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 .
44 www . localisationforafrica . com