Strengthening South Africa’s supply chains
A key driver for economic growth and global competitiveness.
Author
Arusha Dasrath
Date published
June 3, 2025
Categories
Strategy &
Adv. Mtho Xulu, President,
South African Chamber of Commerce & Industry
In a commanding keynote address at ASCO 2025, Adv. Mtho Xulu delivered a powerful call to action for the private sector, government, and organised business to view supply chains not merely as procurement functions, but as strategic enablers of economic growth, industrialisation, and national competitiveness.
Adv. Xulu began by reframing the role of chambers of commerce and organised business in South Africa. No longer passive commentators, these institutions are actively shaping policy and fostering environments that enable business to thrive. With a diverse membership ranging from SMEs to multinationals, SACCI now focuses on leveraging its networks locally and globally to facilitate trade, investment, and economic influence.
He argued that economic growth must be driven by activity at local and regional levels, referencing the District Development Model as a way to empower 52 distinct regions across South Africa to operate as productive economic zones. According to Xulu, true competitiveness is not a theoretical construct it begins with participation. A country or a business cannot claim competitiveness if it isn't even "in the race."."
Adv. Xulu warned that overly rigid or exclusionary supply chain regulations risk turning procurement professionals into mere gatekeepers rather than enablers of productivity. Instead, he proposed a transformative view of procurement, one that leverages buying power as a developmental tool. By strategically directing procurement spend, businesses can stimulate local industries, uplift communities, and support the growth of sustainable enterprises. “Supply chain is the easiest entry point into economic opportunity,” he emphasized.
He also stressed the critical role of the private sector in nation-building, citing examples like Discovery and Harmony Gold as case studies of South African companies that transformed adversity into global competitiveness. These stories, he said, underscore that South Africa remains a “big deal in a small way,” with unmatched strategic position on the African continent, a robust industrial base, and deep cultural and economic influence across the Global South.
Adv. Xulu challenged both the public and private sectors to rethink procurement as a tool for long-term impact, rather than short-term compliance. He urged organisations to ask: Where does the money go once the invoice is paid? Who are we enabling? Are we building future suppliers who can one day export beyond our borders?
• The private sector must lead boldly - South Africa’s competitiveness relies on private capital, innovation, and leadership aligned to national priorities.
• South Africa is globally relevant but must act like it - With the continent’s most advanced economy and global credibility, South Africa must leverage its position to shape global trade, not just react to it.
• Innovation and leadership are the missing links - It’s not just skills or capital that are lacking, it’s long-term thinking and the courage to drive structural change.
"Supply chains are more than procurement pipelines, they are powerful engines of economic inclusion, industrial growth, and national competitiveness." — Adv. Mtho Xulu, President, South African Chamber of Commerce & Industry
Adv. Xulu began by reframing the role of chambers of commerce and organised business in South Africa. No longer passive commentators, these institutions are actively shaping policy and fostering environments that enable business to thrive. With a diverse membership ranging from SMEs to multinationals, SACCI now focuses on leveraging its networks locally and globally to facilitate trade, investment, and economic influence.
He argued that economic growth must be driven by activity at local and regional levels, referencing the District Development Model as a way to empower 52 distinct regions across South Africa to operate as productive economic zones. According to Xulu, true competitiveness is not a theoretical construct it begins with participation. A country or a business cannot claim competitiveness if it isn't even "in the race."."
Adv. Xulu warned that overly rigid or exclusionary supply chain regulations risk turning procurement professionals into mere gatekeepers rather than enablers of productivity. Instead, he proposed a transformative view of procurement, one that leverages buying power as a developmental tool. By strategically directing procurement spend, businesses can stimulate local industries, uplift communities, and support the growth of sustainable enterprises. “Supply chain is the easiest entry point into economic opportunity,” he emphasized.
He also stressed the critical role of the private sector in nation-building, citing examples like Discovery and Harmony Gold as case studies of South African companies that transformed adversity into global competitiveness. These stories, he said, underscore that South Africa remains a “big deal in a small way,” with unmatched strategic position on the African continent, a robust industrial base, and deep cultural and economic influence across the Global South.
Adv. Xulu challenged both the public and private sectors to rethink procurement as a tool for long-term impact, rather than short-term compliance. He urged organisations to ask: Where does the money go once the invoice is paid? Who are we enabling? Are we building future suppliers who can one day export beyond our borders?
• Supply chain is a strategic lever, not a compliance function - When done right, it catalyses local economic activity, uplifts communities, and builds globally competitive industries.
• Economic growth must be decentralised - Each of South Africa’s 52 districts must become an active participant in economic production to reduce reliance on urban hubs.
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• Competitiveness begins with participation - We must create conditions where local businesses can enter supply chains and grow their capabilities.
• The private sector must lead boldly - South Africa’s competitiveness relies on private capital, innovation, and leadership aligned to national priorities.
• South Africa is globally relevant but must act like it - With the continent’s most advanced economy and global credibility, South Africa must leverage its position to shape global trade, not just react to it.
• Innovation and leadership are the missing links - It’s not just skills or capital that are lacking, it’s long-term thinking and the courage to drive structural change.
"Supply chains are more than procurement pipelines, they are powerful engines of economic inclusion, industrial growth, and national competitiveness." — Adv. Mtho Xulu, President, South African Chamber of Commerce & Industry