/ 28 August 2006

Govt unveils metals sector development strategy

The Department of Trade and Industry (DTI) has unveiled its long-awaited metals sector development strategy to representatives of major industrial associations and companies.

Among the aims of the development strategy is to create 45 000 new and sustainable jobs. The cost of implementing this strategy is estimated at R172,5-million over five years.

The strategy was unveiled at a workshop hosted by the Steel and Engineering Industries Federation of South Africa (SEIFSA).

SEIFSA’s executive director Brian Angus said: “SEIFSA sees the metals sector development strategy as an important initiative which should assist government in realising its objectives of the Accelerated and Shared Growth Initiative of South Africa (Asgisa) which are to halve unemployment by 2014 and attain a consistent annual GDP growth rate of at least 6%.”

Requirements for the successful implementation of the strategy include accelerated skills development, support for local content in government contracts (especially in respect of the planned multibillion-rand logistics development programme over the next three years) as well as black economic empowerment in the metal industry along with major investments in technological development.

The DTI is aiming to incentivise further downstream beneficiation of metals in order to create jobs, displace imports and improve export performance in the metals industry.

A working group of industry participants are expected to meet on Tuesday to begin a process to ensure that the challenges are defined and that the action programmes are practical and realisable. The working group also intends to set priorities for implementation of the key action programmes. – I-Net Bridge