
South Africa’s long-declining manufacturing sector faces fresh pressure from a flood of inexpensive Chinese imports, worsened by US tariffs that push Chinese producers toward other markets. Shipments from China jumped 29% in the first eight months of 2026. The East Asian country now accounts for more than a third of South Africa’s manufacturing imports but just 5.9% of its exports. The situation has led to more competition for domestic producers, many of which already contend with high energy costs, weak economic growth, infrastructure failures, and restrictive regulations. The industry has contracted for three straight quarters, and Moody’s ranks the country the most exposed of eight African economies assessed. Business leaders have criticized the government’s trade policy. Meanwhile, officials are encouraging companies to diversify export markets.
