68
LOCAL MANUFACTURING
<< Continued from page 67
If customers in South
Africa preferred local,
there would be more
local manufacturers.
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The building regulations in South Africa relating
to geysers are SANS 10400-XA and SANS 1307
certification. SANS 10400-XA states that a geyser in
a South African household must get 50% of its energy
from a renewable source.
The regulation thus effectively requires integrated
solutions for water heating, such as solar geyser systems
and heat pumps. Municipal building inspectors issuing
certificates of occupation for buildings are beginning
to enforce these regulations for SANS 10400-XA and
SANS 1307 certification on new properties.
IN THE BLACK
In South Africa, transformation adds a layer of
complexity. “As a country, we are on a journey to build
black industrialists, but those black industrialists will
struggle for acceptance in the mainstream market,”
Nzimande says.
2
3
“You have to build credibility. To enter the market
is extremely hard, especially if you are riding the
transformation horse, as you get looked at with
suspicion. Your delivery has to be better, initially,
just to get acceptance. We are trying to build local
manufacturing and at the same time, we are trying to
transform industries and make them more competitive.”
Absa understood that difficult journey of a black
industrialist; hence, their investment in its nationwide
logistics to ensure the company can get its products to
retail stores anywhere in the country within a set number
of days, to meet various service level agreements.
Public sector procurement is also starting to drill down to
construction material suppliers’ B-BBEE levels, and not
just for the main contractor/developer. More than 60%
of a construction project can be materials; however, the
B-BBEE levels of materials suppliers were rarely enforced
in project procurement.
“Public sector procurement officials are beginning to
say they want to see the B-BBEE ratings of second-tier
material suppliers to projects and contractors. That
scenario is increasing and will benefit the development
and transformation of local industries,” he says. PA
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January 2018 Volume 23 I Number 11
The company’s locally made geysers are of better
quality than most imported alternatives.
Duratherm buys components from local
manufacturers and suppliers.
Safety is a top priority at Duratherm and all staff
are equipped with safety gear.
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