This is the opinion of Dumisani Mthalane, South African National Civic Organisation (SANCO) and Proudly South African board member. In a passionate open letter to SA Promo Mthalane says job creation and economic growth are at the heart of the Proudly South African Campaign. In fact, buying local is a proven salve for ailing macro and micro economies worldwide.
Mthlalane says SANCO believes that a significant increase in the uptake of locally manufactured goods and services (by South African consumers, retailers as well as public and private sector procurement decision makers) will have a significant and positive impact on the ailing economy, huge trade deficit and high unemployment rate which have devastating effects on communities.
“As the rand (continues to) plummet, it makes no sense to import tons of foreign goods while we can acquire those same goods locally. By increasing the uptake of local products and services, we can take advantage of an opportunity to correct the market.
“We need to fill the shelves of our supermarkets and warehouses with more local goods and give consumers an opportunity to collectively play their part in strengthening the economy, help create and sustain jobs and contribute towards the well-being of all communities,” writes Mthlalane.
He also argues that local brands and the local economy need to be given an opportunity to grow, so that jobs can be created, communities can be economically empowered and poverty can be eradicated.
Through “Buying Local” and investing in the local economy, the collective efforts of all communities can change the economic and physical landscape of South Africa.
He says the influx of unfairly incentivised imports has led to many small business owners having to close their doors. Companies have gone insolvent, factories have closed down, many breadwinners have lost their jobs and some communities have become significantly poorer.
Over recent years, South Africa’s official unemployment rate has averaged 25 percent and has even increased to over 26 percent. Meanwhile, there are hundreds and thousands of new job seekers every year.
“Buying Local” means we keep production lines running and people, in turn, are employed and get to keep their jobs. More jobs mean fewer people are unemployed and therefore fewer people are subject to poverty and inequality. One job means one breadwinner can provide for one family.
While countries and communities cannot operate in isolation, “Buying Local” helps sustain jobs and the local manufacturing base. Balance is crucial to ensure that the country does not “export jobs” or become a “warehouse” for imported goods.
When importing goods is no longer cheap, domestic manufacturing needs to be in a position to take advantage of the weaker rand, changes in exchange rates and increases in oil prices.
New Economics Foundation researcher, David Boyle, says many local economies languish not because too little cash comes in, but as a result of what happens to that money.
“Money is like blood. It needs to keep moving around to keep the economy going… When money is spent elsewhere, it flows out, like a wound,” he says.
As the country limps through the current tough economic climate, “Buying Local” can help mitigate the negative impact on local communities and serve as their lifeblood.
Be Proudly South African – Buy Local to Create Jobs!
Top Ten Reasons to Buy Local:
1. Job creation
2. Job retention
3. Poverty reduction
4. Encourages entrepreneurship and creativity
5. Helps establish an industrial base
6. Address the trade deficit account
7. Protects the revenue base for SARS
8. Local investment
9. Encourages self-reliance
10. Contributes to national pride and patriotism
