Strengthening SA’s Economy Through Local Procurement: A Strategic Imperative

Over the past 24 years, the Proudly South African campaign has advocated for and promoted local procurement as a tool to stimulate South Africa’s economy.

Local procurement is not just a regulatory measure; it is a fundamental pillar for economic transformation, job creation, and long-term sustainability in South Africa. This was the central message delivered by Acting Director-General of Trade, Industry and Competition (dtic), Dr Malebo Mabitje-Thompson, at the 13th annual Proudly South African Buy Local Summit and Exhibition, currently taking place in Sandton, Johannesburg.

Speaking on behalf of Minister of Trade, Industry and Competition, Parks Tau, Mabitje-Thompson emphasized that investing in local industries translates into tangible economic benefits, fortifying domestic resilience while unlocking South Africa’s full potential on the global stage.

A Catalyst for Economic Growth and Job Creation

Over the past 24 years, the Proudly South African campaign has advocated for and promoted local procurement as a tool to stimulate South Africa’s economy. Mabitje-Thompson underscored how buying locally strengthens the country’s manufacturing sector and enhances its competitiveness in an increasingly volatile global economy.

“We need to embrace local procurement for economic empowerment. Local procurement is more than a policy instrument; it is a strategic lever that drives progressive change, creates jobs, and ensures that our belief in South Africans' talent and resilience translates into tangible economic growth,” she said.

She further elaborated that supporting domestic industries is not only a means to foster economic growth but also an essential safeguard against economic instability. With global supply chains facing growing uncertainties, reliance on locally produced goods ensures greater security and stability in critical sectors such as manufacturing, food production, and technology.

Government Commitment to Local Procurement

Mabitje-Thompson also highlighted the necessity for government agencies to align with local procurement legislation to reinforce national economic goals. Entities such as Transnet have made significant commitments to investing in South African enterprises, setting an example for both public and private sectors to prioritize local supply chains.

“When we procure locally, we bolster our economy and enhance its resilience. In a world where global supply chains are increasingly uncertain, it is vital that we can rely on our industries to supply our critical needs. Local procurement is not about shutting out foreign markets; rather, it is about creating a foundation for sustainable economic growth that benefits all,” she noted.

The commitment to prioritizing local procurement aligns with broader national objectives, including South Africa’s Industrial Policy Action Plan (IPAP), which seeks to expand industrial capacity, promote innovation, and increase job opportunities across various sectors.

Tackling Barriers and Strengthening Policy Support

Mabitje-Thompson called on businesses, industry leaders, and policymakers to actively participate in discussions surrounding policies that support industrial growth. These include master plans tailored to different sectors, tariff measures designed to protect local industries, and initiatives aimed at combating illegal imports that threaten the survival of South African businesses.

“While incentives and industrial financing play an essential role, they cannot replace the fundamental need for a strong and reliable domestic market. Strengthening our local procurement strategies ensures long-term economic sustainability, provides security to workers, and fosters innovation within our industries,” she stated.

In addition, she emphasized that increased public awareness and consumer participation in local procurement initiatives are key to driving change. Consumers wield significant power in shaping demand, and by consciously choosing locally manufactured goods, they contribute to economic expansion and job creation.

The Buy Local Summit and Exhibition: A Platform for Collaboration

The Proudly South African Buy Local Summit and Exhibition remains a crucial platform for fostering collaboration between businesses, government, and consumers. The event showcases the value of local industries, connects entrepreneurs with potential buyers, and highlights opportunities for strengthening supply chains within the country.

Through platforms such as this summit, the dtic continues to support initiatives that prioritize local enterprises, ensuring that South African businesses have the necessary tools and opportunities to thrive both domestically and internationally.

The momentum behind local procurement is growing, and with continued support from both the public and private sectors, South Africa is poised to strengthen its economy, create sustainable jobs, and position itself as a competitive player in the global marketplace.

By reinforcing local procurement policies and fostering a culture of buying local, the country moves one step closer to achieving inclusive economic growth that benefits all South Africans.