editorial | Manufacturing Sector Overview
Reindustrialising South Africa Manufacturing is on the recovery by Koketso Mamabolo
W
ith one of the biggest economies on the continent, supported by an established network of inf rastructure and ports of entry, it’s no wonder South Africa’s manufacturing industry employs over a million people, recording sales of over R2-billion in 2021.
The fall and rise
year-on-year, closely followed by 12.2%
According to Statistics South Africa,
in February. The growth slowed in April,
general manufacturing sales (at current
May and June, dipping below 10%, before
prices) in 2021 hit a five-year high after
bouncing back to 11.6% in July.
falling to a low not seen since 2016. The
1 170 000
COVID-19 pandemic was a massive blow to the sector, which resulted in sales dropping by 11% in 2020 due to low economic activity. The sector made a
Gross earnings paid to employees
spectacular recovery in 2021, with sales rising by a staggering 16%. The pandemic may have hurt the local industry but it did not change how important it is to the South African
Employment in the manufacturing sector
R74 478 000 in June 2021
R77 765 000 in June 2022
total employees in June 2022
1 094 000
full-time employees in June 2022
76 000
part-time employees in June 2022
economy. Almost half of the total export earnings in 2020 were from manufacturing, and in that same year, it contributed 13% to South Africa’s GDP.
Powering renewable energy
As 2022 draws to a close, monthly sales
The electro-mechanical manufacturing sub-sector is likely to rise in sales in
up to July suggest that this year could see
production as South Africa accelerates towards a renewable energy supply
the sector performing even better. Sales
in the coming year. All three aspects of the energy pipeline - generation,
in all seven months have surpassed those
transmission and distribution - will require electro-mechanical firms to ramp
of the same months in the previous, with
up production to meet the demand.
January recording a 13.4% increase in sales
64 | TOP500 | 12th Edition