Localisation for Africa
The Pump Cluster
Eskom ’ s Henk Langenhoven presented the State Owned Company ’ s ( SOC ’ s ) Supplier Development and Localisation Strategy , highlighting specific opportunities for the pump industry .
This strategy was developed in the context of Government ’ s national policies on industrial growth and development ( National Development Plan , IPAP , CSDP and B-BBEE ).
The scale of Eskom ’ s current spend and the anticipated spend over the next 5-10 years has highlighted the role that Eskom can play in terms of a number of opportunities :
The size of Eskom ’ s operations and expansion presents an opportunity to drive socioeconomic development . The long-term view of the company ’ s procurement spend allows them to identify areas where they can directly stimulate economic growth in a sustainable way . Clarification of Eskom ’ s role in implementing the energy mix requirements of the IRP will enable them to bring critical mass to bear on industrialisation and localisation opportunities resulting from the IRP .
Pumps has been identified by Eskom as one of its strategic commodities through which to leverage future demand to promote the objectives of its Supplier Development and Localisation programme .
While the South African estimated pump demand has historically been 0.8 % in the last three years , Eskom ’ s estimated future pump demand is to be 11 % of South Africa ’ s forecasted future pump demand .
Current Market Situation Locally based subsidiaries of foreign multinational companies dominate the South African and Eskom pump market . An analysis of the South African Pump market indicates that the country has both current and potential local capability to manufacture , assemble and refurbish pumps for various end user sectors .
Several skills have been identified for development in consultation with Eskom ’ s skills programmes and the national scarce skills list Pumps SD & L Strategy .
The aim of the SD & L strategy is to develop a local pump industry with a full value chain offering , which conforms to South Africa ’ s transformation agenda .
The objective for the development of a pumps SD & L strategy is to identify opportunities and guide efforts to leverage future spend in order to :
Enhance local content among Eskom ’ s pump supplier base . Develop existing local suppliers to improve competitiveness and develop capacity to export . Contribute towards the development of scarce skills for Eskom and national requirements . Make a contribution to job retention and creation .
Specific opportunities for pumps and related parts in Eskom :
Eskom procures new pumps , spare parts and pump maintenance services for new and existing plants . New pumps are procured in the context of new build programmes as part of procured packages and / or turnkey solutions ( installation ). In addition , pump replacement projects are undertaken ( major maintenance – pumps overhaul beyond refurbishment ). The following are examples of pumps used :
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