Latest news with #EustaceMashimbye
IOL News
4 days ago
- Business
- IOL News
Offshore e-commerce retailers battering our industries to extinction
Eustace Mashimbye is chief executive officer of Proudly SA Image: Supplied The inaugural report into the impact of foreign owned e-commerce retailers titled: Offshore e-Commerce Disruption in South Africa, makes for grim reading. This report, commissioned by Proudly SA and painstakingly compiled by the Localisation Support Fund (LSF), eloquently illustrates the deleterious impact that offshore e-commerce retailers have had on the South African economy and lays bare how these conglomerates have displaced the country's manufacturing capabilities and cannibalised thousands of jobs in the retail, clothing, textile, footwear and leather (R-CTFL) industries which cumulatively employ over 212 000 people. Over the past five years, offshore e-commerce retailers have grown rapidly in South Africa's R-CTFL e-commerce space and fundamentally disrupted established local value chains. In 2024, Shein and Temu collectively achieved approximately R7.3 billion in sales, accounting for 3.6% of the total R-CTFL market and 37% of the sector's e-commerce sales. This rapid growth has come at a notable cost to the local economy. The estimated displacement includes R960 million in lost local manufacturing sales, 2 818 associated manufacturing jobs that may have materialised, and 5 282 unmaterialised retail jobs from 2020 to 2024. What makes the findings of this report more disturbing is when it is juxtaposed against the commencement of the crippling 30% tariffs set to take effect on August 7 that the Donald Trump administration slapped on South African exports to the United States, which are expected to result in a jobs bloodbath in the foreseeable future. The tariffs, coupled with the juggernaut of offshore e-commerce retailers, translate to a debilitating double whammy for a sector that is already buckling under pressure and has haemorrhaged more than two thirds of its workforce since 2005, according to StatsSA. While the growth of the e-commerce industry, which is fuelled by improved internet accessibility, enhanced security of online payment gateways, diverse online offerings, and deepening smartphone penetration, is welcome, the unabated growth of offshore e-commerce retailers should be countered in order to protect local industries and preserve much-needed jobs in our ailing labour-intensive sectors. While the report concedes that the penetration of offshore e-commerce retailers is still lower in South Africa compared to its counterparts in other countries, these conglomerates are expanding at a meteoric rate to the detriment of local industries. The growth trajectory forecasts that the LSF depicts for the offshore e-commerce retailers in the short to medium term are dire for our industries and the economy at best, and calamitous at worst. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ According to the findings of the report, the opportunity cost of Shein and Temu on the clothing, textile, footwear and leather industry has been estimated at a staggering R960 million in lost manufacturing sales, accounting for roughly 2 818 manufacturing jobs and 5 282 jobs not materialising. The unchecked growth of these conglomerates on the sector is equally frightful with estimates of 30 000 jobs lost and approximately R6 billion in manufacturing sales misplaced by 2030. As a buy local advocacy organisation, Proudly SA has been at the forefront of rallying the public, state-owned entities and government departments, as well as the private sector to ramp up procurement of locally manufactured goods. It is for that reason that we have partnered with the Department of Trade, Industry and Competition to launch an e-commerce store that provides consumers with much-needed accessibility to locally manufactured goods. Through the e-commerce store, aptly named Shop Proudly SA, we are offering South Africans a viable alternative to e-commerce platforms such as Shein and Temu and an opportunity to support and shore up embattled local industries by buying locally made products. We are also looking at the feasibility of enhancing this e-commerce platform with export capabilities in the future, which will enable local manufacturers to expand their market beyond their geographical confines. The export capabilities of the store will also give credence to the growing call by President Cyril Ramaphosa and organised business formations such as Business Unity South Africa (BUSA) for affected industries to find alternative markets to offset the 30% tariffs that the Trump administration has levied on South African exports to the United States and ensure the long-term sustainability of all affected industries beyond the R-CTFL sectors. The findings of the LSF report should give us impetus to accelerate the various sectoral masterplans and intensify inter-agency collaborations in order to salvage our industries, nurse them back to health and turbo charge their growth. It also vindicates our clarion call for the ramping up of industrialisation which mirrors the findings of the study we undertook together with Dr Iraj Abedian's Pan African Investment Research Sevices, which found that a 10% increase in manufacturing activity will result in 8% job creation. With the spectre of stubbornly high unemployment looming ever larger, inequality expanding to cavernous levels, and poverty deepening by the day, ramping up our manufacturing capacity as well as a corresponding uptake of locally made products is no longer an option but an existential necessity.
The Citizen
02-07-2025
- Business
- The Citizen
Proudly SA launches online store – here's how to list your business on it
There are currently 30 categories on the website, and more are expected to be added. Proudly South African has launched an online store where buyers can buy locally made products and services. The online store, supported by the Department of Trade, Industry and Competition (dtic), is an initiative to support small and medium enterprises (SMEs) in the country. The online store, Shop SA, currently lists 300 businesses and 1 000 products that customers can purchase. The store was officially launched in Sandton on Tuesday. Proudly SA CEO Eustace Mashimbye said they are still in the process of listing more businesses, and after the vetting process, they will have approximately 500 businesses. ALSO READ: Government to launch online stores: How much do you think a South African dress would cost? How to list your business To list your business on Shop SA, you need to be a Proudly SA member. Businesses that are members of the organisation have been vetted and approved by Proudly SA to use their logo, signifying that they meet certain local content, quality and ethical standards. Being a member offers various benefits, including access to events, expos, workshops, and conferences organised by Proudly SA. Another benefit that has been added is getting to list your business on the online store. Members can go to the organisation's website and register to have their business listed. Those who are not members would need to apply. However, there is a process that Proudly SA follows before giving your business a membership. Vetting of the business Mashimbye explained that before listing products and services online, they need to be vetted. First, at least 50% of the production cost must be incurred in South Africa, and there must be a 'substantial transformation' of any imported materials. Quality is of importance; therefore, 'the product or service must be of a proven high quality'. 'The company must be environmentally responsible and adhere to production processes that are environmentally friendly and acceptable. Services must demonstrate a willingness to recycle and reduce their carbon footprint,' he added. ALSO READ: How your bank can help when online purchases go wrong Categories on the online store He added that there are currently 30 categories on the website, and more are to be added as businesses sign up. Courier services will be handled through Bobgo and their partners for door-to-door delivery. This will take between three to five days. However, he stated that as time goes on, they will be looking at reducing the delivery time. Apart from door-to-door delivery, there are more than 4 000 nationwide drop-off points. They are looking to export in the future, introduce loyalty programmes, expand their list of courier services and implement other initiatives. How ordering on the online store works Ordering on Shop SA is no different from ordering on any other online store. A customer will select the product or service they want, make payment, and an order notification will be sent to the vendor via the system. The vendor will need to confirm stock levels. If the customer has purchased from a single vendor, the courier will collect the parcel and deliver it to the designated delivery address or drop it off at the pick-up point. If the customer has purchased from multiple vendors, the vendors will need to ship the items to the warehouse; therefore, the courier will collect the items as a single shipment for delivery. This will be at no extra charge to the customer. The return shipment is booked by the customer at their own expense. The item is returned to the vendor, who will then need to approve or decline the return. Potential job creation Minister of dtic, Parks Tau, speaking at the launch, said campaigns like 'Buy local to create jobs' are important in shifting consumer choices and institutional procurement behaviours. Research by Proudly SA indicates that if every household redirected just 10% of their annual spend to local goods, it could create up to 120 000 new jobs. He added that the introduction of export functionality will enable local manufacturers to capitalise on the opportunities presented by the African Continental Free Trade Area (AfCFTA), a market with a projected GDP of $3.4 trillion and access to 1.4 billion consumers. 'South Africa's ecommerce market itself is also growing, expected to reach R225 billion by 2025, with increased internet penetration and digital payment infrastructure expanding rapidly. It is critical that local producers benefit from this growth and do not get left behind.' NOW READ: Four trends for e-commerce retailers to follow
News24
27-06-2025
- Business
- News24
Govt launches online shop with SA products
The Department of Trade, Industry and Competition (dtic) is set to launch two ecommerce platforms hosted by Proudly SA – one business-to-business and one business-to-customer. The customer-facing platform, Shop Proudly SA, is live, and its storefront offers over 1 700 locally made products in numerous categories, ranging from groceries to fashion, furniture, and health and beauty. It also includes an 'over-the-counter' category with locally sourced supplements ranging from sinus support to sexual wellness. Both platforms are meant to support small, medium and micro enterprises (SMMEs) and local entrepreneurs. The business-to-business platform, dubbed Market Access Platform or MAP, is meant to help corporate buyers find local suppliers. Proudly SA CEO Eustace Mashimbye said large corporates had expressed difficulty in getting access to locally made goods. MAP's database will make it easier to meet localisation targets, said Minister of Trade, Industry, and Competition Parks Tau. Meanwhile, the online shop aims to connect shoppers with quality, locally made products. The official launch of both platforms is set for 1 July, with Tau scheduled to preside over the proceedings. More information will be revealed at the launch, said a Proudly SA spokesperson.
eNCA
26-06-2025
- Business
- eNCA
Proudly SA launches new online platforms
JOHANNESBURG - Proudly South African, in partnership with the Department of Trade, Industry and Competition are working to make South African-made products more accessible. They've launched two new e-commerce platforms: Shop Proudly SA and the Market Access Platform, or MAP. The platforms are designed to help both consumers and businesses easily buy and source local goods and services, all with the goal of driving job creation and economic resilience. Eustace Mashimbye, CEO of Proudly South African discussed this with eNCA.
The Citizen
26-06-2025
- Business
- The Citizen
Government to launch online stores: How much do you think a South African dress would cost?
Now, many people usually think 'locally made' means 'cheap', which is not always the case. The Department of Trade, Industry and Competition will launch two online stores through South Africa's national Buy Local campaign, Proudly South African (SA), on 1 July 2025 in Johannesburg. The two online platforms to be launched are Shop Proudly SA and the Market Access Platform (MAP). Shop Proudly SA will serve as a business-to-consumer e-commerce platform, while MAP serves as a business-to-business portal. Minister Parks Tau said the two platforms will help boost support for Small, Medium and Micro Enterprises (SMMEs) and locally manufactured goods and services, create jobs and grow the resilience of our economy. ALSO READ: How SMEs can leverage cross-border e-commerce opportunities Why an online store? 'These platforms are meant to provide a seamless and centralised portal that will make it easier for consumers and procurement officers to source locally manufactured products and services and to meet their localisation targets. 'The e-commerce platforms will also enable local manufacturers to claw back some of the lost ground they have lost to cheaper imports,' he said. More than 1700 South African-made products will be available on the platforms. 'There will be something for everyone.' Online shopping mall Although the online store is only launching on 1 July, it is already up and running. It sells a variety of things, from furniture to clothes, groceries, books and more – it is like a mini shopping mall of small businesses in your hands. Now, many people usually think 'locally made' means 'cheap', which is not always the case. On the online store, you can purchase dresses that cost R4000 per pair from local designers. ALSO READ: Budget 2025: Is there hope for SMEs in SA? When it comes to furniture, there is a coffee table that will set you back R10 000 and a three-seater couch that is worth R18 500. These prices are like those of already well-established brands such as @home, UFO and others. MAP platform Eustace Mashimbye, CEO of Proudly SA, said the MAP platform is a response to large corporations who have mentioned that they do not have access to locally made products. 'Therefore, this pain point plugs the gap between corporates and suppliers.' 'MAP is a database of reliable, local manufacturers and service providers from which businesses that have undertaken to increase their uptake of local products and services can procure. 'In essence, the database serves as a source of local content and quality-vetted companies. Members of Proudly SA are automatically eligible to be enlisted on MAP as suppliers. 'Procurement officials from corporates (buyers) utilising MAP will be able to list their tender opportunities and be 'match-made' to listed suppliers in accordance with their own preferential procurement goals.' NOW READ: Parks Tau details oversight framework for R100k Spaza Shop Support Fund
