Johannesburg - South Africa's deputy president Cyril Ramaphosa on Wednesday punted localisation of goods and services as a silver bullet to the triple challenges of unemployment, inequality and poverty.
He said it was integral to growing and sustaining the country's economy.
Ramaphosa said the economic cycle created by the localisation of production and consumption goods was viable because it created jobs that would enable ordinary citizens to invest back into the economy.
He said buying local also ensured that small and medium enterprises, which create a big percentage of new jobs, survived and contributed further to the economy.
“When you buy local, the money you use stays in the community and in the local area,” he said.
“South Africans should not settle for less. Our economy is capable of producing quality goods and services. “The challenge we have is to convince South Africans and raise their consciousness about the long-term benefits of buying local goods,” Ramaphosa said.
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Ramaphosa was speaking at the 5th ProudlySA Buy Local Summit and Expo in Johannesburg on Wednesday. The expo showcases locally-made products and services.
It also acts as a call to action for consumers and procurement decision-makers to increase their uptake of local products and services, which supports job creation and stimulates the local economy.
Ramaphosa said South African citizens should try to emulate Americans who had experienced an awakening of the spirit of buying local goods after their economy had shed thousands of jobs due to the influx of foreign products.
“When we get into shops, we should be choosy and be biased towards buying our local products,” he said. Ramaphosa said government, as the largest procurer of goods and services in the economy, would continue to buy more from local manufacturers and producers.
Buying local was also critical to attracting and sustaining investment, Ramaphosa said, adding that investors were encouraged by the economic boom created by the growing demand for local goods.
Earlier this month, the South African Reserve Bank reduced its economic growth forecast for this year from 0.9 percent to 0.8 percent, and for 2017 from 1.6 percent to 1.4 percent.
Minister of Trade and Industry Dr Rob Davies concurred with Ramaphosa, saying that localisation was one of the most widely used instruments to boost the growth of local economies all over the world. He said it was not enough for government to support local producers, it was equally important for consumers to also buy local.
He also said that consumers should learn a few tricks and pay attention to products that display a country of origin. “If a product barcode doesn't start with 600, then consumers must know its an imported product or good,” Davies said.
Earlier this month, US chicken exports hit South African supermarket shelves for the first time in 15 years, ending a protracted trade dispute and ensuring that South Africa would continue to receive trade benefits under the African Growth and Opportunity Act (Agoa).
Among the delegates attending the Summit were: Chief Executive of ProudlySA Advocate Leslie Sedibe; Minister of Small Business Development Lindiwe Zulu; Deputy Chief Executive of Barclays Africa David Hodnett; and Kimi Makwetu, Auditor-General of South Africa.
AFRICAN NEWS AGENCY