Africa's largest and most modern chemical sector is based in South Africa. This highly developed and varied industry supports a wide range of industries, from gasoline and plastics manufacturing to pharmaceuticals. In South Africa, the basic chemicals sector benefits from a wealth of minerals and generates over 600 different kinds of chemicals.
Approximately 90% of the industry's revenue is generated by the 20 largest integrated local and foreign chemical suppliers in South Africa, which dominate the sector. In terms of gas-to-liquid technology and coal-based synthesis, South Africa is now widely recognised as the global leader in both fields. About 55% of all chemicals produced domestically are petrochemicals, and South Africa produces about 0.5% of the world's total chemical capacity. The industry employs more than 172,000 people.
South Africa's chemicals industry has grown significantly over the last couple of years, with sales reaching over USD 30 billion per year. The greatest chemical manufacturer in Africa is South Africa, which produces a broad variety of chemicals used in manufacturing, building, agriculture, and pharmaceuticals, among many other industries.
Over the past few years, chemical suppliers South Africa's exports to Belgium, the US, the Netherlands, and Zimbabwe have substantially expanded. The concentration of chemical manufacturing in Johannesburg, Sasolburg, Durban, and Cape Town is partly due to the robust demand from these regions' consumer sectors.
Developments in the chemical sector
In South Africa, businesses are investing more in a range of eco-friendly projects, such as the ones mentioned below, as sustainability continues to take centre stage in the chemical manufacturing industry.
Carbon capture and utilisation
These technological advancements remove carbon dioxide from the environment and transform it into useful materials like fuels and chemicals. In addition to being vital weapons in the fight against climate change, CCU technologies also generate new business prospects.
Technology application
To coordinate the other initiatives, the chemicals sector in South Africa is rapidly using industry 4.0 technologies, including big data analysis, artificial intelligence, and Internet of Things (IoT) sensors, to streamline manufacturing processes and cut waste.
Energy management
In an effort to lower energy use, effects on climate change and greenhouse gas emissions, businesses are investing heavily in energy-efficient technology, including cogeneration, heat integration, and process optimization. Renewable energy sources like solar and wind power are also becoming more and more popular. The combined effects of cleaner energy and improved energy management techniques are lowering the carbon footprint of chemical producers.
Sustainable material integration
The development of technologies like biodegradable polymers and the integration of recycled resources into production processes are becoming more prevalent in the chemical manufacturing sector. Because of these initiatives, the environmental impact of chemical manufacturing is reduced.
Adoption of carbon-neutral feedstock
Carbon-neutral feedstocks, such as biomass, are gaining popularity in the industry. The industry is actively working to decrease its dependence on fossil fuels and, in turn, reduce the carbon emissions linked to chemical production by utilising sustainable alternatives.
Building a sustainable future
As South Africa's chemical sector continues to flourish, new avenues are opening up for complementary industries to thrive in tandem.
Transporting raw materials from the source to the factory, as well as finished goods to destination markets, can have a considerable impact on greenhouse gas emissions. Collaborating with logistics partners who prioritise sustainability is highly beneficial for chemical producers.
In addition, utilising digital capabilities like demand forecasting helps to minimise transportation and storage expenses by only transporting the required materials.
South Africa's chemicals industry has the potential to not only be a leader in commercial productivity but also play a crucial role in promoting sustainability. By implementing green production methods through green chemistry, energy-saving strategies, environmentally friendly processes, and sustainable transportation, the sector can contribute to a more sustainable future.