‘We cannot outsource our jobs.' - Parks Tau says localisation must drive ecommerce and procurement strategy

News24

12 hours ago

Minister Parks Tau launched two ecommerce platforms to boost local manufacturing and reduce import reliance.
Cosatu's Zingiswa Losi welcomed the initiative, calling it a tool to protect and create jobs through local purchasing.
The platforms aim to connect MSMEs with buyers and support inclusive, transformative procurement.
The department of trade, industry and competition (DTIC) minister, Parks Tau, says South Africa cannot afford to outsource jobs, value creation or industrial capacity, especially as the country continues to face high unemployment and a growing trade deficit in manufactured goods.
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Speaking at the official launch of the National Online Store and Market Access Platform (MAP) in Johannesburg on Tuesday, Tau said the two new ecommerce initiatives are aimed at helping micro, small and medium enterprises (MSMEs) access buyers locally and internationally while giving procurement officials in both public and private sectors easier access to verified local suppliers.
In 2023, South Africa recorded a trade deficit in manufactured goods exceeding R150 billion, an indication of our overreliance on imported finished products.
Parks Tau
'At the same time, unemployment remains stubbornly high, at 32.9% in the first quarter of 2024, with youth unemployment sitting at 45.5%. These numbers make it clear that we cannot continue to outsource jobs and value creation,' Tau said.
The newly launched National Online Store builds on lessons from South Africa's virtual pavilion at Expo 2020 in Dubai and is now home to over 500 verified local suppliers, offering thousands of South African-made products across a range of categories.
A new export functionality will allow manufacturers to tap into regional opportunities offered by the African Continental Free Trade Area, which is projected to serve 1.4 billion consumers with a combined GDP of $3.4 trillion.
According to Tau, local businesses must benefit from the country's growing ecommerce market, which is projected to reach R225 billion by 2025.
'By supporting local businesses to enter digital marketplaces, we're not just growing the economy. We're building a digitally enabled industrial base,' he said.
Cosatu president Zingiswa Losi welcomed the launch, saying it was a long-held dream of the federation to have tools such as Shop Proudly SA and the Market Access Platform available to workers and enterprises alike.
'It's an honour and a deep source of pride to celebrate this launch,' said Losi.
'This is an intervention within the economy that will protect and create jobs. It also gives consumers the power to change the economy one local purchase at a time.'
Losi thanked the Proudly SA team for their 'innovation' as well as Minister Tau and his department for backing the initiative. She said the platform must now be used to mobilise communities and employers alike to procure local and Shop Proudly SA.
In his remarks, Tau also focused on MAP, the non-transactional market access platform, which enables procurement officials to identify local suppliers based on ownership, compliance, sector and geographic profile.
Tau noted that less than 20% of public procurement currently reaches MSMEs, with even less spent on businesses owned by women, youth, people with disabilities or military veterans.
'This must change,' Tau said. 'MAP supports transformation by making it easier to identify and procure from historically marginalised businesses.'
If every large institution made just a 10% shift towards these groups, we could redirect billions of rands in procurement value into the hands of those who have long been excluded.
Tau
Tau added that research by Proudly SA shows if every household redirected just 10% of its annual spending to local goods, it could create up to 120 000 new jobs.
But more than numbers, he said, the platforms launched this week aim to remove friction in the marketplace and bridge the gap between policy and implementation. 'We are at a critical junction. Our localisation strategy is not just a set of targets. It is a commitment to support the productive economy, reduce inequality and empower local producers,' he said.
Tau closed by calling on all South Africans, consumers, procurement officials and policymakers to act.
'Buy local. Procure local. Empower local.'