Source: Bizcommunity, 16 October 2020, photo credit: CC0 Public Domain/Phys.org
If South Africa is to adopt the right localisation policy at a larger scale, about 3.2 percentage points could be added to the country’s annual GDP, says President Cyril Ramaphosa.
This policy would include manufacturing 10% of goods locally, as well as supplying 2% of goods that African countries buy from outside the continent. The President said this when he released the country’s recovery plan during a joint sitting of Parliament on Thursday.
South Africa currently imports goods worth around R1.1tn, excluding oil, each year. “If we were to manufacture just 10% of these goods locally, it is estimated that we could add 2 percentage points to our annual GDP.
“The rest of Africa currently imports R2.9tn worth of manufactured goods from outside the continent each year. If South Africa were to supply just 2% of those goods, it would add 1.2 percentage points to our annual GDP,” he said.
The President also said that if the country is to succeed in reaching a target of R1.2tn in new investment by 2023, it could add around 2.5% to the country’s annual GDP.