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Africa’s Industrial Powerhouse

Overview

Africa’s Industrial Powerhouse

South Africa produces more manufactured goods than any other country in sub-Saharan Africa—contributing R2 trillion to GDP and employing 1.8 million people across chemicals, metals, machinery, textiles, and advanced manufacturing.

This is heavy industry at scale: steel mills, chemical plants, precision engineering, and advanced manufacturing clusters producing everything from industrial valves to aerospace components

With Special Economic Zones offering tax incentives, duty-free imports on capital equipment, and streamlined customs, South Africa offers manufacturers the infrastructure, skills, and market access to produce for Africa and beyond.

Success Stories

Major manufacturers—Sasol, AECI, ArcelorMittal, Barloworld—operate here. And new industrial zones are attracting investment in value-added production: the Coega SEZ for automotive components, Atlantis for greentech manufacturing, and Richards Bay for metals beneficiation.

Cape Town mRNA Facility

US$50M investment

200 skilled jobs

500M doses annual design capacity

Moderna (USA): Cape Town mRNA Facility — Coming Soon

Moderna broke ground in late 2023 on a US$50M mRNA facility at Biovac’s Cape Town campus, marking its first African production site. As of mid-2025, construction is ~60% complete, with equipment installation planned for Q1 2026 and operations targeted for late 2025 pending SAHPRA approval. Designed for up to 500 million doses annually, the facility will employ ~200 skilled workers and support African Union targets of 60% local vaccine production by 2040. This “coming soon” pipeline project underscores multinational confidence in South Africa’s regulatory and scientific ecosystem.

Moderna press release (2023–2025) | Biovac construction updates

R4.2B Rosslyn Plant Expansion (EV Future)

R4.2B investment

EV-ready plant

20,000 annual output

BMW – R4.2B Rosslyn Plant Expansion (EV Future)

BMW has invested R4.2 billion in its Rosslyn plant near Pretoria to gear up for next-generation models, including electrified vehicles for export. Already producing the X3 for global markets, Rosslyn’s upgrade secures South Africa’s place in BMW’s EV strategy. The expansion boosts plant capacity to over 20,000 vehicles annually for export to Europe, the U.S., and Asia, ensuring South Africa plays a role in the EV supply chain.

BMW SA statements 2022–2024 | Engineering News, 2023

Corolla Cross Hybrid – First in Africa

R2.4B investment

First SA hybrid

575 new jobs

Toyota – Corolla Cross Hybrid (First in Africa)

Toyota invested R2.4 billion in 2021 at its Prospecton Plant in Durban to produce the Corolla Cross Hybrid — South Africa’s first locally manufactured hybrid vehicle. The project created 575 new jobs and safeguarded 1,200 existing positions, making Durban a continental pioneer in green automotive production. The investment aligns South Africa with global trends toward electrification, enhancing its role in the just energy transition.

Toyota SA announcement, October 2021 | Business Day 2022

Volkswagen – Kariega Polo Global Hub

R3.4B upgrades

50,000 supported jobs

75% exports

Volkswagen – Kariega Polo Global Hub

Volkswagen operates Africa’s largest passenger car plant in Kariega (Eastern Cape), employing over 4,000 people directly and supporting 50,000 jobs across the wider economy. Continuous investment — including a R3.4 billion upgrade between 2015 and 2020 — has entrenched Kariega as the global hub for Polo production. Today, 75% of its output is exported, mostly to Europe and Asia, underlining South Africa’s integration into global value chains.

Volkswagen Group SA reports 2020–2023 | Engineering News, 2021.

R16 Billion Silverton Expansion

R16B (US$1B) investment

1,200 new jobs

10,000 indirect new jobs

⁠Exports to 100+ markets worldwide

Ford – R16 Billion Silverton Expansion

Ford Motor Company invested R16 billion (approx. US$1 billion) to modernise and expand its Silverton Assembly Plant in Pretoria. The facility now produces the next-generation Ranger pickup and Everest SUV for global export markets. The project created over 1,200 direct jobs and supports an estimated 10,000 indirect jobs in the supply chain. With vehicles shipped to more than 100 countries, South Africa is firmly established as a global production hub for Ford.

DTIC press release, February 2021 | Ford SA media statement 2022.

What the world says

From investors to industry leaders, each testimony offers an outside view of the country’s reform momentum, economic resilience, and growing global influence. Together, they reveal how South Africa is shaping — and being shaped by — the future of investment, innovation, and partnership.