Blog posts of '2020' 'March'

A recent study by Oxford Economics confirms what we all intuitively understand: steel is one of the backbone industries on which economies are built and jobs created. Our product is used to make the objects that make a modern society work—without steel, manufacturing would simply be impossible. That means that steel has an unusually long and influential value chain, creating value and jobs across its own supply chain and then into the whole economy. The research shows that for every $1 of value added within the steel industry, a further $2.50 of value is added by companies across the globe that supply the industry. Another major factor is the weakness of the South African economy itself. This weakness is based on multiple factors, including poor infrastructure, under-performing state-owned enterprises, ineffective labour legislation and a calamitously dysfunctional educational system—not forgetting the impact of corruption. All of these factors drive negative sentiment, further perpetuating a downward spiral. These are obviously hugely complex issues, and it is a cause for optimism that business as a whole is working together with Government to play its part in resolving them.