that engage with their members. And I believe
we did reach significant milestones on all these
fronts. So, in spite of all the challenges that the
industry had to contend with at the time, I’m glad
I accepted the challenge for it is in challenging
environments that one gets to really learn and
grow.
Q
: What were the main challenges
facing the M&E sector then and
where were the opportunities?
A
: The challenges were many: on the one
hand. economic growth had slowed
down and needed to be stimulated; on the
other hand, Government’s tax collections had
underperformed, thus curtailing its fiscal scope
to stimulate growth through spending; and
the country imported too much, resulting in
a widening balance of payments shortfall. In
addition to these challenges, instability in the
industrial relations sphere had spilled over into
serious volatility and long periods of disrupted
production. There were also disruptions due to
energy constraints. Furthermore, administered
prices drove cost escalation, competition from
imports grew and, of course, there was the
month-long strike, which resulted in about R6
billion’s worth of lost production. Overall, the
M&E sector was operating in a period of sustained
low economic growth. Local manufacturers had
to compete with highly-subsidised steel imports
mostly from Asian countries – and they were not
coping. In addition to cheap imports that domestic
producers had to contend with, the impact of the
2008/9 financial crisis was still evident and many
businesses, both large and small, were on the
brink of closure. However, the challenges facing
the sector at the time presented opportunities
for Government, labour and business to start a
dialogue aimed at understanding and confronting
the real issues facing the sector. This period also
presented opportunities for companies to come
together and face the challenges head on as a
collective. The industry was, therefore, “forced”
to work together in finding solutions to the
challenges it faced.
Q
: What would you say were your
top priority areas when you took
over your position?
A
•
: The most important things for the SEIFSA
Board and Council were:
To minimise the wage