When more South Africans buy local, businesses will grow, which will lead to expanding their exports, potentially balancing any loss in import duties with increased international trade.
Various organisations in South Africa are implementing different solutions to improve the country’s economy, with Proudly SA hosting its annual Local Fashion Police campaign to highlight how fashion and buying locally can be great for our economy.
The campaign aims to promote local fashion brands while reinvigorating the R-CTFL sector and creating jobs. This also gives designers a platform to showcase their work.
Buying local
Proudly SA Chief Marketing Officer, Happy MaKhumalo-Ngidi told The Citizen that increased local consumption of goods could impact import tax revenue, however, the broader economy will benefit.
“It creates jobs, stimulates local production, and generates new tax revenue in different forms, like VAT and corporate taxes,” she said.
When more South Africans buy local, businesses will grow, expanding exports and potentially balancing any loss in import duties with increased international trade.
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Country’s economy
While each strategy has its advantages and disadvantages, Ngidi believes there is only one downside to the campaign: people not purchasing local products.
“When we are not actively buying local, we are taking away from the country’s sustainability. Our money spent on locally manufactured goods and services ultimately means we’re keeping jobs alive while boosting the economy.”
The pros are endless, including job creation in various sectors like fashion manufacturing, retail, and design. There will also be economic growth through local businesses’ increased output and innovation.
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Economic stability
Another pro will be reducing reliance on imports to help strengthen the country’s currency and overall economic stability.
She added that she does believe that South Africans are becoming increasingly aware of the value of buying local products.
“There’s a growing middle class, and with greater access to information, consumers are more mindful of their purchasing decisions.”
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Price point
She notes that the price point can still be a barrier for some consumers, which is why local brands need to find the right balance between quality, price, and accessibility.
Ngidi advises local brands to understand their cost structure thoroughly and account for materials, labour overheads, and any costs involved.
“At the same time, designers need to be mindful of their target market’s spending power. Try to position your brand in a way that offers value while being competitive. Consider tiered pricing or collections at different price points to cater to different consumer segments.”
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