Business seeks to nudge localisation debate beyond import substitution

Business is aiming to progress ongoing negotiations on the use of local-content regulations to revive manufacturing in South Africa beyond calls for blanket import substitution by identifying specific products or sectors where the country has the competitive advantages in place to increase domestic production. Trade, Industry and Competition Minister Ebrahim Patel has requested business to consider an import-substitution target of 20% for non-petroleum imports, which he says could drive progressive localisation worth up to R200-billion over the coming five years.