Johannesburg, 20 September 2018 – The global trade war between two of the world’s largest economies has the potential to render global growth less synchronised, less certain and less supportive of emerging economies. Moreover, weaknesses in the global economy would make it even more difficult for South Africa to accelerate its fortunes and for the metals and engineering (M&E) cluster, the mining and construction sectors and the auto manufacturing industries to maximise their potential, Steel and Engineering Industries Federation of Southern Africa Chief Economist Michael Ade said this afternoon.
Speaking at the Southern African Metals and Engineering Indaba, Dr Ade said the four sectors needed higher growth levels underpinned by better productive efficiency. He also said that instead of continuously depending on government to boost demand via various interventions, stakeholders in these sectors needed to rally to support each other.
“Proactivity rather than reactivity is needed to take advantage of promising regional prospects, where healthy GDP growths have been projected. Targeted growth in lucrative markets of Asia and Europe should also be taken advantage of, in order to increase market share,” Dr Ade said.
He said that the four groups can leverage on existing linkages. “The M&E cluster should support the mining sector more by increasing its current procurement spend in the mining sector to over 63%.”