For Unilever Southern Africa, localisation is a leadership strategy that strengthens competitiveness, resilience and economic participation, while investment in young people extends that impact into businesses, households and communities, says Stefan Cloete, Chief Executive Officer – Unilever Southern Africa.
In a region where businesses must navigate high unemployment, inequality, currency volatility, infrastructure constraints and recurring global supply chain disruption, Unilever Southern Africa’s approach is grounded in a clear conviction: sustainable growth in Africa must be built on local understanding, local partnerships and local capability.
“Many leaders still view Africa mainly through the risk lens,” says Cloete. “In reality, it is one of the world’s most dynamic growth markets. The businesses that succeed here are those that understand the local context, work with local partners and build for the long term rather than applying imported models. If you do that, there remains a huge opportunity to be unlocked in Africa.”
“Commercial growth and social impact are not competing priorities in South Africa,” adds Cloete. “Long-term business success depends on whether more people can participate meaningfully in the economy. Investing in local suppliers, youth employability and community partnerships strengthens both the market and the business opportunity, making it more sustainable.”
A localisation journey with purpose
That philosophy has shaped Unilever South Africa’s localisation programme, launched in 2019 with the aim of increasing local sourcing from 40% to 80% addressable spend by 2025. The company has reached that target, while 95% of the products it sells locally are now manufactured in South Africa.
The numbers indicate the scale of the shift. Spend with BBBEE suppliers has reached R3.5-billion, representing approximately 21% of Unilever South Africa’s overall spend. Around R600-million of that amount has been directed to qualifying small enterprises and exempt micro enterprises.
Beyond the headline sourcing target, the programme was designed to support South African manufacturing, strengthen local livelihoods and reduce reliance on imported inputs. Lower exposure to foreign exchange movements gives the business greater cost predictability, while closer sourcing can shorten lead times and allow suppliers to respond more quickly to changing market requirements.
Localisation also has an environmental dimension. Producing and sourcing closer to the market can reduce transport distances and the carbon emissions associated with moving goods and materials across the world. While localisation is not a complete environmental solution, it can contribute to a more efficient supply model when combined with competitive production, responsible sourcing and clear sustainability standards.
For Unilever, the objective is not simply to replace imports for the sake of doing so. The goal is to develop local suppliers and industrial capabilities that are commercially viable, able to meet demanding standards and capable of competing internationally.
“Localisation strengthens resilience,” says Cloete. “It improves supply security and keeps more value in the local economy. In a context shaped by global uncertainty, currency volatility and supply chain disruptions, building local sourcing, manufacturing and supply capability is a strategic advantage.”
COVID-19 provided a practical test of that strategy. The pandemic showed how quickly transport interruptions, shortages of critical inputs and disruptions at distant production sites could affect businesses. It also demonstrated the importance of established supplier relationships, local problem-solving capacity and partners able to respond rapidly when normal supply arrangements come under pressure.
Local capability, global ambition
The practical work behind localisation takes place across sourcing, manufacturing, innovation and supplier partnerships. It includes identifying inputs that can be produced competitively in South Africa, replacing imported materials with approved local alternatives, investing in production capability and working with suppliers to meet Unilever’s quality, safety, volume and delivery requirements.
“The future of South African manufacturing lies in our ability to build local capability that competes on a global stage,” says Phahle Phalane, Director of Supply Chain at Unilever Southern Africa. “Our localisation journey demonstrates that when business invests intentionally in local suppliers, innovation and enterprise development, we can create a more inclusive economy while strengthening our competitiveness. This is localisation with purpose, driving growth, creating opportunities and shaping a stronger future for South Africa.”
The next phase of the journey is therefore described as a move from “South Africa for South Africa” to “South Africa for the world”. The ambition is to position the country as a competitive manufacturing and sourcing hub able to serve markets across the continent and, where possible, beyond it.
This requires local factories to compete with other sourcing sites within Unilever’s global network. Cost, quality, reliability, innovation, safety and sustainability all matter. A local supplier is not protected from competition simply because it is local; it must build the capability and professionalism required to perform consistently within a multinational fast-moving consumer goods value chain.
The impact of supplier development becomes clearest when it can be seen through individual businesses. Afrozonke and Temong case studies demonstrate how targeted investment, technical capability and access to a major customer can turn localisation from a procurement objective into a platform for industrial development.
Afrozonke: From Local Supplier to Global Exporter
Unilever invested in Afrozonke, a South African chemicals manufacturer, to acquire mineral-processing equipment and localise inputs that were previously imported from Brazil. The investment has enabled Afrozonke to expand its operations, improve its quality standards and position itself as a potential exporter.
The partnership demonstrates how localisation can develop industrial capabilities that did not previously exist locally. Instead of merely substituting an imported input, the investment has helped a South African manufacturer acquire equipment, strengthen production standards and build the capability required to pursue opportunities beyond its original domestic market.
Temong: Unlocking Access for Smallholder Farmers
Unilever has partnered with Temong and AGT Foods to install a steam steriliser in South Africa. The capability has reduced costs and turnaround times, improved product quality and opened formal FMCG supply-chain opportunities for smallholder farmers.
By connecting agricultural producers to the processing capability and standards required by a multinational business, the partnership supports inclusive agricultural development while strengthening the local supply chain.
The investment illustrates the importance of looking beyond the immediate supplier. Processing infrastructure can connect aggregators, farmers, manufacturers and customers, allowing smaller agricultural producers to participate in value chains that might previously have been inaccessible to them.
Building suppliers, growing the economy
For many small and medium enterprises, accessing opportunities within major corporate supply chains requires overcoming various challenges, including limited access to capital, markets and organisational capabilities.
A promising business may have a strong product or service but lack the working capital to purchase equipment, secure materials, employ additional people or fulfil a large order. Even when funding is available, the cost of borrowing can make expansion difficult. Without a committed customer, investing in capacity can feel too risky.
Unilever’s Enterprise and Supplier Development Fund was established in 2018 to address some of these barriers. More than R100-million has been invested in interest-free loans to qualifying black-owned suppliers, helping businesses build infrastructure, increase working capital and develop the capacity required to enter formal FMCG value chains.
“We support small businesses through zero-interest loans and, by developing them as Unilever suppliers, we can give them access to an immediate market,” adds Phalane. “Beyond providing capital and the market opportunity, it is also about investing the time to build their capabilities through sharing best practice and transferring knowledge.”
Unilever works with suppliers to improve capacity, systems, professionalism, quality control and the ability to deliver at scale. The standards are demanding because failures in a large consumer-goods supply chain can affect manufacturing, product availability, food and consumer safety, brand trust and relationships with retailers.
The development process is not always quick or easy. It requires time from both the corporate partner and the supplier.
It can involve changes to systems, processes, governance, equipment, record-keeping and production methods.
“We have many current local suppliers that started as small SMEs, which we developed and which have now grown into substantial businesses and become a key part of our extended supply chain,” says Phalane.
Unilever reports that the localisation programme has supported more than 900 direct jobs and affected more than 4500 livelihoods. Across its broader investment in developing local suppliers, the company attributes more than 1 000 jobs to the growth and increased capacity of local enterprises.
These outcomes show why supplier development involves more than a transaction between a buyer and a vendor. Funding, technical support and access to an established market can give an SME the confidence to invest, professionalise its operations and seek additional customers, extending the value of the initial intervention beyond Unilever’s immediate requirements.
Investing in youth
At the heart of sustainable economic growth lies the empowerment of young people. By expanding access to education, skills development and meaningful employment opportunities, we are unlocking the potential of South Africa’s youth while strengthening the communities in which they live.
Our youth focused initiatives are designed to address unemployment, improve livelihoods and foster inclusion, particularly for young people from underserved communities and those living with disabilities.
”Youth development is not only about creating access to work; it is about opening doors to confidence, dignity and possibility. When young people are given the right support, skills and exposure, they are able to shape their own futures and contribute meaningfully to the communities around them,” says Celeste Mdletshe, HR Director, Unilever Southern Africa
Creating opportunities through the YES Programme
The Youth Employment Service (YES) Programme remains one of our most impactful interventions in addressing youth unemployment. Beyond providing work experience and income opportunities for unemployed youth, the programme also helps support SMME’s by providing much needed human capital. This enables these businesses to build capacity, increase productivity and contribute to local economic growth.
”By investing in education, skills development and meaningful work experience, we are helping young people build confidence, independence and pathways to sustainable careers. These initiatives not only unlock individual potential, but also strengthen families, schools, small businesses and communities, creating lasting impact beyond the workplace,” claims Mdletshe
In the past year, our participation in the YES Programme has created 315 opportunities for youth to gain meaningful work experience and develop critical skills to improve their access to future employment opportunities. By extending placements of the YES participants into SMMEs and community-based initiatives, the programme’s impact reaches beyond our organisation and into the broader economy.
Advancing inclusion for young People with disabilities
Inclusion is a fundamental pillar of our commitment to youth development.
Over the past three years, we have created nearly 200 learnership opportunities for young people living with disabilities, helping to remove barriers to employment and ensure that talent and potential are recognised and nurtured.
For many participants, these opportunities represent far more than workplace experience. They provide a pathway to financial independence, build confidence, support professional growth and enable greater participation in the economy.
Building skills for future careers
Our commitment to youth development creates pathways into education, skills development and employment.
Through apprenticeship programmes across our factories, young people gain hands-on technical and vocational training, building practical skills and industry experience. Our bursary programme helps young people and employee dependants access tertiary education by reducing financial barriers and enabling them to pursue qualifications that can unlock future opportunities.
This commitment is further strengthened through the Unilever Level-Up Programme, delivered in partnership with universities. The platform provides students and young people with access to mentoring, coaching, personal and professional development opportunities, and pathways to work, volunteering and career readiness.
Creating lasting impact
By investing in education, skills development, disability inclusion, youth employment and entrepreneurship, we are expanding opportunities for young people and strengthening communities.
Every learner, apprentice, intern, bursary recipient and YES participant represents a step towards improved livelihoods, greater economic inclusion and a more resilient future.
”Lasting impact happens when opportunity is intentional. Every learner, apprentice, bursary recipient and YES participant represents more than a number; they represent a young person gaining the skills, experience and confidence to participate in the economy, support their family and contribute to South Africa’s future,” says Mdletshe.
Together, these initiatives reflect our commitment to equipping young people with the skills, experience and opportunities they need to succeed and thrive, while helping to build a more inclusive and prosperous South Africa.
Building a More Circular, Inclusive and Resilient Future
For Unilever Southern Africa, sustainability is not a separate agenda from growth; it is central to how the business builds resilience, strengthens trust and creates long-term value. Across South Africa and the wider region, the company is focusing its efforts where it can have the greatest impact: advancing plastics circularity, strengthening local supplier ecosystems and expanding livelihood opportunities for young people, women and communities.
Partnership as the Engine of Progress
Delivering this agenda requires collaboration across the full value chain. Government, retailers, suppliers, training institutions, Producer Responsibility Organisations, NGOs and communities each bring different capabilities to the table.
No single organisation can solve systemic challenges such as plastic waste, youth unemployment or supply chain vulnerability alone. “Sustainability is essential to performance,” says Cloete. “Progress depends on strong partnerships across government, retailers, suppliers, NGOs and communities, with a focus on measurable outcomes that have systemic impact.”
For Unilever, this means building partnerships that are both commercially viable and socially meaningful, ensuring initiatives can be sustained over time and scaled where they deliver real impact.
Turning Commitments into Measurable Impact
During the first half of 2026, Unilever Southern Africa advanced this sustainability agenda through practical action on plastics circularity, partner-led collection, improved recycling infrastructure, packaging enhancements, reuse and refill innovation, and more disciplined reporting. These efforts are helping to reduce environmental impact while supporting more responsible packaging outcomes and stronger circular economy systems.
Importantly, the company’s work on circularity is also creating tangible human impact. Through plastics collection and participation in the circular economy, Unilever Southern Africa has helped enable more than 1 500 income-generation opportunities for young people, women and waste reclaimers. This demonstrates how environmental action can also contribute to inclusive economic participation when communities are actively included in the value chain.
One example of this integrated approach was EmpowaYouth Week 2026 in Sebokeng, Gauteng. The week-long event reached 10 000 young people and brought together partners across sustainability, enterprise development, youth empowerment and producer responsibility. It helped position the green economy as a credible source of opportunity in communities facing high unemployment, while enabling more than 700 immediate job opportunities for youth.
Together, these interventions show how Unilever is seeking to connect environmental progress with economic participation. Plastics collection can create income, enterprise partnerships can build local capability and youth programmes can provide a first foothold in the labour market.
The common thread is the development of initiatives that deliver measurable value for communities while supporting the long-term sustainability of the business.