SA government imposes six-month ban on the export of copper scrap

The South African government has swiftly moved to block the theft of copper and scrap metals as it banned the export of most ferrous scrap.

BusinessTech Africa has found information that as part of a three-phase intervention to stop the widespread theft of metals used in public infrastructure, the South African government has banned the export of most ferrous scrap, copper, and copper-alloy scrap.

This ban will be effective for the next the next six months and minister of trade, industry, and competition Ebrahim Patel said the ban will be effective from November 30.

According to estimates, theft and vandalism of copper and metals have caused R47 billion in economic damage, which has made load shedding and the interruption of freight and passenger train services worse.

Patel also reports that the temporary export ban follows the publication of a Government Gazette, but he also notes that transitional provisions have been made to allow for exports that were authorised prior to the ban.

“Prohibiting the use of cash in transactions involving waste and scrap and semi-finished metal products may also be introduced,” Patel reports.

“In this case, no buyer will be allowed to be in possession of waste and scrap or semi-finished metal products unless it is backed up by an EFT or similar electronic record.”

The cabinet minister, Patel, said they have carefully looked at both sides of the equation and he expects these measures to yield the desired results.

“We’ve looked carefully at both sides of the equation …and on the one side these measures will limit, for a period, the export of these products, but scrap metal traders are still enabled to sell those products within the domestic market; beyond that period, exports would be permitted but on a regulated basis,” he added.

“There is no question about it that there is going to be a commercial cost to some of the businesses that have built their economic model around the export of scrap metal.

“[However], when we measure that against the enormous costs to the economy of doing nothing, it is absolutely clear the economic cost of doing nothing is substantially higher.”

The impact of the new regulations on both theft of, and damage to, public infrastructure, as well as effects on the overall society, will be actively monitored by a newly created Metal Trade Task Force.

In the report published by Engineering News, it’s indicated that Public Enterprises Minister Pravin Gordhan and Police Minister Bheki Cele have both welcomed the intervention.