Opportunities in South Africa – From the 5th to the 9th of September, the Electra Mining Africa 2022 Expo took place at the Johannesburg Expo Centre in Johannesburg, South Africa, successfully showcasing South Africa’s manufacturing and exporting capabilities.
Goals of the Electra Mining Africa 2022 Expo
For many companies, the Covid Pandemic meant less exposure – thus the opportunity to showcase new technologies and innovations at this years’ expo was greatly welcomed.
This year’s event aimed to ignite investor relations & export potential and increase investments, effectively highlighting South Africa’s ability to design and manufacture world-class products.
Eric Bruggeman, CEO of the South African Capital and Equipment Export Counsil (SACEEC), said that the SACEEC aims to drive localisation in the manufacturing space, utilising platforms like the Elektra Mining Expo and the Local Southern African Manufacturing Expo as part of their so called “inward buying mission”.
Inward buying and localisation aim to create jobs, drive investor relations and showcase South Africa’s strengths and abilities, thereby strengthening exports and improving the South African economy.
The North-South Corridor
Another element to strengthen exports is the received significant interest in the North-South Corridor (NSC).
The NSC programme was designed as a transit and transport value chain to address transport issues in a sequential and multi-modal manner. It includes interlinked projects addressing road infrastructure, road transport facilitation, railway system and rail infrastructure management, physical and operational improvements at border crossings, port infrastructure, air transport management and energy interconnections.
The Electra Mining Innovation Awards
On the evening of the 9th of September, the Electra Mining Innovation Awards took place. In this ceremony, the SACEEC engaged with international delegates from countries around the world including the Netherlands, Russia, Peru, Chile and Ecuador. Additionally to these international participants, African countries including Zambia, the Democratic Republic of Congo, Ghana and Kenya have expressed interest in participating in upcoming trade expos in South Africa.
Challenges
The manufacturing and export sectors of South Africa are facing a number of challenges that, according to Bruggeman, need to be addressed urgently.
Local manufacturers need a constant supply of power to maintain machinery uptime. Currently, South Africa is experiencing between 2 and 6 hours of downtime a day. To combat this, the planned solar and wind energy projects should be fast tracked.
Bruggeman added that the state of the countries ports and transport infrastructure needs to be further improved to be able to fully exploit the export potentials. According to him, South African ports need to be properly maintained and upgraded to give potential investors and international customers the assurance that products will arrive at their destination on time and intact.
A further challenge is the availability of well-priced raw materials. Through recycling and reusing, the country should be able to cater for most manufacturers’ raw material requirements without the need to import. The method of recycling and reusing will also facilitate an increase in jobs, upskilling of workers and a decrease of manufacturing turnaround times.
Opportunities in South Africa – The South African Steel and Metal Fabrication Master Plan 1.0
To combat the forementioned challenges, the Department of Trade, Industry and Competition (DTIC) together with industry stakeholders and government facilitators, have set the foundation for the so-called “South African Steel and Metal Fabrication Master Plan 1.0”.
It is estimated that, through the plan, about 200.000 tonnes and up to 500.000 tonnes of imported final products could be replaced. This would create approximately 800 direct jobs and add about ZAR 7 billion to the countries’ GDP.
Lately, imports in the manufacturing and automotive sectors have seen their market share grow. According to Bruggeman, the current focus should be on the construction, automotive and mining industries’ manufacturing space. He sees this as essential pillar in the development of the steel and engineering industry. He believes that export and manufacturing are an essential part of the countries’ future and emphasized that while the Master Plan is still in the early stages, it should not simply remain a plan, but action needs to be taken to reach the next level of implementation soon.
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