In 2014, South Africa remained one of the most unequal countries in the world, an outlier by global standards. This situation raises
questions on how manufacturing affects employment and the distribution of income and assets; and is the traditional industrialpolicy
paradigm sufficiently geared to supporting inclusive growth? The paper explores these questions in the context of declining
employment, slow growth in production, and concentration of ownership in the manufacturing sector. In this context, the share of
remuneration in value added rose to unusually high levels. Furthermore, the paper explores the link between manufacturing and job
creation and economic equality, as well as how well traditional industrial policy aims fit in South Africa.
The paper argues that the simple linkage often drawn between industrialisation and sustained growth needs to be nuanced to
take into account the realities within the manufacturing sector and society in South Africa. In particular, more should be done to
understand what leads to stark wage inequalities in manufacturing and identify options for addressing them in order to reverse the
current trend of job losses in manufacturing, through a shift to light industry and expansion into regional markets as well as enhance
indirect employment effects.