While local identity may open the door, lasting customer loyalty is increasingly driven by the positive impact businesses have on the communities they serve.
For decades, South Africans have embraced the idea that “local is lekker”. This sentiment has been reinforced through various initiatives over the years, such as the Proudly South African campaign launched in 2001 and government’s 2011 Local Procurement Accord, which have successfully sought to increase the level of goods and services bought from local producers.
Today, however, local identity alone is no longer enough to win customer loyalty. Consumers, particularly younger generations, are actively rewarding businesses that demonstrate a genuine commitment to the communities they serve. They are looking beyond products and services and paying closer attention to a company’s social impact, values and commitment to positive change. Research suggests that 86% of Gen Z South Africans say they are more likely to support brands that contribute to social or community causes.
“Consumers are increasingly drawn to businesses that create visible value beyond the products and services they offer,” says Gugu Mjadu, Executive General Manager of Marketing and Impact Investing at Business Partners Limited. “Being a local business may attract customers initially, but long-term loyalty is increasingly built through authentic and consistent engagement with the communities those businesses serve.”
According to Mjadu, this presents a significant opportunity for South Africa’s small and medium enterprises (SMEs). “Unlike larger corporations, SMEs are often deeply embedded within the communities in which they operate. They employ local people, support nearby suppliers and build close relationships with customers, giving them a natural advantage when it comes to demonstrating genuine impact and building meaningful relationships with customers.”
She adds that in a globally connected environment where consumers have increasingly more choices than ever, trust has become an important factor in purchasing decisions. “SMEs are uniquely positioned to build this trust, and many are already making a meaningful contribution to their community through job creation and supporting local suppliers.”
Yet despite these contributions, many SMEs fail to communicate their impact effectively. As a result, much of the value SMEs create often remains invisible to customers and other stakeholders.
“Many business owners – particularly SMEs – tend to view community impact as part of doing business, rather than something worth communicating,” Mjadu explains. “But consumers are increasingly looking for evidence of the positive role businesses play in society. Being transparent about these efforts and sharing authentic stories about the difference a business is making can help strengthen credibility, build trust and deepen customer loyalty.”
For SMEs, this can be particularly powerful because their impact is often visible at a local level. A township-based catering business, for example, may create employment opportunities for young people from the surrounding area while sourcing ingredients from nearby suppliers. Similarly, a small manufacturing business might invest in apprenticeships or skills development programmes that help build a pipeline of local talent. While these initiatives may not always be formally recognised as community impact programmes, they create meaningful value that extends well beyond the business itself.
“The impact is often visible within the community itself,” notes Mjadu. “The opportunity lies in helping customers and stakeholders understand the difference that business is making.”
As South Africans celebrate Heritage Month and reflect on the value of supporting local enterprise, she believes SMEs have an opportunity to showcase not only what they sell, but also the contribution they make to local economic growth and social development.
“Consumers increasingly want to support businesses that make a positive difference in the places where they live and work. For SMEs, clearly demonstrating this community impact is therefore not only the right thing to do. It is increasingly becoming an important business differentiator that can build lasting trust, strengthen customer relationships and support long-term growth,” Mjadu concludes.
About the Author: Gugu Mjadu
