The South African manufacturing sector has, for too long, been characterised by its resilience in the face of shocks. In recent years, this resilience has been tested by energy instability, port inefficiencies, geopolitical headwinds and supply chain disruptions. And yet, despite these pressures, many manufacturers continue to move forward, driving output, sustaining employment, and investing in capability.
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However, as we head into September, resilience by itself is not enough. The moment calls for reinvention, grounded in an understanding of the shifts reshaping the global and domestic landscapes.
Volatility is the new baseline
We have moved from recovery into an era of complexity. Globally, inflationary dynamics, fiscal tightening and shifting trade corridors are shaping markets. Conflicts in Eastern Europe and the Middle East persist, while regulatory changes such as the EU’s Carbon Border Adjustment Mechanism (CBAM), now in its reporting phase, are redefining competitiveness.
Locally, challenges are equally stark. Energy reliability and cost remain binding constraints. Logistics bottlenecks at ports disrupt the imports of critical inputs, such as green steel, and delay exports. Manufacturers now often plan ahead by six to eight months to secure raw materials and maintain throughput.
Yet despite these constraints, firms are not pulling back. Many are investing in plant modernisation, process automation and greener technologies. The question is no longer ‘how do we survive?’ but ‘how do we lead?’
Strategy-led manufacturers are ahead
The Nedbank-NAACAM carbon emissions study, released in June, highlighted this divide.
More than 60% of firms, including small and mid-sized players, lack a baseline for their carbon emissions. Yet the pressure is mounting. More than half of companies reported that customers have already requested emissions data, and nearly a third stated that carbon reduction requirements are now included in sourcing contracts. What was once considered optional is fast becoming essential.
At the same time, the sector is deeply tied to export markets. Almost 70% of respondents sell into Europe and the UK, the regions where regulations such as CBAM are toughest. That reliance means South African suppliers cannot afford to wait. And yet, while many businesses are familiar with the broad direction of global regulation, decarbonisation remains a long-term consideration for the majority, primarily for locally owned firms that are not yet feeling immediate compliance pressure.
The mindset is also split. Roughly a third of manufacturers view decarbonisation as an opportunity, while another third see it as a threat. For exporters and multinationals, it is a strategic priority. For others, it is still seen as a cost burden. Unsurprisingly, the top barriers cited were cost, regulatory uncertainty, and a lack of clarity on how to measure emissions.
When asked what support they need most, three key themes emerged. Firms want solutions to improve energy efficiency, access to cleaner input materials, and affordable finance to fund the transition. This is precisely where partners like Nedbank are stepping in to help close the execution gap and turn ambition into action.
A partner for reinvention
Nedbank has aligned its model to sector realities. Our specialised manufacturing team engages directly with industry to support areas such as retrofits, energy diversification, decarbonisation strategies and CBAM compliance.
Our suite includes
Sustainability-linked finance and green asset funding.
Streamlined supplier payment systems.
Digital banking platforms engineered for manufacturers.
Support in trade finance and export markets.
Joint investment in research, toolkits and skills development.
Through our collaboration with NAACAM, we have also launched a carbon readiness toolkit for automotive components, equally applicable across other manufacturing subsectors.
Case study on Malben Engineering
Malben Engineering, a Tier 1 automotive supplier, has been among the first South African firms to pilot green steel in production. Their shift was driven by OEM requirements and the strategic need to reduce export risk exposure.
Green steel carries a current premium of €200 to €300 per ton, but Malben chose to move early, securing European mill partnerships and joining the Manufacture 2030 emissions reduction programme.
The outcome is stronger brand equity, diversified input sources, and increased interest from global buyers. Their decision underscores that early adoption can be a catalyst for growth, rather than simply a compliance exercise.
Looking ahead to reinvention as a national imperative
Our reindustrialisation path cannot rely only on resilience. Firms must embrace decarbonisation, digitisation, and reskilling not only to comply with regulations but also to access markets, investment and trade incentives.
Manufacturing remains foundational to the economy. At Nedbank, we are not bystanders. We are enabling reinvention alongside the sector, ensuring our country’s manufacturing sector does more than endure: it leads.
Think bigger. Think Nedbank Business and Commercial Banking.