Is manufacturing dead? Treasury’s shock claim sparks fury
PRETORIA — A major dispute has erupted between South African manufacturing bodies and the National Treasury following comments that the sector may no longer be the primary driver for job creation. The Steel and Engineering Industries Federation of Southern Africa (SEIFSA), the Manufacturing Circle, and the Powerline and Substation Association (POLASA) issued a joint statement expressing deep concern over remarks attributed to the Director-General of the National Treasury.
The Director-General suggested that manufacturing is unlikely to be the main source of future employment growth, pointing instead to sectors such as services, tourism, and construction. This shift in narrative has been met with immediate backlash from industrial leaders who argue that such signals undermine decades of government policy that positioned manufacturing as a strategic pillar for the country’s development.
Industry representatives stated that while modern economies are evolving, the manufacturing base remains essential for export competitiveness, technological advancement, and long-term economic resilience. They expressed fear that these comments send a damaging signal to investors who are making long-term financial commitments based on previous government promises of industrialisation.
The manufacturing sector has struggled for over a decade due to escalating electricity costs, logistics failures, and crumbling municipal infrastructure. Industry leaders argue that the decline in employment is not merely a result of global structural changes but is directly linked to these domestic constraints. They are now calling for Treasury to clarify how these recent remarks align with the state’s broader industrial policy objectives.
This row highlights a growing tension regarding the country’s economic direction as it grapples with high unemployment rates. The manufacturing bodies emphasize that public procurement reform and infrastructure investment are the most powerful levers available to stimulate demand. Without a consistent message from senior public officials, they warn that the sector faces further policy uncertainty that could deter much-needed capital.
The controversy comes at a time when other global economies are actively strengthening their manufacturing sectors through strategic investment. South African industry heads maintain that the country cannot afford ambiguity regarding its industrial base if it hopes to remain the most industrialised economy on the continent.
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