Cape Town – Takealot has launched a R1.7 million competition aimed at helping South African manufacturers scale their businesses and reach more consumers through its online marketplace.
The 2026 Takealot TIA Local Innovation Challenge, known as Made Local, is being run in partnership with the Technology Innovation Agency (TIA) and will select 20 local entrepreneurs for a 10-week accelerator programme.
According to MyBroadband, the winner will receive R1 million, while the runner-up will receive R500,000 and the third-placed business R200,000.
Takealot said the programme is intended to address the difficulty many local manufacturers face in turning promising products into sustainable and scalable businesses.
“South Africa has a wealth of innovative, locally manufactured products,” the company said, adding that scaling an established product presented “a different set of challenges”.
Right support
The 20 selected businesses will receive expert-led training, mentorship, business development support and practical exposure, while also gaining access to millions of potential customers through the Takealot Marketplace.
Takealot Group CEO Frederick Zietsman said South Africa had no shortage of innovation, but entrepreneurs often lacked the support needed to turn good ideas into successful businesses.
“What many need is the right support, skills, and networks,” Zietsman said, according to MyBroadband.
Unlike a conventional competition in which winners are selected by a judging panel, this year’s winners will be determined largely by their performance during the programme. Factors include sales generated during the live sales phase, customer ratings and participation in the accelerator.
The competition is open to SMEs that have operated for more than a year, already sell through Takealot and manufacture consumer products locally. Applications opened on 8 September and close on 20 September 2026.
Major obstacles
The initiative comes as South African manufacturers continue to face pressure from cheaper imported products and intense international competition.
Business Day reported earlier this year that imported clothing can be 25% to 40% cheaper than locally manufactured alternatives, highlighting one of the major obstacles facing local producers.
The challenge is particularly relevant as Chinese e-commerce platforms such as Shein and Temu expand in South Africa. The Mail & Guardian has reported that the growth of these platforms has put pressure on local manufacturing and jobs.
The difficulty of identifying genuinely local products online is another hurdle. A recent Explain News report found that consumers often struggle to establish where products are actually manufactured, even when shopping on major online platforms.
Takealot says supporting local businesses is already part of its broader strategy. According to its economic impact programme, almost 60% of Takealot orders are fulfilled by SMME suppliers, with more than 7,500 small businesses benefiting from its platform.
The company has also previously launched initiatives focused on local manufacturing and township businesses, including its Township Economy Initiative.
The Made Local challenge therefore positions Takealot not only as a retail platform, but as a potential growth channel for South African manufacturers seeking to compete in an increasingly globalised online marketplace.
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Compiled by Betha Madhomu
