Localisation Support Fund and Coricraft boost local furniture manufacturing
South Africa’s furniture industry has received a major boost with leading furniture retailer Coricraft now producing an increasing variety of upholstered seating locally at its Epping facility in Cape Town. This milestone, supported by the Localisation Support Fund (LSF), demonstrates how local production can protect and grow jobs, reduce reliance on imports, and lay the foundation for a more competitive domestic supply chain.
Working in partnership with partnership with the LSF, a non-profit company established to accelerate industrialisation in South Africa by driving strategic localisation, Coricraft has shifted production of lines that were previously imported to local manufacturing, unlocking tens of millions of rands in economic value annually and supporting over 500 jobs. The intervention has already delivered measurable impact: productivity has increased by nearly 10 percent, efficiency has improved by 38 percent, and the company is now better equipped to respond quickly to demand. These gains have been enabled by the adoption of lean manufacturing practices, real-time monitoring, and improved planning tools, which together have strengthened Coricraft’s ability to compete with global imports.
According to Shani Naidoo, Group Director responsible for Coricraft and the The Foschini Group (TFG) Home business, the initiative represents more than just operational improvements. “By producing more locally at Coricraft, we are securing jobs, strengthening suppliers, and proving that South African manufacturing can compete at scale,” she said.
An important part of this achievement is that much of the raw material required for upholstered seating, such as timber, board and foam, is also sourced from domestic suppliers. By localising not only the final product but also strengthening demand for inputs, the initiative has amplified its economic dividend—supporting upstream industries, creating multiplier effects across the value chain, and further embedding jobs in South Africa’s manufacturing ecosystem.
Industrial engineers from Dizani Consulting, worked closely with the Coricraft team to introduce time-and-motion studies, standardised planning tools, performance dashboards, and daily accountability routines. Production layouts were adapted to better reflect product mix, while logistics were streamlined through a scheduled pull system. These measures have created a repeatable operating model that not only improves current output but also positions Coricraft to expand its localised product offering in the future.
This achievement also reflects the broader strategy of Coricraft’s parent company, TFG, which has committed to rebuilding South Africa’s manufacturing base and reducing reliance on imports across its brands, including @Home.
Anthony Thunström, TFG CEO, emphasised the significance of this milestone, noting that it “shows TFG’s commitment to world-class local manufacturing that creates jobs, builds resilience, and reduces reliance on imports.”
While technical in nature, the lessons from this project are clear for the sector as a whole. By planning to standard times rather than units, measuring performance in real time at the right level, and aligning layouts and material flow to actual demand, manufacturers can achieve sustained improvements in productivity and cost efficiency. When coupled with lean principles such as 5S lean manufacturing and daily leadership routines, these practices embed a culture of continuous improvement and create a scalable platform for adding new local product lines, deepening domestic supply chains, and protecting jobs.
For Coricraft, the success of this initiative is only the beginning. The company is already exploring further opportunities to localise additional ranges by building on the lean principles and management systems it has now embedded.
The project demonstrates what can be achieved when business and industry partners work together with a shared vision.
“The Coricraft initiative is a clear example of how partnerships can unlock growth in local manufacturing,” said LSF CEO, Irshaad Kathrada. “It highlights the leadership role that TFG is playing in strengthening domestic industries and creating sustainable jobs.”
Kathrada further highlighted: “The Coricraft initiative is a powerful demonstration of the impact localisation can have on jobs and growth in South Africa. By embedding lean principles and localising production, we’ve not only secured opportunities within the Epping factory but also stimulated demand for timber, board, foam, and other inputs—supporting dozens of suppliers and ancillary industries across the country. This is the multiplier effect of localisation: for every manufacturing job created, several more are generated across the value chain”
“Strategic localisation is not about isolation or protectionism, but leveraging domestic demand to enhance industrial competitiveness. We need to reduce dependency on imports, not only because it strengthens our economy, but because very often it makes business and commercial sense. Localisation can insulate our industries from global supply shocks and ensure that supply chains are more agile and respond readily to customer needs. The Coricraft case shows what is possible with clear strategy and intent. Without a doubt, we can do more as a country to grow our local manufacturing industries and we look forward to working with the broader furniture sector to build on these learnings,” he said.
Greg Boulle, CEO of the South African Furniture Initiative (SAFI) added: “Coricraft’s lean manufacturing transformation proves that every furniture manufacturer in South Africa can dramatically improve their competitiveness – regardless of size. By embracing lean principles and fostering a culture of continuous improvement, manufacturers can slash production costs, maximise returns on their investments, and go head-to-head with cheap imports. But the real winner here is the South African economy – localisation through lean manufacturing means more jobs, stronger communities, and a thriving domestic furniture industry that can compete on the global stage.”
