An influx of cement from Asian producers is undermining the local industry, according to a company providing information services to the construction industry.
CEO of Databuild Morag Evans said in a statement: ‘In an industry already in the grip of a severe downturn owing to the decline in infrastructure development, not only are these imports negatively impacting the competitiveness of our local manufacturers, but independent studies have shown the quality of these international products to be inferior.’
She pointed to research suggesting that much of the imported cement was substandard, or did not meet local environmental standards.
‘The long-term health, safety and environmental implications could be severe,’ she added.
Evans suggested that stricter standards be adopted by government, and also expressed support for the idea of 45% tariffs on imports. This would ‘go a long way’ to help the industry.
She noted that such a course of action ‘could lead to an upsurge in the price of cement and ultimately increase inflation, which would not bode well for the country’s economic growth’.
Nevertheless, South Africa could not afford to lose its domestic industry, which was both essential for economic growth and for providing employment.