Is SA’s steel industry on the rocks?

The National Employer’s Association has called into question whether South Africa can afford to keep on supporting AreclorMittal South Africa (Amsa). They argue that the company has become an inefficient giant that’s being supported by the government by way of tariff protection to the tune of 20% and that their existence prevents the downstream steel industry from enjoying more competitively priced steel imports of even better quality.

They’re lumping Amsa alongside with State-owned companies likes Eskom and SAA, arguing that they’re nothing but a burden to the state. Nompu Siziba discusses the topic at hand with Marique Kruger. an economist at Seifsa.