Sugar and steel masterplans in the works – Ramaphosa

The president has been pushing special master plans for key economic sectors since coming into office.
SA's sugar and steel industries – hit by the dumping of cheap imports from Brazil and China – are set to get their own sector specific master plans. Picture: Shutterstock

South Africa’s struggling sugar and steel industries are in line for their own sector-specific master plans, president Cyril Ramaphosa revealed during his State of the Nation Address (Sona) in Cape Town on Thursday night.

Ramaphosa has been pushing special master plans for key sectors in the local economy since becoming president in 2018.

Read: ‘SA’s private sector is not on an investment strike’

The sector master plans, which have the backing of business and labour, are along the lines of the government’s highly successful motor industry masterplan, known as the Motor Industry Development Programme (MIDP).

Described as “one of the most significant industrial policy interventions”, the MIDP has been going for over two decades, now under updated versions.

“We have developed a plan with farmers and industrial users to save jobs in the sugar industry and will finalise a Sugar Master Plan within the next six weeks; and expect a new Steel Master Plan to be finalised in the coming six months,” said Ramaphosa.

South Africa’s sugar and steel industries have been badly affected by cheap imports from Brazil and China. Both sectors have seen significant job losses in recent years and industry bodies have called on government to increase import tariffs to prevent dumping. This is also the case with the poultry industry.

Commenting further during Sona, President Ramaphosa said government has progressed in finalising and implementing master plans in vital parts of the economy. “These master plans bring government, labour and business together to develop practical measures to spur growth at sector level and each partner contributes to making it work,” he said.

“Thanks in large measure to the Auto Master Plan, we sold more cars to the rest of the world last year than ever before, providing jobs for young people in Eastern Cape and KwaZulu-Natal…. We also launched a new auto SEZ [Special Economic Zone] hub in Tshwane, which will expand production and local manufacture of components,” he added.

Toyota injects R4.28bn into SA’s economy
SA investment drive: Ramaphosa’s claimed pledges now stand at R663bn

Ramaphosa noted that the Clothing and Textiles Master Plan, which was signed last year and launched at the South Africa Investment Conference in November, aims to create 121 000 new jobs in the retail-clothing, textile and footwear sector over the next decade.

He also called on South Africans to buy local clothing and other products.

“This suit that I am wearing today, like last year, was proudly made by South African workers right here in Cape Town,” the president enthused.

“The Clothing and Textiles Master Plan involves commitments by retailers to buy goods locally, by manufacturers to invest and support transformation, and by labour to develop bargaining structures that promote agile manufacturing.… For its part, government has already begun to act vigorously against illegal imports, seizing almost 400 containers with under-invoiced products in the last quarter of 2019.”

He also said that the government had completed its Poultry Master Plan, aimed at supporting chicken farmers and processors. The plan targets saving some 54 000 jobs in the sector, while also creating new jobs.

“The industry is now focused on growth, greater production and more investment. We will within two weeks set a new poultry import tariff adjustment to support the local industry,” Ramaphosa pointed out.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.



Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.


Now I get it. The master plan is to set and increase import tariffs in certain sectors, which is ok. Now what about getting our electricity costs and supply sorted, other business costs down as wages and having good schooled productive workers. We need to become competitive in the global market.

Seemes like Ramaphosa strives to be the black Trump

2018: “Lets introduce a sugar tax.”
2020: “Guys, we need prop up the sugar industry to save jobs.”

You can make this stuff up.

* You can’t make this stuff up *

Forget about sugar, steel, saa or your momma! Fix eskom !!!!

Nope. Have to first fix the corruption mindset. Get rid of the Cabal of Criminal Cadres. And stop turning a blind eye to theft, maladministration, deployment of incompetents, keeping patronage networks intact, etc. etc. all in the pursuit of unity of the party. Clearly such action will not be implemented, so no, nothing will ever be fixed until everything is comprehensively broken and destroyed beyond redemption. Then the chance of starting all over from scratch? – well that will be beyond our lifetimes so let’s not even bother to speculate.

The biggest problem in SA apart from the obvious ESKOM fiasco is the lack of demand. This is a direct result of base cost in SA way too high. ALL the high administered prices are just passe through to the consumer who has no money.
These so-called master plans are just more tariffs and costs which will be passed along driving demand down even further.
NO-ONE has any MONEY
Saving a few jobs by killing the buyers of products dont make much sense

The ANC has only one Master Plan, asset-strip our beloved country and then blame the post-colonials

Ok so :

1. There is a global glut of sugar and a societal move away from it. Your local sugar industry is in shambles and you want to increase sugar production.
2. Glut in global steel, local industry closing plants, Eskom unable to provide power for more plants and you want to increase steel production.

You are a very special kind of stupid are you not???

That exposes where CR is so weak and lazy. He does not take the time or effort to understand SA economics. Take two examples; sugar production and the auto “industry” are subsidised to the tune of billions by SA’s taxpayers and consumers. With all the other ANC corruption and incompetence (government, municipalities, Eskom etc etc) the money for subsidisation is running out. Sad Cyril the Stupid; but very well of personally, thank you SA taxpayer. So he don’t really care, along with all his other ANC elite chums.

A Sugar Master Plan, a Steel Master Plan, a Clothing & Textile Master Plan, an Auto Master Plan, a ….. He forgot to mention the most basic of master plans that underwrites all of the aforesaid, i.e. an ANC Master Plan which details how to loot and get away with it.

End of comments.





Follow us:

Search Articles:Advanced Search
Click a Company: