Key stakeholders from the cement and construction industry, and leading Western Cape policymakers have emphasised the need to protect and promote local industry, and to make strategic investments in infrastructure to drive economic recovery, safeguard the supply of critical materials, and support job growth.
Speaking at a Business Breakfast hosted by PPC – a leading South African provider of quality building materials and solutions – Western Cape Provincial Minister of Infrastructure Tertius Simmers told those attending that his department was committed to enabling infrastructure-led growth and investment for the Western Cape and creating an environment in which both the private sector and individual citizens could thrive.
The Business Breakfast, which was held on 14 November at the PPC De Hoek Hall, Piketberg, was an opportunity for leading members of the construction industry to discuss the most significant impediments to growth faced by businesses in the Western Cape and nationally. Also, crucially, to reflect on how stakeholders can unite to develop mutually productive strategies that support broad economic growth and ensure South Africa has the capacity and expertise to meet our infrastructure needs.
Reflecting on the role of infrastructure in a flourishing economy Simmers said “infrastructure acts as a facilitator and enabler for the movement of labour, capital, and other inputs to production, thus improving productivity and reducing costs. It opens new opportunities, increases competition, and reduces asymmetries and other market imperfections or failures.”
He stressed the value of an integrated approach, telling the audience he is taking a multi-sectoral approach to infrastructure investment. Simmers said that one of the key outcomes he is seeking in his tenure will be to ensure 21 891 residents of the Western Cape are able to get a title deed in the province’s affordable housing initiative.
The role of cement manufacturing in supporting jobs and growth
The event was also an opportunity to reflect on the findings of a recent report commissioned by PPC, which looked at the negative impact of dumped cement imports on the South African economy.
The report, entitled “The socioeconomic impact of substituting local cement production with imports”, was conducted by the Centre for African Management and Markets (CAMM) at the Gordon Institute of Business Science. It found that dumped cement imports put local production at risk, endangering jobs and depressing investment into local economies. Significantly, the research found that targeted tariffs on cement imports can play a crucial role in supporting local industry, protecting gainful employment and ensuring a consistent supply of quality construction materials.
Johan Vorster, Head of PPC’s Coastal Business Unit, said the cement industry is committed to helping grow the South African economy and continuing to support the country’s social development goals. “PPC employs 445 people in the Western Cape and a total of 1 840 people nationally. We take our social responsibility very seriously and are passionate about the social development initiatives we fund directly and to our tax contribution to the national fiscus.”
Importantly, the CAMM study shows, that PPC and its value chain create considerable benefit for the Western Cape and its people. For each job directly created by PPC another 7,2 jobs are indirectly created. The company’s value chain sustains 2 667 jobs across the province. Also, it is a critical source of revenue for SMMEs and supports local communities, with its overall contribution to provincial gross domestic product (GDP) totalling R1.8 billion.
The sector’s role in contributing to quality jobs is especially topical in light of employment data released by Statistics South Africa on 14 November 2023. The data shows the number of employed nationally has increased by 399 000 (to 16,7 million) in the third quarter of 2023.
In the Western Cape progress on jobs has been impressive. A presentation by the acting Head Official of the Western Cape Provincial Treasury, Julinda Gantana, revealed the Western Cape unemployment rate in Q2 2023 stood at 20,9%, marking a 7,1% improvement compared to Q4 2021.
These data show the scale of unemployment remained too high nationwide, yet progress was possible with appropriate policy mix and coordinated action by stakeholders.
While local cement manufacturers have long provided an important source of high-quality jobs, Vorster warned that dumped imports undermine the ability of the industry to play this critical economic role and to fulfil its social commitments. “Dumped cement imports create an uneven playing field for local producers. That threatens the viability of local facilities, putting jobs at risks and threatening to harm the small business and communities that depend on a thriving cement sector.”
Community engagement on economic policy and development
As trade policy choices directly affect communities living in areas where cement is manufactured, PPC also hosted a Community Forum on 15 November 2023 in De Hoek, Piketberg, to engage with community members on the findings of the CAMM study and the role of tariffs in safeguarding local manufacturing.
This was attended by Speaker of Bergrivier Municipality Randall Swarts, who emphasised the crucial role of the local cement industry in driving economic development and supporting social upliftment in communities.
Local authorities said the magnitude of the imports issue is too serious to ignore, for the country seeks sustainable economic development and accelerated job-creation strategies.
Some of these take the form of direct investment into community projects. For instance, PPC De Hoek partnered with the Bergrivier Local Municipality and other stakeholders to provide the Piketberg community with a youth centre, supporting 16 local SMMEs and creating 80 jobs in the construction phase.
The centre which benefits 200 youth per day, aims to address the various challenges and social ills facing young people, by empowering them through various types of skills development.
PPC’s Riebeek operations partnered with the Swartland Local Municipality and other stakeholders to implement four social projects, including youth skills development, early-childhood development centre compliance and training, to providing SMMEs with business skills.
Over the past five years PPC has invested about R6 million in social welfare, business development and job creation initiatives. Vorster said the company is committed to continuing and enhancing these kinds of initiatives. “We see ourselves as partners with the communities we operate in. Their prosperity is our prosperity, and we can create even greater successes together.”
The event was an invaluable opportunity to connect national trade-policy issues to the most urgent community concerns and for leaders and community representatives to share their perspectives and insights and the concrete steps to nurturing local businesses, protecting livelihoods and creating more quality jobs in the Western Cape and throughout South Africa.
