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.
The South African Pork Producers’ Organisation (SAPPO) coordinates industry interventions and collaboratively manages risks in the value chain to enable the sustainability and profitability of pork producers in South Africa.