South Africa’s plans to expand manufactured exports into regional and continental markets will depend on fit-for-purpose ports and rail infrastructure and lower trade costs, Deputy Trade, Industry and Competition Minister John Steenhuisen has said.
Addressing the 2026 Manufacturing Indaba in Sandton on Tuesday, Steenhuisen said domestic demand alone could not sustain South Africa’s industrial growth and the country needed to expand exports to Southern African Development Community (SADC) and African Continental Free Trade Area (AfCFTA) markets.
“Trade infrastructure – ports and rail – needs to be fit for purpose to respond to a trade drive for the export of our goods and friction costs need to be eliminated to ease the cost of trade,” Steenhuisen said.
He outlined a reindustrialisation strategy based on diversification, decarbonisation and digitalisation to reverse the decline of South Africa’s manufacturing sector and strengthen economic growth.
Manufacturing contributes about 13% of GDP and accounts for more than 1.6 million direct jobs, while supporting activity across mining, agriculture, logistics and business services.
“The sector is therefore not simply another economic sector; it is the engine that transforms raw materials into higher-value products, strengthens domestic capabilities, and builds economic resilience. Therefore, South Africa cannot afford not to support the manufacturing sector,” Steenhuisen said.
Regional markets key to growth
Under the diversification pillar, the government plans to expand production beyond traditional resource extraction into higher-value manufacturing industries, including machinery, chemicals, automotive components, pharmaceuticals and electro-technical goods.
The decarbonisation strategy would seek to leverage South Africa’s critical minerals and renewable energy resources to develop green manufacturing, green hydrogen and mineral beneficiation industries.
Digitalisation would focus on using advanced technologies to improve productivity and expand the global business services sector.
Steenhuisen said access to larger regional and continental markets would be essential to achieving the scale needed to support industrial expansion.
“The strategic vision for the continent is clear: Africa must transition from being merely the source of raw materials, the ‘pit’, to becoming the manufacturing powerhouse, the ‘factory floor’, for the global green economy,” he said.
The government plans to use measures that include local content requirements, export controls and strategic investment partnerships to support the industrial strategy.
Steenhuisen said Special Economic Zones (SEZs) would play an important role in implementing the strategy and attracting investment into industrial development.
