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Manufacturing Sector Drives Economic Growth and Innovation in South Africa

Pretoria: The manufacturing sector remains the backbone of every successful industrial economy, Trade, Industry and Competition (dtic) Deputy Minister John Steenhuisen emphasized during the 2026 Manufacturing Indaba held in Sandton, near Johannesburg. Steenhuisen highlighted the critical role manufacturing plays in creating sustainable employment, driving technological innovation, and stimulating economic growth.

According to South African Government News Agency, Steenhuisen noted that manufacturing contributes approximately 13% of South Africa's GDP and accounts for more than 1.6 million direct jobs, supporting millions more indirectly across various sectors such as mining, agriculture, and logistics. He underscored the sector's multiplier effect, stating that each manufacturing job generates additional opportunities in local supplier industries.

Steenhuisen stressed that manufacturing is not merely another economic sector but rather the engine that transforms raw materials into higher-value products and builds economic resilience. He pointed out that governments worldwide support manufacturing as a strategic investment in productive capacity, decent jobs, and long-term national prosperity. This support can take various forms, including industrial financing, infrastructure investment, and skills development.

Recognizing the evolving global economy, Steenhuisen highlighted the importance of adapting South Africa's policies to address challenges such as geopolitical tensions, climate change, and digitalization. He emphasized that re-industrialization efforts should focus on diversification, decarbonization, and digitalization to expand the economy beyond traditional resource extraction into high-value manufacturing sectors like machinery, chemicals, and pharmaceuticals.

The Deputy Minister also praised Special Economic Zones (SEZs) for providing competitive industrial platforms that attract investment and enhance export competitiveness. He called for fostering partnerships between government, industry, and labor to support investment, localization, and economic inclusion across key sectors, including automotive, steel, and textiles.

Steenhuisen concluded by emphasizing the need for collaborative programs to bolster the competitiveness of South Africa's manufacturing industries, ensuring they remain vital contributors to the nation's economic growth and innovation.