As South African manufacturing sector is now technically in recession, companies are increasingly looking north for expansion into Africa's high-growth countries, according to Standard Bank.
Second quarter gross domestic product (GDP) data released by Statistics South Africa (Stats SA) shows that the manufacturing sector's output has shrunk by 6.3%, the second quarter in a row that negative growth has been recorded, said Solomon Gounden, head of foreign exchange, commercial and business banking of Standard Bank.
"It is against this background that more manufacturers are looking to Africa as an export destination to increase sales and the sustainability of their businesses. This demand has also encouraged manufacturers of fast-moving consumer goods (FMCG) to examine opportunities,” he commented.
