Seifsa welcomes policy pronouncements in MTBPS

3rd November 2023 By: Tasneem Bulbulia - Senior Contributing Editor Online

The Steel and Engineering Industries Federation of Southern Africa (Seifsa) says the 2023 Medium-Term Budget Policy Statement (MTBPS) recognises, reflects and has been structured to respond to key headwinds facing the global and South African economy.

“The policy positions contained in this mini-budget are welcome for the fact that they communicate important reform signals. The only way to place the economy on a solid and sustainable trajectory is through economic growth and to achieve that, reform is critical. Particularly reform in the delivery of large-scale infrastructure projects,” Seifsa states.

It avers that, for the steel sector, one of the most important policy considerations communicated is the opportunity for private-public partnerships (PPPs) to finance and execute large infrastructure projects.

The federation emphasises that this will ensure that projects are executed with efficiency and speed.

The MTBPS enjoins the creation of new mechanisms to facilitate co-investing with the private sector and multilateral institutions on selected infrastructure projects and the employment of alternative financing instruments for priority projects.

Seifsa highlights these infrastructure projects as a crucial demand source for the metals and engineering sector, which has contended with a low-demand environment for the last 15 years.

It adds that the speedy and successful execution is of significant importance to the sustainability of the sector.

“We eagerly await the details that will underpin this PPP framework. However, even prior to this announcement in the MTPBS today, Seifsa has already begun engaging relevant departments, including National Treasury, to fast-track this objective,” the federation notes.