SA retailers look to end reliance on Asia for products

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South Africa Headlines News

Spiralling shipping costs and Covid-19 supply chain disruptions are spurring SA retailers to source products locally

Wisani Shibamby sews a blanket at the TFG Prestige Clothing factory in Johannesburg. Picture: THAPELP MOREBUDI

While the government launched a programme in 2019 offering tax incentives to source goods locally, the recent spate of problems arising out of Asia has added urgency to what had been a slow shift, four top retailers in SA told Reuters. Thunström said a lot of TFG’s jewellery is already made in SA, but he wants to further increase local sourcing.

South African retailers are not alone in looking local as constraints expose the vulnerability of globe-spanning supply chains and low-cost manufacturing hubs which have led to an over-dependence on imports, particularly from Asia.Power cut impact Retailers who spoke to Reuters did not share potentially competitive information about who would be producing goods for them in SA or exactly where in the country.

 

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