Back when FIFA was running South Africa in the build-up to the 2010 World Cup, construction stocks were booming. Cranes dominated the skylines and exuberance filled the streets. Construction companies enjoyed a brief honeymoon period before crashing down to earth in the aftermath of the event.
The cement industry in SA this week became positively light-headed after the Treasury banned the use of imported cement on government-funded projects. But does localisation, as an economic strategy, work?
Cement companies are hoping for higher sales volumes and profits after the government implemented a protectionist policy that aims to shield the industry from cheap cement imports.