According to Business Report, Gigaba said that, as a consequence of the sale of Iscor, and the fact that price of steel was "so expensive", South Africa faces a costly procurement process, as it moves to increase freight and passenger rail rolling stock, as part of a R800 billion capital expenditure programme.
"One mistake South Africa made was to sell Iscor," said Gigaba, referring to the move by the previous government to privatise the state steel company, which split up into what are now ArcelorMittal South Africa and Kumba Iron Ore. "For quite a long time South Africa did not have an industrial plan... and we were unable to match the progress in terms of set targets," said Gigaba.
According to Business Report, Gigaba stressed that it was critical for South Africa to mirror the experience of countries like Japan, for instance, where the government had laid the foundation of a massive steel product-related industry after World War II, although it had no iron ore. "They decided to become a leading steel producer. They imported iron ore and created a steel manufacturing industry." The form of ownership of the firm was not particular, he said, "It could be a private sector one or it could be in partnership (with the government)".
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