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State-Owned Companies

Are State-Owned Companies Enablers Or Blockers of Economic Growth?

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Johannesburg,  5 September 2019 – State-owned companies (SOCs) have long played a pivotal role in South Africa’s economy. Not only do they provide basic infrastructure without which  businesses cannot operate –   such as water, power, road and rail – – but they also employ millions of South Africans, thus enabling them to participate in the economy.

However, during  the last dacade, SOCs such as Eskom, Transnet, South African Airways and the SABC have been criticized for being engines that have enabled the cancer of corruption and State capture to take place. Corruption and poor corporate governance have resulted in a growing number of South Africans calling for the privatization of some of the SOCs.

But how should SOCs be turned around to be enablers to the economy? That is one of the  questions that will be deliberated upon at the upcoming Southern African Metals ad Engineering Indaba scheduled to take place on 12-3 September 2019 at the IDC Conference Centre is Sandton.

Providing answers to the questions will be the Department of Public of Enterprises,  IDC Divisional Executive: Mining and Metals Industries Trevor Arran; University of Johannesburg Associate Professor Nicholas Ngepah and SEIFSA Chief Economist Dr Michael Ade.

Remarking on this plenary session, SEIFSA CEO Kaizer Nyatsumba said there’s no doubt that SOCs have a big role to play in providing infrastructure development and reducing administered  prices in the country, but added that  a whole new strategy is required to manage them more effectively.

“There is reason to believe that, managed properly,  SOCs have an important role to play in our economy, but proper governance structures and new strategies are required to ensure that they become enablers of economic growth, and not inhabitors,” Mr Nyatsumba said.

Now in its fifth year, the Indaba is organized and hosted by SEIFSA. Its core objective is to provide a platform for policy makers, labour representatives and businesses operating in the metals, engineering and related sectors to discuss the challenges facing the sector and collectively to devise sustainable solutions aimed at ensuring its sustainability.

The Indaba will also deliberate on the following topics:

  • The new Automotive Production and Development Programme: Will the Metals and Engineering Sector Benefit?
  • A Growing Chinese Presence in South Africa: How Should Local Business Respond?
  • The Fourth Industrial Revolution and Manufacturing: Is South Africa Ready – Or Will It Be Left Behind?
  • eRe-imagining Industrial Strategy and the National Development Plan: A Progress Report on Their Implementation.

The line-up of speakers includes:

  • Ebrahim Patel, Minister of Trade, Industry and Competition;
  • Patrick Bond, Professor at the Wits School of Business;
  • Dr Thulani Dlamini, CEO of the Council for Scientific and Industrial Research;
  • Ayanda Mngadi, Chairperson of the Manufacturing Circle;
  • Elias Monage, Executive Chairman of Afika Holdings and Member of the South African Chapter of the BRICS Business Council; and
  • Massmart and Asphen Pharmacare Holdings Chairman Kuseni Dlamini.

My Nyatsumba said the agenda for the 2019 Indaba was informed  by the state in which the metals and engineering sector currently finds itself.

Issued by:

Ollie Madlala
Communications Manager
Tel: (011) 298 9411 / 082 602 1725
Email: ollie@seifsa.co.za
Web: www.seifsa.co.za

Kaizer Nyatsumba MEI 2018 Opening Address

Over 200 Stakeholders Will Be Attending The Metals And Engineering Indaba On 12-13 September 2019.

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WILL YOU BE THE ONLY ONE MISSING OUT?

More than 200 stakeholders with an interest in the welfare of the Metals and Engineering Sector in particular and Manufactuing in general will be attending the Fifth Southern African Metals and Engineering Indaba (M&E Indaba) in Sandton, Johannesburg on 12-13 September 2019.

Will you be the only one missing out? Don’t miss out on a great opportunity to make your voice heard as South Africa grapples with various economic and political challenges. Don’t wonder what happened. Be there to make yourself heard and to watch it all unfold.

The M&E Indaba offers 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 our sector and to revive economy.

Speakers include, among impressive others:

  • Trade and Industry Minister Ebrahim Patel;
  • Public Enterprises Minister Pravin Gordhan;
  • Council for Scientific and Industrial Research CEO Dr Thulani Dlamini;
  • BRICS Business Council Chairperson Busi Mabuza;
  • Africa House Director Duncan Bonnett;
  • Department of Trade and Industry Chief Director for Africa Multilareral Economic Relations Wamkele Mene;
  • NUMSA General Secretary Irvin Jim and Solidarity General Secretary Gideon du Plessis;
  • Manufacturing Circle Chairperson Ayanda Mngad; and
  • National Association of Automotive Components and Allied Manufacturers Renai Moothilal.
MEI 2019 Register CTA

Be part of the search for a solution to South Africa’s manufacturing challenges. You are not as powerless or helpless as you may believe. Unfortunately, challenges do not yet have the ability to resolve themselves. That is why we have to work together to resolve them. Make your voice heard. Engage. Contribute. Innovate. Sustain. Register for the Fifth Indaba, where matters of concern to you and all of us will be discussed. Don’t miss out on this wonderful opportunity to be heard.

Register now on www.meindaba.co.za, where you will also find the detailed conference programme. Key Government, business (including some of your customers) and labour leaders will be there. Don’t be the only one missing out. I look forward to seeing you at the conference at the Fifth M&E Indaba at the IDC Conference Centre on Thursday, 12 September 2019 as one of the more than 200 sufficiently concerned stakeholders.

Yours Sincerely
Signed electronically
Kaizer M. Nyatsumba
Chief Executive Officer

Kaizer Nyatsumba MEI 2018 Opening Address

Reasons to Register for 2019’s Metals and Engineering Indaba

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DON’T MISS OUT – REGISTER NOW.

AMONG THE ITEMS ON THE AGENDA ARE THE AFRICAN CONTINENTAL FREE TRADE AGREEMENT, THE FOURTH INDUSTRIAL REVOLUTION, BRICS AND THE 2020 WAGE NEGOTIATIONS

You are the leader of an important business, with a vested interest in our country’s economy and developments which impact on our country, the SADC region, the metals and engineering sector and, most likely, the rest of manufacturing. Given your position within your company and your status as a senior business leader, you have a major responsibility to influence economic policies and to help to shape a better tomorrow.

While it may not seem so to some, inevitably stakeholder management is an important part of your job.

Until recently, business has buried its collective head in the sand and focused on survival, while much went wrong in the country. It was not until two years or so ago that Business Leadership South Africa, Business Unity South Africa and the general business community, through initiatives such as “Save SA”, made their voices heard in the fight against corruption, State Capture and poor economic choices.

That responsibility to save South Africa and fight for sound economic policies does not belong to organised business only. It belongs equally to all business leaders in the country, including yourselves by virtue of the influential positions that you hold. Stop looking to others for solutions, roll up your sleeves and get involved. Failure to do so and complacency, during such a critical period in our country’s history, amounts to irresponsibility and is tantamount to serious dereliction of duty.

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That is why I am issuing this direct invitation to you – as Chief Executive Officers, Managing Directors and General Managers – to register to attend the Fifth Southern African Metals and Engineering Indaba, which takes place on 12-13 September 2019 at the IDC Conference Centre in Sandton. Please bring your Senior Executives and Managers along. They have as much of a duty to co-shape our economic future.

The Fifth Southern African Metals and Engineering Indaba (M&E Indaba) will place the spotlight squarely on our sector in particular and manufacturing in general. It offers all stakeholders –captains of industry and business executives like yourselves, 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 our sector and to revive the economy.

Speakers include:

  • Trade and Industry Minister Ebrahim Patel;
  • Public Enterprises Minister Pravin Gordhan;
  • Council for Scientific and Industrial Research CEO Dr Thulani Dlamini;
  • BRICS Business Council Chairperson Busi Mabuza;
  • National Development Commission Secretary Tshediso Matona;
  • Africa House Director Duncan Bonnett;
  • Department of Trade and Industry Chief Director for Africa Multilareral Economic Relations Wamkele Men;
  • NUMSA General Secretary Irvin Jim and Solidarity General Secretary Gideon du Plessis;
  • Manufacturing Circle CEO Phillippa Rodseth; and
  • National Association of Automotive Components and Allied Manufacturers Renai Moothilal.

President Cyril Ramaphosa is due to deliver the Opening Address on Thursday, 12 September and Gauteng Premier David Makhura is due to deliver the Closing Address on Friday, 13 September.

Be part of the search for a solution to South Africa’s manufacturing challenges.

As you know, in the past decade the South African economy has been seriously under-performing. If nothing is done to arrest the situation speedily, things can only get worse. None of us can afford such a scenario.

What are you doing to arrest and reverse that terrible trend, which has seen manufacturing in South Africa coming under tremendous pressure from cheap, mostly Asian imports? You are not as powerless or helpless as you may believe.

Unfortunately, challenges do not yet have the ability to resolve themselves. That is why we have to work together to resolve them.

Make your voice heard. Engage. Contribute. Innovate. Sustain.

Register for the Fifth Southern African Metals and Engineering Indaba, where matters of concern to you and all of us will be discussed.

Don’t miss out on this wonderful opportunity to be heard.

Register now on www.meindaba.seifsa.co.za, where you will also find the detailed conference programme.

Key Government, business (including some of your customers) and labour leaders will be there. Don’t be the only one missing out.

I look forward to seeing you at the Fifth Southern African Metals and Engineering Indaba at the IDC Conference Centre on 12-13 September 2019.

Yours Sincerely

Signed electronically
Kaizer M. Nyatsumba
Chief Executive Officer

SEIFSA Mmusi Maimane

President Ramaphosa’s Fiscal Stimulus Package Does Not Hold Key To South Africa’s Long-Term Economic Growth

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Johannesburg, 21 September 2018 – Government’s fiscal stimulus package will not provide long-term solutions to South Africa’s ailing economy, instead Government needs to create a conducive environment for entrepreneurs in the private sector to grow their businesses and, subsequently, grow the economy, so said Democratic Alliance leader Mmusi Maimane.

Delivering the closing address at the fourth Southern African Metals and Engineering Indaba, in Sandton this afternoon, Maimane said President Ramaphosa’s stimulus package, launched today, could not address all the challenges, including decrease in investment, decrease in ease of doing business, decreasing value of the rand and constantly rising fuel and food prices, currently facing the country.

“I genuinely do not believe that a fiscal stimulus package will have a sustained positive effect in the absence of sensible economic reform. South Africa needs to take a fundamentally different approach to our economy,” said Maimane.

METALS AND ENGINEERING INDABA CONFERENCE DELEGATES

Metals And Engineering Indaba Conference Delegates Pass A Resolution For Government

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Metals And Engineering Indaba Conference Delegates Pass A Resolution For Government To Be Effective In Implementing And  Monitoring Designation Of Local Content

Johannesburg, 21 September 2018 – Delegates attending the 4th Southern African Metals and Engineering Indaba organised by the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) at the IDC Conference Centre in Sandton passed a resolution for Government to be effective in implementing and monitoring designation of local content.

During discussions in the 5th and 10th sessions, delegates expressed a strong need for the Government to be much more effective in monitoring the implementation of designation of local content in production processes across all value chains, and also expressed disappointment about the awarding of tenders by State-owned enterprises to foreign companies, when there is capacity for local businesses to manufacture the same products.

Delegates stressed the fact that designation of locally-sourced products (towards improving local content) should be complied with and that infrastructure investment without designation of products that can be sourced locally will be futile.  However, delegates acknowledge that there may be instances where domestic capacity may be less than stated demand, owing to the contraction or closure of some sectors or in the event of new product ranges. In these instances, delegates felt that a temporary allowance for imports may be granted, after full utilisation of domestic capacity, with the knowledge that the supply deficit would undoubtedly induce expansion investment.

SEIFSA Metals and Engineering

A Million Jobs By 2027 Possible If Chinese Investment Effect Is Well Managed

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Johannesburg, 21 September 2018 – Business and Government need to work together to increase demand for locally-manufactured products if the creation of one million jobs, in the manufacturing sector, by 2027 is to be realised, Manufacturing Circle CEO Philippa Rodseth said at the Metals and Engineering Indaba, in Sandton this afternoon.

“We need demand side interventions. Without demand, we cannot produce at full capacity, we cannot attract investment and we cannot create jobs. We, therefore, need to increase aggregate demand by buying locally-manufactured gods, replacing imports where possible and increasing local producers’ exports to markets outside South Africa.

Last year, the Manufacturing Circle launched its “Map to A Million New Jobs in a Decade” plan, with the organisation’s chairman André de Ruyter saying at the time: “If manufacturing can expand to 30% of GDP, between 800 000 and 1.1 million direct jobs can be created, with 5 to 8 times that number in indirect jobs,” he added. “Our ‘Map to a Million’ puts forward detailed proposals to deliver a million jobs in manufacturing in the next decade.”

SEIFSA Steel and Engineering

Lack Of Skills, Low Economic Growth And Saturated Markets Constraints

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Lack Of Skills, Low Economic Growth And Saturated Markets Constraints To Investing In Metals And Engineering Sector

Johannesburg, 21 September 2018 – Lack of demand in the form of large infrastructure projects, expensive input costs, lack of skills required by the metals and engineering (M&E) sector as well as policy uncertainty, low economic growth, low returns on existing investment and a saturated domestic market are some of the factors identified as constraining investment in South Africa’s M&E sector.

Speaking at the Metals and Engineering Indaba taking place at the IDC Conference Centre, Southern African Institute of Steel Construction CEO Paolo Trinchero said other factors identified as barriers to investing in the sector include lack of trust between government, business and labour, lack of collaboration in pursing sustainable industry solutions and lack of innovation.

Echoing Mr Trinchero’s sentiments, Steel and Engineering Industries Federation of Southern Africa Chief Economist Michael Ade said there has, over the last decade, been a lack of both green and brown fields investment into the sector owing to low demand, among other factors.

He said, as a result, domestic producers were under pressure to shed jobs, which in turn lead to low productivity in the sector – this created a negative vicious cycle, which is bad for the economy.

Anc And Da Outline Their Plans For Economy At The Metals And Engineering Indaba

ANC And DA Outline Their Plans For Economy At The Metals And Engineering Indaba

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Johannesburg, 21 September 2018 – The ruling party is cognisant of and appreciates challenges facing South Africa’s metals and engineering (M&E) sector including lack of demand, proliferation of illegal imports, high input costs, unemployment and lack of investment, its head of Economic Transformation Committee Enoch Godongwana said this morning.

Speaking at the Southern African Metals and Engineering Indaba currently taking place at the IDC Conference Centre, Mr Godongwana said in response to the challenges currently facing the M&E sector, Government’s industrial policy needed to reverse the deindustrialization trend, focus on labour intensive sectors to create jobs and, in collaboration with the private sector, invest in vocational training to address the shortage of skills in the sector.

Mr Godongwana said he also believed that Government needed to incentivize business owners who reinvested their profits into labour intensive production.

“Massive investment also needs to be made in capital infrastructure projects to reverse the challenges facing the M&E sector, particularly lack of demand. We also need to tighten the framework for localization but all these efforts must be done in a manner that enables Black people to participate in the economy to ensure social cohesion,” said Mr Godongwana.

SEIFSA Steel and engineering

Metals And Engineering Indaba Conference Delegates Pass A Resolution

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Metals And Engineering Indaba Conference Delegates Pass A Resolution Condemning Ministers’ Failure To Attend The Conference

Johannesburg, 20 September 2018 – Delegates attending the 4th Southern African Metals and Engineering Indaba organised by the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) at the IDC Conference Centre in Sandton firmly resolved to express their bitter disappointment at the inability of some high-ranking government officials to attend important and relevant sessions.

The delegates said these sessions presented a unique opportunity for the various individuals to interact with members of the community, labour and academia and preeminent researchers to get direct insights into challenges facing the economy.

An invitation was extended to both Finance Minister Nhlanhla Nene and Public Enterprises Minister Pravin Gordhan to attend the sessions on working together to improve South Africa’s Sovereign Credit Rating and a reflection on what needs to be done to end or contain public corruption and corporate malfeasance in South Africa. Both Ministers declined the invitation.

Domestic Manufactures Must Work Together To Survive

Domestic Manufactures Must Work Together To Survive

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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%.”