The closure of ArcelorMittal’s operations in Newcastle and Vereeniging has sparked widespread concern, with ActionSA calling for urgent reform of South Africa’s industrial policies. The move, which resulted in the loss of 3,500 jobs, has exposed the deep-rooted flaws in the country’s economic framework.
According to ActionSA, the closure is a stark reminder of the government’s failure to address institutional issues crippling the economy. The party’s Member of Parliament, Alan Beesley, emphasized that South Africa’s staggering unemployment rate of 32.1% cannot afford such losses.
ArcelorMittal cited prolonged weak economic conditions, logistics and energy challenges, and unsustainable competition from low-cost imports as reasons for the closure. ActionSA argues that these challenges are not unique to the steel industry and raise concerns about the viability of other South African businesses.
The party is calling for a comprehensive review and overhaul of South Africa’s industrial policies, including the Price Preference System (PPS) and export duties. ActionSA believes that these policies have failed to support long-term industrial growth and stability.
“This is more than just an industrial failure; it is a policy failure,” said Beesley. “South Africa urgently needs bold and decisive leadership to stabilize key sectors, create jobs, and rebuild the economy. ActionSA stands ready to lead the charge for meaningful reform and to hold the government accountable for its failures.”
