Advertise with fastmoving.co.za
 
 

South African businesses sign procurement accord to boost local manufacturing
South African businesses sign procurement accord to boost local manufacturing

South African businesses sign procurement accord to boost local manufacturing

FMCG SUPPLIER NEWS

ProcurementLeaders.com - Nov 3rd 2011, 09:54

South African businesses have signed an accord with government, unions and civil society, aimed to help the struggling manufacturing sector. 

The agreement, designed to help towards the government target of creating five million jobs by 2020, stipulates that at least 75% of all goods and services procured in the country be of local origin. 84 of SA's biggest businesses formed part of the accord.

Though the target was greeted as a positive move by local organisations, some were sceptical of its practicality particularly in some of the ailing areas of the manufacturing sector.

"One wonders how you can procure 75% if you cannot address the basic fundamentals of high input costs such as labour and energy," Industrial Development chief economist Lumkile Mondi said, according to local publication The Citizen.

Oupa Bodibe, chief director and sector specialist at the Department of Economic Development, defended the initiative. "On the one hand you need to create demand in the local market and on the other increase efficiencies … We don't just want to protect local producers from imports. We want to give them an opportunity but they also have to become more competitive," he said.

He added that government's new procurement regulations, which come into effect on 7 December, as well as the big business buy-in, will lead the local procurement drive.

"The market reality is a constructed reality that we want to change. We are saying there is a market for your business because the state and big business will procure from you."

Recently, retail giant Walmart nearly walked away from a deal to acquire South African firm Massmart over demands to set local sourcing targets, though ultimately it acceded to create a supplier development fund to help local businesses.  

Related News

AB InBev to float Asian business in 2019’s second biggest IPO
22/09/2019 - 10:14
AB InBev will kick off a second attempt to spin off its Asian business in Hong Kong with the launch of an initial public offering (IPO) worth up to $6.6bn that could be the world’s second-largest flotation in 2019.

Samsung and KOO win big at the 21st Sunday Times Top Brands Awards
20/09/2019 - 15:12
Samsung and KOO have been announced as South Africa’s Overall Favourite Brands, winning the Grand Prix Awards in the respective Business and Consumer sectors of the 21st Sunday Times Top Brands Survey.

Embracing workforce transformation in a digital world
20/09/2019 - 13:53
Workforce transformation affects all aspects of business and companies must plan for the impact it is having and will continue to have on operations. Nicol Myburgh, Head of the HR Business Unit at CRS Technologies, says the evolving business landscape means companies must start thinking now about the skills they need for the future.

Digital marketing: multi-touch attribution
19/09/2019 - 13:43
The effective tracking of digital marketing campaigns is not as easy as initially thought. One question that often pops up is: at what point did consumer conversion take place? During a campaign, it’s difficult to attribute this correctly, especially with multiple touchpoints such as display and native advertising, sponsored social posts, video ads on mobile or paid-for search results all running consecutively.

Working towards better data management
17/09/2019 - 11:31
Big data is seeing organisations becoming more mindful of aligning their data management practices with newer paradigms such as data lakes, elastic and cluster computing, and real-time data. As such, the cloud provides an environment capable of managing the volume and scale required to do so.