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

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CHEMICALS AND CHEMICAL PRODUCTS INDUSTRIES:
ESTABLISHED PRODUCTION CAPACITY IN VARIOUS CHEMICAL
PRODUCT SEGMENTS
• The chemical products sub-sector, which contributes 5.7% to total manufacturing GDP, has installed capacity in
a wide range of products.
• Its main segments include pesticides and other agro-chemical products; pharmaceuticals; paints, coatings,
varnishes and printing inks; soaps, detergents, cleaning preparations, toilet preparations and perfumes; and
other chemical products, dominated by the manufacturing of explosives.
• The production of pesticides, which is characterised by relatively high barriers to entry, is dominated by BASF
SA, Syngenta SA, DOW Agrosciences Southern Africa, Plaaskem and Monsanto South Africa.
• South Africa’s pharmaceuticals value chain is well established and mature, with local production capacity
meeting close to 70% of domestic demand.
• The bulk of local pharmaceuticals manufacturing capacity comprises generic medicines, representing 50% of the
overall pharmaceuticals market. Local companies Aspen and Adcock Ingram are major players in the industry.
EXPORTS OF BASIC CHEMICALS AND CHEMICAL PRODUCTS CONTRIBUTED 7.2% OF
SA’S EXPORT BASKET IN 2018
Top basic chemicals exports, 2018
ZAR
million
% of total SA
merchandise
exports
Polymers of propylene, olefins in primary forms 5 222 0.42%
Acyclic hydrocarbons 5 175 0.42%
Sulphates, alums, peroxosulphates (persulphates) 3 719 0.30%
Hydrazine, hydroxylamine, metal oxides etc 3 425 0.27%
Mineral or chemical fertilizers, nitrogenous 2 902 0.23%
Carbides, whether or not chemically defined 2 666 0.21%
Acyclic alcohols and their derivatives 2 561 0.21%
Other 24 452 1.96%
Total basic chemicals exports 50 122 4.02%
Top chemical products exports, 2018
Source: IDC analysis, compiled using South African Revenue Service data
ZAR
million
% of total SA
merchandise
exports
Medicaments, therapeutic, prophylactic use 4 132 0.33%
Reaction initiators, accelerators & catalysts 3 945 0.32%
Beauty, make-up and skin care preparations 3 734 0.30%
Insecticides, fungicides, herbicides etc (retail) 3 526 0.28%
Organic surface active agent, preparation, except soap 2 707 0.22%
Soaps 2 180 0.17%
Prepared binders for foundary moulds or cores 1 582 0.13%
Other 17 164 1.38%
38 969 3.13%