Localisation for Africa creating and sustaining American jobs . The issue is a patriotic one in the USA .
When I advocate buying local , this does not refer to crafting projects , but products that are currently more expensive to buy locally than their imported counterparts : pipes , pumps , valves , trains , capital goods . To get this right , we will need to drive down the input costs , work with labour unions and improve skills development so that we can be globally competitive in a few years .
The next step is meaningful consultation between state-owned companies and industry . It means that various procurement departments , supply chain staff and strategic sourcing specialists will need to engage properly with local business and move away from the practise of simply advertising Requests for Information / Interest in local newspapers . Sure , this will be difficult , but it is essential !
We need to share information if we are to promote localisation . The silo mentality promotes a rivalry about which state-owned enterprise is best , yet what we need is a focus on what is best for South Africa . Quite simply , we must make products locally , we must buy local products and we must gain the knowledge and experience required to be competitive . It is only by doing so that we can meet our targets for job creation , job retention , enterprise development and skills improvement .
The patriotism aspect of localisation is critical . One admirable aspect of the USA ’ s approach is the clear understanding amongst its citizens that each time they buy American , they are keeping an American job and sustaining an American family . This message is reinforced by its Buy Back America campaign . These campaigns and the ensuing actions show a patriotic love and belief in their country that I think we should be emulating .
As industry , we must acknowledge and step up to our role . Industry clusters are more than a group of firms within the same industry . The key to being organised into clusters is to be properly organised !
The economic cluster model represents a synergy , a dynamic relationship and a network between not only the companies that comprise a cluster , but also the various stakeholders , including government , education , and other supporting organisations vital to a region ’ s economic success . Many successful clusters have established a greater competitive advantage and wealth creation for their regions when compared to companies , which are not organised into a cluster . Given this success , more policy makers and regions are considering fostering cluster development as building blocks of regional economies .
The Valve and Actuator Manufacturer ’ s Cluster of South Africa ( VAMCOSA ) was formed in June 2011 under the auspices of the Capital Equipment Export Council with very clear aims to drive local manufacturing , develop skills , achieve job creation through local procurement and promote enterprise development . It also specifically aims to promote interaction with state-owned companies and municipal-owned enterprises for greater uniformity and higher standards . Finally , VAMCOSA promotes exports by improving quality as well as through on-going research and development .
Industry associations are a necessity and businesses should all be members of their closest fit association . Those who export or have the potential to export should also join their specific Export Council . There are so many good incentives , initiatives , interventions , policies and regulations that are available to support local businesses and these associations exist to inform industry of the options and to assist them in accessing the available tools and benefits .
Let us take advantage of the various clusters , industry associations and export councils that are available to South African businesses . The South African Capital Equipment Export Council ( SACEEC ) is a key resource , given that most of the industry clusters are housed there . We also have valuable institutional memory in individuals like Sybil Rhomberg , who served on the Electronics and Instrumentation Standing Committee in the 1960s and the earlier version of SACEEC . These resources are valuable and available . Let ’ s use everything at our disposal to manufacture locally , buy local products and improve skills to compete globally ! LFA
In contrast , South Africa seems to have a strategy to look at international companies , yet I don ’ t believe it is to our benefit to have Tier 1 suppliers vertically integrate . Treasury constantly berates local suppliers for not offering value for money as taxpayers , yet these suppliers were side-lined years ago and are now fighting for survival .
There is light at the end of the tunnel in the form of localised manufacturing through designation . We need to push the concept of buying local as a country if we are to improve job creation and all that comes with decent employment . www . localisationforafrica . com 33