Consortia, skills and logistics have become the most critical elements in ensuring South Africa’s input in a growing Africa, delegates at the Southern African Metals and Engineering Indaba heard on Thursday.
Within a rapidly changing landscape, South Africa urgently needs to start planning strategically, focusing on relevant skills development and consortia “hunting like a pack” when pursing projects in Africa.
South Africa’s singular historical focus on mining- and agricultural-oriented industries has, meanwhile, left a skills gap in new emerging industries, such as gas, that could leave the country falling short as its neighbours pursue their chosen means of development, said Africa House projects and development FD Paul Runge.
Speaking on the first day of the Indaba, held at the Industrial Development Corporation’s premises, in Sandton, he cited extensive gas-to-power ambitions, as well as the expanding information and communications technology, cement and the automotive sectors, besides others, in West and East Africa, in particular, where local beneficiation is rightly demanded.
The subsequent industrial nodes that are developing as a result are also slowly eroding South Africa’s historical position as a gateway into Africa.
“The situation is very dynamic,” Runge said.
However, South Africa could plan more strategically to ensure its input in these developments and, with its mining history, could “easily” convert and apply the deeply rooted resource skills into the oil and gas industry, for example.
However, key to the country’s involvement in developments in the rest of Africa will be a “hunt like a pack” mentality, leveraging the strength of comprehensive consortia, including finance partners, when battling for projects on the continent against competitive international rivals.
This is increasingly essential with an increasing number of unsolicited bids in Africa.
“We are playing on a global stage. We have to compete globally. It is essential to hunt in packs – that is what the competition is doing,” Runge commented.