The role of the plastic industry to the South African economy

The plastics industry plays a vital role in the success of the South African economy. It contributes to the country’s output growth as well as employment. This industry has an incredible multiplier effect of 3.7% for every job created and 3.5% for every rand invested in growing the industry.

During SONA 2020, the plastics industry was defined as a priority sector meaning the government acknowledges the essential nature of the industry to the economy.

The plastic industry employed over 60 000 people during the past financial year alone. This is a huge job creator and therefore, an uplifting industry for the economy as well as the unemployment rate. The recycling industry alone has provided direct employment to more than 7800 people and create 58 500 income-generating jobs.

The recycling of plastics also saw 3 billion rand injected into the informal sector through the purchasing of recyclable plastics waste in 2018. In that same year, plastics recycling saved 246 000 tons of CO2, which is the equivalent of the emissions of 51 200 cars. This is evidence of the plastic industry’s commitment to working towards creating a green economy as well as mitigating climate change by moving towards a low carbon growth trajectory. Recycling of plastic has become a major contributor to the economy and the environment as plastic products are more environmentally friendly than other materials if they are disposed of correctly and effectively recycled.

Almost every single sector relies on or utilises plastic products in one way or another. In 2018, the South African plastics industry converted more than 1.8 million tons of polymer into plastic products.

The impact of the plastic industry on the economy and as well as the workplace and our everyday lives is astonishing; it is, therefore, obvious why the plastic industry continues to be a major driving factor in the South African economy.

Plastic & Chemical Trading is a valuable technical partner that supports your manufacturing needs. Contact us today to ask how we can streamline and improve your business!