Bhugwandin is the manager of the Technology Localisation Implementation Unit, an initiative funded by the Department of Science and Technology and hosted by the CSIR. He completed his industrial engineering studies at the Durban University of Technology and spent 13 years working within a variety of manufacturing industries, including some of the larger manufacturers such as Toyota South Africa, South African Breweries, Volkswagen SA and Behr SA.
About his talk:
In the next seven years, the South African government plans to invest about R 650 million in infrastructure- related projects through state-owned enterprises. This investment provides an opportunity for the manufacturing industry to be revitalised and developed and for South African companies to participate. The goal is to develop a competitive South African manufacturing sector that can integrate into the supply chain of the original equipment manufacturers that are the main contractors in the state procurement projects. This relationship will ideally equip local suppliers to grow into export-ready companies.
However, localisation is not easily achievable in the South African context, with a high volume of the inputs required in state procurement projects and other mega projects being imported into the country. Value addition is minimal as a consequence of the manufacturing sector not being adequately equipped to take advantage of the opportunities. Some of the other reasons include lack of competitiveness, lower volumes when compared to global sourcing, the inability to manufacture to internationally recognised standards and lack of skills.
The presentation unpacks how industrialisation can be achieved through localisation.