Infrastructure growth needs industry engagement At AfriSam’s bi-annual National Budget postanalysis event, private and public sector leaders came together to review the current state of the economy and the outlook for construction. IMIESA speaks to Richard Tomes, sales and marketing executive, AfriSam, about future scenarios.
From a construction materials perspective, the industry also needs greater clarity on the unfolding implications of the Mining Charter,” he explains. “Eskom is also looking to impose high tariff increases on industry, which will put even more pressure on costs. So, as a major corporate citizen and employer, we need to make our voice heard,” he continues.
s the leading black-controlled construction materials group in Southern Africa, AfriSam plays a critical role in sustaining a vibrant building and civil engineering industry, both at home and within the broader African region. The latter includes operations in Lesotho, Swaziland and Tanzania. The current trading environment remains
SOEs and the cost of borrowing
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Richard Tomes, sales and marketing executive, AfriSam, shares his views at AfriSam’s 2020 National Budget Breakfast
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IMIESA April 2020
constrained, with South Africa slipping into a technical recession during Q1 2020. Year-onyear, the construction sector remains a negative contributor to GDP and trading conditions will continue to be impacted by a struggling global economy going forward. This has now been compounded by the unprecedented Covid-19 pandemic. “At times like these, focusing on common goals is imperative and AfriSam stands firm in its commitment to its customers, employees and communities to find workable solutions,” says Tomes. “As an executive team, we are engaging with government on key issues that affect us and our industry. These include fair and transparent legislation, protection from cheaper-priced cement imports, and measures to improve the ease of doing business in South Africa. “As a country, we urgently need to boost local and foreign direct investment. However, that will require far clearer policy certainty on pressing issues like the land reform debate.
At AfriSam’s 2020 National Budget Breakfast, two internationally renowned speakers provided their expert analysis. Dr Azar Jammine, director and chief economist, Econometrix, presented an overview of South Africa’s 2020 National Budget, with specific reference to the building and construction industry. In turn, Daniel Silke, political analyst and keynote speaker, presented on the topic, ‘South Africa 2020: Tipping or Turning Point’. “Presenting the economic data and reviewing our political landscape is essential in formulating current and future business strategies,” says Tomes. Silke’s comments on how the rest of Africa is dealing with its SOEs was particularly interesting. The chosen route was towards privatisation – a case in point being Angola’s recent decision to sell off more than 70 SOEs. As Silke points out, there’s evidence of a substantial change in thinking, which now needs to be fully embraced in South Africa.
