Seifsa is a national federation representing 16 independent employer associations in the metal and engineering industries, with a combined membership of over 1 300 companies employing over 140 000 employees.
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The Steel and Engineering Industries Federation of Southern Africa (Seifsa) has welcomed the launch of South Africa’s new Industrial Development Strategy but has cautioned that the success of the plan will depend on greater stakeholder consultation, clearer policy direction and decisive implementation.
Seifsa is a national federation representing 16 independent employer associations in the metal and engineering industries, with a combined membership of over 1 300 companies employing over 140 000 employees. The federations membership ranges from giant steel-making corporations to micro-enterprises employing fewer than 50 people.
In a statement issued on Friday, Seifsa said it supports the broad objectives of the strategy unveiled by the Department of Trade, Industry and Competition (the dtic), particularly its focus on industrialisation as a driver of economic growth, job creation and competitiveness.
The federation said the strategy correctly recognises the importance of a strong industrial base in supporting South Africa’s long-term economic resilience and development goals.
“At a broad level, Seifsa supports the strategic intent of the document and welcomes renewed emphasis on industrialisation as a key lever for economic growth, employment creation and competitiveness,” the organisation said.
“The strategy correctly recognises that a capable industrial base remains central to South Africa’s long-term economic resilience and developmental ambitions.”
However, despite welcoming the policy direction, Seifsa raised concerns about several aspects of the strategy, arguing that important details remain unclear.
A key concern relates to the process through which the strategy was developed. The federation said it would have preferred a more consultative approach involving industry stakeholders, particularly those in the metals and engineering sector.
“Effective industrial policy is strongest when it is shaped through structured engagement between government, industry, labour and other social partners,” Seifsa said.
“A strategy of this significance will ultimately achieve greater legitimacy and practical relevance when it is co-developed with the industries it seeks to support.”
The federation noted that the metals and engineering sector plays a critical role in the economy, serving as an enabler for mining, construction, energy, transport, manufacturing and infrastructure development.
Seifsa also argued that while the strategy presents a broad vision for industrial development, it lacks sufficient detail on how its objectives will be achieved.
According to the organisation, the document outlines important policy intentions but falls short of providing a clear roadmap for implementation.
“Having studied the document, Seifsa’s initial assessment is that the strategy is strong in articulating broad principles and policy intentions, but thin on implementation detail,” it said.
Parliament last week said South Africa's steel industry requires urgent and coordinated government intervention to prevent further job losses and industrial decline.
The headcount and production capacity in the steel sector have dramatically declined over the past decade, with jobs falling from over 50,000 people employed in basic iron and steel in 2009 to less than 25,000 currently.
The federation believes the strategy would benefit from a clearer long-term vision for reindustrialisation, supported by measurable targets, strategic priorities and defined timelines.
“Industry requires clarity on how the policy instruments, timelines, sequencing, institutional responsibilities and measurable deliverables will ultimately determine success,” Seifsa said.
The organisation stressed that certainty is essential for businesses considering new investments.
“Industry requires certainty, and certainty is communicated through clear policy direction and decisive implementation. Businesses make investment decisions based on confidence in the policy environment and on clear signals regarding government’s strategic priorities,” it said.
Another major concern raised by Seifsa is the relationship between the new Industrial Development Strategy and existing sector master plans, particularly the Steel and Metal Fabrication Master Plan.
The federation said it remains unclear whether the new strategy is intended to complement or replace the current master plan framework.
“There appears to be conflation between the role of the Master Plans and the new strategy,” Seifsa said.
“On the face of it, one might reasonably conclude that the Industrial Development Strategy is intended to replace the current Master Plan architecture. However, this has not been explicitly clarified.”
The lack of certainty, it warned, could create confusion about where industry stakeholders should focus their engagement efforts and where implementation priorities lie.
Seifsa called on government to move quickly to translate the strategy into practical, sector-specific plans with clear accountability mechanisms and implementation milestones.
For the metals and engineering sector, the federation said priorities should include reliable and affordable energy, efficient logistics systems, infrastructure-led demand, effective trade measures, localisation, investment support and policy certainty.
Despite its concerns, Seifsa reiterated its commitment to working with government and other stakeholders to refine and implement the strategy.
“Seifsa remains committed to working with government and all stakeholders in refining and implementing the strategy,” the organisation said.
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