Public-private partnerships will be critical as South Africa moves to accelerate implementation of pathways towards an inclusive, just and equitable transition to net-zero emissions.
This is according to Director of Ferrous Metals at the Department of Trade, Industry and Competition (the dtic), Ms Nyakallo Dlambulo. She was speaking at a multi stakeholder gathering dubbed: South Africa’s Green Industrialisation: Steel value chains and carbon markets held at the Capital Hotel on the Park in Sandton. The summit was organised by the dtic together with LeadIT, a Swedish based public-private initiative working to drive dialogue on decarbonisation with a focus on the steel sector.
Other partners involved are the Department of Environmental, Forestry and Fisheries (DFFE), the Department of Electricity and Energy (DEE) and National Treasury (NT), the South African Iron and Steel Institute, (SAISI), the Steel and Engineering Industries Federation of SA (SEIFSA) and the Manufacturing Circle.
Dlambulo highlighted that South Africa’s recently approved Industrial Development Strategy places decarbonisation, diversification and digitalisation at the centre of the country’s industrial future.
“Global climate commitments and trade measures are reshaping industrial competitiveness. Therefore, export competitiveness increasingly depends on carbon intensity and environmental performance, and South Africa cannot avoid the imperative to decarbonise at the same time avoiding de-industrialisation and job losses. The transition to clean energy presents industrial opportunities for the country – in areas of green steel, beneficiation, localisation, renewables, hydrogen and circular economy.
Government is already working with industry and labour, towards a comprehensive steel value chain roadmap incorporating technology transition, downstream development, demand-side interventions, trade measures and industrial upgrading,” she said.
She added: “The industry itself has already begun developing transition pathways and targets, including around energy efficiency, circular economy measures and lower-carbon technologies. And industry must continue investing in efficiency, cleaner technologies and innovation. Sector roadmaps and transition plans remain important.”
Dlambulo highlighted the importance of localisation, public procurement and infrastructure-led demand in creating market certainty for locally produced lower-carbon industrial products. She said at the same time, trade measures remain necessary to stabilise strategic sectors such as steel during the transition period as it is one of the sectors most exposed to emerging climate-related trade measures such as the European Union Carbon Border Adjustment Mechanism (EU CBAM).
She further underscored that South Africa’s energy transition must support domestic industrialisation outcomes, particularly through the expansion of transmission infrastructure, renewable energy and local manufacturing capability.
She emphasised that no single institution could drive this transition alone.
“Industrial transition requires an improved coordination across stakeholders involving the dtic, DEE, DFFE, National Treasury, Department of Science, Technology and Innovation (DSTI, State Owned Enterprises (SOEs), Development Finance Institutions (DFIs), industry and labour; academia and international partners,” she stressed.
She concluded that South Africa’s industrial decarbonisation pathway must remain developmental, coordinated and industrially inclusive, ensuring that the transition supports competitiveness, investment, localisation and sustainable job creation.
Enquiries:
Bongani Lukhele – Director: Media Relations
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E-mail: BLukhele@thedtic.gov.za
Issued by: The Department of Trade, Industry and Competition (the dtic)
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