The African Manufacturers Foundation (AMF) has urged South Africans to focus on rebuilding the country’s productive economy, warning that economic stagnation and declining industrial capacity pose a greater threat to prosperity than migration.
In a statement issued on Thursday, the organisation said it had taken note of growing public debate and demonstrations around undocumented immigration, unemployment and economic exclusion.
AMF acknowledged the frustrations of millions of South Africans who continue to struggle with joblessness, poverty, rising living costs and limited economic opportunities. While citizens have a legitimate right to demand solutions, the foundation cautioned against allowing public discourse to focus on symptoms rather than the underlying causes of economic hardship.
According to the organisation, South Africa’s economic challenges are rooted in years of deindustrialisation, declining manufacturing output, factory closures, inadequate access to finance and deteriorating infrastructure.
The foundation said the country has lost significant industrial capacity over the past two decades, weakening its ability to create sustainable employment and drive economic growth.
AMF Chief Executive Officer Lebo Radebe said the national conversation should shift towards rebuilding industries that generate jobs and wealth.
“South Africans are right to demand economic inclusion and opportunities,” said Radebe.
“However, no nation has ever solved unemployment by focusing solely on who occupies economic space. Sustainable prosperity is created when a country produces more, manufactures more, exports more and enables its citizens to own productive assets. The real battle before us is industrialisation.”
To address the crisis, the foundation proposed a National Industrial Recovery Compact centred on five key priorities.
The first proposal is the establishment of an Industrial Rescue Programme aimed at supporting factories that are at risk of closure. According to AMF, preserving existing manufacturing operations would protect jobs, skills and local economic activity.
The second recommendation is the creation of a South African Industrial Ownership Fund that would enable workers, entrepreneurs and communities to acquire stakes in manufacturing businesses, logistics operations and other strategic industries.
AMF also called for reforms to development finance institutions, arguing that funding approvals for manufacturing enterprises and export-focused businesses should be accelerated.
The organisation further urged government to expand local industrial participation through targeted procurement policies, enterprise development programmes, skills transfer initiatives and industrial incentives.
The fifth priority focuses on strengthening trade relations across the African continent. AMF said South Africa’s long-term economic success depends on expanding export markets and deepening regional economic cooperation.
The foundation warned that weakening economic ties with other African countries could negatively affect manufacturing exports, agriculture, logistics, tourism and investment flows.
Instead, it called on government, labour, business and civil society to unite behind a shared objective of creating jobs, supporting entrepreneurs, expanding industrial capacity and building globally competitive African industries.
“South Africa does not need more conflict. South Africa needs more factories. South Africa needs more entrepreneurs. South Africa needs more ownership. South Africa needs more production,” the organisation said.
AMF said it remains committed to working with stakeholders across society to develop practical solutions that strengthen South Africa’s industrial economy and contribute to long-term prosperity on the African continent.
The African Manufacturers Foundation is a pan-African industrial development organisation that promotes manufacturing excellence, entrepreneurship and economic transformation. The organisation is also the custodian of the Made and Celebrated in Africa programme and is leading the development of the MCAS 1000 Manufacturing Excellence Standard.
