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IOL News
21-05-2025
- IOL News
Urgent measures: South Africa considers banning blank guns amid crime surge
The government wants to tighten laws on the importation of blank guns as part of its crime prevention measures. Image: SAPS Criminals have forced the government to consider banning the importing of blank guns, while there are also plans on the cards to introduce a permit system to reduce their availability. The SA Police Service (SAPS) has asked the International Trade Administration Commission of SA (Itac), an entity of the Department of Trade, Industry and Competition, to immediately impose controls on the importation of blank guns, which are designed to fire blanks or non-lethal rounds. Under consideration is the imposition of specific conditions on the issuing of permits for the importation of blank guns or an outright ban on their importation. In South Africa, blank guns were originally intended for legitimate uses such as training by the SAPS and the SA National Defence Force (SANDF), signalling in sports events, and as props in the film industry. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ However, they have increasingly been misused by criminals. 'In particular, there has been a reported increase in the usage of imitation guns and blank guns in the commission of crime in the Western Cape,' the commission stated. According to Itac's notice issued this week, there may be several reasons for the use of blank guns in criminal activities, including realistic appearance as they closely resemble real firearms, which makes them effective tools for intimidation during crimes such as robberies or hijackings. Additionally, it is easy to acquire blank guns because they are more accessible than traditional firearms and can potentially be illegally modified to fire live ammunition, turning them into actual lethal weapons. The commission has noted that blank guns are among the various weapons used in criminal activities, especially in the commission of contact crimes. Concerns have also been raised that policing blank guns is made difficult by the fact that they are not currently fully regulated in terms of the Firearms Control Act (FCA). The SAPS recognises the danger that blank guns pose to public safety and has taken steps to regulate them more strictly. 'Given the use of blank guns in contact crimes, regulating their importation is a logical step toward reducing their availability to criminals. It also aligns with the broader firearm control strategies of the SAPS aimed at reducing gun violence in South Africa,' Itac explained. Police are considering amending the FCA, a move which is deemed necessary because, historically, blank guns were not regulated under the Act, which means they can be bought easily and carried without a licence. The proposed amendments to the FCA could include measures placing blank guns in a category similar to conventional firearms in terms of legal oversight, as well as other interventions aimed directly at the importation of blank guns. Itac said the amendment process is ongoing and will require time to finalise, while blank guns are being used to commit crimes. 'In light of the urgency of the matter, the SAPS approached Itac with a request for the immediate imposition of controls on the importation of blanks guns, such as imposing specific conditions on the issuing of permits for the importation of blank guns or an outright ban on the importation of blank guns,' the notice advised. Permits or the imposition of an outright ban will serve a multifaceted objective centred on public safety, crime prevention, and effective law enforcement, according to Itac. Blank guns are technically non-lethal, but some models can be modified to fire live ammunition or projectiles, thus posing a real threat to public safety. 'By controlling or banning the entry of blank guns into South Africa, the government can reduce their role in contact crimes,' reads the notice, adding that modified or even unmodified blank guns undermine public trust and challenge law enforcement agencies' capacity to respond appropriately. The commission does not want to ban legitimate uses of blank guns, such as police and military training, while film production companies and private security firms also rely on them for professional purposes. Itac explained: 'An outright ban might materially and negatively impact these sectors. This raises the issues whether a permit system would be a more balanced regulatory approach as it would allow authorities to scrutinise importers and related end-users, ensuring blank guns are only accessible to those with valid and verified needs.' It is proposing a permit system to import all blank guns into South Africa, and this will entail applicants, whether individuals or legal entities, undergoing identity verification, including submission of certified personal identification documents for individuals, and corporate registration, tax identification, and principal officer information for companies. Under this regime, individuals or legal entities must declare the intended purpose of the importation. Training exercises by the SAPS, the SANDF or private security firms, or film production companies will be considered acceptable purposes, but others may be allowed if they do not pose any risk to public safety. The sale of blank guns will also be banned to an end user unless the end user is a party identified as acquiring them for acceptable purposes.
The Citizen
08-05-2025
- Business
- The Citizen
Tariff lifeline for ArcelorMittal means higher prices for customers
'Safeguard' duties of 13% were imposed at the start of May to shield Amsa's hot-rolled steel products from international competition. Itac and the IDC both fall under the dtic. In setting steel tariffs, Itac is accused of cossetting its own portfolio. Picture: Supplied The International Trade Administration Commission of SA (Itac) has announced temporary 'safeguard' duties on some hot-rolled steel products produced by ArcelorMittal SA (Amsa). The 13% safeguard duties kicked off on 2 May for a year, reducing to 11% and 9% over the subsequent two years, and then to zero. The safeguard duty is on top of the 10% customs duty already in place, bringing the import protection to 23% in the first year. The total duties on hot-rolled products fall to 21% from May 2026 and 19% from May 2027. The safeguard duties were gazetted last week and are seen as a lifeline for embattled steel producer Amsa, which has been undercut by low-cost imports from China. 'There's nothing worse than a temporary tariff,' comments Neels van Niekerk, executive chair of International Steel Fabricators. Hot-rolled steel is used in construction, manufacturing, and engineering and is a key input in mining equipment, water tanks, gas cylinders, and truck trailers. ALSO READ: IDC saves ArcelorMittal days before furnaces switched off 'Necessary, not punitive' – Itac 'Safeguard measures are designed to address unforeseen surges in imports that threaten or cause serious injury to a domestic industry,' says Itac. 'While these measures are not punitive, they are necessary to ensure fair trade conditions and protect local industries from being overwhelmed by excessive foreign competition.' Imports now account for about a third of local steel consumption, with Amsa's net realised prices falling to levels last seen in 2015. This, and Amsa's galloping transport and electricity bill – up 14% to R3.2 billion in 2024 – contributed to its decision to wind down its long steel mills in Newcastle and Vereeniging. ALSO READ: Government still talking to ArcelorMittal while Seifsa identifies challenges Perspective 'Effectively, what this means is that customers can expect to pay 13% more for hot-rolled steel products,' says Gerhard Papenfus, CEO of the National Employers Association of SA (Neasa). 'Amsa asked for additional protection and they got it. What South Africa needs right now is steel of the best possible quality, wherever we can get it. 'If we have to import, then so be it. We cannot continue to support industries that cannot compete without more and more protection.' The Industrial Development Corporation (IDC) provided R1 billion in short-term lending to Amsa, alongside another R380 million loan and an additional R1.68 billion shareholders loan in the hopes of extending the life of its longs business. However, that may not be enough to rescue Amsa. 'For Amsa Newcastle to survive, it will require a lot more than money,' says Donald MacKay, CEO of XA Global Trade Advisors. 'If the problems they identified are not addressed, they will burn through the money from the IDC and we will be back here [for more money].' ALSO READ: Concern about SA steel industry: Trump's tariffs and ArcelorMittal closure looming Market distortion The steel market is further distorted by the IDC's R14 billion exposure to mini-mills, which use scrap metal as feedstock and compete with Amsa in certain products. These mills enjoy a substantial pricing advantage through the Preferential Pricing System (PPS), which allows them to secure scrap at 30-50% discounts to market prices. This means scrap can only be exported after being offered to local mills at a 30% discount. This is in effect a ban on scrap exports and a R8.5 billion annual subsidy to mini mills – resulting in an estimated 50 000 scrap collectors in SA being forced out of business. Scrap dealers tell Moneyweb that removing the PPS would allow the 300 000 scrap collectors in SA to earn a decent living rather than transferring this benefit to the mills. This benefit comes on top of a 20% export duty on scrap. Mark Fine, head of the Scrap Recycling Coalition, an informal grouping of 48 scrap metal dealers, says these mills produce billets, which are little more than scrap 2.0 and a way to circumvent export restrictions on scrap. ALSO READ: Did government policy kill SA's steel industry? Mini-mills say even with the PPS in place, there remains a shortage of scrap in SA, though Fine says this is disproven by the fact that these mills exported more than 400 000 tons of recycled scrap in billet form in the first few months of 2025. Itac's steel tariff policy has been criticised as self-serving, given the IDC's massive exposure to these mini-mills, some of which are in business rescue. Itac and the IDC both fall under the Department of Trade, Industry and Competition (dtic). In setting steel tariffs, Itac is accused of cossetting its own portfolio. 'If government demand increases, it will be met by product from the mini mills, because the subsidies give them an ability to keep their prices low. Amsa on the other hand, has to pay back the IDC loan, which will be burnt through even quicker this time, given the steep discount they are providing on long products to simply stay in the game. ALSO READ: Steel producers slam ArcelorMittal's call to end scrap export tax PPS 'a massive scam' Fine says the PPS is a legacy of former trade and industry minister Ebrahim Patel and has been fatal for the industry. 'These mini-mills are mostly foreign-owned and they add very little value in the steel chain. Yet they receive this massive transfer of wealth each year, claiming that without the PPS South Africa would face a shortage of scrap. 'That's an absolute lie. These mini mills produce what I call scrap 2.0 which they can then export and make nice profits for themselves because the export restrictions don't apply. This is a massive scam.' Nampak is reckoned to be losing R115 million a year due to its inability to earn fair market value on its ferrous scrap. ALSO READ: Cheap IDC funding 'placing the complete steel market at risk' And Transnet – the country's largest generator of scrap – is reckoned to lose R40-R50 million a month due to the PPS. That does not count scrap from automotive producers such as VW and Toyota. Tami Didiza, manager for stakeholder management and communications at Amsa, says a number of these companies have been unable to operate successfully and could have closed had the current dtic policies of scrap intervention through the PPS, Scrap Export Tax and an export ban (which lapsed in 2023) not saved them over the last five years. 'The government intervention to allow a deferral of the wind down of the Amsa longs business provides an opportunity for the fundamental structural issues facing the steel industry to be addressed, and to place it on a sustainable path by removing the market distortions that have been created,' says Didiza. This article was republished from Moneyweb. Read the original here.
Mail & Guardian
04-05-2025
- Business
- Mail & Guardian
Trade commission protects legacy steel giant from competitive imports
The International Trade Administration Commission of South Africa (Itac) has imposed a 9% tariff on imported hot-rolled steel to protect domestic producers, in particular the legacy steelmaker ArcelorMittal South Africa (Amsa). The decision follows an application by the South African Iron and Steel Institute (Saisi) on behalf of Amsa for remedial action. The tariff applies to all countries except listed developing countries which collectively account for less than 10% of imports. Itac announced the final determination on Friday, citing a 105% surge in steel imports between 2020 and 2023—almost half of which originated from China, 22% from the E.U and 6.7% from the U.S—as the Saisi requested protection against a flood of imports, which Itac agreed to by imposing the annual 9% tariff on hot-rolled steel for the next three years. Hot-rolled steel, which is processed above 972°C for strength and flexibility, is used in mining and earth-moving equipment, pipes, tubes and water tanks. Domestic merchants largely import this product due to pricing for machinery and construction equipment. In its investigation, Itac found that 'unforeseen developments' such as global oversupply had harmed producers in the Southern African Customs Union (Sacu), which comprises South Africa, Namibia, Botswana, Lesotho and Eswatini. While the commission acknowledged that overwhelming competition in itself is not inherently unfair, it concluded there is a clear 'causal link' between the surge in imports and In its submission to the commission, the Botswana government reported that it had conducted a similar analysis between 2020 and 2024, which confirmed that imports had the same impact on its local industry. Critics argue instead that Amsa's outdated production methods and high prices make it uncompetitive in the current global market, thus necessitating protective measures. Once the continent's leading producer of steel products such as rods, bars and rails, Amsa has received three bailouts since 2024 amounting to R3-billion in an effort to stave off downsizing. In addition to the new bailout, the department of trade, industry and competition (dtic) previously imposed a 9% tariff on long steel and a 52% anti-dumping duty on steel imports at the behest of Amsa. Speaking to the Mail & Guardian, Itac commissioner Ayabonga Cawe said domestic production was in crisis and required urgent intervention. However, he added that local demand remains worryingly weak. According to the Steel and Engineering Industries Federation of Southern Africa (Seifsa), the country's per capita steel consumption dropped by 37% — from 92 kilograms in 2013 to just 67 kilograms in 2024 — far below the global average of 230 kilograms. 'We need a hybrid production model that accommodates both traditional iron ore beneficiation and modern electric arc furnaces that use scrap metal,' Cawe said. 'India is scrambling to import scrap, while we sit with both scrap metal and iron ore. There has been an effort to turn the country into a construction site, and we have to be honest it is taking very long to kick off.' National Employers' Association of South Africa chair Gerhard Papenfus said that the government's continued support for Amsa is 'just delaying the inevitable' and 'denying the reality' of the company's inability to compete. 'The bottom line is that the mill is uncompetitive and running on 50% production. That is why they want protection, lowered electricity prices and subsidies on iron ore,' said Papenfus, adding 'Everyone is paying to keep this old mill alive.' Following its announcement to shut down operations at its Newcastle and Vereeniging plants — Amsa maintains that it cannot delay the closures beyond August without further state support, including import duties on foreign steel and an end to subsidised scrap-based steelmaking. In February, Gauteng Premier Panyaza Lesufi announced that a BRICS partner will take over steel production after Amsa's wind down in Vereeniging, already investing R2.5 million to preserve 100 jobs. The International Development Corporation (IDC) and China's Hubei Iron and Steel Group (HBIS) signed a multi-phase R82.7-billion memorandum of understanding in September to establish a local low-cost iron and steel facility. The latest Amsa bailout includes a six-month due diligence review by the IDC, which will determine whether to increase its 7% stake or exit entirely. Asked about the review's objectives, IDC head of corporate affairs Tshepo Ramodibe told the M&G that the corporation 'can't pre-empt outcomes or the next course of action'. 'The due diligence will inform the nature and extent of our support to the business,' he said. 'Transitioning Amsa's processes to scrap-based steel production is one of the questions the review seeks to interrogate.' The company, Dtic spokesperson Yamkela Fanini added that Amsa remains the country's sole producer of hot-rolled and long steel products and that the 'While the government cannot dictate production technologies, decarbonisation and diversification are central to South Africa's industrial policy. This includes decarbonising steel production and promoting green methods for both flat and long steel,' Fanini said. Cawe acknowledged a persistent misalignment between upstream and downstream players in the steel industry — something that the government's While downstream manufacturers want to import cheaper and climate compliant steel to lower input costs, upstream producers such as Amsa want protection from international competition, creating uncertainty across the sector. Despite Amsa's determination to remain a central player, downstream industries increasingly favour competitive imports. In its report Seifsa said the metal industry, which accounts for 25.5% of the manufacturing sector, has not recovered since its 2007 peak. It contracted by 12.2% at the start of the Covid-19 pandemic and declined by a further 1.4% in 2024. The federation states the industry has shed over 200 000 jobs since the global recession from employing 570 000 in 2008 to a little over 360 000 in 2025 and continues to see an annual 0.7% decline in fixed capital investment. It warns that the prolonged weakness in production may become structural. Steel-related goods such as fabricated metals and machinery, accounting for 43% production, experienced a combined 15% decline in output last year. 'Post-Covid deterioration is most notable in capacity utilisation, with all steel subsectors operating below the optimal 85% level,' the federation said. Seifsa also noted a R188-billion trade deficit on steel imports from China, while South Africa's steel exports to China amounted to just R43-billion. On behalf of Amsa the steel institute argued that China's state-subsidised economy creates unfair advantages, flooding the global market and depressing domestic demand in emerging economies. 'Given the nature of the steel industry excess capacity in one region can potentially displace production in other regions, harming producers in those markets,' Saisi said in its submission to Itac. However, the UK government, submitting as a concerned party, expressed doubts about the commission's claim that unforeseen global developments directly harmed local producers. While the UK acknowledged that Chinese subsidies contribute to overcapacity, it said the commission failed to consider the full extent of local preference for cheaper foreign steel. Japan's Mills Steel Corporation also questioned the scope of the investigation, arguing that the data window of 2020 to 2023 shows a misleading increase trend narrative, as imports had declined pre-pandemic and fluctuated during the post-pandemic recovery period. The company argued Amsa The commission stressed that the 9% tariff will remain in place for 200 days to allow domestic producers time to adjust. It is yet to be seen if Amsa will improve its competitiveness and whether the country will ever rebuild its status as a construction hub given the government's continued support for the legacy steel giant.
