South Africa Industry

An unusually long running strike at South Africa’s platinum mines has finally come to an end, and while the effects of the five-month action will likely be felt by the industry for years to come as it tries to recoup losses, it may have helped potentially expand the scope of smaller mining firms in the sector.

Plans to increase the production and distribution of generic drugs in South Africa are gathering pace, paving the way for the government to push ahead with the phased rollout of its National Health Insurance (NHI) scheme.

Rising demand for both private and commercial vehicles should put South Africa’s automotive industry on course to post full-year growth, with a recent rally helping to compensate for flat sales at the beginning of 2014.

The government wants South Africa’s manufacturing industries to step up and play a greater role in the national economy by boosting employment and revenue while reducing dependence on the mining and service sectors. However, although some parts of the sector have shown a remarkable improvement in competitiveness, labour unrest and volatile export demand may limit a significant jump in growth over the short-term.

South Africa’s government is stepping up efforts to revitalise the country’s manufacturing sector and create job opportunities deeper within the country’s interior, seeking to reverse a long-term decline in the sector and address regional disparities in employment and production.

While South Africa’s mining sector is currently benefitting handsomely from high commodity prices and increasing production, strikes and a debate over nationalism threaten to slow growth ahead.