South Africa faces a critical challenge as its manufacturing sector weakens, contributing less to GDP and employment.
South Africa’s long-term growth challenge cannot be addressed without confronting the continued weakening of its manufacturing base.
Over the past three decades, manufacturing’s contribution to GDP has fallen from about 21–22% in the early 1990s to around 12–13% today, alongside stagnating output and a weaker contribution to employment.
Last week, Statistics South Africa released the latest production and sales data, which reports further decline in manufacturing output over the first 5 months of 2026. This is cause for concern and raises key but fundamental questions. What will it take to have an all-hands-on deck approach to South Africa’s industrial development?
The Manufacturing Indaba, which aims to promote industrialisation, strengthen local manufacturing, and support economic growth, kicks off this morning in Johannesburg.
