Localisation not a cure for all sectors, warns Business Unity SA
The body says an Intellidex study found the right conditions do not exist across the board
Business Unity SA (Busa) has cautioned the government about taking a blanket approach to localisation, saying a study has found that conditions in most industries are not yet right and input costs could be pushed up by 20%.
The government has highlighted localisation — the use of locally made inputs into manufacturing processes — as a main policy objective for economic recovery and has asked business to target 20% of non-petroleum imports for local replacement within five years. Busa on Monday published a study by consulting firm Intellidex, which was commissioned to establish how fast firms could localise and whether the 20% was realistic...