During a recent Cabinet media briefing, Minister Khumbudzo Ntshavheni highlighted the government's commitment to revitalizing the struggling manufacturing sector and improving logistics.

Cabinet has expressed significant concern regarding the decline in the manufacturing industry, underlining the need to enhance local manufacturing in light of ongoing logistics challenges, particularly in the mining sector.

Following the Cabinet meeting, Minister Ntshavheni announced that the government is actively working on revising the country's industrial policy to address the issues plaguing the manufacturing sector.

Statistics reveal that South Africa's manufacturing output fell by 6.3% year-on-year in April 2025, marking the sixth consecutive month of contraction and the steepest decline since March 2024, raising alarms about potential job losses.

The downturn in manufacturing has already led to significant consequences, such as the closure of Goodyear's plant, which has impacted nearly 1,000 jobs.

In the context of these challenges, Trade Minister Parks Tau has acknowledged the uncertainty surrounding a crucial US tariff decision expected on July 9, 2025, which poses risks to South Africa's trade and economic growth.

The potential introduction of a 10% base tariff on nearly all imports by US President Donald Trump could further threaten South African exports, particularly if reciprocal tariffs are enacted.

In light of these impending tariffs, CEO Thys van Zyl has urged the government to take decisive action to protect export-dependent industries, including automotive, agriculture, and mining.

Van Zyl emphasized the need for a proactive approach to mitigate the potential impact of a proposed 30% tariff on South African exports to the US, which would severely affect key sectors.

To combat these challenges, the National Industrial Policy Framework (NIPF) is being implemented to strengthen the manufacturing sector and promote non-traditional tradable goods, focusing on investment facilitation and trade promotion.

Additionally, initiatives like Operation Vulindlela Phase 2 and the Government Business Partnership are being prioritized to resolve logistics issues that hinder the country's economic performance.

Overall, the government is finalizing a revised Industrial Policy aimed at boosting local manufacturing and addressing the logistics challenges that impact the mining industry.