I do not know if it is in the blood, or in the African landscape with its vast open sky and breathtaking sunsets, but love for this country shines bright and true in the hearts of its people. Tourists fall in love with it in a matter of days. Wayward returnees repeat fascinating travel experiences from abroad, but assure listeners there is no better feeling than returning home to the biltong, braais, sunshine and surf.
A place of hope, a spirit of strength and a land of opportunity for positive people, South Africa holds a special kind of attraction to local and foreign investors alike. A resource-rich nation, with powerful influence in African markets and beyond, South Africa’s economy seems a great alternative at times when world markets are teetering. Perhaps this is why it is more important than ever to understand the forces at play in our local economy and our personal influence at a grassroots level.
Is it better to focus on attracting foreign investment or to remain loyal and consistent in our support of local businesses and entrepreneurs? The debate has no easy answer and for the average South African, is about as interesting as a potato. So why bother to think about it at all?
Here are 5 reasons why local is more “lekker”:
The Grass Feeds the Cattle
A little tongue-in-cheek, perhaps, but the truth remains that without grassroots economic development, local communities might as well ignore so-called economic growth at the top of the food chain. What does the concept of development mean to you? Is it the shop around the corner, the enterprising broom seller or the lifelong dreamer finally gathering enough resources to fund the fleet of delivery trucks and employ eight other people?
No matter our financial position, background or living standards, economic growth that starts next door is always better than a random newspaper headline. We are more invested in our own well-being than in a high-level concept like foreign investment. Besides, isn’t it empowering to know we capable of being the masters of our own destiny?
Community is built
It’s intuitive to expect that as we invest in local ventures, local people and local ideas, we grow to be a part of a wider community. Where the focus lies, is where the heart will feel most at home. It is no wonder that our sense of unity is strengthened as we intentionally and systematically support local businesses over foreign suppliers, high-quality local productions over poor-quality cheaper imports and personalised touches over commercial regurgitations.
A Solid Bottom-Up Approach
As the local economy grows so does the pool of resources available. Money spawns money, and a little growth fosters more growth, in increasing proportions. It’s simple.Someone has an idea to make bed base sets, from scratch, rather than importing cheap beds from China. He contacts a couple of suppliers, gathers his thoughts and makes the decision to start up with a small loan. Got a great idea? Why not consider a short-term loan to get you started?
His production method is a bit time-consuming, but it works and his business model starts out slowly. As word of mouth travels, community support grows and his customer base increases. The business is soon flying. Two and a half years in, he cannot keep up with the demand for his locally-made base sets and is soon ready to expand into a bigger shop space. His popularity then provides a golden opportunity to break into supplying the local hotel industry and his resources expand rapidly once again.
This happens to be a true story, of a friend’s success in the local community; but it occurs more often than you might imagine. The more local businesses a community nurtures, the more the domestic economy grows. Economic growth means more jobs, more jobs means more money to go around and a long-term improvement in general living standards. Everyone benefits.
A stronger domestic economy creates room to expand on a national level, too. Key stakeholders, like the government, enjoy greater tax revenue and fewer dependents. Industry benefits from increased demand for locally-produced goods and services. Economic growth at a local level, therefore, creates sustainable growth for the national economy; through access to better services, opportunities for expansion and a greater chance of benefitting from key financial resources.
Fickle foreign
Another key downside of foreign investment is the fickle nature of the one-track investors we value so highly. At the first mention of junk status, like the unfortunate events leading to the 2017 credit rating downgrade, foreign investors flee. There is no loyalty, no concern, for the faceless community or a government who depends on foreign money. Investing in local business, be it with money, skills, time or education, empowers a strong and sustainable domestic economy, independent of profit-seeking foreign investors who feel nothing about escaping to safe havens elsewhere when times get tough.
Creativity breeds beauty
The final motivation to leave your money where you live are the obvious long-term possibilities that become a reality under economic prosperity. Empowered people are happy people. Employed people are happy people. Financially-independent people are happy people. Happy people are creative people and innovation is a key element in building a better life for all. Life is more beautiful when people are happier.
As an entrepreneur relying on local business to put food on the table, the benefits of intentional, systematic support from my local community are tangible. If we all take a little time to assess our position on domestic versus foreign, change is not only possible, but inevitable. What is a strong local economy worth to you?
How far are you willing to go to ensure that you, your neighbours and your children enjoy a sustainable local (and even national) economy? Can we create a future which does not rely on random world events for long-term success?
