Manufacturing


While the manufacturing sector has been hard hit internationally, national government and its local counterparts are enabling manufacturers in the Northern Cape by investing in established and niche subsectors.

 Manufacturing in South Africa South Africa has developed a diverse and resilient manufacturing base, a good sign of strength in a volatile and easily affected global environment. The ability to adapt and adjust gives the sector the strength to absorb temporary changes in the world economy, as well as in various other economic areas, locally and abroad.

The manufacturing sector in South Africa accounts for 16% of gross domestic product (GDP) and is split between products manufactured for domestic consumption and those produced for export. A report released by Statistics South Africa detailing manufacturing production and sales in South Africa for 2008 confirmed that the sector had struggled through the year.

 According to the report, manufacturing recorded its lowest annual growth in five years – overall growth in 2008 was only 1%, compared to 4.1% in 2007.

The resilience of the sector will be tested going forward, but its diversity augurs well for what is hoped will be a quick and sustained turnaround. Mining The mining sector is prominent in the Northern Cape, so it makes sense that manufacturers of mining products should be close at hand.

While some manufacturers choose to base their operations in neighbouring Gauteng, SEW Eurodrive has made the leap to place a dedicated engineer in the province to specifically service the needs of the local sector.

Jewellery design The Northern Cape has always been renowned for its diamond production, and in 2008 it was announced that the province would get a R100-million gold-jewellery-manufacturing factory, in Kimberley, to service the export market.

 The factory extends the mining industry’s efforts to include more beneficiation operations in South Africa. It is expected to employ 300 people within four years and process three tonnes of gold a year. Skills transfer Training and the transfer of skills are critical across all industries, but especially so in the manufacturing sector, where competition (locally and internationally) is very strong.

In an attempt to keep companies in the Northern Cape competitive, national government invested R16-million in so-called Fabrication Laboratories (or FabLabs) to empower the province’s disadvantaged communities. The Northern Cape’s FabLab was the sixth such project in South Africa.

The labs have advanced desktop manufacturing equipment and offer training across a range of disciplines including design, fabrication and electronics.





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