Press Release - 2016/05/26: COLLABORATION AND INTRA-AFRICA TRADE KEY TO UNLOCKING AFRICA’s ECONOMIC GROWTH POTENTIAL

25 May 2016Latest News

Delivering an Opening Address at the 2nd Annual Southern African Metals and Engineering Indaba taking place at the IDC Conference Centre in Sandton this morning, the former President said in order for the South African economy in general and the metals, engineering, mining, construction and automotive sectors to rise out of the doldrums and grow, it was important for Government, labour and business to work together to devise solutions that would turn the South African economy around.

“The complexity of challenges currently facing the metals, engineering, mining, construction and automotive sectors of the South African economy requires collaboration of the various stakeholders to come up with integrated solutions aimed at addressing these challenges. Collaboration will also improve the trust deficit that currently exists between Government, business and labour,” Mr Motlanthe said.

He added that it was equally important for African countries to increase trade among one another. African countries, he said, had a shared history and it was equally important for them to share solutions aimed at stimulating economic growth in the continent. “Enhanced cooperation between African countries in general and countries with the Southern African Development Community region is of critical importance in facilitating economic growth and creating employment,” said Mr Motlanthe.

In addition to collaboration and intra-Africa trade, the former President said that it was also of critical importance for the Government not only to craft policies, but also to create policies with implementation in mind.

“In such turbulent economic conditions that are felt throughout the world, it is of paramount importance that Government does not only come up with policies that look good on paper, but that these policies are implemented,” he said.

Mr Motlanthe commended the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), the conference organiser, for providing a platform for policy makers, captains of industry and labour representatives to come together and devise solutions aimed at ensuring that the four strategic sectors of the economy not only rise out of the doldrums, but also thrive.

“While it goes without saying that providing a platform such as the Southern African Metals and Engineering Indaba is of paramount importance to map challenges currently facing the economy, it is also of equal importance to monitor progress,” Mr Motlanthe concluded.
The 2nd Southern African Metals and Engineering Indaba is organised and hosted by SEIFSA in partnership with the Department of Trade and Industry and the Industrial Development Corporation.

The 2016 conference line-up includes international speakers such as:

• International Monetary Fund Senior Resident Representative Dr Axel Schimmelpfennig;
• Executive Chairman of the EU Chamber of Commerce and Industry in Southern Africa Mr Stefan Sakoschek;
• US Embassy Economics Minister Mr Laird Trieber;
• International Labour Organisation Acting Director Dr Joni Musabayana; and
• Zimbabwean industrialist Mr Ian Conolly.

These international speakers are in addition to senior South African leaders in business, labour and Government, including Finance Minister Pravin Gordhan who will deliver the Closing Address tomorrow and Small Business Development Lindiwe Zulu, who will be the main speaker in a plenary session focusing on relations between small business and big business in the metals and engineering sector.

by SEIFSA .

Press Release - 2016/05/25: TOP INTERNATIONAL SPEAKERS TO PARTICIPATE IN THE 2nd SOUTHERN AFRICAN METALS AND ENGINEERING INDABA KICKING OFF TOMORROW

24 May 2016Latest News

Keynote speakers from around the world will descend on Sandton with the aim of sparking the revival of Southern Africa’s metals and engineering sector in particular and the manufacturing sector in general.

This year’s conference line-up includes the following International speakers:

• International Monetary Fund Senior Resident Representative Dr Axel Schimmelpfennig;
• Executive Chairman of the EU Chamber of Commerce and Industry in Southern Africa Mr Stefan Sakoschek;
• US Embassy Economics Minister Mr Laird Trieber;
• International Labour Organisation Acting Director Dr Joni Musabayana; and
• Zimbabwean industrialist Mr Ian Conolly.

These international speakers are in addition to senior South African leaders in business, labour and Government.
Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Chief Executive Officer Kaizer Nyatsumba said South Africa is rightfully recognised in the world as a cornucopia of mineral riches. The country is the largest producer of chromium and vanadium ores and a significant producer of iron and manganese ores. The challenge has always been how to use these mineral riches to fast-track economic development to the benefit of all South Africans.

“We are pleased to have all these industry greats at this year’s Indaba as well as a high-level delegation from the South African Government. We look forward to a meaningful and results-driven engagement by all parties on this important subject,” Mr Nyatsumba said.
He said that he was delighted to see that the Indaba was, indeed, poised to grow from strength to strength, with the high calibre of speakers at this year’s conference being a confirmation of that growth.
Proceedings at the Indaba will begin tomorrow morning (Thursday, 26 May) with an Opening Address by Former President Kgalema Motlanthe, with Finance Minister Pravin Gordhan delivering the Closing Address on Friday afternoon. Another anticipated keynote address will be given by Minister of Small Business Development Lindiwe Zulu, who will be the main speaker in a plenary session focusing on relations between small business and big business in the metals and engineering sector.

The 2016 Indaba will focus on the following topics, among others:

• Government Policy Interventions for a Sustainable, Globally Competitive Steel Sector
• Partners, Not Adversaries: How to Forge A Stronger Partnership Between Business and Labour to Improve Southern Africa’s International Competitiveness
• A Delicate Balancing Act: The Link Between the Metals and Engineering Sector and the Mining, Construction and Car Manufacturing Industries
• Southern Africa and the Huge Infrastructure Backlog - How to finance it.
• The Economy, Geo-Politics and Manufacturing: Has BRICS negatively affected South Africa’s Economic Relationship with the West irrevocably?

by SEIFSA .

Press Release - 2016/05/19: SMALL BUSINESS DEVELOPMENT MINISTER LINDIWE ZULU TO SPEAK AT SEIFSA INDABA

18 May 2016Latest News

small business and big business in the metals and engineering sector, the Steel and Engineering Industries Federation (SEIFSA) has announced.

Minister Zulu, whose Ministry is charged with the responsibility of stimulating and supporting small business in the country, will be the main speaker in a session that will critically review the state of relations between big and small companies in manufacturing in general and the metals and engineering sector in particular. The session will provide an assessment of the degree to which big and small businesses complement one another.

Ms Zulu is South Africa’s first-ever Minister of Small Business Development. The Ministry was formed after the 2014 general elections following the Government’s acceptance of the view that small business is a significant contributor to the economy in general and job creation in particular.

In South Africa, it is estimated that SMMEs constitute approximately 90% of formalised businesses and provide employment to about 60% of the country’s labour force, while their economic contribution accounts for roughly 34% of GDP – a significant contribution by a sector whose importance is often underestimated.

There are many small businesses in themanufacturing sector in general and the metals and engineering sector. It is against this backdrop that SEIFSA, the organiser of the Southern African Metals and Engineering Indaba taking place at the IDC Conference Centre in Sandton on Thursday and Friday (26-27 May), invited Minister Zulu to address the conference.

The Expressing appreciation to Minister Zulu, SEIFSA Chief Executive Officer Kaizer Nyatsumba said more than 60% of SEIFSA members are small companies employing fewer than 50 people.

“Therefore, it was critically important that the 2016 Indaba dedicates a session that is specifically aimed at addressing the needs of small business. We are delighted about the fact that Minister Zulu will address this matter at the conference. We agree with those who argue that ‘small business is big business’,” Mr Nyatsumba said.

The 2nd annual Indaba is aimed at sparking the revival of the metals and engineering sector in particular and the manufacturing sector in general. It will offer business executives, captains of industry, policy makers, Government Ministers and labour leaders a vital opportunity to discuss matters of common interest constructively in order to improve the performance of the struggling sector and grow South Africa’s slumbering economy.

Former President Kgalema Motlanthe will deliver the Opening Address on the first day of the conference and Finance Minister Pravin Gordhan will deliver the Closing Address on Friday, 27 May.

Among the speakers this year are top South African business leaders, Government leaders, representatives of international business and financial institutions – as well as authorities from the European Union and the United States of America, including:

• Black Business Council Vice-President Sandile Zulu
• International Monetary Fund Senior Resident Representative Dr Axel Schimmelpfennig;
• Executive Chairman of the EU Chamber of Commerce and Industry in Southern Africa Mr Stefan Sakoschek;
• Massmart Chairman Mr Kuseni Dlamini;
• US Embassy Economics Minister Mr Laird Trieber.

The 2016 Indaba will focus on the following topics, among others:

• Partners, Not Adversaries: How to Forge A Stronger Partnership Between Business and Labour to Improve Southern Africa’s International Competitiveness
• A Delicate Balancing Act: The Link Between the Metals and Engineering Sector and the Mining, Construction and Car Manufacturing Industries
• Southern Africa and the Huge Infrastructure Backlog - How to finance it.

by SEIFSA .

Press Release - 2016/05/18: HIGH-PROFILE SPEAKERS TO ADDRESS DELEGATES ATTENDING 2ND ANNUAL SOUTHERN AFRICAN METALS AND ENGINEERING INDABA

17 May 2016Latest News

The 2016 Indaba is aimed at sparking the revival of the metals and engineering sector in particular and the manufacturing sector in general. It will offer business executives, captains of industry, policy makers, Government Ministers, and labour leaders a vital opportunity to discuss matters of common interest constructively in order to improve the performance of the embattled metals and engineering sector and grow South Africa’s ailing economy.

To be opened by Former President Kgalema Motlanthe and closed by Finance Minister Pravin Gordhan, the 2nd Southern African Metals and Engineering Indaba has seen the organizer, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), entering into an important partnership with the Department of Trade and Industry and the Industrial Development Corporation (IDC). The latter will host the conference in its premises in Sandton.

SEIFSA Chief Executive Officer Kaizer Nyatsumba said the inaugural Indaba, which took place at Emperor’s Palace in May last year, was a resounding success. It featured keynote addresses from Trade and Industry Deputy Director-General Garth Strachan, standing in for Minister Rob Davies; Labour Minister Mildred Oliphant; Business Leadership South Africa Chairman Bobby Godsell; Business Unity South Africa President Jabu Mabuza; ArcelorMittal CEO Paul O’Flaherty, Scaw Metals Group CEO Markus Hanneman, KPMG Director Boitumelo Ngutshana, NUMSA General Secretary Irvin Jim and Common Market for East and Southern Africa Secretary-General Sindiso Ngwenya, among others.
An overwhelming majority (94%) of delegates who attended last year’s Indaba were “extremely happy” with the entire event, the content and discussions held during the plenary sessions.

All delegates who completed the feedback surveys were satisfied with the content covered during the Indaba and felt that the topics discussed were informative and relevant to the metals and engineering sector.

According to the feedback survey, delegates also felt that the sessions were effectively facilitated and provided opportunities for input, questions, networking and interaction. Overall, the format was felt to be well presented.

“This year the conference will be bigger and better, with Former President Kgalema Motlanthe delivering the Opening Address and Finance Minister Pravin Gordhan delivering the Closing Address,” Mr Nyatsumba said.

This year’s list also includes an exciting mix of local and international speakers, including:

• Deloitte Frontier Advisory Emerging Markets and Africa Managing Director Dr Martyn Davies;
• International Monetary Fund Senior Resident Representative Dr Axel Schimmelpfennig;
• Executive Chairman of the EU Chamber of Commerce and Industry in Southern Africa Mr Stefan Sakoschek;
• Massmart Chairman Mr Kuseni Dlamini;
• US Embassy Economics Minister Mr Laird Trieber; and
• Manufacturing Circle Executive Director Ms Philippa Rodseth.

The 2016 Indaba will focus on the following topics, among others:

• Government Policy Interventions for a Sustainable, Globally Competitive Steel Sector
• The Continental Free Trade Area and Its Implications for Manufacturing in Southern Africa
• A Delicate Balancing Act: The Link Between the Metals and Engineering Sector and the Mining, Construction and Car Manufacturing Industries
• Parasitic or Symbiotic: Relations Between Small Business and Big Business in the Metals and Engineering Sector
• Southern Africa and the Huge Infrastructure Backlog - How to finance it.

by SEIFSA .

Press Release - 2016/05/16: FINANCE MINISTER PRAVIN GORDHAN TO SPEAK AT SEIFSA INDABA

15 May 2016Latest News

The annual Indaba is aimed at sparking the revival of the metals and engineering sector in particular and the manufacturing sector in general. It will offer business executives, captains of industry, policy makers, Government Ministers and labour leaders a vital opportunity to discuss matters of common interest constructively in order to improve the performance of the struggling sector and grow South Africa’s slumbering economy.

Minister Gordhan has been paramount in addressing challenges currently facing the South African economy, including avoiding a downgrade of the economy by international ratings agency Moody’s last week.

Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Chief Executive Officer Kaizer Nyatsumba expressed gratitude and appreciation to Minister Gordhan. He said the Minister’s support signaled concretely the value that the Government placed on manufacturing in general and the metals and engineering sector in particular.

“Minister Gordhan and his colleagues have stabilised the South African economy. He is working tirelessly with the business community to improve the economy, and has successfully managed to keep us out of a junk-status rating,” Mr Nyatsumba said.

Former President Kgalema Motlanthe will deliver the Opening Address on the first day of the conference and Minister Gordhan will deliver the Closing Address on Friday, 27 May.

Department of Trade and Industry Deputy Director-General Mr Garth Strachan will be the main speaker in a plenary session focusing on Government policy interventions for a sustainable, globally-competitive steel sector.

Mr Nyatsumba said that in the past decade, the South African economy has been seriously under-performing, with things getting worse in the past few years. If nothing is done to arrest the situation speedily, things can only get worse.

“Therefore, it goes without saying that something has to be done as a matter of extreme urgency not only to halt but also to reverse this disturbing trend, which has seen manufacturing in South Africa coming under tremendous pressure from cheap, mostly Asian imports,” said Mr Nyatsumba.

Among the speakers this year are top South African business leaders, Government leaders, representatives of international business and financial institutions – as well as authorities from the European Union and the United States of America, including:

• International Monetary Fund Senior Resident Representative Dr Axel Schimmelpfennig;
• Executive Chairman of the EU Chamber of Commerce and Industry in Southern Africa Mr Stefan Sakoschek;
• Massmart Chairman Mr Kuseni Dlamini;
• US Embassy Economics Minister Mr Laird Trieber, and
• National Empowerment Fund Chief Executive Officer Ms Philisiwe Mthethwa.

The 2016 Indaba will focus on the following topics, among others:

• Partners, Not Adversaries: How to Forge A Stronger Partnership Between Business and Labour to Improve Southern Africa’s International Competitiveness
• A Delicate Balancing Act: The Link Between the Metals and Engineering Sector and the Mining, Construction and Car Manufacturing Industries
• Parasitic or Symbiotic: Relations Between Small Business and Big Business in the Metals and Engineering Sector
• Southern Africa and the Huge Infrastructure Backlog - How to finance it.

by SEIFSA .

Press Release - 2016/02/13: METALS AND ENGINEERING SECTOR CRISIS DEEPENS

12 May 2016Latest News

Speaking after the release of these figures, SEIFSA Chief Economist Henk Langenhoven said although production during the first quarter of 2016 was slightly higher than during the last quarter of 2015, this was attributable to inventory replenishment during the last six months and pre-emptive domestic orders in anticipation of price increases.

Mr Langenhoven said that the Purchasing Managers’ Index (PMI) for April 2016 and the Bureau for Economic Research Manufacturing (BER) Survey data for the first quarter of the year show that inventories in the sector declined over the last six to 12 months. He said that recent announcements of tariff protection for several basic ferrous products and the weakening of the exchange rate had sparked a frenzy of orders from downstream manufacturers to replenish their stock levels in anticipation of imminent price increases. As a result, both production and factory capacity utilisation increased slightly, with the PMI business activity sub-index also strengthening in April.
Mr Langenhoven cautioned that these short-term improvements were not expected to continue. He said that the BER Manufacturing Survey (MS) shows several negative future trends for the sector.

“Expected business conditions for the metals and engineering sector over the next 12 months deteriorated substantially. This is in line with the trend in the PMI business activity sub-index, despite the April number having improved slightly,” Mr Langenhoven said.

He pointed out that MS respondents had reported that both domestic and export orders for the next six months had declined for every sub-industry in the sector, with the exception of metal product exports to Africa. He said that in the short term domestic orders from within the sector had increased, causing upstream activity to increase, thus resulting in a slight improvement in the PMI employment sub-index.

Mr Langenhoven cautioned that this trend was unlikely to be sustained over the medium term owing to the extreme pressures experienced by the sector’s main clients: mining had recorded an 18% decline, construction activity was languishing, major civil works were declining and the automotive sector had reported year-to-date declines in vehicle sales of nearly 10%. This was on top of a 7% decline in manufacturing production.

Mr Langenhoven said that cost pressures were a much bigger concern than was the case last year. Average input costs recorded by SEIFSA were on a steep upward trend since the middle of 2015, which has roughly been in line with the exchange rate depreciation (due to 40% of sector costs being dollar based) over the same period.

“In addition, both merchant and producer prices have been in decline during 2015 caused by very weak demand. These price trends have changed sharply from the beginning of 2016 and have increased to between 3% and 9% inflation. The same trends have been observed in both the intermediate producer price index published by Statistics South Africa and the intermediate price index for metals and engineering specifically,” said Mr Langenhoven.

He said that it looked like medium-term demand for the sector’s products will not improve and that companies would not be able to pass on production costs experienced at the moment.

“The conclusion, therefore, must be that company viability will remain under extreme pressure. The few positive signs of a possible early bottoming out of the slump seem to have originated from within the sector and not from demand from its main clients. Regrettably, the sector remains in a critical condition,” Mr Langenhoven said.

by SEIFSA .

Press Release - 2016/05/12: HAS BRICS AFFECTED SOUTH AFRICA’S RELATIONS WITH THE WEST?

11 May 2016Latest News

South Africa’s trade with other BRICS nations has also been on an upward trajectory, with Pretoria cementing its position as Russia’s leading trade partner in Africa while Brazil now tops the list as the forerunner among South Africa’s trade partners in Latin America. India’s imports of gold and coal, meanwhile, have contributed significantly to South Africa’s balance sheet.

The accolades, however, have not come without criticism. From a South African perspective, trade with BRICS nations has for the most part favoured Brazil, Russia, India and particularly China. In March this year, for instance, imports from China were almost double South Africa’s exports to that country.

Speaking ahead of the 2nd Southern African Metals and Engineering Indaba taking place on 26-27 May at the Industrial Development Corporation’s Conference Centre, Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Chief Executive Officer Kaizer Nyatsumba pointed to another domino that has been affected by South Africa’s BRICS trade – its trade relations with the West.

However, is South Africa’s blossoming romance with the BRICS nations happening at the expense of the country’s economic and political relations with the West – or, does it have the potential to do so? That is one of the questions that will be discussed at the second Southern African Metals and Engineering Indaba taking place at the IDC Conference Centre in Sandton on 26-27 May 2016.

Grappling with the topic will be University of Cape Town Graduate School of Business Associate Professor Mills Soko, European Union Chamber of Commerce and Industry Executive Chairman Mr Stefan Sakoschek, US Embassy Economics Minister Mr Laird Trieber and New Bond Capital Non-Executive Director Mr Kuseni Dlamini.

Other topics to be discussed at the Indaba include:

• Government Policy Interventions for a Sustainable, Globally Competitive Steel Sector;
• Southern Africa and the Huge Infrastructure Backlog – How to Finance it?
• Parnters, Not Adversaries: How to Forge a Stronger Partnership Between Business and Labour to Improve Southern Africa’s Competitiveness;
• A Delicate Balancing Act: The Link Between the Metals and Engineering Sector and the Mining, Construction and Car Manufacturing Industries;
• The Continental Free Trade Area and its Implications for Manufacturing in Southern Africa; and
• Parasitic or Symbiotic? Relations Between Small Business and Big Business in the Metals and Engineering Sector

The 2016 Indaba will attract policy and decision makers, business owners, senior executives and other stakeholders in the metals and engineering sector in the Southern African Development Community region.

by SEIFSA .

Response to “opinion piece” by Gerhard Papenfus

10 May 2016Latest News

To his credit, Mr Papenfus stated in his introductory sentence that he could not “claim to fully understand what’s currently happening in this space and the reasons for it.” Thankfully, owing to its considerable expertise in a number of areas, including its in-depth knowledge of the sector, SEIFSA is able to offer a more nuanced, properly contextualized explanation.

To start with, the MEIBC data on employment numbers do not cover the whole sector and are totally accurate.

The metals and engineering sector (M&E S) is, indeed, in deep trouble and in a life- and-death struggle to stay in business. The decline in employment numbers has been severe over the last 10 years, but not nearly as dramatic as alleged by Mr Papenfus. Ten years ago, the sector employed 400 000 people and last year (2015) the number stood at 370 000, which means a loss of 30 000 people over a 10-year period. During 2015 the sector lost 11 100 jobs, with 7000 lost during the last quarter of the year. This does seem to indicate a deepening crisis, but again not one as dramatic as alleged.

The global challenge and the flexibility needed to survive in this post-commodity super-cycle era is a challenge facing the whole world. It is difficult to see how the MEIBC is, or can be the solution, to this global challenge.

Roughly 50% of the M&E S’s production is exported, with the basic metals (steel and non-ferrous) and metal products components of the sector being the most successful in this regard. Although also under threat of imports of subsidised products of up to 25% below production costs, this is a worldwide phenomenon, causing so much friction between China and the USA (for example) that meetings to resolve the issue had to be abandoned for fear of violence amongst delegates of the two countries. Was the “better option” to sacrifice another 30 000 to 50 000 jobs by allowing these products to overrun the SA M&E Sector?

M&E S products that are further down the value chain (i.e. more value added) have been under even more threat and had more protection (albeit at or below the bound rates) than the basic metals upstream. So, with more protection and under more threat of subsidised products, they had to survive – and many did not.

It is also hard to understand how the MEIBC had any influence over the 50% of the M&E S market domestically. All three of the sector’s biggest customers (namely construction, mining and the auto sectors) have been under severe strain over several years, and there seems to be no light at the end of the tunnel. Compounding the problem is that the South African M&E S producers’ share of the SA market peaked in 2002 at 68%, and declined since to 48%, or by about R110 billion worth of production and 80 000 job opportunities. Neither the MEIBC nor ArcelorMittal had anything to do with that.

Low investment in new technology caused by the difficult economic circumstances in the M&E S is universal in the SA context. The national investment data for the sector shows this beyond doubt. Investment peaked during 1991 and 1996, and then almost “fell away” by half since 2000 and has not recovered since. This is a perennial problem throughout the sector and not only an ArcelorMittal problem. Longer-term survival of the M&E S as a whole will also depend on investment resuming.

Protection is but a short-term solution and is, indeed, inflationary. The efforts to try and find a balance between up and downstream producers in terms of protection occupies the Department of Trade and Industry, the International Trade Administration Commission (ITAC), the Department of Economic Development and, indeed, the business organisations in the sector that understand the dynamics properly.

South Africa cannot allow any of the 370 000 people still employed in the sector to lose their jobs. And, the policy approach cannot be that “developmental prices” upstream will cause development downstream – clearly, it has not worked. The alternative (cluster/sectoral) approach is clearly demonstrated by the Automotive Production and Development Programme (APDP) and clothing sector policies. A more sectoral approach to policy will, in the words of Trade and Industry Minister Rob Davies last week, be more evident in the latest Industrial Policy Action Plan iteration that my very well be released this week. It is our view that all rationally thinking minds are applied to this policy issue at the moment.

Regrettably, the short-sighted and xenophobic statement by Mr Papenfus that “Mittal is a foreign asset” is a specific example of the general view/misconception that “SA can go it alone’. The reality is simply the opposite: the country needed and needs foreign investment like any developing economy. We can do with much more – and not less- foreign investment. Very few of the significant companies in the M&E S do not have foreign partnerships or some form of foreign ownership. This type of investment is one of the very answers to the investment problem stated earlier.

There may be many things wrong with many institutions in the country, and the MEIBC has its fair share, but to elevate that to THE problem to be solved is disingenuous. It is also a great pity that some players would elect repeatedly to hurl criticism at anything and anybody and not to be part of the policy discussions to find a way to renewed investment and growth in the country.

It is our humble view that, in order to reach its true potential, South Africa needs all stakeholders to work together collaboratively. By all means let us differ when we have to do so, but, more importantly, all of us must be involved in the process of searching for lasting solutions.

That is why we introduced the Southern African Metals and Engineering Indaba, which takes place at the IDC Conference Centre on 26-27 May 2016 and where all these and other matters will be discussed. We invite all who are interested in being part of the solution to register to attend. More details can be found on www.meindaba.co.za.

by SEIFSA .

Press Release - 2016/05/11: TURBULENT ECONOMIC TIMES INCREASE NEED FOR SADC COUNTRIES TO TRADE WITH ONE ANOTHER

10 May 2016Latest News

Speaking ahead of the 2nd Southern African Metals and Engineering Indaba scheduled to take place on 26 and 27 May at the IDC Conference Centre in Sandton, Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Chief Executive Officer Kaizer Nyatsumba said that the slump in the global growth and commodity cycle, which has been made worse by recent Chinese economic instability, has increased the need for African countries in general and those operating within SADC in particular to trade with one another.

According to research conducted by SEIFSA, in 2015 Africa accounted for the largest share (38,9%) of total metals and engineering exports. Export to SADC, excluding the Southern African Customs Union, made up 86% of exports into Africa.

Mr Nyatsumba said that although trade within SADC countries has increased over the years, a lot still needed to be done to improve in this regard. It was, therefore, of paramount importance that SADC countries continue to create and sustain demand for products produced by their peers.

“Fishing In A Bigger Pond: Opportunities for the Metals and Engineering Sector in Southern Africa” will come under scrutiny at the 2016 Southern African Metals and Engineering Indaba. Assessing and unpacking growth opportunities for companies operating in the metals and engineering sector within Southern Africa will be:

• Mr Duncan Bonnett, Director of Africa House Consulting;
• SEIFSA Chief Economist Henk Langenhoven;
• Mr Ian Conolly, Director of O. Conolly & Co Zimbabwe;
• Mr Martin Cameron, Director of Marcam Consulting; and
• North-West University Research Professor Wilma Viviers.

The Southern African Metals and Engineering Indaba will be attended by policy and decision makers, business owners, senior executives and other stakeholders in the metals and engineering sector in the Southern African Development Community region, and will focus on the following topics, among others:

• The Economy, GEO-Politics and Manufacturing: Has Brics negatively affected South Africa’s Economic Relationship with the West Irrevocably?
• Partners, Not Adversaries: How to Forge A Stronger Partnership Between Business and Labour to Improve Southern Africa’s International Competitiveness
• A Delicate Balancing Act: The Link Between the Metals and Engineering Sector and the Mining, Construction and Car Manufacturing Industries
• Parasitic or Symbiotic: Relations Between Small Business and Big Business in the Metals and Engineering Sector
• Southern Africa and the Huge Infrastructure Backlog - How to finance it.

Organised and hosted by SEIFSA in partnership with the IDC and the Department of Trade and Industry, the 2016 Indaba features, among others, speakers and panelists such as:

• Former President Kgalema Motlanthe;
• Shell South Africa Executive Chairman Mr Bonang Mohale;
• Black Business Council Vice-President Mr Sandile Zungu;
• International Monetary Fund Senior Resident Representative Dr Axel Schimmelpfennig;
• Executive Chairman of the EU Chamber of Commerce and Industry in Southern Africa Mr Stefan Sakoschek;
• Massmart Chairman Mr Kuseni Dlamini;
• US Embassy Economics Minister Mr Laird Trieber,;
• and National Empowerment Fund Chief Executive Officer Ms Philisiwe Mthethwa.

by SEIFSA .