presidential Breakfast was preceded by a SEIFSA AGM, at which Industrial Services Holdings CEO Peter Amm, Auto Industrial Group CEO Andrea Moz and Zimco Group Human Resources Manager Ellen Veldhoven were elected onto the Board as Non-Executive Directors.
Ends
Issued by:
Jackie Molose
Marketing ,Sales and Communiations Eexcutive
Tel: (011) 298- 9411
Email: jackie@seifsa.co.za
Web: www.seifsa.co.za
SEIFSA is a National Federation representing 23 independent employer Associations in the metals and engineering industries, with a combined membership of 1200 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-entreprises employing few than 50 people.
SEIFSA WELCOMES IMPROVEMENT IN AUGUST PRODUCTION DATA FOR THE SECTOR
JOHANNESBURG, 10 OCTOBER 2017 – The preliminary August 2017 production data for the metals and engineering (M&E) sector released by Statistics South Africa today reflects an increase in output for the sector, Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Chief Economist Michael Ade observed.
Dr Ade said production for the sector increased by 10.7 percent on a year-on-year basis (after adjusting for the sectoral weights, following a poor annual performance in July 2017). The sub-sector also performed well on a month-on-month basis, recording a growth of 4.2 percent in August 2017 compared to July 2017. He said that generally the increase in production in August 2017 in the M&E sector is in line with the broader manufacturing production increase of 1.5 percent on a year-on-year basis, following a revised annual growth rate of -1.1 recorded in July 2017.
“The positive performance of the sector in August 2017 was mainly boosted by higher production by the special purpose machinery, the basic iron and steel products, and the basic non-ferrous metal products. This is good news for the M&E sector, which is beginning to show signs of a long-awaited recovery,” Dr Ade said.
He said that as companies in the sector start to increase capacity in anticipation of a further improvement in domestic demand, the increase in momentum will help boost growth and further attract new investment.
Dr Ade said this outcome also aligned with forward-looking indicators for the industry. He noted that the South African Chamber of Commerce and Industry (SACCI) Business Confidence Index (BCI) rose to 93.0 percent in September 2017, from 89.6 percent in August 2017 and 95.3 percent in July 2017. Also, he noted that the Bureau for Economic Research’s manufacturing index rose to 44.0 percent in August 2017 from 42 percent in July 2017, in line with the increasingly optimistic outlook.
“However, although the index shows a slight improvement in confidence at 44,0 percent in August 2017, it is still below the required 50 percent required confidence level,” said Dr Ade.
He added that a further improvement in the monthly business activity (output) sub-index of the PMI and a continuous increase in consumer confidence were expected. However, he cautioned that although there is an increase in production, the concerns and challenges of the M&E sector still remained.
“The sector is still under tremendous pressure stemming from structural problems, increasing input costs, low international commodity prices (although still higher than the 2015 lows) and poor export competitiveness. Despite the improvement in trade balance, there is still a need to enhance exports and further boost business confidence in the sector in order to accelerate economic growth,” Dr Ade concluded.
ENDS
Issued by:
Jackie Molose
Marketing, Sales and Communications Executive
Tel: (011) 298 9411 and 082 602 1725
Email: jackie@seifsa.co.za
Web: www.seifsa.co.za
SEIFSA is a National Federation representing 23 independent employer Associations in the metals and engineering industries, with a combined membership of 1600 companies employing around 200 000 employees. The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-enterprises
employing few than 50 people.
MEDIA INVITATION - 10 OCTOBER 2017
PRESIDENTIAL BREAKFAST INVITATION
The aim of this breakfast is to provide political and economic insights from our Guest Speaker,
Professor JP Landman, into how the political climate is directly impacting business in South Africa.
This prestigious event is attended by employers in the metals and engineering sector, as well as high-profile business leaders from other sectors of the economy.
DATE
13 October 2017
TIME
8:30am
VENUE
Sunnyside Park Hotel
Princess of Wales Terrace
& Carse O' Gowrie Road,
Parktown
ENQUIRIES
Jackie Molose
Marketing, Sales & Communications Executive
Tel: 011-298 9411
Fax: 011-298 9511
Cell: 082 602 1725
E-Mail: jackie@seifsa.co.za
INCREASE IN THE MEIBC REGISTRATION AND ADMINISTRATION EXPENSES COLLECTIVE AGREEMENT
The Management Committee of the Metal and Engineering Industries Bargaining Council (MEIBC) has approved an increase in the Council’s Registration and Administration Expenses Agreement with effect from Friday, 6 October 2017. The levy increase, last adjusted in July 2011, has become necessary in order to ensure that the Council is financially sustainable to continue fulfilling its role in terms of the Labour Relations Act.
| Current Administration Levy | New Administration Levy wef 6 October 2017* | ||
| Per Week | Per Month | Per Week | Per Month |
| R1,72c | R7,45c | R 1,96c | R8,49c |
|
|||
Please Note:
- The above increases become binding on all scheduled employees who are members of one of the party trade unions listed hereunder:
- National Union of Metalworkers of South Africa (NUMSA)
- Solidarity
- United Association of South Africa (UASA – The Union)
- Metal and Electrical Workers Union of South Africa (MEWUSA)
- SA Equity Workers’ Association (SAEWA)
- Likewise, employers who are members of one of the SEIFSA-affiliated Employer Associations listed hereunder are bound by the new levy:
- Association of Electrical Cable Manufacturers of South Africa
- Association of Metal Service Centre of South Africa
- Cape Engineers’ and Founders’ Association
- Constructional Engineering Association (South Africa)
- Electrical Engineering and Allied Industries’ Association
- Electrical Manufacturers’ Association of South Africa
- Gate and Fence Association
- Hand Tool Manufacturers’ Association
- Iron and Steel Producers’ Association of South Africa
- KwaZulu-Natal Engineering Industries’ Association
- Lift Engineering Association of South Africa
- Light Engineering Industries’ Association of South Africa
- Non-ferrous Metal Industries’ Association of South Africa
- Eastern Cape Engineering and Allied Industries Association
- Pressure Equipment Manufacturers’ Association of South Africa
- Refrigeration and Air Conditioning Manufacturers’ and Suppliers’ Association
- S.A. Electro-Plating Industries’ Association
- S.A. Refrigeration and Air Conditioning Contractors’ Association
- S.A. Pump Manufacturers’ Association
- S.A. Reinforced Concrete Engineers’ Association
- S.A. Valve and Actuator Manufacturers’ Association
The Management Committee of the Metal and Engineering Industries Bargaining Council will meet on 30 November 2017 to process the MEIBC Registration and Administration Expenses Collective Agreement, with the aim of the Agreement being extended and made legally binding on all non-party employers and employees in the industry.
The staff members of the SEIFSA Industrial Relations and Legal Services Division are available on (011) 298 9400 to provide any further advice and/ or assistance to management on the contents of this management brief.
UNCHANGED INTEREST RATES BODE WELL FOR GDP GROWTH
Johannesburg, 21 September 2017 - The South African Reserve Bank's (SARB's) decision to keep the repo rate unchanged at 6.75% and the prime rate at 10.25% will further stimulate domestic demand and sustain the recent up-tick in Gross Domestic Product (GDP) growth, Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Economist Marique Kruger said today.
The Bank's decision comes against the backdrop of 2.5% quarter-on-quarter increase in the real Gross Domestic Product (GDP) during the second quarter of 2017, up from 0.6% in the first quarter of 2017.
"This is good news for an increasingly constrained domestic consumer who has been hampered by slow expansion of the economy, low income growth, a tight credit market and rising inflation numbers," Ms Kruger said.
The announcement bodes well for local firms facing an increasingly constrained consumer demand, a trend which impacts negatively on their margins. In addition to stagnant consumer demand, the Producer Price Index (PPI) for intermediate manufactured goods has exhibited a decreasing trend throughout 2017, averaging at 3.4% during the second quarter of 2017, down from the 6.8% recorded during the first quarter of 2017.
"This leaves very little room for manufacturers to pass cost increases into the market. With roughly 90% of the products in the Metals and Engineering (M&E) sector being of an intermediate nature, the declining PPI figures are a cause for concern.
"SEIFSA welcomes the decision to leave the interest rate unchanged. Stable interest rates do not only provide some certainty to businesses, but they also play a significant role in eventually reducing the cost of borrowing. Certainty and confidence in return on investment are imperative for investments into the M&E sub-component in dearth of gross fixed capital formation (GFCF)," Ms Kruger said.
The benefits of the rates cut would transcend the metals and engineering sector to other industrial sectors that are important to the value chain, thereby maintaining the positive domestic growth trajectory. These include the mining, construction, auto industry and transport sectors, she concluded.
Issued by:
Siseko Njobeni
Communications Manager
Tel: (011) 298 9411 and 082 602 1725
Email: siseko@seifsa.co.za
Web: www.seifsa.co.za
SEIFSA is a National Federation representing 23 independent employer
Associations in the metals and engineering industries, with a combined
membership of 1600 companies employing around 200 000 employees.
The Federation was formed in 1943 and its member companies range from giant steel-making corporations to micro-enterprises employing few than 50 people.
COSATU’S INTENDED PROTEST ACTION ON 27 SEPTEMBER 2017
Introduction
As you may be aware from recent media reports, the Congress of South African Trade Unions (COSATU) is preparing for a possible protest action in the form of a one-day national strike on Wednesday, 27 September 2017.
This Management Brief provides some basic background to the issue and guidance on dealing with the intended protest action.
Background to the COSATU Stay-Away
On 17 July 2017 COSATU submitted a Section 77 (1) (d) notice confirming its intention to proceed with a socio-economic protest strike action on 27 September 2017 against State capture and corruption.
COSATU indicated in its 17 July 2017 notice that the following forms of protest action and action in contemplation of and furtherance of the protest action will involve:
- rallies, demonstrations, pickets, placard demonstrations, marches and stay-aways;
- calls for solidarity campaigns that are aimed at shareholders, employees, suppliers and others alleged to be associated with State capture; and
- other forms of protest activity.
Protest Action and the Labour Relations Act
The Labour Relations Act (LRA) permits federations such as COSATU to undertake protected protest action to promote the social and economic interests of workers, provided that they observe the procedural requirements contained in Section 77 of the Labour Relations Act 66 of 1995.
It is important to note that protest action in terms of Section 77 of the LRA is only legal or protected if the issue in dispute has been considered or finalised by NEDLAC and the union or federation (in this case COSATU) has given 14 days’ notice to NEDLAC of its intention to proceed with such protest action. In the absence of these conditions, any protest action would not be protected.
The NEDLAC Section 77 Standing Committee has determined the notice to be compliant with the administrative requirements of the LRA.
Consequently, employees participating in any action on 27 September 2017 will be protected by the normal rules regarding protected strikes, namely: no work, no pay and no disciplinary action.
Management Guidelines on Possible Absenteeism on Wednesday, 27 September 2017
SEIFSA recommends that management adopt the following course of action in dealing with any stay-away from work on 27 September 2017:
- Inform all workers that any absences related to the protest action will be treated on the following basis:
- No work, no pay;
- a shift for leave pay and leave enhancement pay qualification purposes will be lost in respect of the day’s absence; and
- any overtime worked during the course of the week will be paid at ordinary rates to make up for the lost ordinary working hours from Wednesday, 27 September 2017.
The Staff of the SEIFSA Industrial Relations and Legal Services Division are available on (011) 298 9400 to provide any further advice and/ or assistance to management on the contents of this management brief.
SEIFSA WELCOMES GOVERNMENT INTERVENTIONS IN MANUFACTURING AND CALLS FOR STRICT ENFORCEMENT OF DESIGNATION
Johannesburg, 20 September 2017 - The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) has thrown its weight behind the Empowered Engineering and Manufacturing Initiative.
SEIFSA has partnered with Smart Procurement World to launch the initiative which is aimed at driving economic transformation and industrial progress in engineering and manufacturing.
Delivering a keynote address at the 11th Smart Procurement World Indaba at the Gallagher Convention Centre in Midrand today, SEIFSA CEO Kaizer Nyatsumba said partnering with Smart Procurement World was logical.
"The purpose of this Initiative is very much consistent with that of our Small Business Hub, which renders expert services to SMMEs at a more discounted fee than normal and offers a service to large companies that sees us project managing their Enterprise and Supplier Development Programmes for them for a fee so that they can improve their Broad-Based BEE scores," Mr Nyatsumba said.
He said the initiative was in line with the organisation's vision and philosophy. The Federation, which is 74 years old this year, supports business transformation in general and considers small business as significant players in the South African economy and as job creators, he said.
"Our philosophy is simple: we believe fervently that our beautiful country, South Africa, will not realize its full potential unless all relevant stakeholders - but especially the democratically-elected Government, business and labour - work together cooperatively and collaboratively as partners. We believe very firmly that all of us need to work much, much closely together than we have done hitherto if South Africa is to prosper economically and reclaim its place as the biggest economy on this continent," Mr Nyatsumba said.
SEIFSA represents all sizes of companies in the metals and engineering sector, ranging from the largest, listed multi-nationals through to the smallest which employ no more than a handful of individuals. The vast majority of the companies that are members of the Federation's affiliated Associations are small in size: at least 66% of them employ no more than 50 people.
Mr Nyatsumba highlighted the significance of engineering and manufacturing, saying no country lagging behind in either could develop.
"Therefore, it is crucially important that South Africa continues to make strides in engineering and that it performs much better in manufacturing than it is doing at the moment. For that to happen, the Government would have to do much more to create a climate conducive to domestic and foreign direct investment in the country and, thus emboldened, local companies would have to make the necessary investments in cutting-edge technology as well as in research and development," he added.
Unfortunately, manufacturing in South Africa has been under considerable pressure for many years now. Its contribution to the GDP has declined from around 20% over the past three decades to 13% - and it looks set to continue to decline. He said that was regrettable, given manufacturing's enormous job creation potential and its positive contribution to the balance of payments as a foreign exchange earner.
"At the Southern African Metals and Engineering Indaba in Sandton last week, Economic Development Minister Ebrahim Patel catalogued various Government initiatives to support manufacturing in general and the metals and engineering sector in particular. These include such commendable interventions like the Manufacturing Competitiveness Enhancement Programme and designation of locally-manufactured products," he said.
Mr Nyatsumba said that more needed to be done to ensure that, once locally-manufactured products are designated, effective monitoring of compliance by all Government departments and State-owned companies takes place, "with drastic punitive measures taken against those who fail to comply".
He said that it was important that the Government does everything possible to end "this terrible practice by some Chinese companies investing in or winning local tenders of bringing not only employees, but also the materials used for those capital projects," from China.
Issued by:
Siseko Njobeni
Communications Manager
Tel: (011) 298 9411 and 082 602 1725
Email: siseko@seifsa.co.za
Web: www.seifsa.co.za
OPENING ADDRESS OF THE EMPOWERED ENGINEERING & MANUFACTURING INITIATIVE
By Kaizer M. Nyatsumba, Chief Executive Officer, SEIFSA
Date: Wednesday, 20 September 2017
Thank you very much, Programme Director, for that introduction.
Greetings, Ladies and Gentlemen – and welcome to the launch of the Empowered Engineering & Manufacturing Initiative, brought to you by Smart Procurement World in Partnership with the Steel and Engineering Industries Federation of Southern Africa (SEIFSA). It is so good to see so many of you attending this important event, and I am pleased to acknowledge each one of you, from those representing different arms of government, through to industry players and other stakeholders. I am glad you could make it.
When we were approached by Smart Procurement World to be an anchor partner for the Empowered Engineering & Manufacturing Initiative, we agreed readily not only because we are the authoritative body representing employers in the sectors covered by this conference, but, more importantly, because we share its vision and philosophy. The Federation that I represent is 74 years old this year, and it is an enthusiastic supporter of business transformation in general and of small business as significant players in our economy and as job creators.
Our philosophy is simple: we believe fervently that our beautiful country, South Africa, will not realize its full potential unless all relevant stakeholders – but especially the democratically-elected Government, business and labour – work together cooperatively and collaboratively as partners. We believe very firmly that all of us need to work much, much closely together than we have done hitherto if South Africa is to prosper economically and reclaim its place as the biggest economy on this continent.
As you may know, SEIFSA represents all sizes of companies in the metals and engineering sector, ranging from the largest, listed multi-nationals through to the smallest which employ no more than a handful of individuals. Only yesterday, a company that employs four people took membership of one of our member Associations and became part of SEIFSA. In fact, the vast majority of the companies that are members of our affiliated Associations are small in size: at least 66% of them employ no more than 50 people.
Therefore, partnering with Smart Procurement World on the Empowered Engineering & Manufacturing Initiative was the most logical thing for us to do. The purpose of this Initiative is very much consistent with that of our Small Business Hub, which renders expert services to SMMEs at a more discounted fee than normal and offers a service to large companies that sees us project managing their Enterprise and Supplier Development Programmes for them for a fee so that they can improve their Broad-Based BEE scores.
I am pleased to see that many of our member companies are present here today, including on the programme. We stand ready to partner with them – and all of you – in our efforts to encourage more established, big business to embrace and support smaller enterprises. We also encourage them not only to embrace transformation, but also to champion it in all its forms, including through developing and mentoring SMMEs and giving them greater access to their various domestic and international supply chains.
As you may recall, former US President John F Kennedy once said: "For of those to whom much is given, much is required", paraphrasing, of course, Luke 12:48, which was his inspiration and reads as follows: "For unto whomsoever much is given, of him shall be much required."
Engineering and Manufacturing are very important parts of the economy of any advanced country. No country that is lagging behind in either can ever be said to be developed. Therefore, it is crucially important that South Africa continues to make strides in Engineering and that it performs much better in Manufacturing than it is doing at the moment. For that to happen, the Government would have to do much more to create a climate conducive to domestic and foreign direct investment in the country and, thus emboldened, local companies would have to make the necessary investments in cutting-edge technology as well as in research and development.
Unfortunately, manufacturing in South Africa has been under considerable pressure for many years now. Its contribution to the GDP has declined from around 20% over the past three decades to 13% - and it looks set to continue to decline. This is most regrettable, especially when one considers manufacturing’s enormous job creation potential and its positive contribution to the balance of payments as a foreign exchange earner.
At the Southern African Metals and Engineering Indaba in Sandton last week, Economic Development Minister Ebrahim Patel catalogued various Government initiatives to support manufacturing in general and the metals and engineering sector in particular. These include such commendable interventions like the Manufacturing Competitiveness Enhancement Programme and designation of locally-manufactured products.
Like many others, we welcome these Government interventions, but we believe that more still needs to be done. We also contend that more should be done to ensure that, once certain products have been designated, effective monitoring of compliance by all Government departments and State-owned companies takes place, with drastic punitive measures taken against those who fail to comply.
Similarly, we believe that everything possible should be done to end this terrible practice by some Chinese companies investing in or winning local tenders bringing not only employees from China, but also the materials used for those capital projects.
As you know, Ladies and Gentlemen, we read with monotonous regularity each day about various scandals and forms of corruption wrecking our beautiful country. Given that unfortunate reality, it is tempting – if not easy – for some among us to throw our hands in the air and despair. I would like to suggest that we are not as powerless as some politicians may believe us to be. As individual men and women, as business and labour leaders and as organized business, we are far more powerful than we sometimes believe ourselves to be.
That is why, as I said when we signed the 2017-2020 Wage Agreement in the metals and engineering sector on 23 August, we at SEIFSA recommit ourselves to working closely with our labour partners to lobby the Government for policies that will enable business to thrive in order to create jobs and to make the country an attractive investment destination.
Like everybody else, we are deeply troubled by the way in which our beautiful country is currently misgoverned and by the corruption which has become so endemic. We support calls for President Jacob Zuma to move swiftly to establish a commission of enquiry into the rampant State capture allegations, and we call on everybody in Government to offer ethical leadership and to ensure greater policy coordination within their ranks in order to eliminate the embarrassing situation which often sees Cabinet Ministers publicly championing often contradictory, sometimes market unfriendly policies.
In our humble view, South Africa desperately needs much better leadership from our political leaders than it is receiving at the moment, and a strong partnership involving the Government, business and labour if it is to realize its full potential. We at SEIFSA stand ready to play our part, however, small.
Ladies and Gentlemen, I wish you well with your Empowered Engineering & Manufacturing Initiative conference. I would like to encourage you to engage robustly with one another in order to ensure that this day is put to good use.
Thank you very much.
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
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