South Africans are among the most patriotic people you’ll ever meet. We’ve been chanting “local is lekker” for years. But when it comes to actually supporting home-grown businesses, especially small and medium enterprises (SMEs), our wallets often tell a different story.
In 2011, the government introduced the localisation policy to encourage public procurement of locally produced goods. The promise was straightforward: boost local industries, create jobs, and stimulate economic growth. Fast-forward to 2025, and we’re still waiting for a comprehensive report showing whether this policy has worked, leaving us to wonder how many jobs were created, how many SMEs have scaled, and how our economy has shifted.
Meanwhile, global dynamics are changing fast. Protectionist policies are on the rise, particularly in the US, and other nations are increasingly looking inward to build resilience. The real question is whether South Africa’s industries, especially our SMEs, are ready to compete globally in this new era, or are we still just talking about localisation or “buying local” as a concept while continuing to favour foreign goods?
South African consumers want both quality and affordability (but if they have to choose, price usually wins). However, it is unfair to ask them to buy local at any cost when local producers themselves are grappling with high water and electricity costs and challenges with logistics, red tape and inconsistent infrastructure. We can’t produce competitively priced goods in a broken system. No catchy slogan can fix that.
The surge of Chinese brands such as Shein and Temu, which have captured market share not just with pricing but with product design and efficiency, is worrying. The South African Revenue Service has been doing its bit, imposing import duties to protect local industries, and collected more than R70bn in financial 2024 alone, on the back of a significant 27.5% increase the previous year. But protectionism is a plaster, not a solution.
Supporting SMEs is not charity; it’s an investment in our shared economic future, and that investment starts with each one of us making informed decisions about what we consume and why
If our local producers, especially SMEs, are not given the tools to compete, such as efficient infrastructure, affordable energy and regulatory support, they will remain vulnerable to global giants who can produce and deliver better, faster and cheaper.
And who suffers the most in this? SMEs. These businesses are the backbone of any thriving economy. They bring innovation, create jobs and build communities. But they can’t survive on goodwill alone. They depend on local consumers choosing them, not just because of patriotic messaging but because their offering makes sense based on quality, price and convenience.
We can’t aim to grow our economy by 5% — 6% annually while the basics are still broken. Do we have street lights that work on our national highways? Is our infrastructure network, for example our post office and rail system, reliable? Is load-shedding a thing of the past? Is our legal system responsive and functional for entrepreneurs? Without these foundational pillars, “local is lekker” remains a feel-good phrase, not a viable growth strategy.
Such agencies as Proudly South African, Brand South Africa and South African Tourism promote our country’s products and promise to the world and, in most cases, are doing a great job. However, the the metrics that matter are: SMEs entering the mainstream economy and sustainable jobs being created in local communities.
With the African Continental Free Trade Area (AfCFTA) rolling out this year, the stakes are even higher. If we don’t invest intentionally in infrastructure and SME competitiveness, we won’t just miss the local opportunity, we’ll lose out regionally too. Our African neighbours in Uganda, Nigeria and Kenya are also working on becoming more self-sufficient and efficient. South Africa cannot afford to fall behind. We also have the Spaza Shop Support Fund in place, and we need to ensure the impact is measured and reported on.
We have seen so many funds launched in South Africa, but no-one monitors where these entrepreneurs are in three-five years. Buying opening stock does not address the sustainability of spaza shops. We need to support manufacturers and producers of the goods that are sold in townships.
“Local is lekker” isn’t just about buying local; it’s about building a nation. Supporting SMEs is not charity; it’s an investment in our shared economic future, and that investment starts with each one of us making informed decisions about what we consume and why.
So yes, local is lekker, but only if we make it lekker with real support, smart policy, and a shift in how we think about consumption. Our SMEs are ready to serve; we just need to meet them halfway. Now, if you’ll excuse me, I’m off to enjoy my African Sunday meal, locally sourced, of course.
• Mtwentwe is MD of Vantage Advisory and host of the SAICA Biz Impact podcast
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