SEIFSA WELCOMES A PRO-GROWTH MEDIUM TERM POLICY STATEMENT 

Johannesburg, 30 October 2024. The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) commends the National Treasury on a policy statement that is underpinned by a pro-economic growth narrative while maintaining a good degree of fiscal prudence. The latter is critical because it will ensure a virtuous cycle where further pro-growth initiatives can be undertaken. 
  
The structural reforms that have already been undertaken through Operation Vulindlela are starting to yield noteworthy and welcomed benefits on the economy. The focus of the second phase of the initiative on network industries is important. The deterioration of the quality of infrastructure across these industries has been the albatross on economic growth and on the metals and engineering sector. SEIFSA has consistently highlighted that an aggressive industrialisation project can be driven through the repair and rebuild of existing infrastructure. 
  
SEIFSA furthermore welcomes the focus on infrastructure development as a catalyst for growth. Infrastructure development across all its permutations is an important source of demand for the metals and engineering sector. The commitment by Treasury to publishing Treasury Regulation 16, which administer public-private -partnerships by end of November this year for implementation in 2025/26 is an important milestone in the right direction.    
  
SEIFSA has historically called for the finalisation of these regulations to mobilise private sector financing and technical expertise. The Federation remains committed to working with the government in this regard. 
  
The macro-economic environment at a global level is gaining momentum and has turned supportive, it is therefore incumbent that the country takes full advantage of the benefits that this supportive environment will yield. Equally, domestically the tide is turning positive and keeping this momentum going will be critical to driving a major industrialisation agenda.