Buying Local Key to South Africa’s Economic Recovery and Job Creation, Says Government

South Africa's economic recovery and long-term growth depend not only on policy reforms and investment decisions, but also on the everyday purchasing choices of ordinary citizens, according to Government Deputy Spokesperson William Baloyi.

Baloyi said supporting locally produced goods and services plays a critical role in strengthening domestic industries, sustaining jobs and promoting entrepreneurship across the country.

"From the corner spaza shop in Ga-Mokgotho in Burgersfort to proudly South African brands competing on the global stage, supporting local businesses is one of the most powerful ways to build the economy," he said.

Buying Local Supports Jobs and Communities

Baloyi emphasised that every purchase of a locally produced product directly supports workers, entrepreneurs and communities.

"When we choose local, we are not just buying a product, we are financially backing our own people," he said.

He noted that local spending supports township entrepreneurs, young designers, factory workers and creative industries, helping keep money circulating within communities and enabling businesses to grow and create employment.

"Every rand spent on local products keeps money circulating within communities and supports families while helping businesses expand and create jobs," Baloyi said.

South African Brands Gaining Global Recognition

Baloyi highlighted several homegrown South African brands that have achieved success locally and internationally, demonstrating the potential of local entrepreneurship.

Among them is Portia M, which has become one of the country's leading beauty brands and a major player in the cosmetics industry.

Fashion brand MaXhosa Africa has also gained international prominence by blending African heritage with high-end fashion, appearing on global runways and opening a flagship store in Manhattan, New York.

Another example is Whoa Collections, known for its premium packaging designs that combine creativity and craftsmanship.

Baloyi also pointed to Bathu, a local sneaker brand that has gained national recognition after President Cyril Ramaphosa publicly supported the brand, sending a strong message about the importance of backing South African businesses.

Buy Local Summit Highlights Local Innovation

The call to support local production comes as Proudly South African hosts the 14th Buy Local Summit & Expo at the Sandton Convention Centre.

The two-day event brings together business leaders, government representatives, entrepreneurs and consumers to showcase locally produced goods and services.

"Initiatives such as the Proudly South African Buy Local Summit & Expo continue to play a critical role in bringing together business, government and consumers to champion local production," Baloyi said.

Founded in 2001, Proudly South African is the country's national buy-local campaign aimed at promoting locally manufactured products and services while boosting job creation and economic growth.

Government Policy Support for Small Businesses

Baloyi said government is also working to create a more enabling environment for businesses, particularly small and medium enterprises.

In the 2026 National Budget, Finance Minister Enoch Godongwana announced that the compulsory VAT registration threshold for small businesses will increase from R1 million to R2.3 million per year from 1 April 2026.

The reform is expected to reduce compliance costs and administrative burdens for small enterprises, allowing entrepreneurs to focus on expanding their operations and creating jobs.

New Industrial Policy to Strengthen Manufacturing

Government is also finalising a National Industrial Policy aimed at developing a globally competitive manufacturing sector.

The policy will focus on three key areas:

• Decarbonisation of industrial production

• Diversification of manufacturing industries

• Digitalisation of production processes

Sector-specific interventions are already supporting industries such as:

• Automotive manufacturing

• Critical minerals beneficiation

• Agro-processing

• Furniture production

• Clothing and textiles

• Emerging sectors including cannabis and hemp

These initiatives are intended to expand domestic production and reduce reliance on imports.

Expanding Opportunities for Small Businesses

During the 2026 State of the Nation Address, President Cyril Ramaphosa announced that government will provide more than R2.5 billion in funding for small and medium enterprises over the coming year.

The funding package includes loan guarantees and targeted support for women- and youth-owned businesses, alongside reforms aimed at reducing red tape and improving access to credit.

Baloyi said such measures will help unlock growth and entrepreneurship at the local level.

Coordinated Action Needed to Tackle Unemployment

Despite these efforts, Baloyi acknowledged that unemployment remains one of South Africa's most pressing challenges, requiring coordinated action across government, business and labour.

Increasing domestic production and stimulating demand for local goods will be critical to expanding employment opportunities.

These goals align with the National Development Plan (NDP) 2030, which sets out a long-term strategy to reduce poverty, inequality and unemployment while building a more inclusive economy.

A Simple Choice with a Big Impact

Baloyi concluded by urging South Africans to recognise the power of their everyday purchasing decisions.

"Every time you choose a South African product, you are not just making a purchase – you are making an investment," he said.

Supporting local businesses, he added, is one of the most practical ways to create jobs, strengthen industries and build a more resilient economy for future generations.