Localisation lifeline: Can manufacturing rescue SA’s jobs crisis?

There have again been calls to rebuild and strengthen South Africa’s local manufacturing capacity following reports of the latest unemployment figures, which expose a deepening and worrying crisis.

South Africa’s unemployment rate ticked up from 31.4% at the end of 2025 to 32.7% in the first quarter of 2026 – which was more than expected.

Job losses in construction and community services put these sectors among those that further weakened the labour market.

Read: South Africa jobless rate rises before Iran war fallout hits

In the absence of the 3% economic growth needed to drive job creation, the staggering figures released by Statistics SA have again raised questions about the (extraordinary) measures needed to address joblessness.

ADVERTISEMENT

CONTINUE READING BELOW

In this debut episode of the Mzansi Business podcast, Sicelo Masuku – technical and standards executive at the South African Institute of Professional Accountants (Saipa) – joins us to discuss how feasible it is for small and medium-sized enterprises (SMEs) to help drive jobs back into the economy. For this to happen, Masuku says localisation is the key.

“From a manufacturing perspective, we need to look at the things we import into the country and see if they can be made in the country.

“A manufacturing plant can easily employ 100 people,” he says.

“We can import the raw material, like in the automotive industry where they import semi-finished material, and then we assemble it within the country.”

But Masuku notes that it’s not just about the numbers, but it’s also about quality and sustainability.

You can also listen to this podcast on iono.fm here.

ADVERTISEMENT:

CONTINUE READING BELOW

“It’s also not just about funding; it’s also about the educational element to build a suitable product,” he adds.

“Once the product is sustainable, it will translate into revenue. The revenue will translate to adding one employee [who] will have a job that is sustained.

“It’s not just about employing a person; it’s about ensuring that they earn a living through that employment.”

Masuku believes creating employment opportunities can’t be left to business alone, adding that government must play its part in ensuring a conducive operating environment with a strong policy front.

Read/listen:
Manufacturing is leaving – and policy uncertainty is not helping
The case for localisation in SA’s retail sector
Small businesses that go green could make a big impact in SA
New threat to SA’s waning automotive manufacturing strength
First signs of SA auto industry deindustrialising, warns Toyota CEO

#Localisation #lifeline #manufacturing #rescue #SAs #jobs #crisis