Can you explain the mission of MEMSA in South Africa?

MEMSA, established in 2016, is an industry cluster organization that advocates for and promotes the interests of the mining equipment manufacturing industry in South Africa. Our mission is to position South Africa’s mining capital goods, components, and product manufacturers as a cost-competitive, innovative, and transformative industrial cluster. We ensure that our members meet certain criteria, such as being registered, tax-paying entities engaged in the manufacturing of mining-related products, components, and equipment. Additionally, they must have at least 26% South African ownership. We strive to drive black ownership, and currently, 80% of our members have achieved black ownership with a commitment to reaching B-BBEE Level 4.

How does MEMSA support its members during the pandemic?

The impact of the Covid-19 pandemic has been significant for the mining industry. While certain mining operations were classified as essential and could continue with strict protocols, many faced operational limitations, operating at only 50% capacity. To mitigate risks, employees were able to claim from the Unemployment Insurance Fund (UIF), providing some relief. MEMSA played a crucial role in assisting its members by keeping them informed about regulations, requirements, and essential contacts. We organized workshops where members shared tips on adapting to the new environment. We also facilitated sessions where the Industrial Development Corporation (IDC) presented distressed business and specialized funding instruments. Through our website, we kept members updated on various funding opportunities, including those for small businesses.

How does the mining charter support local manufacturers?

The mining charter in South Africa sets a target for mining companies to spend 70% of their total procurement budget on South African-manufactured goods, with a minimum of 60% local content. Compliance is achieved through a combination of scores for procurement, employment equity, and human resource development. To upgrade the supply chain and track local and imported purchases, the Department of Trade, Industry, and Competition (DTIC), with the assistance of the IDC, is developing a Standardized Coding and Product Identification System. This system will improve supply chain efficiency, reduce costs, and enable companies to determine the amount of local content in procured items and their place of manufacture.

How would you describe the skill pool and labor availability in South Africa?

Progress has been made in terms of education and preparing for the digital mining revolution. Leading universities like WITS, the University of Pretoria, and the University of Johannesburg have state-of-the-art mining laboratories and facilities focused on developing and testing digital technologies. These facilities aim to enhance mining safety, sustainability, and prepare students for the industry. Skills development is crucial for the long-term sustainability of the mining sector. In collaboration with merSETA, we have initiated a project where we sought proposals from the industry on specific skills needed in mining and manufacturing. These reports will guide us in preparing for future skill development in the mining industry.

What are the major challenges facing local manufacturers in South Africa?

Access to capital remains a significant concern for local manufacturers, with a perception that government support is insufficient. We have received feedback from our members highlighting this issue. In response, MEMSA has fostered strong relationships with the DTIC and the IDC to explore ways of assisting members in expediting funding processes, which can often be lengthy and time-consuming.

How would you characterize the overall health of the South African mining industry?

The South African mining industry is a key player in various sectors, such as chrome, manganese, platinum, vanadium, gold, PGMs, and copper. The industry is crucial in supporting decarbonization efforts. MEMSA believes that the responsibility to address challenges lies with both the government and the industry. Collaboration is essential to overcome obstacles and ensure the sustainable growth of the mining sector in South Africa.