South Africa eyes industrial reform and retail growth

South Africa is experiencing shifts in both its retail and industrial sectors. The retail market, valued at over R1.5 trillion, has shown resilient growth, with real-term sales increasing by 3.7% in 2025. While monthly momentum has fluctuated, March 2026 saw a 2.6% year-on-year increase in retail trade sales. Shoprite Holdings remains the market leader, controlling approximately 25% to 30% of the formal sector, reporting annual sales of R252.7 billion for the 2025 financial year.

In terms of industrial policy, President Cyril Ramaphosa has signaled a potential shift toward allowing privately owned Special Economic Zones (SEZs). This proposed reform aims to address the shrinking manufacturing sector by offering stronger incentives, faster approvals, and a different investment model compared to current state-run zones. If implemented, these privately owned SEZs could provide businesses with reduced corporate tax rates, customs relief, and simplified regulations to stimulate industrial growth.