Chemicals Industry Must Succeed in Navigating Global Market Transitions to Remain Competitive – Deputy Minister Steenhuisen

The Deputy Minister of Trade, Industry and Competition, Mr John Steenhuisen says the chemicals industry in the Southern African Development Community (SADC) region must navigate successfully major global transitions to remain competitive. He added that diversification, decarbonisation and digitalisation will increasingly shape the competitiveness of the sector.

He was speaking at the SADC Chemical Allied Industries Association (CAIA) Workshop on Globally Harmonised System of classification and labelling of chemicals held in Durban.

In South Africa, the scale of the sector’s contribution to the economy is significant. It generates up to R1 trillion in output and contributes around 2.4 % of GDP and directly employs more than 182 000 people.

Steenhuisen asserted at the workshop, that chemicals are not simply products in themselves, but they are the building blocks that support economic activity and value addition throughout the industrial system, with linkages to almost every productive sector of the economy.

He further emphasised the need for greater downstream value addition, stronger innovation and improved access to regional and continental markets.

“We need cleaner production processes, greater resource efficiency and investment in modern technologies. We also need to harness digital technologies to improve compliance, information management and supply-chain visibility. Recent global events have demonstrated the vulnerability of supply chains to geopolitical tensions, logistics disruptions and concentrated sources of supply. Regional cooperation can help countries navigate these transitions more effectively through the sharing of expertise, stronger technical capacity and greater regulatory predictability,” he told attendees at the worshop.

He added that a stronger and more integrated regional chemicals industry can contribute to industrialisation across SADC, through increased productive capacity, complementary capabilities, more reliable access to critical inputs and greater participation in regional and continental markets.