South Africa’s Machine Tool Industry

South Africa’s machine tool industry faces a significant supply-demand gap, with annual sales reaching approximately 32,000 units in 2023, yet local production contributing less than 5,000 units, mostly low-end manual models. This leaves 83% of the market dependent on imports, with Germany (28%), China (28%), and Japan (15%) as the top suppliers.

The automotive sector, accounting for 35% of mechanical manufacturing output, drives demand for CNC lathes, milling machines, and gear processing machines, yet high-end CNC machine tool penetration remains below 20%.

The South African government is actively promoting large-scale infrastructure projects, with a focus on areas such as transportation, energy and housing. As a result, the demand for machine tools will also increase.