TIPS industry studies aim to provide a comprehensive overview of key trends in leading industries in South Africa. For each industry covered, working papers will be published on basic economic trends, including value added, employment, investment and market structure; trade by major product and country; impact on the environment as well as threats and opportunities arising from the climate crisis; and the implications of emerging technologies. The studies aim to provide background for policymakers and researchers, and to strengthen our understanding of current challenges and opportunities in each industry as a basis for a more strategic response.
The capital goods industry plays a crucial cross-sectional role in the economy as the industry’s output of machinery and equipment is required for virtually all goods production processes. The industry accounted for 7.1% of South Africa’s total manufacturing value added in 2022. Income from the industry’s seven sub-industries rose from R56.4 billion in 2011 to R135 billion in 2021 (in constant 2021 Rand), with the five largest companies in each industry contributing an average of 42% of total income contribution. Exports of capital goods surged by 69% in 2022 from the previous year owing to a 347% increase in exports of other general purpose machinery to the European Union (EU). Employment within the industry is mainly dominated by engineering services, which accounted for 74% of total employment at the end of 2022. The share of general and special purpose machinery combined was 26%.
Industry Studies
International Trade in South Africa's Automotive Industry 2024
Capital goods in South Africa 2024
Additional studies for other industries will be added when finalised.