Since the foundation of the country, every successive South African government has, at least in its rhetoric, sought to make the country a leading industrialised nation. Each has achieved modest results – if any. Simply put, industrialisation refers to an economy’s diversification from agricultural output towards sophisticated manufacturing of products. The primary attraction of industrial activity is that it acts as a major job creator and can help a country carve out its niche in the global value chain.
Industrialisation may be measured by the number of a country’s workforce involved in advanced production; the share of manufactured goods in its total exports; or by the share of the same products in gross domestic product (GDP). At its peak, South Africa’s manufacturing contribution to GDP stood at nearly a quarter. That was in 1982. It has since steadily declined to 11.7% today.