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Financial liberalisation

Mapping the trends and patterns of the metal and engineering sectors in Africa

Metal in Africa: a dying industry

Authors: T. Guliwe; M. Moussouris; International Metalworkers Federation (IMF); Friedrich Ebert Foundation (FES)
Publisher: National Labour and Economic Development Institute, South Africa, 2006

Africa’s metal industry faces a number of developmental challenges, including weak infrastructure, lack of adequate investments, skills shortage, political instability and an inequitable global market. This study explores the performance, trends and patterns of the metal and engineering sectors in Africa within their broader context. It also examines approaches to assist unions in the steel industry.

Key findings on the metal and engineering sectors in Africa indicate that:

  • these sectors are shrinking and some have completely collapsed
  • Structural Adjustment Programmes and trade liberalisation have had a negative effect on the   development of these sectors
  • Southern African countries do not have their own manufacturing base and tend to rely on imports
  • the engineering sector faces foreign dumping which leads to the collapse of metal plants and companies
  • a shift from permanent to atypical, or casual, employment undermines efforts for unionisation
  • the problem facing the unions organising in the steel sector is relational and cannot be treated in isolation from other factors.
The author identifies a need to form local and global alliances towards mobilising social movements, community based organisations and other forces.