South African firms turn productivity into better jobs
The ILO and Productivity SA are helping enterprises improve workplace systems, competitiveness and decent work.
17 June 2026
In South Africa, productivity challenges are felt in practical ways: late orders, wasted materials, unclear roles on the shop floor and small firms struggling to grow. For workers, these pressures can mean unstable jobs, unsafe practices and limited opportunities to build skills or have a voice at work.
The International Labour Organization (ILO) and Productivity SA are responding through the Productivity Ecosystems for Decent Work programme, which supports enterprises while addressing the wider conditions that shape productivity, formalisation and decent work.
South Africa's manufacturing and small business sectors have strong potential for growth and job creation, but many firms face persistent constraints, including skills gaps, weak workplace systems, limited market access, energy disruptions, import competition and uneven support for smaller enterprises.
The effects are felt by business owners, workers and communities. Young people, women, township enterprises and informal or emerging businesses are often among those with the least access to structured support, even though they are central to inclusive growth.
Working with Productivity SA, government, employers' and workers' organisations, sector bodies and development partners, the programme focuses on practical change inside firms and stronger coordination across the wider enterprise ecosystem.
Support has reached enterprises in the leather, footwear, automotive and small business sectors through diagnostics, training, coaching, export-readiness support and business development assistance. The work is supported by the Swiss State Secretariat for Economic Affairs and the Norwegian Agency for Development Cooperation.
Over two years, more than 114 enterprises have been supported and 1,066 interventions delivered. The changes are visible in how enterprises organise work: cleaner production areas, clearer procedures, stronger quality controls and more regular problem-solving between managers and workers.
Participating firms are applying continuous improvement methods such as Kaizen, 5S, autonomous maintenance, standard operating procedures, visual management and daily problem-solving meetings. These tools help reduce waste, improve delivery, strengthen production discipline and make workers part of the improvement process.
For smaller enterprises, the support has strengthened costing, quality, basic business systems and steps towards formalisation. For export-oriented firms, it has helped build readiness for new markets through improved operations, market intelligence and buyer linkages.
Productivity gains are more likely to last when they are built with workers, not around them. Safer workplaces, stronger skills, clearer roles and social dialogue help enterprises become more reliable, while giving workers greater dignity, voice and opportunity.
The next step is to deepen and scale what is working: stronger enterprise support, better institutional coordination and continued focus on value chains where productivity gains can protect jobs and create new ones. South Africa's experience shows that productivity is not only about producing more. It is about building enterprises that can compete while improving the quality of work.