The National Treasury of the Republic of South Africa has introduced new national preferential procurement regulations for public entities. The regulations stipulate minimum local content thresholds, in line with the government's Industrial Policy Action Plan.
Hence, the Ministry of Trade and Industry is identifying key sectors from which government entities will buy only locally-produced goods when the procurement regulations come into effect on 7 December 2011.
The new regulations were necessary in order to minimise tender fraud and corruption in the BEE scheme and stimulate employment and job creation.