President Cyril Ramaphosa has called upon South African consumers and companies to buy from local sources. This is a bid to help the country’s economic revival and job creation efforts. His call was aimed across industries, including the automotive sector, where South Africa is a continental leader in parts and vehicle manufacturing.
“By buying local, we are supporting livelihoods, small business development and job creation. We are supporting investment and research in new technology and in innovation. As long as we are producing quality, locally made goods, we should also be buying them,” he said in a pre-recorded speech presented at the Buy Local Summit and Expo hosted by Proudly SA.
Proudly SA is a government initiative that aims to enhance local procurement in both the private and public sectors. Formex Industries welcomes the President’s calls to buy local as it supports South African businesses and the hard work that goes into each and every company by employees, managers and owners.
As a leading manufacturer and supplier of automotive components and assemblies, Formex works alongside local suppliers and international car manufacturers that operate on South African shores. These multinational brands can benefit by sourcing components locally, especially amid severe supply chain disruptions.
The power of local procurement
The ‘buy local’ message is more vital than ever since the economic damage caused by the outbreak of Covid-19 has placed far greater demands on the economy to provide employment opportunities. It has also wreaked havoc on international supply chains, so having a strong manufacturing capacity within South Africa can help to mitigate both of these challenges.
South African manufacturers have had to meet the local demand but also that of international and neighbouring countries. President Ramaphosa says that local manufacturing is important because it encourages national pride in goods and services.
“It supports the growth of small businesses and the expansion of local firms. It creates employment and sustains livelihoods. Local production supports our manufacturing sector. It enables us to build much-needed infrastructure and improve our services,” he explained. This, in turn, allows local producers to expand their operations and begin to explore export opportunities.
Automotive industry is a leading exporter of goods
Formex and other automotive manufacturers are already exporting their components and vehicles to various African and international markets. “We manufacture many of the vehicles that are exported to the rest of the world. The BMW X3, just like the Ford Ranger and Mercedes-Benz C-Class, is manufactured and assembled here in South Africa,” said President Ramaphosa.
“The employment value chain in this sector is enormous; from the factory to dealerships, components and spare-parts manufacturing, after-sales service, mechanics and sales personnel,” he added. This sector is a major contributor to the local gross domestic product (GDP) and a key industry for job creation.
Buy local to support companies
President Ramaphosa also highlighted that is not enough to just encourage South Africans to buy local, but that the government, public sector and private sector need to collaborate to create a supportive environment for local businesses. “That’s why we’ve partnered with stakeholders in various industries to develop sector plans that have already increased investment in production in several industries,” he stated.
“To create an environment more conducive to local production, we are reducing red tape and removing the barriers to entry for emerging companies. We all need to make a contribution to this effort – from government to state-owned enterprises to businesses, producers and consumers, because we all benefit from this effort,” concluded President Ramaphosa. For more information about our automotive components and products, please contact us today.
Formex Industries is a metal forming and assembly company that supplies a variety of complex products to the local automotive industry and the export market. The company is based in the Nelson Mandela Bay metropole, South Africa’s foremost region for automotive manufacturing and export.
Formex is a supplier with 69% black ownership, of which 37% are black women. The company is owned by Deneb Investments Limited – a subsidiary of Hosken Consolidated Investments Limited (HCI) – one of South Africa’s biggest true B-BBEE companies listed on the Johannesburg Stock Exchange (JSE).
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