South Africa’s manufacturing sector is showing encouraging signs of recovery, supported by stronger production, improving sales and a rebound in business sentiment. The latest data suggests that industrial activity is gaining momentum, creating new opportunities for manufacturers, equipment suppliers and international business partners.
Manufacturing Production Grows 1.1% Year-on-Year
According to Statistics South Africa (Stats SA), manufacturing production increased by 1.1% year-on-year in July 2026. Six of the ten manufacturing divisions recorded positive growth during the month.
The strongest contributions came from:
Food and beverages: +4.1%
Petroleum, chemicals, rubber and plastics: +3.2%
Basic iron and steel, non-ferrous metals, metal products and machinery: +1.9% over the three months ended July
These figures highlight continued activity across several important industrial segments, particularly chemicals, metals, machinery and manufacturing-related industries.
Monthly Growth Accelerates
The sector also recorded strong short-term momentum. Seasonally adjusted manufacturing production increased by 2.2% month-on-month in July 2026, following growth of 0.8% in June and 1.2% in May.
The 2.2% monthly increase was the strongest month-on-month growth since May 2025. Over the three months to July, seasonally adjusted manufacturing production increased 1.0% compared with the previous three-month period.
Manufacturing sales also improved significantly, rising 3.9% month-on-month in July after declining 1.5% in both May and June. The motor vehicles, parts and accessories sector recorded 3.9% growth over the three-month period, providing another positive signal for industrial demand.
Business Sentiment Is Improving
The recovery is also reflected in more recent business sentiment. South Africa’s manufacturing PMI improved in September 2026 after three consecutive months of contraction, with a particularly strong rebound in new orders.
The improvement in new orders is important because it suggests that manufacturers are seeing stronger underlying demand and may have greater confidence in increasing production and investment.
Opportunities Across the Industrial Value Chain
South Africa’s manufacturing recovery creates opportunities beyond production itself. Growing activity in machinery, metal products, chemicals, automotive components and industrial equipment can stimulate demand across the wider industrial supply chain.
The environment offers opportunities for technology cooperation, equipment sourcing, component supply, production partnerships and industrial investment.
