While the South African economy has been sluggish, there are signs that the manufacturing segment of our economy has begun to tick up and show signs of life.
Data out of Statistics South Africa shows the following sectors were the majors winners and losers.
Stats SA had this to say:
” Within this division, factories involved in the production of vehicle accessories had the most to celebrate, enjoying a 9,2% rise in activity. Motor vehicle manufacturing was the other notable mover. After two consecutive years of decline, motor vehicle production bounced back in 2018 with a 3,5% growth rate. This is good news for automotive manufacturers based primarily in the provinces of Eastern Cape and Gauteng.
The food and beverages division was the second top performer in 2018 (up by 4,6%), contributing the most to overall manufacturing growth. All the food groups had a good year, in particular ‘other’ food (including sugar) (up by 5,4%), dairy (up by 5,0%), and meat, fish and fruit (up by 4,2%).”
While it is early days in the economic recovery, this could be a positive sign for manufacturers looking to expand in 2019.
If you are looking for expansion capital in 2019, you might want to consider the Black Industrialist Scheme which offers up to R50m in funding for qualifying businesses.