South Africa: The Time for Corporate Welfare in the Steel Industry Is Over


Monopolies do not work -- they are only successful in raising prices and diminishing quality. The latest example of this is in the steel industry, which urgently needs reform.

The announcement on 11 November that ArcelorMittal South Africa (AMSA) intends shutting down its plant in Saldanha Bay, Western Cape, is another blow to our ailing economy. This will lead to a further 900 job losses - something the economy can ill afford with an unemployment rate of 29.1%. It exacerbates the damage of 2,000 job losses announced by AMSA in July 2019.

It doesn't help for Minister of Trade and Industry Ebrahim Patel to ask the company to sell it to a competitor rather than shut down. Rather, the industry at large requires reform.

The shortcoming of statistics is that they tend to reduce human lives to mere numbers. The reality is that the majority of breadwinners in affected communities are left hopeless, with no idea of where their next meal will come from. This is what should matter to our politicians and government officials. However, one cannot escape the fact that these job losses are largely the result of a lack of meaningful macroeconomic reform.

For far too long...

See What Everyone is Watching

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.