Proudly SA punts localisation

Proudly South African (Proudly SA) chief executive Eustace Mashimbye has said that the lack of local demand remains one of the most significant obstacles limiting South Africa’s economic growth potential.

Mashimbye said that the success of the government's economic reconstruction and recovery plans therefore hinges on all South Africans mobilising to make a choice for the good of the country.

“For example, South Africa’s manufacturing sector, a crucial labour-absorber which accounts for some 13% of the country’s GDP, remains significantly under-utilised – an issue which has only grown over the past decade, exacerbating rising unemployment. Notably, Statistics South Africa figures reveal that manufacturing product utilisation fell from 80.6% in 2011 to 77.6%, largely owing to a lack of demand,” said Mashimbye.

He said the country has production capacity, capability and potential. Mashimbye also said that all which was needed was to place the power of the country’s peoples’ rand behind local goods and services to plug the gap in utilisation, encouraging businesses to grow their operations to create more jobs.

“This in turn will create more sources of income, and further stimulate local spending and demand in a virtuous circle that benefits all South Africans and all South African businesses,” he added.

So in an effort to drive localisation Proudly South Africa say they will be having a flagship event, the 2022 Buy Local Summit and Expo, themed “Localisation as a driver of economic reconstruction and recovery”.

The event will be hosted online between March 14 and 16, and will feature sessions attended by political and business leaders including Gauteng MEC Parks Tau who will be launching the province’s local content framework, and the BEE Commissioner, Zodwa Ntuli.

According to Proudly SA one of the objectives will be to speak to the public sector regarding their roles and responsibilities in terms of the Preferential Procurement Policy Framework Act (PPPFA).

“It will further encourage corporate South Africa to increase their uptake of those locally sourced and manufactured goods and services required by their day-to-day operations, and educate consumers on labels of origin and their role in contributing to job creation by making local choices,” said Proudly SA.

Mashimbye said that in addition to sessions exploring the government’s economic strategy and the benefits of localisation, Proudly South African will host special activation sessions exploring South Africa’s automotive and furniture industries.

These have been identified by the government as a few of the key pockets of the economy with significant potential as job creators.

“The local furniture industry also serves as an excellent example of the economic multipliers throughout value chains that can be achieved through supporting local businesses, whether you are furnishing a home or a business, or even a hotel. Consider, for instance, that furniture production involves a range of related industries, drawing on components such as steel, adhesives and paints, wood, leather and textiles,” added Mashimbye.

He said they hoped to dispel the perception that South African-manufactured goods are of substandard quality, and showcase the wide range of Proudly South African-verified products and goods on offer for both corporates and consumers.