Event report
Back To | South Africa’s Economic Outlook for 2025
On March 27, 2025, the French South African Chamber of Commerce and Industry (FSACCI), in collaboration with the Department of Economic Affairs for Southern Africa at the French Embassy (SER), hosted a discussion on South Africa’s macroeconomic outlook followed by a focus on the Future of Manufacturing in South Africa. The 2 experts from the SER examined key trends, global positioning, and strategies for growth.
South Africa’s manufacturing sector has been in decline, currently contributing to 12% of GDP versus 23% at its peak. Challenges include lack of investment in infrastructure, depressed local demand, and inconsistent energy supply. Despite these barriers, industries including automotive and pharmaceuticals have shown resilience.
Compared to global leaders, South Africa lags in productivity and innovation. Trade agreements and regional partnerships offer expansion opportunities. Countries like Vietnam and Mexico show how policy shifts can improve competitiveness.
Experts explored "Made in SA 2035", a vision for industrial growth. Structural reforms in policy, infrastructure, and skills development are critical. Adopting new technologies and automation can boost efficiency and attract investment.
The automotive industry is advancing with electric vehicle production. Solar panel and wind turbine manufacturing present opportunities in renewable energy. Agro-processing growth highlights the demand for locally produced goods.
Despite challenges, manufacturing holds potential. Bold reforms, technology investment, and smart trade policies can drive growth. The government must act within the short window available to remain competitive and businesses must seize the opportunities.
The event concluded with a networking session, where members engaged in discussions and explored potential collaborations.
FSACCI will continue facilitating discussions and supporting strategies for a stronger manufacturing sector. Stay connected for more insights and future events
