South Africa has been importing goods which local small and medium companies have manufacturing capacity, resulting in loss of revenue and depriving citizens of job opportunities, at a time the country has an unemployment rate of 35%.
Hopefully, a new policy amendment mooted by the Department of small business development, when passed, will reverse this trend. Small Business Development Minister, Khumbudzo Ntshavheni, said this in response to a question in the National Council of Provinces (NCOP) sitting, as a member of ministers in the economics sector.
The Department has drawn a list of products, which are to be included under the Department of Trade, Industry and Competition’s 100% local category, to facilitate the involvement of small businesses in the local manufacturing sector.
On progress being made, Ntshavheni said, “ We are working with the Department of Trade, Industry and Competition to designate more products for 100% content. In addition, we are working with the South African Revenue Service and customs to make sure that those products that are designated for 100% local content are not allowed in our shores to protect local companies.”
Through the Small Enterprise Development Agency (SEDA), the department supports a total of 23 manufacturing-based incubators in the chemicals, steel and stainless steel-based metals, aluminium which has metal fabrication, biofuels, clothing, footwear and leather, food, bakery and confectionary, tech hardware and furniture manufacturing.
There is hope that the amended 100% local policy will resuscitate local small scale manufacturers. As a result of cheap imports from the Far East that have been flooding the local market, several small and medium companies in the local manufacturing sector, after failing to compete on a level playing field, have closed.