433369666-The-Case-for-Investing-in-South-Africa

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68 | BASE METALS AND METALS FABRICATION SECTORS • South Africa has the most established metals sector in Africa, hosting major international, vertically-integrated mining firms such as Anglo American and South 32, as well as ArcelorMittal SA in the steel value chain. • The country’s non-ferrous metals production capacity includes: - Non-ferrous base metals from raw and recycled materials, including aluminium (South Africa is Africa’s top producer of aluminium, accounting for about 1% of global production), lead, zinc and tin; - Unwrought non-ferrous base metals; - Production of mattes of nickel and copper; and - Semi-finished metal products via rolling, drawing and extruding to produce powders, flakes, foil, plates, sheets or strips, bars, rods or profiles, wire, tubes, pipes and pipe fittings. • The basic non-ferrous metals industry accounted for about 3.3% of overall merchandise exports in 2018. • The industry is supported by strategic policy support programmes targeting local components supply in the automotive value chain. This has enhanced its prospects and the scope for increasing local beneficiation. GROWTH AND EXPORT PERFORMANCE OF THE BASE METALS AND METAL FABRICATION SECTORS • The basic iron and steel sector has recorded an average annual growth rate of 2.4% since the 2009 recession year. Its GDP has returned to pre-Global Financial Crisis (GFC) levels in real terms. • Sustained surpluses in the global steel market, protectionism and tension in the world’s trading environment, alongside import penetration in the South African market, particularly from low-cost steel producers, have been posing significant threats to this recovery momentum. • The value-add of the metal products sector, which has a high export propensity, has now exceeded pre-GFC levels in real terms. • South Africa has developed a competitive advantage in primary aluminium fabrication, despite not being endowed with bauxite resources. The export orientation of the sector positions it well to leverage on regional market growth opportunities. • Export competitiveness to be supported by South Africa’s renewable energy and rail capacity expansion plans. BASE METALS AND METALS FABRICATION SECTORS: GDP TRENDS BASE METALS AND METALS FABRICATION SECTORS: GDP TRENDS 30 90 Basic iron and steel exports 80 Basic non-ferrous metals exports ZAR billion at 2010 basic prices ZAR billion at constant 2010 prices 25 20 15 10 5 Basic iron and steel GDP Basic non-ferrous metals GDP Metal products excluding machinery GDP ZAR billion at 2010 basic prices ZAR billion at 2010 basic prices 70 60 50 40 30 20 10 Metal products (excl. machinery) exports 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
| 69 EXPORT PERFORMANCE OF THE BASE METALS AND METALS FABRICATION SECTORS Export performance driven by ferro-alloys, unwrought aluminium & articles of iron & steel Top basic iron and steel export products, 2018 ZAR million % of total SA merchandise exports Ferro-alloys 49 928 4.0% Rolled stainless steel sheet, width > 600mm 9 080 0.7% Hot-rolled products, iron/steel, width>600mm, etc 6 179 0.5% Flat-rolled iron/steel, >600mm, clad, plated/ 3 564 0.3% coated Pig iron and spiegeleisen in primary forms 3 190 0.3% Semi-finished products of iron or non-alloy steel 1 913 0.2% Iron/steel bar, forged hot-rolled drawn, extruded 1 690 0.1% Other 10 904 0.9% Total basic iron & steel 86 447 6.9% Top non-ferrous metals export products, 2018 ZAR million % of total SA merchandise exports Unwrought aluminium 14 568 1.2% Aluminium plates, sheets&strip, thickness> 7 275 0.6% 0.2 mm Unwrought nickel 5 042 0.4% Unrefined copper, copper anodes, etc 3 643 0.3% Refined copper and copper alloys, unwrought 3 437 0.3% Aluminium tubes and pipes 1 415 0.1% Manganese, articles thereof, waste or scrap 909 0.1% Other 4 696 0.4% Total non-ferrous metal products 40 984 3.3% Top basic metals export products, 2018 ZAR million % of total SA merchandise exports Structures, parts of structures of iron or steel 4 910 0.4% Articles of iron or steel nes 3 361 0.3% Interchangeable tools & dies for hand/power tools 1 417 0.1% Screws, bolts, nuts, rivets, etc, iron or steel 1 105 0.1% Iron/ steel cloth, grill, fencing and expanded metal 901 0.1% Aluminium casks, drums, etc capacity
Page 1 and 2:
THE CASE FOR INVESTING IN SOUTH AFR
Page 3 and 4:
CONTENTS 1. WHY INVEST IN SOUTH AFR
Page 5 and 6:
10 REASONS WHY YOU SHOULD INVEST IN
Page 7:
| 3 WORLD-RENOWNED FOR INDUSTRIAL I
Page 11 and 12:
| 7 SOUTH AFRICA AT A GLANCE • So
Page 13 and 14:
| 9 SOUTH AFRICA AT A GLANCE: INFRA
Page 15 and 16:
| 11 SOUTH AFRICA AT A GLANCE: SOCI
Page 19:
3. ECONOMIC OVERVIEW
Page 22 and 23: 18 | - Manufacturing output increas
Page 24 and 25: 20 | FISCAL POLICY GEARED TOWARDS F
Page 26 and 27: 22 | GLOBAL ECONOMIC DEVELOPMENTS
Page 28 and 29: 24 | RELATIVE PERFORMANCE OF SELECT
Page 31: 4. POLICY FRAMEWORK
Page 34 and 35: 30 | MICROECONOMIC POLICY INTERVENT
Page 36 and 37: 32 | INDUSTRIAL POLICY SUPPORT Attr
Page 38 and 39: 34 | TRADE POLICY: MAIN BENEFITS OF
Page 41: 5. ENABLING ENVIRONMENT
Page 44 and 45: 40 | EASE OF DOING BUSINESS: SOUTH
Page 46 and 47: 42 | ATTRACTIVE INCENTIVES TO SUPPO
Page 49: 6. OPPORTUNITIES FOR INVESTORS
Page 52 and 53: 48 | SECTORAL STRENGTHS OF SOUTH AF
Page 54 and 55: 50 | EXPORT-ORIENTED SECTORAL OPPOR
Page 56 and 57: 52 | SOUTH AFRICA AS A KEY REGIONAL
Page 59: 6.1 AGRICULTURE AND AGRO-PROCESSING
Page 62 and 63: 58 | SA GDP, 2018 WELL-ESTABLISHED,
Page 64 and 65: 60 | AGRICULTURE AND AGRO-PROCESSIN
Page 67: 6.2 MINING AND MINERALS BENEFICIATI
Page 70 and 71: 66 | A HIGHLY DEVELOPED AND DIVERSI
Page 74 and 75: 70 | INVESTMENT OPPORTUNITIES IN MI
Page 76 and 77: 72 |
Page 78 and 79: 74 |
Page 80 and 81: 76 | MANUFACTURING SECTOR’S EXPOR
Page 82 and 83: 78 | AUTOMOTIVE INDUSTRY: EXPORT-OR
Page 84 and 85: 80 | AUTOMOTIVE VALUE CHAIN: INVEST
Page 86 and 87: 82 | ELECTRICAL MACHINERY AND EQUIP
Page 88 and 89: 84 | CHEMICALS AND CHEMICAL PRODUCT
Page 90 and 91: 86 | CLOTHING, TEXTILES, FOOTWEAR A
Page 92 and 93: 88 | ADVANCED MANUFACTURING • The
Page 94 and 95: 90 | ADVANCED MANUFACTURING: OPPORT
Page 96 and 97: 92 |
Page 98 and 99: 94 |
Page 100 and 101: 96 | Contribution to the economy St
Page 102 and 103: 98 | BUSINESS PROCESS OUTSOURCING (
Page 104 and 105: 100 | FINANCE AND INSURANCE • The
Page 106: 102 | OCEANS ECONOMY • Several fa
Page 111 and 112: | 107 AN EXTENSIVE INFRASTRUCTURE D
Page 113 and 114: | 109 INFRASTRUCTURE DEVELOPMENT PL
Page 115: GREEN INFRASTRUCTURE INVESTMENT OPP
Page 119 and 120: SOUTH AFRICA: BUILDING PARTNERSHIPS
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