The sector employs some 1.7 million people and is vital in improving the country's skills and infrastructure base in innovative ways.
In many cases, developing countries that have been able to make the transition from weak economies to strong economies have relied on the manufacturing sector as their main engine of growth.
However, manufacturing in South Africa has shown a downward economic trend since the late 1970s, when the sector accounted for about 20 percent of gross domestic product (GDP).
Today manufacturing activity has declined to 15 percent of GDP, and since 2008 more than 200 000 jobs have been lost or exported to other countries. In addition, 40 000 small business owners closed shop between 2006 and 2011.
Manufacturers who do not invest in competitiveness have been the worst hit by the downturn. In addition, most factories that were forced to close had outdated machinery and equipment.
It is often difficult it is to make investment decisions in the face of uncertainty, so with that in mind, the Manufacturing Competitiveness Enhancement Programme (MCEP) was launched.
About the MCEP
The MCEP is a support scheme which offers manufacturing companies incentives to raise their competitiveness and retain jobs. It has a budget of R5.8-billion over a three-year period.