Janet Wilhelm
Industry Study: Capital Goods in South Africa 2024
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
Technological Change in the Food Processing Industry 2024
Technological Change in the Plastics Industry 2024
South Africa's International Trade in Plastics 2024
Technological Change in South Africa's Automotive Industry 2024
Technological Change in the Capital Goods Industry 2024
Clothing and Textiles International Trends 2024
International Trends in the Capital Goods Industry 2024
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
Industry Study: Plastics 2024
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.
This report provides a nuanced understanding of the intricate dynamics within the South African plastics industry. By scrutinising existing outcomes, policies and practices in the primary plastics and plastics goods subsectors, the aim is to paint a picture of the domestic industry, locating it in the broader global context, and subsequently identify opportunities and challenges within the industry.
Industry Studies
Technological Change in the Food Processing Industry 2024
Technological Change in the Plastics Industry 2024
South Africa's International Trade in Plastics 2024
Technological Change in South Africa's Automotive Industry 2024
Technological Change in the Capital Goods Industry 2024
Clothing and Textiles International Trends 2024
International Trends in the Capital Goods Industry 2024
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
Business Day - 9 April 2024 by Neva Makgetla (TIPS Senior Economist)
Industry Study: Clothing and Textiles 2024
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.
This report examines the clothing and textiles industries of the clothing, textile, footwear and leather (CTFL) in South Africa by briefly analysing the value chain, its contribution to gross domestic product (GDP), the trade patterns the subsector experienced from 2001 to 2022, employment, functional inequality in the subsector, and the main locations where clothing and textiles manufacturing is concentrated in the country. In addition, the structures and stakeholders that govern the industry are listed and discussed, as well as the the main constraints these industries face, along with an accompanying SWOT analysis.
Industry Studies
Technological Change in the Food Processing Industry 2024
Technological Change in the Plastics Industry 2024
South Africa's International Trade in Plastics 2024
Technological Change in South Africa's Automotive Industry 2024
Technological Change in the Capital Goods Industry 2024
Clothing and Textiles International Trends 2024
International Trends in the Capital Goods Industry 2024
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
The TIPS Development Dialogue on green hydrogen and industrial policy was held on 13 March. Information about the dialogue and speakers, as well as a video recording and copies of the presentations are available here.
The Import Localisation and Supply Chain Disruption study is a quarterly report that seeks to identify goods from the list of imports identified in the Import Tracker report that South Africa could possibly viably manufacture. Each quarter focuses on five manufactured items from the list of imports in the corresponding quarter's Import Tracker report. The five products in this report are:
Download: TIPS Import Tracker - Third Quarter 2023
Export Tracker - Q3 2023
South Africa’s merchandise exports experienced a 9.2% year-on-year decline from R570 billion in Q3 2022 to R517 billion (constant rand terms) in Q3 2023. Imports also saw a downturn in the third quarter of 2023, falling by 5.5% year-on-year, amounting to R478 billion. Despite the 9.2% decline in exports, South Africa managed to maintain a second consecutive trade surplus from the previous quarter, due to a less significant decline in imports, recording a trade balance of R29.8 billion.
NEVA MAKGETLA: The budget, growth and redistribution
Business Day - 12 March 2024 by Neva Makgetla (TIPS Senior Economist)
Business Day - 27 February 2024 by Neva Makgetla (TIPS Senior Economist)