The Proudly South African Buy Local expo
MONEY WEB / 16 MARCH 2018 - 19.02 / WARREN THOMPSON
Recognising the products and manufacturers’ access to finance is explained by Absa’s KeaObaka Mahuma.
WARREN THOMPSON: For our last segment of the show and following the Proudly South African Buy Local expo that was held yesterday, we caught up with KeaObaka Mahuma, head of enterprise and supply-chain development at Absa, about how consumers and financial institutions can spur growth in small and medium-sized enterprises.
KEAOBAKA MAHUMA: Image - Web
KeaObaka, I think Proudly South African has done an excellent job of raising that awareness to the consumer around that, and it’s always good to talk to people around these events, because it raises that profile again. But tell me how we can make consumers aware of which products are produced locally versus a product that would be imported when they go to a retail centre or a shop of some kind?
KEAOBAKA MAHUMA: There’s obviously a formal and an informal way. But the way that Proudly South African does it, is that producers belong to Proudly SA and then there is always a logo on the goods that are produced as such. They will have that Proudly SA mark on the product packaging.
WARREN THOMPSON: Okay, so people should just look out for it. Just give us a little description there, KeaObaka, of what exactly that logo looks like for the benefit of people who might not be aware of it.
KEAOBAKA MAHUMA: It looks like a South African flag and it has one tick. And then around it, it says Proudly SA. It’s quite distinctive. You will be able to recognise that it’s Proudly SA.
And then the second thing that one can always do is go onto the Proudly SA website to find out which companies are members of Proudly SA.
WARREN THOMPSON: And what criteria do Proudly SA apply to the locally produced products? I know as we move up the value curve in the manufacturing sector, there is quite a lot of use of components, and some of those might be imported. But, very basically, what are the criteria required to be able to join that initiative?
KEAOBAKA MAHUMA: Warren, I would proudly say that Proudly SA will probably be in the best position to answer that. But essentially all that it talks to is that most of the content must be produced locally and the consumption of those goods must be done locally. Bu the specifics will be on the Proudly SA website, as I indicated. They are probably the best people to give the listeners the details.
WARREN THOMPSON: Okay, that might be something worthwhile for us to pursue. One of the challenges of local businesses, besides obviously demand and making South African consumers more aware of their product in the marketplace, is access to finance. What are some of the things that Absa and specifically your business division are doing to enable these businesses to grow?
KEAOBAKA MAHUMA: Let me answer. Access to finance is always a big challenge. There are certain things that we do, but I would also like to touch very briefly on what things entrepreneurs can also do.
We have two ways of lending. The normal way, which is because…we take collateral. We have another way of lending, which is cashflow-based, which depends on the cashflow of the business more than the collateral. This second way enables the businesses that would otherwise not qualify for normal lending to access lending.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER