Andre de Ruyter Vaal Triangle's infrastructure makes it an attractive area for investment
If government declares the Vaal Triangle a special economic zone, it will not only attract investment back to the area, but also reignite the manufacturing industry, creating jobs and more prosperity.
Manufacturing Circle chairperson Andre de Ruyter said in late November that this could be carried out “practically”, without special policies and “huge investment” by government.
He noted that the area was plagued by “massive unemployment”, reaching more than 40% in certain townships – “a dire number”.
De Ruyter warned that, with plants closing down, the area was “turning into South Africa’s Rust Belt”.
This is being exacerbated by a slow rate of investment, with major production plants’ viability also under threat. “All this leads to negative social consequences,” he added.
However, he noted that the Vaal Triangle was an attractive area for investment, as it already had good infrastructure, including roads, rail, pipelines and water. It also had established social infrastructure, including hospitals, housing and education institutions up to tertiary level.
De Ruyter further pointed out that most people living in the Vaal Triangle’s serving area already had training or had worked in a manufacturing or construction environment.
The Manufacturing Circle is engaging with a task team set up at the request of the National Treasury. The team is approaching a number of banks to find ways to stimulate economic growth in the region.
The CEO Initiative, which involves leaders of various business sectors, also lists the revitalisation of manufacturing in the Vaal Triangle as one of its priorities.
The Vaal Triangle is home to major existing manufacturers of raw materials, including ArcelorMittal South Africa, Safripol, Sasol and Omnia.
De Ruyter said government’s special economic zone policy was already in place, which meant that the strategy could be carried out “quite quickly” in the Vaal.
The Manufacturing Circle also has a number of goals it would like to achieve in the local economy, including a competitive environment.
"We want a supportive international trade position, and to advance the reputation of South African manufactured products.
“In this regard, the resurrection of the Proudly South African campaign will be a hugely positive step for the manufacturing industry, sensitising the local consumer to use their buying power to support local business, which could be a catalyst to get the ‘buy local’ sentiment going again,” De Ruyter said.