Member type: Full Member + RLCG

Chemical industry
Relatively small by international standards, the South African chemical industry is nonetheless a significant contributor to GDP (5%), the local manufacturing sector (25%) and is ranked among the top 25 chemical producing countries in the world.

Chemical manufacturing developed around the demands of the mining industry in South Africa with the production of nitroglycerin, and was followed by sulphuric acid, nitrogen-based fertilizers and a chlor-alkali industry. Since the 1950s, a significant polymer industry and a diversified downstream sector have developed, based around the coal derivation process.

While upstream activities are concentrated and well-developed, the downstream sector - although diverse - remains relatively under-developed. The synthetic coal and natural gas-based liquid fuels and petrochemicals industry is prominent, with South Africa being the world leader in coal-based synthesis and gas-to-liquids (GTL) technologies.

Primary and secondary sectors are dominated by major local operators. A number of multinational companies also have operations in South Africa. While many act as distribution points for their parent companies, several have become involved in local manufacture. Takeovers, acquisitions and strategic alliances, both within South Africa and abroad, have become features of a rapidly transforming industry which is still dominated by local companies.

In 2007 sales of chemical products amounted to R237 billion with imports in 2007 at R75.4 billion and exports at R35.2 billion.
 
South Africa’s major sources of imported chemicals are the USA, UK, Germany, Australia, Switzerland, Netherlands, Belgium, France, Italy and Japan. Major regional destinations of exported chemicals include Zimbabwe, Zambia, Kenya, Democratic Republic of Congo, Mozambique and Angola. Offshore destinations include the USA, UK, Netherlands, Australia, India, Japan, Indonesia, Hong Kong & China, Spain and Singapore. 

National association
The South African chemical industry is represented by the Chemical and Allied Industries’ Association (CAIA) which has 190 members including chemical manufacturers, traders and industry service providers as of 2008. Members are mainly big and medium size companies drawn from base chemicals, fertilizers, plastics in primary form, pesticides and other agricultural products, explosives and speciality chemicals.  CAIA’s primary goals are to promote Responsible Care, to earn public trust for the chemical industry, to improve the efficiency of its advocacy efforts, to support education initiatives in science, engineering and technology and to create maximum value for member companies. The Association interacts with a number of employer bodies, the Chemical Industries’ Education & Training Authority, various professional societies and other associations representing sub-sections of the industry.