ESTABLISHMENT OF LOCALISATION TARGETS

As you may be aware, the recently announced Economic Reconstruction and Recovery Plan (ERRP) announced by President Ramaphosa lists various interventions to return the economy to growth. This follows extensive engagement between social partners at NEDLAC.

Among the economic interventions outlined in the ERRP is a commitment to greater localisation from social partners, including specific commitments from business. In line with this, BUSA committed on behalf of its members to (1) develop a list of products with specific localisation targets; and (2) disclosure in company annual reports the value of procurement from local producers and on steps taken to improve localisation.

In a recent engagement with Minister Patel, BUSA undertook to submit a list of products with specific localisation targets. I would like to therefore request that you submit a list of products that will be targeted for localisation in the short to medium term, with details around volume and value targeted, for consolidation into a BUSA submission to the Ministry of Trade, Industry and Competition. I would be grateful if this information could be submitted by 12:00 on Thursday, 5 November 2020.

I appreciate the very short period in which I am asking for this information, but we think it will be possible for business to drive this localisation agenda if we have comprehensive data as soon as possible. We believe the localisation area is one where business can take the lead, including in demonstrating our thinking and progress, and identifying ongoing blockages to progress. The data I seek now will get us onto this road!

Kind Regards,
Cas Coovadia (BUSA CEO)

Posted in General.

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