Johannesburg: President Cyril Ramaphosa has underscored the necessity of using South Africa's extensive infrastructure investment programme as a mechanism to rejuvenate the nation's industrial sector, enhance manufacturing capacity, develop skills, and generate employment. Addressing the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Presidential Business Breakfast at the Radisson Hotel OR Tambo, the President emphasized that the country is on the brink of a significant period of infrastructure investment and economic reform.
According to South African Government News Agency, President Ramaphosa articulated that the investment should transcend mere infrastructure development, aiming instead to rebuild the industrial base of South Africa. He highlighted the strategic importance of the metals, engineering, and capital equipment industries, acknowledging the challenges these sectors face, including domestic and global pressures such as weak demand, logistical issues, and high electricity costs.
President Ramaphosa stressed the importance of electricity reform, particularly for energy-intensive industries. He announced the upcoming operation of the South African Wholesale Electricity Market, which will foster competition and is expected to lower electricity costs. Additionally, he spoke about the Eskom Restructuring Task Team's role in establishing a state-owned transmission company, which aims to reduce risks, ensure energy security, and maintain Eskom's fiscal health.
On the energy front, Ramaphosa sees the energy transition as an opportunity for industrial growth, advocating for domestic production of technologies necessary for the new energy economy. He detailed the need for a vast expansion of the country's electricity transmission network, emphasizing the demand it would create for various industrial products and services.
In logistics, the President outlined the potential benefits of rail and port infrastructure reforms, emphasizing the need for significant private investment and the revival of South Africa's railway engineering capabilities. Water sector reforms were also highlighted, with government investments aimed at ensuring reliable industrial water supplies critical for various sectors.
President Ramaphosa announced the R1 trillion infrastructure programme, framing it as an industrial strategy rather than just a construction initiative. He called for competitive localization to support domestic industries and ensure efficient and timely delivery of infrastructure projects. He also proposed enhancing predictability in infrastructure investment to encourage domestic manufacturing.
Acknowledging the steel industry's strategic importance, the President stressed the need for a competitive and sustainable sector, supported by government initiatives to deepen domestic value chains and ensure fair trade practices. He urged an emphasis on skills development as a cornerstone of infrastructure investment, advocating for training and development within major infrastructure projects.
Finally, Ramaphosa highlighted the opportunities presented by the African Continental Free Trade Area, envisioning South Africa as a hub for engineering and manufacturing exports across the continent. He called for a renewed focus on industrialization, leveraging the country's resources, capabilities, and the potential of its youth to build a robust, export-oriented industrial economy.
Through these efforts, President Ramaphosa envisions transforming South Africa into a manufacturing powerhouse, creating sustainable jobs and fostering economic growth.