CURRENTLY ON AIR ⇒
  • Revival in Motion, Haafizah Rayhaanah Omar
    Thursday, 2:05 pm - 3:00 pm
    [ - ]

feedback@radioislam.org.za

logo


((( Listen Live )))))
Radio Islam Logo


SA localisation policies undermining economic prospects, says CDE report

Sameera Casmod | sameerac@radioislam.co.za
13 September 2023 | 11:05am SAST
1-min read

Picture: CDE

A recent report from the Centre for Development and Enterprise (CDE) has raised concerns about the South African government’s localisation strategy and its negative impact on the country’s economic prospects. In an interview on Radio Islam International, Stefan Schirmer, research director at CDE, discussed the detrimental effects of these policies and the necessity of re-evaluating the government’s approach.

Schirmer explained that while localisation policies may appear well-intentioned, they come with unintended consequences that harm the economy. He outlined three key aspects of these policies that are causing concern.

The localisation strategy is contributing to higher electricity costs in a country already grappling with frequent power shortages. Schirmer pointed out that South Africa should prioritise more efficient and cost-effective electricity generation, rather than adopting policies that exacerbate the issue.

Schirmer noted that the policy also leads to increased government spending on goods and services. Given the precarious state of the country’s finances, where expenditures outstrip revenues, this additional spending is unsustainable. Schirmer stressed the urgency of making necessary budget cuts rather than expanding expenditures.

Localisation policies, particularly through tariff protection and master plans, have resulted in higher consumer prices for various goods, including essentials like chicken meat, explained Schirmer. In a context of rising poverty and double-digit food inflation, these price hikes place an additional burden on already struggling households.

Schirmer said that the policy focuses on protecting local businesses against foreign competition, even when local goods are more expensive. He said a shift in economic strategy towards lowering the cost of doing business is necessary, which, in turn, would support local enterprises more effectively.

Schirmer also highlighted the problem of political rhetoric that portrays localisation as an unequivocally positive endeavour without addressing the associated costs. He emphasised the need for a more comprehensive assessment of the policy’s impact on the country’s economy and its appropriateness in the current circumstances.

When asked about potential solutions, Schirmer acknowledged the difficulties but stressed the importance of persistently pushing for change. He expressed hope that mounting pressure from the public and the economic strains caused by the policy might lead to a reconsideration of these strategies, especially as South Africa enters an election year.

Listen to the full interview on Sabaahul Muslim with Moulana Sulaimaan Ravat here.

ADVERTISE HERE

Prime Spot!!!

Contact:
advertisingadmin@radioislam.co.za 

Related Articles

The Media Lens

The Media Lens

28 August 2025 | 10:25 CAT 2-minute read Silencing the Truth: Gaza Journalists Under Fire In today’s segment of the Media Lens, Ibrahim Deen delivered a searing critique of how Western media coverage is quietly facilitating the erosion of press freedom—and, with it,...

read more
The Asia Pacific Report

The Asia Pacific Report

FORUM-ASIA reports shrinking civic space across Asia as HRD crackdowns increase 28 August 2025 | 09:15 CAT 2-minute read In its sixth biennial Defending in Numbers: Reclaiming Civic Space, Unbroken Voices report, released on 14 July 2025, FORUM-ASIA delivers a stark...

read more
SASSA to Roll Out Biometric System to Curb Fraud

SASSA to Roll Out Biometric System to Curb Fraud

Neelam Rahim | neelam@radioislam.co.za 3-minute read | 27 August 2025 | 15:35 CAT The South African Social Security Agency (SASSA) is set to implement a new Beneficiary Biometric Enrollment System at all its offices starting 1 September 2025, in a bid to strengthen...

read more
SA sees surge in political party registrations

SA sees surge in political party registrations

27 August 2025 | 10:10 CAT 2-minute read South Africa’s political landscape is becoming increasingly crowded, with the Electoral Commission of South Africa (IEC) confirming that the country now has 472 registered political parties — the highest number in its history....

read more

Subscribe to our Newsletter

0 Comments