Manufacturing

Manufacturing was once the pride of South Africa’s economy, employing millions and contributing over 20% to GDP during the mid-20th century. Today, its share has declined to around 13%, yet it remains a vital driver of exports, skills, and innovation.

Historically, manufacturing was linked to mining and agriculture, processing raw materials into finished goods. Apartheid-era policies created strong industrial bases but excluded the majority from ownership and skilled positions. Post-1994, manufacturing faced the twin challenges of global competition and domestic inefficiencies.

Today, South Africa’s manufacturing sector struggles with rising costs, energy shortages, and imported competition. Opportunities abound in automotive, food processing, pharmaceuticals, and renewable technologies all show promise. The sector remains a large employer and a potential driver of industrialisation under AfCFTA.

By 2030, manufacturing must reinvent itself through Industry 4.0 robotics, AI, and smart production. Skills in advanced manufacturing, supply chain management, and engineering will be crucial. If supported by policy and investment, the sector could become South Africa’s growth engine once again.

Manufacturing is not dead, it is waiting for revival. The nation must back its factories, or risk permanent decline.