‘Buy local’ movement gains momentum in Africa

The ‘buy and produce local’
movement is gaining traction
in Africa as the likes of Kenya,
Zambia and Zimbabwe
increasingly institute stricter
import regulations to protect
local industry.
A
Confederation
of Zimbabwe
Industries
(CZI)
manufacturing
sector survey
for 2016 has
revealed
that capacity
utilisation
in the
manufacturing
sector has
risen by 13.1% to 47.4%,
buoyed by the controversial
import ban imposed to protect
the country’s beleaguered
industrial sector. According to
CZI, capacity utilisation was at
34.3% in 2015.
The survey results, released
in Harare late last month,
showed that the rise in
weighted capacity utilisation
was largely due to an increase
in production by companies
whose products had been
placed under the controversial
Statutory
Instrument
SI 64 of 2016.
These included
food, tobacco
and beverages,
wood and
furniture, as
well as paper,
printing and
packaging.
“The gains
of Statutory
Instrument 64
(SI 64) of 2016 are beginning
to be realised,” said a CZI
spokesperson, pointing out that
the survey had polled 250 chief
executive officers and directors
from industry.
Buying locally manufactured
goods and products will go a
long way towards creating jobs
in South Africa and bringing
down the current high level of
imports, according to Lionel
October, director general of
the Department of Trade and
Industry (dti).
He was speaking ahead of
an economic policy dialogue
held with the private sector last
week to “secure a commitment
from big business to support
local manufacturing, boost
jobs and local industries as well
as to increase investments in
domestic manufacturing”.
While the October 2016
trade statistics – released last
week – showed a trade deficit
of R4.4bn, the year-to-date
figure (January 1 to October 31
2016) shows a total R14.35bn
deficit. Statistics South Africa
noted that it was a “major
improvement” on the deficit for
the comparable period in 2015
of R59.5 billion but the dti,
and other industry roleplayers,
still believe SA should be doing
more to create a better import/
export trade balance.
INSERT & CAPTION
Importers are job
stealers, while local
producers are job
creators.
– Kevin Lovell