Financial institution Nedbank has launched a bespoke offering to the manufacturing sector, which is aimed at supporting economic growth and job creation.
The offering is aligned with the National Development Plan 2030, which requires collaborative engagements across sectors and industries for its goals to be achieved.
“Manufacturing is one of the engines of the South African economy and is the country’s fourth-largest industry, contributing 14% to gross domestic product (GDP).
“To cement its position and further its growth, it’s essential to develop innovative and enhanced bespoke solutions that allow for financial institutions to partner with the sector,” Nedbank Business Banking client value propositions head Prithi Pillay said at the launch on March 29.
He said there were four key pillars – technology, global expansion, growth and sustainability – that would support the growth of manufacturing and the South African economy.
Pillay said that, to ensure these pillars formed part of the foundational development of the sector, financial institutions needed to develop and refine offerings that showed a deep understanding of the challenges facing sector players, as well as the strategies and goals they have set.
The Nedbank manufacturing proposition is premised on developing strategic partnerships with key industry stakeholders, providing custom solutions, as well as proactive engagements and insights to drive business growth in the manufacturing sector.
“Our new manufacturing proposition is aimed at simplifying the complexities associated with financial decisions, making it easier and quicker for clients to make informed decisions.
“We give clients access to in-depth industry insights aimed at enhancing energy, production and administrative efficiencies, as well as access to a network of industry experts to support their growth and protect their manufacturing business,” explained Pillay.
Nedbank economist Isaac Matshego said a significant boost to the manufacturing sector was needed in the face of a low growth pace projected for the next five years. He noted that real GDP growth was expected to remain well below 2% up to at least 2025 but that renewed investment in the manufacturing sector would contribute to economic growth, particularly through exports.
Infrastructural constraints, including challenges experienced at South Africa’s ports, and with railway line and energy infrastructure, were a concern in terms of exporting goods, he noted.