3 minute read
Chemical Sector Overview
Economic Powerhouse Driving Change - The Role of The Chemical Sector in Climate Action
By Raine St.Claire
South Africa is home to the most advanced and largest of Africa’s emerging chemicals sector, dominating the rest of the continent as the most developed of its kind in Africa.
As a key sector of the South African economy, the industry contributes approximately 6% to the country’s GDP and 25% to total manufacturing. It delivered a total revenue in excess of $35.1-billion in 2023, according to the Chemical and Allied Industries Association.
Interwoven with the manufacturing sector, the industry is complex and diverse with different sub-sectors. With an abundance of minerals, the vast and highly competitive industry produces a wide range of products from fuel and plastics to pharmaceuticals.
Generates Around 600 Types of Chemicals
Accounts for about 25% of the nation’s manufacturing sales Year-on-year increase of 2.1% in October 2023
Rebounded from a downwardly revised 4.1% slump in September 2023
Surpassed market estimates with a 1.8% increase
South Africa is a global leader in coal-based synthesis and gas-to-liquid technology
Accounts for 0.5% of the global chemical production capacity
55% of locally produced chemicals are petrochemicals
Chemicals (including rubber and plastic) products contributed +7.8% to manufacturing
The top 20 companies contribute almost 90% of the sector’s revenue
The sector employs approximately 171 376 people
Regulatory Landscape and Workforce Dynamics
The industry operates within a heavily regulated framework across diverse sub-sectors including:
Natural resources
Energy
Hazardous materials
Occupational health
Safety
Medication control
Intellectual property
These regulations also influence the composition of the industry’s workforce, with specific roles requiring registered professionals due to their high skill levels and accountability.
Highly skilled professionals are essential for:
Interpretation and implementation of regulatory requirements
Ensuring compliance within the industry
In the pharmaceutical sub-sector, regulatory compliance necessitates pharmacists with:
Specific knowledge and experience
Individuals with these qualifications, especially from employment equity (EE) backgrounds, are in high demand.
Elevating The Chemical Industry: Innovation and Skills For Global Competitiveness
As resources face more pressure, it’s crucial to think innovatively about using financial resources for strategic skills development in the chemical industry. This is vital for maintaining and improving competitiveness nationally and internationally.
Due to South Africa’s current economic challenges, organisations like CHIETA, within the broader SETAs, are essential. They play a critical role in addressing skill shortages, supporting affected employers, and ensuring enough skilled workers to drive production, innovation, and strategic advancement for businesses.
Moreover, South Africa, including the Chemical Industry and CHIETA, needs to adopt an innovative mindset informed by collaboration and transformation. This is essential in dealing with global competitiveness, the Fourth Industrial Revolution (4IR), and the shift towards a digitised environment.
Top Industry Players
B-BBEE Scorecard Applied : Generic – General (Revised Codes)
Sasol:
Revenue: $13.2-billion
Number of employees: 28 900
Level 3
Score 91.76%
Legal Factors and Challenges
There is a growing demand for the chemicals sector to play a role in global efforts to combat climate change. Businesses are encouraged to disclose environmental impacts transparently, moving beyond symbolic gestures.
Significant opportunities exist to lead by integrating sustainability and green design principles from the outset when constructing new chemical facilities.
Additionally, making current products cleaner using technologies like carbon capture and sequestration (CCS) is crucial.
Source: www.zoominfo.com | Sasol | KPMG | StatsSAl | Mercantech capital
