South Africa Industry Articles & Analysis

Chapter | Industry & Retail from The Report: South Africa 2016

One of the top manufacturing powerhouses on the continent, South Africa has a strong industrial tradition dating back 150 years. The past few decades, however, have posed challenges to the industry, with external and domestic factors weighing on sector growth. To help revitalise the industry, the government and industry leaders have been working to stoke growth and develop value-added...

The second-largest economy in Africa after Nigeria, South Africa benefits from some of the most sophisticated financial markets in the world, paired with a robust regulatory system, and is also home to the headquarters of a number of major multinational players in the fields of industry, energy and financial services.

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Improved sales in key segments of South Africa’s automotive industry point to a modest rebound in domestic demand, though much of the growth in the sector stemmed from rising exports.

South Africa’s food and beverages industry is one of a handful of key agri-processing segments set to benefit from a new state-led investment incentive scheme.

Stronger performance in the manufacturing industry helped keep South Africa’s economy out of a recession, and has led to a slight upward revision in annual growth forecasts.

 

The retail sector in South Africa has seen mixed fortunes in recent months, with a slowdown in vehicle sales, but encouraging news in luxury goods. New passenger vehicle sales, which constitute just under two-thirds of overall automotive sales, fell 9% yearon-year (y-o-y) in September 2015, on top of a 8.2% y-o-y decline in August, according...

 

Around the world, fast-moving consumer goods (FMCGs) tend to be more resilient to economic volatility than other manufactured products. This category of low-cost goods, sold quickly, includes a range of consumables like processed and perishable foods, soft drinks, basic toiletries, beer and basic pharmaceuticals. FMCGs are less discretionary...

 

One of Africa’s largest and most affluent markets, South Africa has a well-developed retail sector, including a number of major domestic players. While recent macroeconomic difficulties have affected parts of the market, it has continued to grow and draw in a number of new international brands looking for a launching-pad to the rest of the...