The metals & engineering sectors are among the most important pillars of the SA economy yet are handicapped by an unfavourable policy environment and are unable to realise their economic growth and job creation objectives as set out in the National Development Plan. According to the “State of Metals and Engineering Report” for 2020/2021, the sector contributed about R466bn to real gross value add, comprising about 15% of real GDP, and employed about 2.1-million workers (formal and informal) in 2018. By all accounts this is an important sector, essential to the government’s intentions of creating more jobs. Disconcertingly, the sector has been in a state of decline over the past nine years, posing a threat to the fledgling black industrialist programme launched by the department of trade & industry in 2016 and requiring a multi-stakeholder — government, industry, development finance institutions and organised business — push to save the industry through a package of short- and medium-term incentives.
SOURCE: BUSINESS DAY LIVE