With private sector localisation, close cooperation and collaboration are important, as are both buyers and suppliers being willing to share sensitive data.
Localisation for Africa
Private sector localisation is important to keep our manufacturing sector connected with global markets, which are often mainly focused on improving competitiveness and responsiveness. Thus the forecast numbers of the buyer are speculative and the opportunities not always fully explored. The main priority for a buyer is to partner with manufacturers that can afford to experiment with new products and new markets.
With private sector localisation, close cooperation and collaboration are important, as are both buyers and suppliers being willing to share sensitive data. The buyer must not only look at the supplier, but also at the supplier’ s supplier in order to secure their supply networks. Although private sector driven localisation often starts with smaller volumes, it can quickly increase and therefore the ability to invest and expand is important.
The relations formed in this process are strategic, often export orientated and will( if all partners work together) result in long term relations with business continuity for all partners. Perhaps it is important to acknowledge that many of our manufacturers have shifted considerable amounts of their component suppliers to Asia in the last 15 years.
Due to the changes in international trading conditions, many of these manufacturers are now exploring new markets in Africa, Eastern Europe and Latin America. In order to enter these markets they need a more flexible local supply chain that not only supplies the components faster than their international competitors, but also assists with the development of the product. On average, component manufacturers must be able to fulfil orders within 11 weeks, some times as quickly as six weeks.
This is a long stretch from many firms’ standard delivery time of 15 to 20 weeks- substantially longer than the delivery time from Asian manufacturers. Furthermore, to survive many South African manufacturers have become specialists, thus providing highly customized solutions at low volumes.
Sometimes localization would require specialization combined with higher volumes.
With private sector localisation, close cooperation and collaboration are important, as are both buyers and suppliers being willing to share sensitive data.
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