Concrete Institute has asked for higher tariffs on products from China and Vietnam because cost to customer is not the only measure that countsThere is a gruesome scene in the film about the assassination of fashion icon Gianni Versace. The villain lifts a sack of cement over the prostrate body of his victim and says words to the effect of, “I may not hurt you, but this concrete will”, before dropping it, with the desired effect.
This is well understood by President Cyril Ramaphosa. During his recent state of the nation address the president reiterated the government’s commitment to infrastructure spend and said R250bn worth of projects have “entered implementation phase”. In addition to this, he said the private sector had committed to investing in 43 projects worth R840bn, creating 155,000 jobs over the next five years.
The last time this happened with imports from Pakistan, the institute approached the International Trade Administration Commission , which duly applied the necessary import tariffs. However, Vietnam and China have stepped into the gap, leaving the institute with little alternative other than to approach Itac for a “safeguard action” to level the playing fields and ensure the sustainability of the national asset that is the SA cement sector.
Some argue that such duty increases will weaken and ultimately destroy local manufacturing because it makes them less competitive. Such data-driven arguments are, at best, disingenuous and, at worst, obvious scaremongering.Cost to consumer alone is not a measure of a competitive industry.
The cement, concrete, and affiliated industries employ thousands of South Africans whose jobs would be on the line if the government does not step in to protect local cement production.Local manufacturers produce about 12.5-million tons of cement a year. They can produce an additional 5-million tons. When the infrastructure programme kicks in, the sector will need to grow along with the country if it is to keep pace with development. Major investors recognise this.
I on my side business uses tons of cement I don’t understand why our SA cement same strength costs R15 more than imports per 50kg bag? Can someone please explain this?
Labour, fuel and electricity making SA uncompetitive even in its own back yard
'This is not a call for protectionism but a sensible business strategy' Seriously ? 🙄 It's a call for protectionism.
The local companies tried to cement their their high prices
😂