Incentives for steel industry: SA

Incentives for steel industry: SA
17/05/2018 , by , in ALLIED

To support the metal and engineering sector which has been severely affected by electricity price hikes and slowing demand in the mining sectorthe Department of Trade and Industry is to launch a new incentive.

Trade and Industry of South Africa Minister Rob Davies during his budget vote speech in National Assembly announced the new incentive. The incentive costs R500m in the current year and is meant to mitigate the effects of the import tariffs on the downstream steel sector. The decline of foundries which can also result to decentralization is the matter of concern for the officials.

To stabilise the sector, thee incentive which would be matched against investments will aim at enhancing competitiveness in the whole value chain. The incentive was intended to support the industrialization of the country which is at high risk.

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