Overview

With a total contribution of approximately 18,5 per cent to South Africa’s Gross Domestic Product, representing more than 50% of the country’s exports, and most significantly, its the nation’s 2nd largest employer, manufacturing remains one of the important driver’s of the country’s economy. In addition, the industry is crucial to South Africa’s drive to beneficiate its minerals. According to figures by Statistics South Africa, revenue from the manufacturing sector in 2005 amounted to R926 513 million.

The main contributors were: 

•   petroleum, chemical products, rubber and plastic products (R218 982 million or an increase of R23,6 per cent) 
•   basic iron and steel, non-ferrous metal products, metal products and machinery (R 188 090 million or an increase of 20,3%) , 
•   ‘food products and beverages’ (R 156 693 million or an increase of 16,9%) 
• ‘motor vehicles, parts and accessories and other transport equipment’ (R 149 446 million or an increase of 16,1%) 

The auto and transport equipment sector is the biggest manufacturing grouping in the Eastern Cape in terms of both output and employment, followed by the chemicals & rubber, and the textile & clothing groupings. In 2003, the machinery manufacturing contributed 4,67% to the total manufacturing sales.  

Looking at manufacturing and it’s relevance to the Eastern Cape economy, the province’s large automotive base continues to expand through new and ongoing foreign and national investments. According to the latest figures, the Eastern Cape’s automotive industry contributed 7.1 per cent towards the country’s GDP. The manufacturing sector is dominated by food-processing, the production of chemicals, iron and steel, metal products, and machinery.