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Localisation

Localisation is the process by which companies establish or expand manufacturing, assembly, sourcing and value-chain activities within a specific country or region, rather than relying on imports or offshore production. The strategy aims to build domestic industrial capacity, create employment, develop skills and retain more value within the local economy. Localisation is often driven by government policy through local-content requirements, procurement preferences, import tariffs or incentive schemes that favour domestic production. In sectors such as automotive manufacturing, mining equipment and renewable energy, localisation programmes require original equipment manufacturers and project developers to source a minimum percentage of components, materials or services from local suppliers. The approach supports industrialisation and technology transfer, particularly in developing economies seeking to move up the value chain. However, localisation can raise costs, lengthen supply chains and create inefficiencies if local suppliers lack scale, capability or competitiveness. Trade-offs between local economic development and global cost optimisation remain a central challenge. Localisation is a recurring theme in African industrial policy, where governments seek to leverage natural-resource wealth and large infrastructure projects to build manufacturing ecosystems. The term is distinct from localization in software and language adaptation.

Localisation News


CIPS Conference 2026 to spotlight Africa's supply chain future as countdown begins
2nd June 2026

With just over 60 days to go, the Chartered Institute of Procurement & Supply (CIPS) Southern Africa, part of the world's leading professional body and globally recognised gold standard for... 


Multotec learnerships support industrial workforce development and capacity building
Multotec learnerships support industrial workforce development and capacity building
28th May 2026

(Virtual Showroom) As South Africa seeks to accelerate economic growth through localisation, manufacturing expansion and infrastructure development, the availability of skilled technical talent is... 


Siemens Localises Medium-Voltage Production to Drive SA’s Industrial Growth and Skills Development
Siemens Localises Medium-Voltage Production to Drive SA’s Industrial Growth and Skills Development
22nd May 2026

Siemens South Africa has announced the localisation of its 8DA gas-insulated medium-voltage switchgear manufacturing for the South African market, in partnership with Private National Grid (PNG),... 


Solar PV panels installed on a rooftop
Warning over value loss without localisation strategy in solar boom
22nd May 2026 By: Schalk Burger

There are gaps in South Africa's ability to effectively localise manufacturing and fully capture the economic benefits of the energy transition that is being driven by rapid solar PV expansion,... 


Boost local auto industry’s competitiveness instead of shielding it from rivals – WesBank
22nd May 2026 By: Irma Venter

The growing presence of Chinese competition in the South African auto industry is not a concern, as competition in itself is not a problem, says WesBank senior economist Thanda Sithole. “Increased... 


An image of a automotive assembly line
Structural constraints leave OEMs’ supply chain exposed
15th May 2026 By: Nadine Ramdass

Despite experiencing frequent supply chain disruptions over the last six years, suppliers remain reactive rather than proactive, owing to structural constraints within the value chain, leaving... 


generic image of valves
Local valve industry under pressure
15th May 2026 By: Devina Haripersad

The local valve and actuator manufacturing industry is under strain, with several factors affecting performance in recent years, says valve manufacturing industry body the South African Valve and... 


Cape Town Economic Growth MMC James Vos, Ian Barnard, Jon Allen, Finnish ambassador Pekka Metso and Jabu Mdaki open the new Metso office in Cape Town
Metso opens Cape Town hub to support ports business in SA, rest of Africa
22nd April 2026 By: Irma Venter

Metso has expanded its global bulk-materials handling network with the opening of a new regional hub in Cape Town. The Finnish group supplies technologies, solutions and services to the aggregates,... 


Financing Africa’s manufacturing future 
14th April 2026

As Africa accelerates its industrialisation agenda, access to finance remains one of the most critical enablers of manufacturing growth across the continent. The Manufacturing Indaba will shine a... 


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pqt: 0.045s - ct: 0.892s - 187pq - 2rq
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