Job creation through local manufacturing

Approximately 50-70% local content in products would be considered acceptable to the future growth and sustainability of the local manufacturing sector. This is according to Eric Bruggeman, CEO at the South African Capital Equipment Export Council (SACEEC).

In a presentation at the Electra Mining Africa exhibition in September 2018, Bruggeman said that the local manufacturing sector had experienced its highest turnover in some time during the third quarter of 2017. Capturing 32% of the local pie, the sector proved that it is a serious contender, running a close second to general trade.

SACEEC currently has 240 members and over the past three years these members have contributed over R43-billion per annum to the local economy.

Bruggeman cited Transnet’s delayed pipeline project as a great example of how local manufacturers could help to build the country’s economy and reduce unemployment. The project, which has been plagued by numerous delays, was finally completed in early 2018. A local manufacturer of valves received a substantial order to replace the existing valves after products from two different sources had failed to produce a positive outcome.

“This is especially relevant given the fact that local procurement specialists still insist on sourcing products from overseas when local alternatives have in fact proven to be superior in terms of both performance and reliability. In a nutshell, the unnecessary importation of goods, which are available from local manufacturers, is costing South Africa innumerable jobs and needs to be urgently addressed,” says Bruggeman.

Determined to drive inclusion for local manufacturers as part of both the local and international supply chains, SACEEC has partnered with Specialised Exhibitions Montgomery, to launch the Local Southern African Manufacturing Expo (LME). The exhibition, which is endorsed by the Premier of Gauteng, David Makhura, will be held at the Expo Centre, Nasrec from 21 to 23 May 2019.

In addition to the exhibition, SAIMechE will be hosting the free-to-attend seminars. There will also be an arei (Association of Representatives for the Electronics Industry) Pavilion and the Artisan Training Institute (ATI) is hosting the Skills Development Zone. Other Association partners include International Steel Fabricators (ISF), Lifting Equipment Engineering Association of South Africa (LEEASA) and Mining Equipment Manufacturers of South Africa (MEMSA).

“We are very excited at the potential that the Local Southern African Manufacturing Expo will provide for local manufacturers to market themselves to a captive extended audience. The exhibition will not only allow them to showcase their products and services in an interactive manner, but will furthermore equip them with the skills needed to drive entrepreneurial innovation and aftersales service. It will also create a fertile environment for visitors to find the right BBBEE and technology partners,” says Bruggeman.

“The industry has shown great interest in the exhibition and stand sales have been brisk. We do still have a few stands available and urge local manufacturers to seize this strategic opportunity to engage with a captive buying audience. Interested parties can contact our sales team to customise a package that will build their brand quickly and effectively,” says Charlene Hefer, portfolio director for Specialised Exhibitions Montgomery.

To book a stand at LME 2019 or to find out more information about the exhibition visit the website at

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