South Africa's manufacturing sector: Driving growth through key industries
Despite challenges such as logistics constraints and energy disruptions, the sector demonstrates resilience and adaptability, underpinned by strategic government support, technology adoption, and growing regional and global demand.
As the country ks to expand its industrial base under the African Continental Free Trade Area, understanding the top manufacturing sectors provides insight into where growth, investment, and job creation opportunities lie.
Top Manufacturing Sectors in South Africa Food & Beverage• Largest sub-sector, comprising 22.3 % of total manufacturing sales in Q4 2023.• A consistent driver of growth with expanding domestic and regional market opportunities. Basic Iron & Steel, Non‑Ferrous Metals, Metal Products & Machinery• Comprises 20.9 % of sectoral sales, including steel, aluminium, metal fabrication, and machinery.• Supports infrastructure, mining, and construction industries vital to Africa's development. Petroleum, Chemical, Rubber & Plastic Products• Holds 20.1 % of total manufacturing sales, with strong growth in petrochemicals and plastics.• Vital for South Africa's industrial value chains and a significant export contributor. Automotive (Motor Vehicles, Parts & Accessories)• Produces over 500,000 vehicles annually, contributing heavily to exports and value-added manufacturing.• Attracting significant investment in electric vehicle production through government incentives.
Sector Overview & Employment The manufacturing sector employs over 1.6 million people .
. Contributes around 13 % to GDP , positioning South Africa as a leading industrial hub on the continent.
, positioning South Africa as a leading industrial hub on the continent. Ranked 51st of 153 countries on UNIDO's Competitive Industrial Performance Index.
Key Insights These four clusters collectively represent over 65 % of manufacturing sales in South Africa.
in South Africa. The food & Beverage and Automotive sectors offer high investment and export potential .
. Government incentives, including support for black industrialists and special economic zones, are accelerating growth in strategic sectors.
Challenges and Opportunities
While power disruptions and logistics inefficiencies continue to impact manufacturing operations, the sector is poised for recovery through increased localisation, adoption of advanced manufacturing technologies, and growing African market access under the AfCFTA. Strategic partnerships, investment in green manufacturing, and infrastructure development will be critical in unlocking the sector's full potential.
South Africa's top manufacturing sectors are central to driving industrialisation, job creation, and economic growth while positioning the country as a manufacturing leader on the African continent. As South Africa positions itself as Africa's leading manufacturing hub, these sectors will drive the next phase of industrial growth and investment.
These opportunities and challenges will be unpacked at the upcoming Manufacturing Indaba, providing a platform for manufacturers, investors, and policymakers to collaborate and grow Africa's industrial future together.
For media enquiries, contact Qondakuhle Dwangu on [email protected] or 011 463-9184 / 064 118 1232, https://manufacturingindaba.co.za
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