Business Unity SA has cautioned the government about taking a blanket approach to localisation, saying a study has found that conditions in most industries are not yet right and input costs could be pushed up by 20%.
The government has highlighted localisation — the use of locally made inputs into manufacturing processes — as a main policy objective for economic recovery and has asked business to target 20% of non-petroleum imports for local replacement within five years. Busa on Monday published a study by consulting firm Intellidex, which was commissioned to establish how fast firms could localise and whether the 20% was realistic...
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