Posted: 13 October 2025
The Southern Africa Stainless Steel Development Association (Sassda) recently attended the latest South African Circular Manufacturing Initiative (SACMI) stakeholder engagement, reinforcing its mandate as the voice of stainless steel and its role in representing the interests of the entire South African value chain.
The meeting marked a significant step in aligning the stainless steel sector with national efforts to formalise and accelerate circular manufacturing. Sassda says many of its members have already embraced circular economy principles, not out of policy, but out of necessity.
Sassda Executive Director Michel Basson comments, “Our industry has been applying circular principles for years, not always by design, but by economic imperative. We optimise material, reduce waste, and prioritise recyclability because our margins depend on it.”
This aligns closely with SACMI, a flagship programme under the Department of Science, Technology and Innovation (DSTI). SACMI is engaging stakeholders across the country to shape a national circular economy strategy that will define the next decade of industrial development.
Spearheaded by the National Cleaner Production Centre of South Africa (NCPC-SA), SACMI aims to embed circular economy principles deeply into South Africa’s industrial base by leveraging science, technology and innovation (STI). Grounded in the 2019 STI White Paper and aligned with the 2022–2032 STI Decadal Plan, the initiative is setting the course for a cleaner, more efficient and globally competitive manufacturing ecosystem.
At the heart of this process is a series of focused stakeholder sessions, surfacing the practical challenges, knowledge gaps and innovation opportunities faced by industry. These inputs will inform the final SACMI Strategy Report and help direct future investments and policies.
Existing Practices, Unrecognised Progress
While many stakeholders still see circular economy adoption as a future goal, the stainless steel sector has quietly led in several areas. From material optimisation and alloy separation to energy efficiency and advanced manufacturing, the industry has built up practices that now align closely with SACMI’s four strategic pillars: Resource Efficiency and Cleaner Production, Circular Product Design, Advanced Manufacturing, and Remanufacturing.
Basson points out that fabricators already adopt meticulous nesting techniques to reduce waste, leverage high-precision NC laser and plasma cutters to cut down on labour time, and separate alloy-specific scrap to maximise recycling value. These aren’t just sustainability efforts; they’re key to commercial survival.
Stainless steel itself is also playing a pivotal role in this shift. Being 100% recyclable and currently recycled at rates exceeding 96%, it naturally fits into circular manufacturing models. Moreover, nearly 80% of primary stainless steel materials used by mills in South Africa originate from recycled stainless or carbon steel, a statistic that places the sector well ahead of global standards for material circularity.
“Our sector didn’t wait for circular economy frameworks to start operating more sustainably,” says Basson. “That said, formalising and accelerating these efforts through SACMI will help us extract more value and help other sectors follow suit.”
Four Pillars for Industrial Modernisation
The SACMI strategy outlines four STI priority areas that will guide its implementation over the next 5 to 10 years:
- Resource Efficiency and Cleaner Production - Encouraging reduced raw material input, energy, and water use while maximising productivity and minimising waste.
- Circular Product Design - Integrating circularity at the earliest stages of product development to enable easier reuse, repair, or recycling.
- Advanced Manufacturing - Promoting the adoption of innovative technologies such as AI, robotics, additive manufacturing, and digital twins to enhance efficiency and enable cleaner processes.
- Remanufacturing - Rebuilding or upgrading used products or components to original or improved specifications to extend product lifespans and retain economic value.
While resource efficiency and some advanced manufacturing practices are already embedded in the stainless steel sector, Basson notes that circular product design and remanufacturing remain untapped frontiers.
“There’s a clear opportunity to invest in local remanufacturing capacity. It’s not just about sustainability, it’s about competitiveness. Circular design thinking can enable us to localise products, develop new markets, and reduce dependency on imports.”
From Awareness to Action
A key takeaway from the recent SACMI focus group sessions is the need for broader awareness, education, and tangible case studies to bridge the gap between theory and implementation.
The sector has long embraced resource efficiency because it offers immediate cost benefits, but some circular economy interventions especially those involving newer technologies or rethinking entire value chains require upfront investment and long-term planning. In South Africa’s constrained economic climate, this presents a challenge.
“Most fabricators can’t afford to take big technological leaps without support. What we need are pilot projects, shared learning, and STI-led clusters that de-risk innovation,” says Basson.
He adds, “A proposal from the stainless steel sector involves a SACMI-supported pilot cluster where five companies jointly implement circular economy strategies, share performance data, and evaluate results in a real-world context. These outcomes can then be scaled across the broader industry.”
Another practical proposal is localising the production of stainless steel beer kegs, which are currently all imported. By designing and manufacturing these products locally under circular economy principles, the industry could develop an export-competitive product while strengthening domestic capacity.
Closing the Gaps
Despite its progress, the industry still faces significant gaps, particularly in the adoption of circular product design and the development of remanufacturing ecosystems. These require not just technical capabilities, but also access to markets, finance, and specialised knowledge.
STI has a critical role to play here, especially in creating training programmes, funding pilots, and compiling local case studies that showcase proven circular models.
Basson comments, “We don’t need global examples, we need local proof points. If STI can help us gather data, develop case studies, and support technical training, we can move from theory to impact faster.”
Sassda is already playing its part by integrating circular economy content into its training programmes and publications, and by using its platforms to promote awareness across the sector. However, Basson says stronger collaboration with research institutions, government agencies, and innovation hubs is essential to sustain momentum.
Shaping the Next Decade
The SACMI strategy is not just a plan, it’s a call to action. By connecting the dots between sustainability, innovation, and economic resilience, it offers South Africa’s manufacturing sector a real path toward long-term transformation.
For the stainless steel industry and other sectors navigating complex market pressures, this isn’t just a moral imperative; it’s a commercial one. SACMI’s emphasis on practical implementation, stakeholder input, and measurable outcomes could position South African manufacturers not only as greener, but as smarter, more agile players in the global arena.
“Circular economy adoption is not an expense, it’s an investment in our future,” Basson concludes. “And with the right STI support, we can turn that investment into growth, resilience, and leadership.”