Stainless Steel offers Potential Growth in Local Steel Consumption

Posted: 03 April 2026

With stainless steel having the advantage of being the only suitable material for certain applications – particularly in food processing, pharmaceutical manufacturing and specific industrial environments – these sectors offer potential growth in local steel consumption.

As such, should government infrastructure plans translate into tangible projects with meaningful local content requirements, the industry will benefit according to industry body Southern African Stainless Steel Development Association (Sassda) executive director Michel Basson.

“This is a strong starting point. However, in a slow-growing economy it is important to create demand beyond what local economic growth alone can generate,” Basson states.

As manufacturing capacity grows through local infrastructure development, industry should also look north to other African markets, where infrastructure development is accelerating and creating new opportunities, he explains.

When cities and towns expand through infrastructure development, secondary industries such as hospitals, water purification plants and refineries are established, with Basson noting that these are areas where South African manufacturers can be highly competitive. Consequently, policies should ensure the maximum local content in infrastructure projects, with tangible outcomes rather than merely administrative compliance, he notes.

He adds that after 30 years of democracy and improved regional relationships, South Africa has barely begun to tap into Africa’s market potential.

However, Basson states that this cannot be blamed solely on government as many companies have yet to conduct even a basic feasibility study on how to expand into African markets.

Sassda will begin the implementation of specific programmes in 2026 to help its members become export-ready, obtain necessary certifications and access tactical market intelligence on opportunities across the continent.