JD supports the SAFI masterplan
Published FY2022

JD Group sources 93% of its furniture from South African manufacturers and is supporting local SME development.


>> Financial investment
>> Commitment to orders
>> Commercial expertise
>> 93% local sourcing
>> xx employees supported
>> xx% increase Starfurn production capacity since investment
Introduction
In his State of the Nation Address (SONA) in 2019, President Cyril Ramaphosa set out the vision for a “reimagined industrial strategy” for South Africa. The South African Furniture Industry Masterplan is part of the implementation of the strategy.*
The Masterplan seeks to improve the competitiveness of firms through focused measures including, amongst others
• Improved access to raw materials to become competitive.
• Upgrading of skills and equipment.
The South African Furniture Initiative (SAFI) is a joint initiative of industry, labour and government, and has the common interest of promoting development and growth of the South African furniture industry. The furniture manufacturing industry will soon be guided by an industry master plan, which will focus on the development and support of the local industry. The Furniture Industry Master Plan (FIMP) will set clear guidelines and targets for the furniture manufacturing industry and guide public sector procurement as part of the government’s efforts to support and stimulate the industry.**
* http://www.thedtic.gov.za/wp-content/uploads/Furniture-Industry-Masterplan.pdf
** http://furnituresa.org.za/masterplan.php
RSA Furniture Manufacturing output
Furniture Index of Physical Volume Production

The industry has been experiencing a significant slowdown over the past decade despite its long and rich history. Factors that affected the industry negatively include stagnating demand, increased imports and the shutdown of large manufacturing plants.
JD Group participation
The JD Group (JD) has been supporting the industry for many years, procuring 93% of its furniture from local South African manufacturers. It is also in full support of the industry and the government’s initiatives.
Benefits for JD:
• Building a broader supply network
• Reducing the exposure to bigger manufacturers
• Contribute to reaching B-BBEE Enterprise Development targets
It’s focus will be to
• Support SMME producers with a low cost manufacturing model
• Create exclusive production capacity for JD Group
The partnership between JD Group and Starfurn Industries (Static Lounge), based in Stanger, KwaZulu-Natal, a B-BBEE Level 1 contributor) committed to a five-year, capped financial investment to fund
• working capital,
• investment in equipment and
• raw material purchases.

Starfurn Industries has been in existence for over 10 years and is a family-owned business.

PRODUCT CATEGORY
Starfurn is a manufacturer specialising in servicing retail and or wholesale furniture stores, locally, nationally and internationally.