aBr MOVE October 2014 Oct 2014 | Page 14

Import and Export  by Dave MacDonald THE CHINA EFFECT - eroding SA’s economy, increasing unemployment and delivering inferior products We’ve all heard the saying ‘local is lekker’ and seen campaigns by local manufacturers urging us to support South African brands. However, the China effect is being felt the world over, our own country included, as businesses and retailers increasingly look towards the Far East to source cheaper products rather than supporting local manufacturers. S outh Africa has more recently felt the effect in the The increase in the number of Chinese imported products local electrical manufacturing industry that has has led to many of these manufacturers going as far as ship- also come under threat. The lure of these cheaper, ping the goods themselves, encouraging local suppliers to mass produced electrical components has resulted take advantage of cheap products. in an increasing number of imports at the expense of locally produced products. While cheaper imported products may be appealing on the surface, the effect of importing such large numbers of goods is detrimental to the local economy. More often than not these imports are without warranty and may be produced using inferior methods and materials. Importing products also circumnavigates the problems of labour in South Africa. Obtaining quality certifications and approvals in South Africa has also made the import of Chinese manufactured electrical equipment an attractive prospect. All locally produced products should be tested by the SABS for compliance, but this is a lengthy process. In comparison, In electrical manufacturing uncertified inferior products can if a product is manufactured in China, it will be tested at an be incredibly dangerous, causing short circuits, fires and accredited test house and a certificate will be issued within other problems that can result in the loss of human life. seven working days. 12 • logistics in action • october 2014