This paper assesses the economic performance of continental SADC with specific attention to the status quo of industrialisation in the region and the aim of stimulating development of regional value chains. Southern Africa is among the poorest regions in the world, largely due to colonialism and dependence on commodities. Several decades after the end of colonial rule,regional manufacturing remains small, relative to peers, with South Africa disproportionately represented. This paper builds on previous work which sought to uncover the potential for greater regional integration through economic diversification and industrialisation.

What happens to Sasol’s Secunda Coal-toChemicals-and-Liquids facility, which is a major contributor to the domestic economy, illustrates the difficulties South Africa faces in its transition to a lower-carbon future. Sasol, the only domestic source of petrochemicals for a myriad of downstream industries, is heavily reliant on coal, and hence is a major greenhouse gas emitter. Increasing carbon taxes, environmental pressures and potential carbon border adjustment mechanisms (CBAM), combined with declining coal and gas reserves that could affect its export markets, cloud its future.

This development dialogue will discuss the recently released TIPS report that explores these issues, other constraints facing Sasol and policy options going forward. Read the paper and policy brief here.

TIPS industry studies provide a comprehensive overview of key trends in leading industries in South Africa. They aim to provide background for policymakers and researchers, and to strengthen our understanding of current challenges and opportunities in each industry as a basis for a more strategic response.

This study analyses trends in global exports and imports of steel and related products; and examines trends in South African imports and exports of steel and related goods. The study also analyses trends in foreign investment and dominant foreign exporters in steel and related products.

South Africa's trade surplus declined by 18% to R35 billion in the year to the third quarter of 2024. Total exports for the third quarter of 2024 amounted to R510 billion, while imports amounted to R475 billion. The composition of the top five import products remains unchanged. Imports of diesel continued to fall, with a R14 billion decrease to R32 billion in the year to the third quarter of 2024. In contrast, imports of crude oil continue to grow, rising by R6 billion to R25 billion in the same period.

TIPS industry studies provide a comprehensive overview of key trends in leading industries in South Africa. They aim to provide background for policymakers and researchers, and to strengthen our understanding of current challenges and opportunities in each industry as a basis for a more strategic response.

This study outlines the technological change in the steel industry, looking at emerging technologies and their impact. Other studies focussing on the steel industry map out the value chain, highlighting economic trends and the impact on national outcomes; and analyse the industry’s international trends, looking at global trade and South African trade by country and product.

TIPS industry studies provide a comprehensive overview of key trends in leading industries in South Africa. They aim to provide background for policymakers and researchers, and to strengthen our understanding of current challenges and opportunities in each industry as a basis for a more strategic response.

This study aims to analyse global trends in the food processing market and evaluate South Africa’s position in this competitive landscape.

TIPS industry studies provide a comprehensive overview of key trends in leading industries in South Africa. They aim to provide background for policymakers and researchers, and to strengthen our understanding of current challenges and opportunities in each industry as a basis for a more strategic response.

This industry study examines global trade trends in the electronics industry, with a focus on South Africa’s position in the global trade of electronic products.  

In Q2 2024, exports increased 12% quarter-on-quarter, rising from R466 billion to R523 billion, mostly driven by exports to Areas Not Elsewhere Specified (Area NES), Germany and India. However, on a year-on-year (y-o-y) basis, exports declined marginally by 1.3% from R530 billion in Q2 2023 (constant 2024 prices) to R523 billion in the same quarter of 2024. The quarterly export growth in Q2 2024 outpaced that of imports, which saw imports increase by 3% quarter-on-quarter from R454 billion to R468 billion. As a result, the trade balance in Q4 2024 remained positive for the fifth consecutive quarter. The trade balance in Q2 2024 saw a significant 358% increase from the previous quarter, rising from R12 billion in Q1 2024 to R55 billion. On a y-o-y basis, the trade balance in Q2 2024 surged by 450%.

The Import Localisation and Supply Chain Disruption study seeks to identify goods from the list of imports identified in the quarterly Import Trackers that South Africa could possibly viably manufacture. Each report focuses on five manufactured items from the list of imports in the corresponding Import Tracker quarterly reports. The five products for the First Half 2024 are:

Product 1: Photovoltaic cells assembled in modules or made up into panels

Product 2: Steering wheels, steering columns, and steering boxes, and parts thereof, n.e.s: Other              

Product 3: Artificial joints for orthopaedic purposes

Product 4: Combine-Harvester-Threshers

Product 5: Gears and gearing for machinery (excluding toothed wheels, chain sprockets and other transmission elements presented separately); ball or roller screws; gear boxes and other speed changers including torque converters

• TIPS Import Tracker - First Quarter 2024
  
• TIPS Import Tracker - Second Quarter 2024