Private sector injects R340m to support growth of South Africa’s manufacturing sector

Trade, Industry and Competition Minister Ebrahim Patel

Former Coca-Cola South Africa CEO Bruno Pietracci

LSF deputy chairperson Grant Pattison

LSF executive head Thami Moatshe

Business Unity South Africa CEO Cas Coovadia

26th May 2023

By: Terence Creamer

Creamer Media Editor


Font size: - +

A new public-private initiative has been launched in an effort to support the growth and development of South Africa’s manufacturing sector, whose recovery from the Covid lockdowns is currently being undermined by intense daily loadshedding.

Known as the Localisation Support Fund (LSF), the nonprofit company is being funded by the private sector, but has a board that includes government, labour and business representatives, including Trade, Industry and Competition Minister Ebrahim Patel, who is LSF chairperson.

The venture has already received funding support worth R340-milllion from Coca-Cola South Africa and Air Liquide, with former Coca-Cola South Africa CEO Bruno Pietracci having been a key initial driver of the initiative. Pietracci has since been appointed president of the beverage giant’s Latin American operating unit, but attended the LSF launch in Sandton on May 9.

Well-known business personality and LSF deputy chairperson Grant Pattison explained at the launch that the LSF’s goal was to help reduce imports, increase exports and promote industrial competitiveness in line with a localisation pact concluded at the National Economic Development and Labour Council in 2021.

The mandate, he added, was to support manufacturing as a whole and the LSF was, thus, not confining itself to any particular manufacturing subsector.

“The funds that we have will be spent and they are not invested for financial return, but we are looking for a manufacturing production return.

“That money will be invested in technical expertise and to assist in the identification of manufacturing opportunities and the customers who need to purchase those goods.”

LSF executive head Thami Moatshe reported that the organisation’s initial projects were geared towards opportunities in the renewable energy and electricity transmission sectors, as well as furniture manufacture.

In the electricity sector, the LSF is funding specialist research to confirm what renewables manufacturing capacity already exists in an effort to provide greater market visibility for domestic consumers, as well as to map the transmission and distribution value chains to provide a summary of in-country capabilities.

In furniture, the LSF will be appointing a specialist to introduce lean manufacturing principles to the sector, as well as to provide targeted technical resources to selected manufacturers.

Patel said the localisation concept was akin to industrialisation and that the LSF was geared towards addressing both the demand- and the supply-side constraints to industrialisation.

He said there were powerful social, economic, and commercial arguments in favour of localisation, including the fact that the growth of manufacturing provided a sustainable way to address job creation and promote prosperity.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor


Latest Multimedia

Photo of Martin Creamer
On-The-Air (29/09/2023)
Updated 2 hours 23 minutes ago By: Martin Creamer


AMS Haden Instrument & Mining Services (pty) Ltd
AMS Haden Instrument & Mining Services (pty) Ltd

AMS Haden is well known in the industry and we have been called on to provide advice on many projects.


Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...


Latest Multimedia

sponsored by

Magazine round up | 29 September 2023
Magazine round up | 29 September 2023
29th September 2023

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.171 0.203s - 88pq - 2rq
Subscribe Now