Covid-19, local steel price increases, unstable electricity supply and the rising price of fuel – along with the cost of living - all pose challenges to economic recovery, the Steel and Engineering Industries Federation of Southern Africa (Seifsa) has said.
Responding to last week’s Medium Term Budget Policy Statement (MTBPS), the Federation said: “The metals and engineering sector remains a crucial supplier of inputs into major sectors such as construction, mining and other manufacturing sub-industries.
“Because it’s an integral part of economic and industrial development in the country, the MTBPS’s infrastructure opportunities through the economic reconstruction and recovery plan will assist the ailing sector in its recovery,” Seifsa said.
The Federation applauded Finance Minister Enoch Godongwana for the continued commitment to the Infrastructure Fund, which it believes should unlock more infrastructure projects for implementation.
“It places special emphasis on fiscal sustainability and on economic reforms which are focused on improving competitiveness, productivity, investment, and employment. These are extremely crucial for the South African economy, and for the metals and engineering sector.”