What is localisation?
Localisation is the process of making products and services in a country, instead of importing them from somewhere else. It’s all about the local economy and providing opportunities for South Africans to do what they do best. Localisation can have tremendous benefits to the South African economy because it means we spend more money on local products and services.
What does it mean for SMMEs?
Localisation means more than just buying local products and services. It can be used to harness the potential of local suppliers and manufacturers through strategic partnerships and agreements. It can provide an opportunity to build the capacity of local SMMEs and to grow the economy through the development of a localised supply chain.
Let’s look at some of the benefits:
There are very sound reasons for localising, and you don’t need to look very far to see them: reduced imports, more jobs, better products, services and more money to the previously disadvantaged. This alone can reduce the worryingly high unemployment rate.
Our Ethos – Driving Economic inclusivity
We are passionate about driving inclusive economic growth. We believe that our South African SMMEs have the ability and capability to fulfil orders, grow their business and contribute more to the economy. That’s the essence of where the localisation journey can take us.
There are always more reasons that you can’t do something vs. you can do it. We took it upon ourselves to be the change that we want to see and exhibit our ethos.
We partnered with Youth Employment Services (YES) and provided funding to local SMMEs for various corporate purchase orders. The project was to deliver mommy bags for the new moms that gave birth at some of South Africa’s biggest private hospitals. We provided the funding for the materials that these SMMEs needed. YES helped manage the order with the SMMEs. The SMMEs delivered an excellent product within the specified timeline. This assisted them in growing their businesses, plus employed the locals within their area. This was only possible through our innovative funding approach, as traditional funders wouldn’t have initially considered them. In turn, the South African SMME sector and economy only thrived.
The proof is in the pudding. We know that this is possible and has the potential to be adopted by many South African businesses. We can recover the economy again by simply being innovative and creative in how we conduct business.