REAL-LIFE SCENARIO 5: The effect of the disastrous policies and duties implemented by ITAC and the ANC: The three blind mice of Industrial Policy.

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A REAL-LIFE SCENARIO OF AN EMPLOYER IN THE STEEL DOWNSTREAM

• Company CBA (Pty) Ltd, operated as a well-established scrap metal recycler that employed just under 90 employees at its peak.

• By 2018, economic pressures began to adversely affect its business operations, leading to a drastic reduction in its workforce.

• The Price Preference System (PPS), which forces domestic suppliers to sell scrap locally at a discounted rate before they may export, severely cut Company CBA (Pty) Ltd’s revenue stream.

• The situation worsened in 2022, when an export ban on ferrous and copper scrap metal was introduced, which reduced the company’s profits and greatly limited its potential export opportunities.

• By 2023, almost 50% of the company’s workforce had been retrenched.

• This sharp decline is the result of restrictive market practices and protectionist import and export policies that diminished the company’s competitiveness.

• By 2025, the situation continues to deteriorate. Unless there are significant policy overhauls, Company CBA (Pty) Ltd faces the risk of permanent closure.

This is yet another horror story courtesy of the ANC, ITAC and duties.

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NEASA Media Department

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