South African manufacturers have long built reputations on grit, keeping plants running through load-shedding, supply bottlenecks, and rising input costs. But as 2025 draws to a close, it is clear that resilience alone no longer defines competitiveness. The next measure of operational excellence is data, specifically carbon intelligence. By Amith Singh, National Manager: Manufacturing, Nedbank Commercial Banking
The data shift reshaping factories
The Nedbank-NAACAM Carbon Readiness Study, released mid-year, revealed how exposed South Africa’s industrial base is to the global shift toward carbon accountability. Nearly 70% of the country’s automotive component manufacturers export to Europe or the UK, where emissions reporting is now mandatory. Yet fewer than half have set a net-zero target, and only a small minority are tracking Scope 3 supply-chain emissions.
That data gap is no longer just an environmental issue; it is an operational and commercial one. As global buyers begin to screen suppliers based on their carbon performance, a factory’s ability to measure and manage emissions is now as critical as its cost, quality, and delivery scores.
Carbon now carries a price tag
In October 2025, carbon traded between R1 600 and R1 620 per tonne, up from R1 320 in 2024. For exporters, that means embedded emissions in every product carry a measurable financial cost under mechanisms like the EU’s Carbon Border Adjustment Mechanism (CBAM). The longer companies delay in establishing measurement systems, the higher their exposure, especially as buyers shift toward verified low-carbon suppliers.
What the leaders are doing differently
A Tier 1 automotive supplier has recently become the first in South Africa to trial low-carbon steel in full production, thereby cutting embedded emissions and aligning with international OEM expectations. Although the material premium remains high, early adopters are already securing access to future value chains. Their approach shows that carbon readiness is not a compliance burden; it is a strategic advantage that protects export channels and strengthens supplier credibility.
Beyond energy: total operational resilience
The study also surfaced broader operational risks. Nearly half of the surveyed firms rely solely on municipal water, which often results in frequent supply interruptions. Sustainability is therefore no longer limited to environmental metrics; it has become a measure of production stability and business continuity.
Financially, most manufacturers still invest less than 1% of annual budgets in sustainability or efficiency projects, a level that will not move the dial. The challenge is to connect finance, policy, and data so readiness becomes mainstream rather than exceptional.
Where finance meets factory floor
Nedbank’s response has been to go beyond traditional credit support and partner with manufacturers on carbon measurement and transition planning. Our Carbon Readiness Toolkit, developed in collaboration with NAACAM, provides practical diagnostics, benchmarking tools, and step-by-step guidance to help firms prioritise interventions, from baseline audits and energy-mix modelling to supplier engagement strategies.
For small and mid-sized companies without in-house sustainability teams, this partnership approach provides both technical and financial scaffolding to stay competitive in a rapidly changing global market.
The bigger picture
Globally, capital investment is chasing low-carbon production. The US Inflation Reduction Act and Europe’s Green Deal Industrial Plan are channelling billions into re-shoring clean technologies. South Africa’s manufacturers cannot afford to fall behind while policy bottlenecks delay local approvals for renewables or infrastructure upgrades.
Yet the sector’s ingenuity and technical skill remain unmatched. The opportunity now lies in linking sustainability with productivity, data with design, and banking with engineering.
At Nedbank Commercial Banking, we believe the manufacturers who measure early, invest smartly, and adapt fastest will own the next decade of industrial competitiveness.
Think bigger. Think Nedbank Commercial Banking.