ArcelorMittal South Africa’s (AMSA) decision to shut down its long steel business, putting over 80,000 jobs at risk, exposes the deep flaws in the country’s industrial policies, says Mlondi Mdluli, DA Deputy Spokesperson on Trade, Industry & Competition.
“This is a devastating blow for workers and a direct result of failed government policies that have crippled the sector,” Mdluli said.
He pointed to three key policy missteps:
- Departmental Master Plans that have artificially propped up selected companies, including AMSA, fostering dependency rather than competition.
- Price Controls (Price Preference System) forcing scrap metal to be sold domestically at below-market prices before it can be exported.
- Scrap Metal Export Tax, further disincentivising exports and weakening the industry.
The DA is calling on Trade, Industry & Competition Minister Parks Tau to scrap these failed interventions and implement pro-market reforms instead.
“We need to shift from policies that stifle competition and exports to those that drive real economic growth,” Mdluli said.
The DA proposes:
- Reviewing industrial subsidies to ensure they create sustainable growth, not reliance.
- Prioritising export-driven strategies to increase revenue.
- Creating a competitive business environment through investments in infrastructure, affordable energy, safety, and skills development.
“The time for politically convenient, short-term fixes is over. South Africa has the potential to be a thriving trade economy, but only if we adopt policies backed by evidence and real political will,” Mdluli concluded.
