South Africa’s wire industry is struggling to sustain itself amid the circumvention of import duties, including through the misdeclaration of imported products – often at values below the cost of the raw materials used in the production process – and inadequate enforcement of import tariffs.

If sufficient local protection can be ensured against countries that support their manufacturing sectors through export incentives, import taxes are correctly applied and demand in the wire industry could be stimulated, the 50% underutilised manufacturing capacity available in the local industry could be used, says South African Wire Association (SAWA) chairperson Braam Botha.

Wires and wire-rod products are used in a wide range of downstream sectors such as construction, mining, manufacturing, automotive, agriculture, electricity, water and renewable energy.

Imports are a real threat to the industry, but the inverse is also true. If the local economy was booming and there was enough infrastructure development and demand locally, this would support the use of the underutilised wire manufacturing capacity, he says.

“If there were sufficient local demand, the discussions in the wire industry and the concerns about its sustainability would change. However, because local wire manufacturing companies are fighting just to survive, the conversation has focused on ensuring that regulatory institutions create a fair import environment, where imports can support local industry and not overtake it.”

The problem is that downstream manufacturers also need protection, as finished products can also be imported more cheaply, and they face challenges similar to those faced by primary manufacturers, he points out.

“We must take a holistic view of the industry. If demand is being created in South Africa, including through the designation of local content, the focus would change to ensure that we manufacture enough to satisfy this demand.”

Therefore, SAWA is advocating fair trade, local-content designation and a growth plan supported by government to ensure that the country protects its manufacturing capabilities and the more than 6 000 jobs in the industry.

A challenge facing the local industry is that some wire imports are being declared at R2 000/t to R3 000/t at the country’s borders, when the value should be R17 000/t to R20 000/t.

“Even if our local industry had low-cost and effective electricity supply and logistic solutions, it would not be able to compete against these under-declared price levels. One of the main causes for the surge in imports is the closure of some international trade routes and markets for Asian manufacturing powerhouses, and changes in trade relations that were triggered by geopolitical tensions,” Botha elaborates.

Europe has introduced the Carbon Border Adjustment Mechanism taxes on imported goods and the US has implemented import taxes for various countries, while anti-dumping tariffs have been instituted by numerous countries to protect their respective industries.

This has made Africa more attractive to exporters, and the Southern African Development Community (SADC) region has been targeted as an opportunity to replace these export markets.

This is the cause of the current anomaly: South Africa, for the first time in its history, has become a net importer of wire products in 2026, SAWA director Keith Campbell points out.

In 2025, South African wire manufacturers exported 278 118 t, of which 71% were destined for the SADC region, he notes.

Most other countries and regions have mechanisms to afford their industries a measure of protection, and it is easier to target regions and countries such as Africa and South Africa that do not have these restrictions.

SAWA was established to promote exports of finished wire products from South Africa. Local wire manufacturers are well versed in exports, and the country is known as a reliable exporter, adds Campbell.

With the steel and wire production overcapacity in industrialised countries, including China, production offsets are targeted at less protected markets, such as South Africa and Africa, concurs Botha.

While the local wire industry cannot compete directly against the production volumes and economies of scale achieved by Asian producers, which also receive subsidies for value-adding manufacturing and export incentives, it can compete in terms of quality, service and resilient supply to local and regional customers, he notes.

“This is where we need to keep our local manufacturers strong. Along with support from government through addressing high electricity costs and the lack of logistical solutions, including by ensuring functional rail infrastructure, it could create an environment in which the industry can sustain itself and grow.”

South Africa’s local wire industry manufactures about 650 000 t/y of wire-related products, but has capacity to produce 1-million t/y to 1.2-million t/y.

Plans and tangible support need to be implemented to reach these volumes, which will enable the local industry to invest in new equipment and, ultimately, create new job opportunities.

Botha suggests regulatory fixes to help facilitate this.

Firstly, a level playing field will ensure that existing duties are enforced and there is no circumvention or under-declaration. Countries that use South Africa as a dumping ground for excess manufactured goods should be prohibited from doing so through effective anti-dumping measures.

Secondly, specifying the use of locally produced products in government procurement and capital projects is critically important to support local manufacturers.

Local-content specification is especially important for South African manufacturers to capitalise on opportunities presented by renewable-energy projects and, in this regard, the lack of beneficiation is a definite barrier that needs to be overcome, he elaborates.

Every capital project by government and large organisations must have a local-content requirement for all products that can be produced locally, Botha suggests.

However, procurement documents for large local projects specify products that are based on international manufacturing tolerances and specifications, which enable international companies to quote on these projects while consequently excluding South African products.

Suitable products that are locally produced should be specified instead, says Campbell.

The third element needed to support a recovery in the wire industry is to address input costs, such as high electricity and logistics prices, although these are common to all industries in South Africa.

All local wire manufacturers are significant consumers of electricity, and government should strengthen local production through support in the form of lower electricity input costs, Campbell adds.

Similarly, there are no alternatives to road transport, and redeveloping rail infrastructure would support local industry through lower transport tariffs while reducing pressure on the road network, Botha notes.

The main driver of the recovery of the local wire industry is the stimulation of demand, he says.

Once South Africa’s GDP growth rate falls below 2% a year, steel consumption declines, with the net result that the steel industry has halved in size in the past 15 to 20 years.

“The simple answer [to support a recovery in the wire industry] would be significant economic growth. If the mining and construction sectors could start to see investments again, the impact will contribute greatly to a recovery of the wire sector.

“It is not a question of installed capacity or capability to manufacture. The challenge for local manufacturers is to compete on a level playing field with unfairly low-priced imports and create a strong local demand.”

South Africa should ensure that local demand is at such a level that the local industry becomes sustainable and government supports local manufacturing to build the economy.

Mitigating the impact of uncontrollable costs, such as electricity and logistics costs, will ensure the industry remains competitive and can compete in its market against international competitors.

The wire manufacturing industry functions between the upstream and downstream segments of the steel industry. It represents about 15% of the steel production in the country, and recovery in either segment will support further growth in industrial activity, Campbell notes.

Meanwhile, the global transition to renewable energy and the development of the transmission network present two of the strongest longer-term drivers of the wire and cable manufacturing environment, he points out.

The local industry manufactures products used in renewable-energy projects, including aluminium conductor steel-reinforced cable and copper wiring used in electric systems.

“The wire industry is ready and able to play its part in the transition, which can drive growth in the wire industry and investment in new production capacity,” he says.