Put Your Hand Up Number Two – We MAY Need You Soon

We all have seen that the manufacturing industry is a large contributor to Nelson Mandela Bay’s GDP – around 22%.

Ghost on the Coast:

Now, with all this alarmist doom and gloom talk about limited and misguided policy support for manufacturing possible leading to another ‘Ghost on the Coast‘ scenario as manufacturers shut up shop and move their capital elsewhere we need to:

Identify which industry in Nelson Mandela Bay is number two on the list because that is the very industry that we will all look to if things go pear shaped with our manufacturing industry.

The Top GDP Contributors (2025/26 Estimates):

Industry Sector ~GDP Contribution (%) – Role in the Local Economy

1. Services (Tertiary) ~60% – The “Engine Room”: Includes finance, ICT, professional services, and government.
2. Manufacturing ~24% – The “Anchor”: Heavily dominated by Automotive, but includes Food, Bev, and Pharma.
3. Finance & Real Estate ~21% – A sub-sector of Services that has seen steady growth due to SEZ investments.
4. Transport & Logistics ~10% – Driven by the “Two Ports” strategy (Port Elizabeth and Ngqura).
5. Agriculture ~3% – Small but specialized in citrus, wool, and dairy exports.

Some Good News:

While “The Bay” is famous for cars, the services industry actually provides the largest slice of the GDP pie.

1. The Services Sector (~60%)

Often overlooked because it’s less “visible” than a factory, this sector includes the banks, law firms, ICT hubs, and municipal services that keep the city running. It is the largest employer in the Metro and has been the most resilient against global supply chain shocks.

2. The Automotive “Mighty 20%”

While total manufacturing is higher, Automotive alone contributes roughly 20% to the local Metro GDP.

• The Export King: Automotive goods make up 60% of all exports leaving the Bay.
• The Component Factor: NMB is home to 40% of South Africa’s auto component manufacturers, making it the most dense automotive ecosystem on the continent.

3. The “Two Ports” Logistics Hub

With the Port of Ngqura and the Port of Port Elizabeth, the maritime and logistics sector is a critical GDP driver. In 2021, the value of international trade passing through these ports was equivalent to 70.1% of the total NMB GDP, highlighting just how much the city relies on global trade.

4. General Manufacturing (Beyond Cars)

NMB is a major player in other high-value industries:

• Pharmaceuticals: Home to Aspen Pharmacare, the largest generic medicine producer in the Southern Hemisphere.
• Food & Beverage: Major operations by SAB (AB InBev) and Coca-Cola are significant regional contributors.

Cautionary:

Remember – te economy does not exist in silos – manufacturers rely heavily on the service industry and many service firms will have a large exposure to the manufacturing industry. Take away their turnover from manufacturing and they may very well not survive.

So, this is a cautionary tale – hold on to your existing manufacturing business whilst you reduce your exposure by increasing the amount of work you do for industries other than manufacturing.