New research on localisation policy launched today by BUSA and BLSA
• Businesses surveyed are supportive and eager to localise their supply chains where possible, but under the right conditions.
• However, businesses are sceptical of existing localisation policy and worry about capacity, price and quality as well as the ‘usual’ constraints of electricity, regulations (including labour)
• Quantitative modelling shows large variation in capacity to localise and ability to do so in short to medium run
• Examples from other countries show the downsides of moving too fast and too rigidly and the importance of productivity enhancements and export competitiveness to drive sustainable localisation.

Business Unity South Africa (BUSA) in conjunction with Business Leadership South Africa (BLSA) have launched an important research report into localisation policy.
This timely report was compiled by local consulting firm Intellidex and aims to contribute to policy on promoting local manufacturing in South Africa.

 

Full Statement Attached

 

Issued by BUSA and BLSA