Finweek English Edition - - COVER -

The rel­a­tive con­tri­bu­tion of SA’s man­u­fac­tur­ing to GDP has al­most halved since 1990, lead­ing to pes­simism about the sec­tor’s fu­ture. Cur­rently man­u­fac­tur­ing di­rectly con­trib­utes only 13% to GDP, com­pared with 20% of GDP in com­pa­ra­ble economies. McKin­sey’s anal­y­sis sug­gests that by 2030, ex­ports of ad­vanced man­u­fac­tured prod­ucts could grow to more than R700bn, from R190bn in 2013. The op­por­tu­nity ex­ists in the automotive, in­dus­trial ma­chin­ery and equip­ment, and chem­i­cals sec­tors, and would re­quire man­u­fac­tur­ers to pur­sue new mar­kets and im­prove in­no­va­tion and pro­duc­tiv­ity. nat­u­ral gas (LNG). Although SA’s own shale gas re­sources are yet to be proven, they could po­ten­tially cre­ate an ad­di­tional 40 000 to 102 000 jobs and would re­quire in­vest­ment of be­tween R600bn and R1tr, ac­cord­ing to McKin­sey.

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