One of the many pleasures about working for this publication is that we get to travel around the country and see and write about many, many success stories. South African’s just have a knack about getting on with things despite the daily challenges that they face. As usual, this issue is packed with numerous of these positive stories.
Despite a rich manufacturing heritage, South Africa’s manufacturing outlook is nevertheless influenced by several factors including global trends, economic challenges and policy changes, both locally and abroad. As if these factors weren’t enough, we had to contend with load shedding too. The metalworking sector, a crucial component of the manufacturing landscape, plays a significant role in driving growth and employment but without a reliable and consistent source of power, well, we are just left in the dark. Thankfully the load shedding situation seems greatly improved and the foreseeable future looks stable.
This doesn’t stop innovation though and I would encourage you to read about Balancell’s newly opened battery gigafactory, based in Ndabeni, Cape Town. In the not-too-distant future, being left in the dark will just be a figment of the imagination, load shedding or not.
Said Balancell’s founding investor Andrew McPherson at the launch event: “We were rated the fastest growing manufacturing business in Africa by the Financial Times for 2024. In addition to this, some of our first industrial batteries that were put into the market have gone through their five-year warranty periods, and after five years they have had more than 20 000 hours of operation. That’s more than 11 hours to 12 hours a day for five years.”
Just imagine what that sort of reliability could do for your business. The battery assembler’s previous plant was limited to 250MWh capacity a year, with the new facility scaling that up to between 2 GWh and 3 GWh a year.
Post-pandemic, recovery efforts in the industry as a whole have led to a renewed focus on local production. In particular, the metalworking sector has benefited from increased demand for components across industries, including automotive and construction.
Deputy Minister of Trade, Industry and Competition Andrew Whitfield has emphasised the need for revitalising manufacturing in South Africa. He stated: “We must strengthen our local capabilities to reduce reliance on imports.” This sentiment reflects a broader push towards enhancing local production and increasing competitiveness in the global market.
“It is essential that South Africa’s economic growth is grounded in manufacturing-led growth. Manufacturing is indeed less volatile and less vulnerable to economic downturns and will create real, sustainable and decent paying jobs for our people. South Africa must also create an export-oriented economy. A dedicated focus on manufacturing growth will also lead to export growth.”
Investment in technology and innovation is essential for the sector’s growth, something we are seeing more and more of when we visit shop floors. Whitfield highlighted the importance of skills development, saying, “Our workforce needs to adapt to new technologies. We are committed to providing the necessary training and resources and we are working closely with other departments to address infrastructure bottlenecks.” This focus on upskilling aims to ensure that workers are equipped to meet the evolving demands of the industry.
Challenges remain, including energy supply issues and infrastructure constraints but improved infrastructure is critical for the efficiency of manufacturing operations and can facilitate better logistics and distribution networks.
Government initiatives are aimed at supporting the manufacturing sector, including financial incentives and support for small and medium enterprises (SMEs) and we all know that supporting SMEs is key to driving innovation and job creation.
While sustainability is becoming increasingly important in the manufacturing environment, with the right policies and investments in technology and skills, the sector has the potential to thrive.
Damon Crawford
Online Editor / Journalist
