STEEL INDUSTRY KEY TO SUSTAINABLE ECONOMIC DEVELOPMENT – DEPUTY MINISTER MASINA

STEEL INDUSTRY KEY TO SUSTAINABLE ECONOMIC DEVELOPMENT – DEPUTY MINISTER MASINA

The steel industry is keys to sustainable economic development and steel products remain the most tradable commodities globally.

The Deputy Minister of Trade and Industry, Mr Mzwandile Masina said this. He was speaking at the 77^th Organisation for Economic Cooperation and Development (OECD) Steel Committee conference hosted by the Department of Trade and Industry (the dti) in Cape Town today.

Deputy Minister Masina noted that in the last three decades, developing countries have been the key driver of steel supply and demand. 70% of current global steel production is from the non-OECD member countries thereby highlighting the importance of the participation of developing world in the global steel strategies.   

Deputy Minister Masina, who emphasised the role of the steel value chain to the industrialisation process, added that the sector was a significant job creator as well as a foreign exchange earner.

“The global primary steel industry provides about two million direct jobs and about 50 million inclusive of jobs created downstream. “It is an undisputed fact that a country that processes semi-refined minerals or goods and converts them into complete, value-added products cost efficiently will consistently grow its economy,” said the Deputy Minister Masina

“While South Africa remains the third largest exporter of iron ore globally and the largest primary steel producer on the continent, the downstream segment of the steel industry holds enormous potential for investments, deepening of manufacturing capabilities and job creation,”  added Deputy Minister Masina.

He further indicated that the planned public infrastructure programme, ranging from rail, energy, housing, education, water and sanitation will create a demand stimulus for the steel industry both upstream and downstream. He also highlighted the opportunities for this value chain in the African continent arising from the middle-class growth, infrastructure programmes, mining projects, as well as oil and gas.

The Chairman of the OECD Steel Committee, Mr Risaburo Nezu said South Africa endowed with an abundance of raw materials to produce steel. He expressed optimism about the opportunity of exchanging of views between delegates from various countries participating in the conference.

The Steel Committee is comprised of 27 OECD country members, 4 associates (Brazil, Romania, Russian Federation and Ukraine), as well as seven participants (Argentina, Bulgaria, Egypt, India, Malaysia, South Africa and Chinese Taipei). Other non-OECD countries participate per invitation.

Caption: Deputy Minister of Trade and Industry, Mr Mzwandile Masina speaking at the Steel Committee conference in Cape Town.