South Africa: The manufacturing sector in South Africa employs around 1.7 million people and manufacturing output accounts for 15% of GDP.

The manufacturing sector provides a locus for stimulating the growth of other activities, such as services, and achieving specific outcomes, such as employment creation and economic empowerment. The manufacturing sector in South Africa employs around 1.7 million people and manufacturing output accounts for 15% of GDP. However, the positive contribution and potential of  Annex I – Description of the action SWITCH Africa Green 021213 13
manufacturers is currently under threat with more than 440,000 small business owners having closed in 5 years between 2006 and 2011. In September 2012, South Africa’s Purchasing Management Index
registered a three-year low indicating bad business conditions and contraction in manufacturing. Conditions have deteriorated while average energy prices in other BRICS countries have decreased by over 36% in the last decade, electricity costs have increased by over 170% in South Africa and are predicted to continue to escalate at more than double the forecasted inflation rate. South Africa requires a number of incentives over a period of time to move industries away from energy and carbon intensive industries and processes to more labour absorbing ones.

 

 

  • Download: Structure of the Manufacturing Sector ( Annex I – Description of the action SWITCH Africa Green)

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