By Eamonn Ryan
DTIC’s Cathrine Matidza highlights how localisation policies are driving South Africa’s reindustrialisation and strengthening local manufacturing. This is part one of a two-part series.
The KSB waste water pump – the subject of the launch. © RACA Journal
At a recent KSB Pumps and Valves local manufacturing and pump launch event, Cathrine Matidza, director: fleet procurement at the Department of Trade, Industry and Competition (DTIC), delivered a presentation on how public procurement is being deployed to rebuild South Africa’s industrial base. Her talk, titled ‘Procurement Levers in Public Procurement Systems: Local Content and NIPP’, illustrated how government’s industrial policy is now moving beyond documents and strategy boards, taking tangible shape on factory floors across the country.
“Local is lekker, isn’t it?” Matidza said, congratulating KSB on achieving a Level One B-BBEE rating and on its increased commitment to producing valves and pumps locally. KSB manufactures a wide range of pumps and valves used across multiple industries, including mining, plumbing and HVAC&R.
Reindustrialising to address the ‘triple P challenge’
Matidza reminded attendees that the DTIC’s core mandate is reindustrialisation – using manufacturing to tackle what she referred to as South Africa’s ‘Triple P challenge’: poverty, unemployment and inequality.
“Manufacturing’s contribution to GDP has fluctuated between 12% and 13%, far below what is required for inclusive, broad-based growth. If we are to develop as a country, we must strengthen our manufacturing base. Manufacturing is the one sector capable of absorbing large numbers of workers while building technological and industrial capabilities,” she said.
South Africa’s industrial policy has shifted significantly since 2007, evolving from the National Industrial Policy Framework (NIPF) and Industrial Policy Action Plan (IPAP) into a more targeted Industrial Strategy with tailored Master Plans for key sectors such as the Steel Master Plan.
“These master plans align government, labour and industry behind the same set of priorities. Localisation remains one of our most important tools,” she said.
Under the DTIC’s localisation drive, two major procurement levers shape public-sector buying:
- Local content and production policy – applied where local capacity exists, ensuring government procurement prioritises South African-made goods
- National Industrial Participation Programme (NIPP) – an offset mechanism used when imports are required, ensuring foreign suppliers reinvest in local technology, capacity or skills
“These levers are about far more than simply buying local. They are about building sustainable industries and creating jobs,” Matidza stressed.
