Well established companies have been badly affected by the Covid-19 pandemic, a situation only worsened by the effects of several years of difficult economic conditions; preferences for cheaper, imported goods; and, in some cases,  changing consumer patterns, said President Cyril Ramaphosa.

Speaking at the Proudly South African Summit and Expo 2021 on March 9, he noted that many companies had had to downscale and others had been forced to close, while a subdued global economic climate was expected to result in decreased demand for South African goods, products and services, even from traditional export markets.

As a result of the pandemic, Ramaphosa noted, the work of Proudly South African had taken on even greater significance, with the task of the summit being immense. “It is not enough to preach the ‘buy local’ message. We need to practice it.”

As such, he said government, State-owned enterprises, businesses, individuals and leaders needed to set an example. “We need to demonstrate that buying local is about investing in quality, in sustaining local businesses and in keeping jobs at home.”

He also urged local manufacturers to step up their efforts, not just to get locals to buy local, but to improve the entry of South African goods, products and services into export markets as well.

“We have to save existing jobs and stimulate the economy for new ones to be created. Businesses that were on the brink of collapse during Covid-19 have to be rebuilt and new ones formed.”

It is for all of these reasons that localisation and local procurement is essential, he urged.

LOCAL PROCUREMENT
In their respective commitments at the 2018 Jobs Summit and in their engagement in 2020 on South Africa’s national Economic Reconstruction and Recovery Plan, all social partners had dedicated themselves to this task, stated Ramaphosa. “There is an express undertaking to increase local procurement over the next five years.”

Besides its own procurement commitments, he said government was working to lower the barriers to entry to make it easier to establish and grow a business in South Africa.

Further, to support existing manufacturers, Ramaphosa said government was enforcing measures to stop the illegal importation of goods, which weaken the local market.

Meanwhile, he added that, through legislation, government has designated 27 sectors for local procurement by the public sector, and that Proudly South African was playing an important role in monitoring compliance with these designations.

However, Ramaohosa also noted that “it is clear” that even in the public sector, South Africa still has some distance to travel to ensure effective compliance.

Whether public or private, he said, South Africans need to appreciate that choosing to procure locally through and across value chains is a solid investment in the country’s economic recovery.

“It grows our economy, creates jobs, broadens markets and creates numerous opportunities for business expansion.”