433369666-The-Case-for-Investing-in-South-Africa

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CHEMICALS AND CHEMICAL PRODUCTS INDUSTRIES: BASIC
CHEMICALS PRODUCTION CAPACITY SERVICING VARIOUS
KEY SECTORS
• The basic chemicals sub-sector, which contributes 3.7% to total manufacturing GDP, encompasses the
production of:
- Commodity or base chemicals, which are produced in high volumes from raw commodities (e.g. oil, gas, coal)
and used as feedstock into other value chains;
- Intermediate chemicals; and
- Speciality chemicals, which are generally low volume, non-commodity (higher value-add) basic chemical
products for more specialised applications.
• The basic chemicals sub-sector produces around 600 types of chemicals that are essential inputs into the supply
chains of the agriculture, mining, manufacturing (e.g. plastics, food processing, cosmetics, pharmaceuticals,
paper, printing), construction and transportation sectors.
• The basic chemicals sub-sector is supported by an abundance of raw materials, which form the basis of certain
competitive advantages. The fertiliser industry, for example, leverages on domestically available raw material
inputs such as phosphates, phosphoric acid, nitrogen, ammonia, sulphur and potassium.
• While the sub-sector is dominated by a few integrated, locally-based manufacturing companies, it has attracted
multinational corporations as well. The sub-sector is also growing its strategic orientation towards speciality
chemicals and intermediate and end products.
CHEMICALS CHEMICALS & CHEMICAL & CHEMICAL PRODUCTS SUB-SECTORS:
SUB-SECTORS:
SHARES SHARES OF OF MANUFACTURING GDP IN IN 2018 2018 (AT (AT CURRENT CURRENT PRICES) PRICES)
Coke and refined petroleum products
8.1%
Chemical products
(incl. pharmaceuticals)
5.7%
Basic chemicals
3.7%
Other manufacturing
sectors
82.5%
Source: IDC analysis, compiled using Quantec data