Skip to main content
Invest Now
012 012 5270
Copyright © Aluma Capital (Pty) Ltd. All rights reserved.
Aluma Capital (Pty) Ltd is a registered Financial Services Provider (FSP 46449) in terms of The Financial Advisory and Intermediary Services Act (37 of 2002)
Frederick Mitchell, Chief Economist | Aluma Capital (Pty) Ltd
Frederick Mitchell
May 9, 2025

Manufacturing Production

March 2025

In March 2025, manufacturing production in South Africa declined by 0.8%, following a 3.2% contraction in February. This decrease contrasted with the upward movement in the Purchasing Managers’ Index (PMI), which rose from 44.7 in February to 48.7 in March.

Several key factors contributed to the decline in production volumes:

  • Petroleum, Chemical Products, Rubber, and Plastic Products: Production fell by 2.5%, accounting for a 0.5 percentage point decrease in overall manufacturing output.
  • Electrical Machinery: This sector experienced a significant drop of 12.2%, contributing a further 0.3 percentage points to the decline.

Despite these setbacks, some segments saw growth. Notably, glass and non-metallic minerals increased by 4.4% in March, offering a contrasting upward trend.

In terms of sales, the seasonally adjusted value within the manufacturing sector dipped by 0.2% in March 2025 compared to February. Additionally, the first quarter of 2025 experienced a 1.1% decline relative to the fourth quarter of 2024. The main drivers of this quarterly contraction were:

  • Motor Vehicles, Parts, and Accessories: This category decreased by 3.2%, contributing 0.5 percentage points to the overall decline.
  • Basic Iron and Steel, Non-Ferrous Metal Products, Metal Products, and Machinery: These industries contracted by 3.9%, adding 0.8 percentage points to the quarterly decrease.

Manufacturing remains a cornerstone of South Africa’s economy. As the country’s most industrialised nation in Africa, it employs approximately 1.6 million people and contributes around 12.5% to GDP, according to 2024 data. Employment figures show a positive trend, with job numbers rising from 1.635 million in Q3 to 1.675 million in Q4 of 2024. The forthcoming employment statistics for Q1 2025 are expected to further confirm this growth. This rise in manufacturing employment is particularly encouraging, especially given stable electricity supply levels and consistent PMI figures during late 2024.

However, business owners within the sector are adopting a cautious “wait-and-see” approach towards investment and medium-term expansion. This sentiment is reflected in the April PMI figures, which remain subdued due to US tariff hikes on exports to that market and ongoing tensions in the US-China tariff war. These international trade frictions pose challenges for South Africa’s exports to the US and could potentially impact economic growth and job creation in the manufacturing sector.

Reports from the Reserve Bank and commercial banks indicate that South African companies are still maintaining substantial cash reserves. This cautious stance underscores the uncertainty facing businesses amid both domestic and international developments, prompting a careful approach to future investments.

Back to News

More Coverage

Mining Production and Sales for February 2026

Discover the dynamic shifts within South Africa’s mining sector with our latest analysis. In a remarkable February 2026 performance, mining activities surged by 9.7%, spearheaded by dramatic increases in PGM, chromium ore, manganese, and gold production. Despite a quarterly dip, February’s nominal sales skyrocketed by 58.3%, driven by remarkable gains in platinum and gold. As the backbone of South Africa’s economy, the sector faces evolving global challenges and opportunities, from new US tariff measures to geopolitical tensions affecting global trade and energy prices. Stay ahead with insights into the sector’s resilience and strategic importance. Read the full article to understand the trends shaping South Africa’s economic landscape.

The Fuel Factor: Balancing Sticky Inflation with a R415 Billion Investment Anchor

Discover how South Africa is navigating the turbulent waters of global economic pressures and local inflation with a strategic fuel price adjustment and a major boost from a R415 billion investment windfall. As rising Brent Crude prices and a fluctuating Rand impact fuel costs and inflation forecasts, all eyes are on the South African Reserve Bank’s next move. Meanwhile, the Sixth South Africa Investment Conference has sparked optimism, with substantial commitments in the energy and technology sectors, promising a resilient economic future. Dive into the full article to explore the intricate balance between surviving immediate economic challenges and positioning South Africa as a hub for global investment amidst a world in flux.

South African Gold and Foreign Exchange Reserves for March 2026

South Africa’s reserves fell in USD terms in March 2026 as the Rand weakened amid Middle East tensions, though higher gold prices supported reserves in Rand terms. Rising oil prices and currency pressure point to higher inflation risks, while ongoing geopolitical tensions and US trade measures are likely to keep markets volatile.

A Watershed Moment: Global Ceasefire and Massive Oil Correction Offer Crucial Relief for the SA Economy

A sudden global shift has delivered much-needed relief for South Africa. Following a Middle East ceasefire, oil prices have dropped sharply and the Rand has strengthened—easing pressure on fuel costs and inflation. While earlier price spikes still weigh on the outlook, this combined correction offers a critical window for economic stability, improved consumer confidence, and renewed growth momentum.

The Great Fuel Buffer

South Africa finds itself balancing global energy shocks with decisive local action. As rising oil prices threaten to strain consumers and key industries, government intervention has softened the immediate impact—highlighting both the urgency of the moment and the need for smarter, more resilient fiscal tools to manage future volatility.