SAMF questions Government inaction as African Investors table bids to Save ArcelorMittal South Africa

By Correspondent,
Lusaka, Zambia

Sunday, January 18, 2026

The South African Manufacturers Foundation (SAMF) has raised sharp questions over the future of ArcelorMittal South Africa (AMSA), warning that continued government indecision risks surrendering a strategic national asset while viable African-backed rescue offers remain on the table.

In a media statement issued on 16 January 2026, SAMF acting Chief Executive Officer Lebo Radebe described steel as a cornerstone of industrialisation, infrastructure development and economic sovereignty, arguing that ownership of the sector “is not ownership-neutral” and directly determines where profits flow, how strategy is set and whether long-term national interests are protected.

AMSA, once the bedrock of South Africa’s manufacturing and infrastructure sectors, is facing an existential crisis. Rising energy costs, unreliable and inefficient rail logistics, weak local demand, outdated infrastructure and a surge of cheaper imports—particularly from China—have pushed the company to the brink.

In recent months, between 3,500 and 5,000 workers have been retrenched, with further job losses looming as the company moves to close its long steel operations at Newcastle and Vereeniging.

SAMF noted that the crisis did not emerge overnight and accused authorities of failing to act decisively despite long-standing warnings.

The foundation said government rhetoric about industrial revival stands in stark contrast to the scale of job losses and the apparent stalling of negotiations to secure AMSA’s future.

At the centre of the debate is the valuation gap between AMSA and potential buyers, including the Industrial Development Corporation (IDC), where discussions have reportedly involved figures of around R7 billion, with AMSA said to be demanding considerably more.

While talks drag on, SAMF warned that “vultures are circling” and that delays could result in the loss of African control over a strategic industry.

Crucially, the foundation revealed that serious, financed offers from South African and pan-African investors have been submitted but not taken up.

These include a reported R5 billion bid from an African-backed consortium, as well as proposals involving entities associated with Prince Estifanos Matewos, Royal Investments and South African firm Networth Investments.

SAMF stressed that these are not symbolic gestures but credible bids backed by committed capital and turnaround plans.

“This proof of local capability and willingness to carry industrial risk demolishes the old narrative that African capital is absent or unprepared,” Mr Radebe said.

SAMF also criticised the South African Steel and Metal Fabrication Master Plan, introduced in 2021 and touted as a strategy to revitalise the sector.

Citing a Stellenbosch Business School evaluation, the foundation said the plan has been “entirely underwhelming,” failing to address the fundamental structural challenges crippling the industry.

The organisation argued that public support should not merely socialise losses while employment shrinks, but must actively protect jobs, anchor downstream manufacturing and drive industrial expansion.

It called for alignment between industrial policy and practice, insisting that ownership matters and that public capital should prioritise African control and long-term development objectives.

According to SAMF, African ownership of AMSA would strengthen regional supply chains under the African Continental Free Trade Area, retain skills and profits on the continent, support rail, construction, automotive and green infrastructure, and reduce dependency on imported finished steel products.

“The decision on AMSA will echo beyond South Africa,” SAMF warned. “Across the continent, governments face the same choice: preserve strategic industries through inclusive, development-led ownership, or default to models that prioritise short-term balance sheet gains over industrial sovereignty.”

The foundation concluded that alternatives to decline exist and are already on the table.

“They are African. They are credible. They are financed. They are ready,” SAMF acting CEO, adding that what remains is the political resolve to act.

“If this moment is missed, it will not be for lack of options, but for lack of will,” the statement said, urging authorities to ensure that “the steel that builds Africa is owned by Africa,” Mr Radebe said.