President Cyril Ramaphosa says the government needs to create an environment that supports local companies.

“To create an environment more conducive to local production, we are reducing red tape and removing the barriers to entry for emerging companies,” he said on Tuesday.

Speaking during a Proudly SA Buy Local summit and expo, Ramaphosa said the economic damage caused by the Covid-19 pandemic has placed greater demands on the economy to provide employment and livelihood opportunities.

During his state of the nation address in February, Ramaphosa announced the appointment of former mining executive Sipho Nkosi to head up a task team based in the presidency to look at cutting red tape making it difficult for small businesses to thrive in SA.

“The pandemic has both exposed the fragility of global supply chains and revealed the great capacity we have in SA for innovation and adaptation in manufacturing,” he said.

However, he said the devastation had created opportunities for local companies to build local production capability in ventilators, hand sanitisers, medical-grade face masks and gloves, vaccines, therapeutic drugs and anaesthetics.

“Not only did we produce these goods to meet local needs, but also to meet the needs of other countries on the continent.”

He said local production created jobs and sustained livelihoods.

“SA is a producer of goods and services in agriculture and agro-processing, clothing, textiles, automotive, furniture, medical equipment and pharmaceuticals, to name but a few.”

SA also manufactured and exported vehicles, including the BMW X3, Ford Ranger and Mercedes-Benz C-Class.

To assist local businesses, Ramaphosa said government departments and agencies must use procurement legislation and procedures to drive demand for local goods.

“[We must] encourage corporate SA to expand its use of locally-made goods and services and educate consumers on labels of origin and on their role in contributing to job creation by making ‘Buy Local’ choices.”

TimesLIVE