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Manufacture of Insulated Wire and Cable in South Africa 2015

  • July 2015
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  • Who Owns Whom
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  • 55 pages

Summary

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The Manufacture of Insulated Wire and Cables: This report focuses on South Africa’s wire and cable industry, a sub-sector of the metal and engineering industry, which is reliant on demand from all sectors of the economy. The sector is dominated by large power cable manufacturers who are all members of the Association of Electric Cable Manufacturers of South Africa (AECMSA).


Challenges : The local industry is not operating at its full production capacity for a variety of reasons including high operating costs and the lack of sizeable orders, especially from the mining, building and construction sectors. Imports are increasing, with copper and fibre-based low voltage telecommunication cables accounting for the largest value of imports, at 39% of the total electric wire and cables market. This is despite the sector being designated in the Preferential Procurement Policy Framework Act, which means the stipulated minimum threshold percentage for local production and content for the different types of electrical and telecom cables is 90%.


Opportunities: In its February 2015 Budget, government prioritised spending on infrastructure development, allocating R813bn over the next three years. R339bn will be spent on transport and logistics, which includes Transnet’s upgrade of its freight rail network, R166bn for energy, with Eskom receiving R138bn for energy infrastructure, and R117bn for water and sanitation infrastructure. This spending should provide growth for the local wire and cable manufacturing industry which is currently valued at approximately R8bn.



Report Coverage:

The report on the manufacture of insulated wire and cables describes the current market, outlines developments within the sector and focuses on factors influencing the success of the local industry. The report also profiles 14 South African companies, including Aberdare Cables (Pty) Ltd, Atc (Pty) Ltd and Malesela Taihan Electric Cable (Pty) Ltd.

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