South Africa’s Manufacturing Sector: Driving Growth Through Key Industries
This article has been supplied.
South Africa’s manufacturing sector remains a cornerstone of the nation’s economic growth and industrialisation ambitions, contributing approximately 13 % to GDP and employing over 1.6 million people. 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 seeks 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
1. 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.
2. 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.
3. 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.
4. 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.
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.
- 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.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation