While public discourse has touched on the surface implications of ITAC’s steel tariff review, the preliminary findings released on 20 August 2025 carry far-reaching and deeply concerning consequences that have not yet been fully acknowledged.
“As the Cape Engineers & Founders Association (CEFA), a 105-year-old employers’ organisation representing 128 companies and nearly 10 000 employees in the Western Cape – 75% of whom are SMMEs – we feel compelled to raise the alarm. The proposed measures threaten to destabilise the very foundation of South Africa’s downstream manufacturing sector,” said a CEFA spokesperson.
CEFA listed their key concerns:
Import permits on everyday goods
“The review proposes extending import control to hundreds of items – from raw materials to consumer products. This includes basic goods such as cutlery, padlocks, tools, stoves, and cookware. South Africans may face widespread shortages.”
Corruption and cronyism risks
“The permit system introduces delays, inefficiencies, and opens the door to arbitrary decision-making. It creates fertile ground for corruption and political favouritism.”
Downstream devastation
“Far from protecting jobs, these measures will cripple hundreds of manufacturers, retailers, and service providers who rely on steel inputs. The ripple effects will be felt across the economy.”
Protection of a few at public expense
“The review appears designed to shield a single entity – ArcelorMittal South Africa (AMSA), which is 70% foreign-owned – despite repeated taxpayer bailouts and preferential treatment. This comes at the expense of thousands of local businesses.”
Politicised and flawed process
“The scope of the tariffs is unprecedented. The review has been rushed through with minimal transparency, and the public participation process has been reduced to a procedural formality.”
Escalating costs across the value chain
“With duties raised to WTO-bound rates and import controls imposed, costs will surge. Permit applications will carry fees, administrative burdens will grow, and supply chain delays will force businesses to hold excess stock – driving up prices for consumers.”
CEFA asks who really benefits: “The review claims to ‘protect the metals manufacturing industry,’ yet AMSA is its clear beneficiary. Despite bailouts (R1.7 billion in 2025), anti-dumping tariffs (58%), and subsidised electricity, AMSA remains uncompetitive.”
“The IDC’s interest in acquiring a failing mill – while also falling under the DTI alongside ITAC – raises serious governance concerns.”
The myth of ‘cheap imports’
“The narrative that imports are ‘killing local manufacturing’ is misleading. Quality and delivery are as critical as price. Local steel often fails quality benchmarks, as noted by NAAMSA in its ITAC submission. AMSA has received extensive government support and still cannot compete.”
“So why does South African manufacturing really struggle? The reasons are numerous and include the fact that electricity costs have risen over 500% in 15 years, coupled with an unreliable supply. Rail infrastructure has virtually collapsed, forcing costly road transport. Labour costs are among the highest globally for unskilled workers, compounded by weak training and frequent strikes and SETA failures continue to burden industry with a lack of and inefficiencies in skills.”
Import permits = self-imposed sanctions
“The preliminary report effectively imposes a sanctions regime on South African businesses. ITAC will determine who may import, how much, and under what conditions. Everyday goods – many with no local production – are included.”
Risks to consumers and small business
“This regime will choke small businesses with red tape, delays, and uncertainty. Retailers, hardware stores, furniture makers, and end-users will all be affected. The cost burden will cascade through the economy.”
“These proposals are not protective – they are punitive. They favour one failing company at the expense of hundreds of others. They risk shortages, price hikes, and systemic corruption. South Africans deserve a transparent, inclusive debate – not a rushed political intervention.”
“We urge media centres, chambers of commerce, and institutional stakeholders to amplify this message and demand accountability. CEFA stands ready to collaborate with all parties committed to protecting South African industry, jobs, and consumer rights.”
