The Impact of Tariffs on South Africa’s Manufacturing Sector: Striking a Balance for Industrial Growth
South Africa’s manufacturing sector remains a vital engine of economic growth and job creation. However, the role of tariffs in shaping its trajectory is increasingly under the spotlight. As the country works to bolster industrialisation and expand its manufacturing base, the structure and application of tariffs have become critical levers in determining the sector’s competitiveness and resilience.
Protective tariffs can serve as a crucial tool for shielding local manufacturers from low-cost imports, allowing domestic industries the space to grow, invest, and build local value chains. This can help preserve jobs, encourage innovation, and strengthen South Africa’s manufacturing capabilities. However, tariffs also come with challenges. High duties on imported raw materials, intermediate goods, and machinery can significantly raise production costs, reducing the global competitiveness of South African products and placing strain on local producers who rely on these inputs.
With increasing global and regional integration — particularly under the African Continental Free Trade Area (AfCFTA) — South Africa must carefully balance protectionist policies with the need to support efficient, export-oriented manufacturing. Uncoordinated or misaligned tariff regimes can deter investment, disrupt supply chains, and limit access to new markets.
This critical issue will be featured and unpacked at the upcoming Manufacturing Indaba, where industry leaders, policymakers, and trade experts will come together to explore the impact of tariffs and broader trade policy on South Africa’s industrial future. Attendees will gain insights into how a well-designed tariff regime can drive industrialisation while ensuring manufacturers remain globally competitive.
Join the conversation at the Manufacturing Indaba — where the future of South Africa’s manufacturing is being shaped
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