South Africa’s localisation drive received a significant boost at the recent Buy Local Summit & Expo, with a R1bn funding commitment aimed at strengthening local manufacturing capacity and supplier development.
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The pledge, announced by the Automotive Industry Transformation Fund (AITF), forms part of a broader set of commitments unveiled at the summit to accelerate enterprise and supplier development, particularly for micro, small and medium-sized enterprises (SMMEs).
Strengthening local supply chains
The latest commitment brings total localisation funding secured since 2018 to R7bn, reinforcing efforts to build a more resilient and self-sufficient industrial base.
AITF CEO Jabulani Selumane described localisation as a strategic imperative for long-term industry sustainability.
“Localisation is not simply a policy objective but a strategic imperative that underpins the long-term competitiveness and sustainability of the automotive industry,” he said.
Localisation is key to deepen SA’s value chains
The funding will be deployed over the next four years to:
- Build capabilities of local manufacturers
- Improve supplier competitiveness
- Expand participation of black-owned enterprises in automotive value chains
- Driving inclusive industrial growth
The AITF, established by multinational automotive original equipment manufacturers (OEMs), aims to expand inclusive participation across the sector by strengthening local supplier networks.
Selumane said the impact extends beyond financial investment, contributing to job creation, industrial entrepreneurship and the retention of existing roles within South Africa’s manufacturing ecosystem.
Private sector backs localisation agenda
The commitments announced at the summit signal growing confidence from the private sector in localisation as both a commercial and economic strategy.
Eustace Mashimbye, CEO of Proudly South African, said the scale of commitments reflects a shift in market sentiment.
“These commitments demonstrate that localisation is not only the right thing to do, but an intervention that makes commercial sense,” he said.
“With increasing geopolitical uncertainty and supply chain disruption, localisation is becoming an existential necessity for South Africa’s economy.”
Financial sector enables SME growth
As headline sponsor of the summit, Standard Bank reaffirmed its commitment to enterprise and supplier development.
Naledzani Mosomane, head of Enterprise and Supplier Development at Standard Bank, highlighted the bank’s impact in 2025:
- Over 1,200 SMEs supported
- R143.6m in funding disbursed
- 890+ jobs created
- Strong participation from women- and youth-owned businesses
Programmes such as Basali and Youth Forward continue to support female and young entrepreneurs, driving both revenue growth and employment.
Industry-wide localisation commitments
Major corporates across sectors also showcased their localisation strategies at the summit:
- South African Breweries sources 95% of its inputs locally
- Unilever Southern Africa has increased local sourcing from 40% to 80%, with 90% of products manufactured locally
- Haleon produces 85% of its South African products locally, including one billion Grandpa sachets in 2025
- Coleus Packaging has invested R200m in expansion and plans to scale output to 1.2 billion units
- The Sleep Group continues to source all components locally, supported by R110m investment in manufacturing capacity
A catalyst for economic resilience
The Buy Local Summit & Expo has positioned localisation as a central pillar of South Africa’s economic recovery and industrial strategy, with collaboration between government, corporates and financial institutions emerging as a key enabler.
As localisation commitments grow, the focus is shifting toward execution and scalability — ensuring that funding translates into stronger supply chains, competitive local industries and sustainable job creation.
With R7bn now committed, the message from industry is clear: localisation is no longer optional — it is critical to building a resilient, competitive and inclusive South African economy.
