As South Africa ambitiously strives to rejuvenate its economy and stimulate industrial growth, a pivotal aspect of its strategy has become the spotlight: localisation. This national pursuit has not only emerged as a formidable answer to recent global economic tumult but is seen as a strategic blueprint that even global behemoths like Unilever are embracing with rigor and determination. In an exclusive interview with CNBC, Pahle Palai, Vice President of Supply Chain for Unilever South Africa, delves into how the multinational company is weaving localisation into its operational fabric, spelling opportunities for South African enterprises. South Africa, recovering from the shocks of the COVID-19 pandemic and geopolitical instabilities, is urging foreign businesses to localize operations and ramp up investment into local value chains. Unilever, with its global footprint, has taken this nudge as a catalyst for transformative change. Pahle emphasizes, “We actually believe that doing good is good business. So, our localisation strategy is not just about responding to policy shifts; it's a deliberate, purposeful transformation of how we operate.” Historically, Unilever has set ambitious localisation targets, with its most recent endeavor being a significant leap from 40% to 80% localization by 2025. This journey began in earnest in 2019, marking a watershed moment for Unilever’s localisation roadmap. The company adopted a four-pillar strategy, each designed to enhance local sourcing and build an end-to-end value chain domestically. The approach kicks off with leveraging existing suppliers and materials—Unilever’s low-hanging fruit. Following this is a crucial shift to identify and employ local substitute materials for components traditionally imported. With strategic collaborations, such as the one with Sasol for synthetic surfactants, Unilever is steadily reducing its reliance on international components. The third pillar, which Palai refers to as the ‘interesting’ part, involves the creation of new industries, capacities, and capabilities within South Africa. This involves partnerships with small and large businesses, and some transformative examples Palai shared involve localising spice production. Instead of importing paprika from India, Unilever has tapped into homegrown potential. A noteworthy partnership with local company Di Mong has borne fruit, with a pioneering steam sterilization unit now operational. This partnership with Di Mong underscores Unilever's pragmatic approach: inclusivity and empowerment. Di Mong, a Black-owned agri-processing firm, complements Unilever’s requirements through agricultural expertise, particularly in teaming up with smallholder farmers in the Jozini area. “The success hinges on building a competitive supply chain without compromising quality,” Palai observes. Indeed, quality assurance remains a compelling challenge in localisation drives. Palai notes, “It's not just about swapping components; it requires a transition involving our R&D teams and process engineers.” Unilever’s hands-on collaboration with suppliers ensures seamless integration of local substitutes without eroding product standards. Palai also candidly discusses that while embarking on such expansive localisation is ‘medium difficult,’ the synergy and shared commitment with partners make the journey feasible. “There are issues, but it’s about the collaborative effort to overcome them… it’s a journey, a transition,” Palai asserts. Pahle Palai’s vivid account of Unilever’s strategic localisation paints a picture of the broader value chain implications. South Africans purchasing Unilever products are not only supporting local jobs but are also patrons of a burgeoning industrial ecosystem steadily uprooting historical dependencies on imports. As localisation remains a cornerstone of South Africa’s recovery strategy, Unilever’s approach offers a microcosm of what future success might look like; a harmonious blend of strategic global collaboration, local empowerment, and sustainable industrial evolution.