The chemicals sector is diversified with production ranging from intermediate inputs for a variety of industry and finished consumer products. Governments identify the economic significance of the chemicals sector at a national level as a result of its linkages to other industrial sectors such as agriculture, healthcare, the automotive industry, and clothing and textiles. The sector has strong backward and forward linkages to other industries, certain segments such as plastics and consumer chemicals are medium technology and are labour absorbing.
Although the industry exhibits significant diversity in downstream industries for chemical based products, the import penetration within downstream part of the value chain - which includes products such as soaps, detergents, cosmetics etc – has steadily increased which suggests that the province is losing competitiveness. The key drivers to this trend include an aging capital base, declining R&D capabilities and developmental support.
Furthermore, the industry is losing key skills and has not developed the sufficient skills which affects its competitiveness and potential development. As a result, the sector requires support to develop capabilities, productivity, export competitiveness, job creation and innovation along the value chain; in particular the downstream part of the value chain. In order to support the development of the sector, the department needs to seek out a potential partner in order to develop skills and capabilities of SMMEs that manufacture products such as cosmetics, soaps and detergents to compete in domestic markets and create jobs in Africa.