By Amith Singh, National Manager for Manufacturing, Nedbank Business and Commercial Banking
The South African manufacturing sector has long been characterised by its resilience in the face of adversity.
In recent years, this resilience has been tested by a range of challenges, including energy insecurity, port inefficiencies, geopolitical tensions, and supply chain disruptions. And yet, despite this pressure, many manufacturers continue to stand tall, driving economic output, creating jobs, and investing in the future.
But as we sit here in August 2025, resilience alone is no longer enough. What we need now is reinvention. And it starts with understanding the fundamental shifts underway in the global and local landscape.
Volatility is the new normal
We’ve moved from recovery to complexity. The global environment continues to be shaped by inflationary pressures, tightening fiscal regimes, and volatile trade corridors, from ongoing conflict in Eastern Europe and the Middle East to the regulatory headwinds created by the EU’s Carbon Border Adjustment Mechanism (CBAM), which is now in full reporting phase.
Domestically, the situation remains no less complex. Energy remains a constraint, not just loadshedding, but the broader cost and reliability of supply. Logistics backlogs, particularly at ports, have persisted, affecting both the imports of key inputs, such as green steel, and the exports of finished goods. Many of our clients are now budgeting six to eight months ahead for critical raw materials, just to ensure continuity.
And yet, despite these challenges, manufacturers are not retreating. In fact, many are expanding, modernising, and greening their operations. The question is no longer ‘Can we survive?’ but ‘How do we lead?’
Strategy-driven firms are pulling ahead
The Nedbank–NAACAM carbon emissions study, released in June, uncovered some stark contrasts in readiness across the sector.
Over 60% of manufacturing respondents, particularly small and mid-sized firms, do not yet have a carbon emissions baseline in place.
Despite this, most are already being asked for sustainability credentials by OEMs and global customers.
The top three areas firms identified for immediate support were: energy efficiency, cleaner material inputs, and access to affordable finance.
This disconnect between ambition and execution is fundamental, and it’s where we, as a bank and as an ecosystem partner, are stepping in.
A partner for reinvention
Nedbank has evolved its support model in step with the sector. We’ve built a specialised manufacturing team that understands your operating environment, from retrofitting machinery and navigating CBAM, to diversifying energy sources and decarbonising your supply chain.
Our offering includes:
- Sustainability-linked finance and green asset funding
- Simplified supplier payment systems
- Digitised banking platforms tailored to manufacturers
- Support in navigating export markets and trade finance tools
- Co-investment in sector research, toolkits, and skills development
Through our work with NAACAM, we’ve also launched a carbon readiness toolkit tailored to the automotive component sector, with learnings applicable across manufacturing sub-sectors.
Case study: Malben
One example is Malben, a Tier 1 component supplier, which recently became one of the first South African firms to trial green steel in local production. The company’s transition was driven not only by environmental commitment but by OEM requirements and export risk mitigation.
Green steel currently carries a price premium of €200–300 per ton, yet Malben’s leadership opted to invest early, securing relationships with European mills and participating in the Manufacture 2030 emissions reduction platform.
The result? Improved brand visibility, supply chain diversification, and an increase in interest from international buyers. Their leadership demonstrates that early adoption isn’t just an ESG badge; it’s a growth strategy.
Reinvention as a national imperative
South Africa’s reindustrialisation journey cannot rely solely on resilience. We must support firms in decarbonising, digitising, and reskilling, not only for compliance, but also to unlock access to future markets, trade benefits, and capital.
The manufacturing sector remains a cornerstone of South Africa’s economy. At Nedbank, we’re not just watching from the sidelines. We’re building new pathways, in partnership with the sector, to ensure that South African manufacturing doesn’t just stand resolute, but leads.
Think bigger. Think Nedbank Business and Commercial Banking.