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Definition

That sector of the economy which is engaged in processing raw materials and other materials into saleable products. Not all manufactured products are finished goods. Some of them are intermediate goods that will be further processed into finished goods. The manufacturing sector accounts for about 12% of South Africa's gross domestic product (GDP) and about 12% of employment. About half of that is contributed by the motor manufacturing and automotive industry. Manufacturing is sensitive to strike action and load-shedding and is also impacted by the strength of the rand. The general level of economic activity in the country has a direct effect on the manufacturing sector. During 2020, COVID-19 had a massive impact on manufacturing, forcing many businesses that were not considered essential services, to shut down temporarily. By the beginning of 2022, most manufacturing companies were no longer impeded by COVID-19 restrictions, but the damage done to the economy had reduced the demand for their products. By the end of 2023, manufacturing was a R513bn sector and accounted for 11,2% of gross domestic product (GDP) - down from 15% in 1995. Manufacturing production increased  by 1,9% in the year ending November 2023 and by 0,8% in the month.

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