Manufacturing businesses are embracing AI, but industry experts say funding models must evolve to support digital transformation and improve competitiveness.
South Africa's manufacturing small and medium enterprises are being encouraged to adopt artificial intelligence and smart manufacturing technologies at a pace that suits their businesses, but industry experts say access to the right type of funding will determine how quickly that transition happens.
The call comes as manufacturers face mounting pressure to modernise production while navigating weaker output, rising costs and growing customer expectations around digital compliance and traceability.
South Africa's manufacturing sector contributes close to 11% of the country's gross domestic product and was one of only three industries to create jobs during the first quarter of 2026.
However, the sector has also recorded two consecutive quarters of contracting output, placing additional pressure on businesses to improve efficiency and competitiveness.
