While many countries in Africa are on the path to industrialization, South Africa, one the most developed countries in Africa, is being rapidly de-industrialized, thanks to pressure from abroad and the neoliberal and green ideas infecting the country’s economic policy. The latest disaster is the decision by the Indian steel producer, ArcelorMittal, to shut down its long-term steel production plant in South Africa. The steel mill produces the high-quality steel needed for the automobile and the mining industries. Therefore many more than the 3,500 direct jobs will be lost. Eighteen industry associations, in their report, consider that 50,000 jobs will be lost in secondary effects in the near term, and 100,000 in the longer term.
Much of South Africa’s economy, and therefore economic policy, is controlled by South Africa’s Anglo-Dutch oligarchy represented by the Oppenheimer and Rupert families, who dominate the mining and financial services sector. Both are deeply involved in promoting climate change policy, including shutting down coal-fired power stations despite the fact that South Africa is among the largest coal producers and exporters in the world. They are also big promoters of the privatization of state companies, including the electricity company and railways.
