The latest manufacturing and production numbers for South Africa were released by Stats SA today and paint a grim picture.
Headline Manufacturing Numbers:
Total Manufacturing production: A decreased OF -6,3% in April 2025 compared to April 2024.
The largest negative contributions were made by the following divisions:
- Food and beverage manufacturing down -7,6%
- Basic iron and steel, non-ferrous metal product manufacturing – metal products and machinery down by -6,3%
- Motor vehicles, parts and accessory manufacturing and other transport equipment manufacturing slumped by -13,0%
- Petroleum, chemical products, rubber and plastic product manufacturing down by -4,7%
Seasonally adjusted manufacturing production increased by 1,9% in April 2025 compared with March 2025. This followed month-on-month changes of -2,5% in March 2025 and 0,0% in February 2025.
For the three month period February – March 2025, seasonally adjusted manufacturing production decreased by -1,4% with a full seven of the ten manufacturing sectors, reporting negative growth rates over this period.
Seasonally adjusted manufacturing sales decreased by 0,7% in April 2025 compared with March 2025. This followed month-on-month changes of -0,4% in March 2025 and 0,0% in February 2025.
Overall GDP in a Slump With No Catalyst on the Horizon
South Africa’s GDP growth in the first quarter of 2025 was a modest 0.1% quarter-on-quarter, and 0.8% year-on-year, with most sectors, particularly the productive ones such as construction, mining, and manufacturing, recording contractions.
Of growing concern is the sharp -4.5% quarter-on-quarter decline in private sector fixed investment seen in Q1 in SA, which also contracted by -4.7% year-over-year. Adding to concerns is that six out of the ten manufacturing sectors saw a contraction in Q1, a clear indication that Q2 could well land up showing negative growth as power supplies in the country will be hard pressed
Government’s Response Hard to Fathom:
While the largest economy in Africa is stagnating the response from the current government, to what is in effect an economic crises, is remarkable in that there is barely any acknowledgement of the crises at all.
If one looks at the activities of the current administration you would believe that all was in perfect order.
Various Ministers and the vice president are flitting around the globe to attend events, which are hardly aligned to, nor capable of improving economic matters while spending additional monies on first-class flights and accommodation that the fiscus cannot afford at this stage.
President Ramaphosa and the treasury have also just sealed an additional R26 billion loan from the World Bank which seems to be a counterintuitive decision, with the economic needle hardly moving in the country plus a R63 billion budget deficit.
Where is the income going to come from for treasury to meet additional debt payments one could reasonably ask?
The De-Industrialisation of South Africa Continues
Over the past 25 years there has been a steady decline in manufacturing in the country with several notable examples such as the recent long-steel manufacturer ArcelorMittal closing its plants in Vereeniging and Newcastle, cutting 35 000 jobs out of an economy that can’t afford this.
Motor manufacturer Chevrolet was another big loss as well as mining houses like Anglo, no longer running a single mining operation in the country where it once dominated the mining sector.
Goodyear, one of the world’s largest tyre manufacturers, only yesterday, confirmed that they will also shut down its South African plant in Kariega, Eastern Cape, marking another significant blow to the country’s struggling manufacturing sector. The closure will result in the loss of approximately 750 direct jobs, with a ripple effect likely to impact thousands more in the surrounding economy
Increasingly a picture is emerging, where the government is playing its fiddle while Rome burns and the implications of their inability or failure, to rectify matters and address pressing issues urgently, in a way that will help to rebuild a rapidly shrinking economy and the related job losses will forever remain a sign of their crazy policies and indifferent attitude to the working class of the country.
