No tariffs, No problem: Strategies for domestic manufacturers

By identifying opportunities, improving efficiency, and offering unique value domestic firms can position themselves to compete globally

Domestic manufacturers face a global challenge: how to compete internationally without relying on government protection or tariffs.

Speaking with ESI Africa at the Investing in Africa Mining Indaba, David Renwick, Global Head of Investment Banking at ABSA, addressed this question. 

He explained that relying on tariffs or government support is not a reliable long-term strategy: “Tariffs change. If you build a business around protections of the day, that’s not sustainable in the long term.”

Renwick noted that companies face strong competition from both local and international producers, and profitability can be difficult in such competitive markets. 

He emphasised that sustainable growth comes from focusing on what a company can do well on its own, developing products or services that are attractive to international customers without relying on protection.

By identifying opportunities, improving efficiency, and offering unique value domestic firms can position themselves to compete globally. “You’ve got to be able to develop something domestically that makes you internationally competitive, not relying on tariffs or protectionism,” he said.

Cover photo:   Neneqo Fotógrafo©pexels