South Africa is entering a new stage of industrial development, with the government placing greater emphasis on manufacturing, infrastructure, digitalisation, critical minerals and industrial localisation.

The country’s new Industrial Development Strategy focuses on three key directions: decarbonisation, digitalisation and diversification. The goal is to strengthen local manufacturing capacity, attract investment and improve South Africa’s competitiveness in global supply chains.

Strong Investment in Manufacturing

Automotive manufacturing is one of the most active areas. Toyota South Africa has committed R10.4 billion to its Prospecton plant for production of the next-generation Hilux, supporting more than 4,300 direct assembly jobs and around 27,000 jobs across its supplier network.

At the same time, Chery Group is revitalising the former Nissan facility in Rosslyn, with production of Chery, Jaecoo and Jetour vehicles planned from mid-2027. These investments further strengthen South Africa’s role as an automotive manufacturing and regional export hub.

Infrastructure and Industrial Investment

South Africa is also accelerating infrastructure development. The government has set a new investment ambition of R3 trillion by 2030, covering sectors including manufacturing, mining, energy, logistics and digital infrastructure.

Special Economic Zones are another important driver. For example, the Richards Bay Industrial Development Zone currently has an investment pipeline of approximately R252 billion, highlighting the potential for further industrial projects and supply-chain development.

Looking Ahead

Although South Africa still faces challenges, including infrastructure constraints and relatively weak economic growth, the direction of industrial policy is increasingly clear: more local manufacturing, stronger supply chains and greater investment in industrial capacity.

South Africa’s next phase of industrial growth could be an important opportunity for companies looking to expand across Africa.