ANNOUNCED AS TEMPORARYNo
Public procurement preference margin
On 8 June 2011, the National Treasury of South Africa gazetted new Preferential Procurement Regulations, which grants the preference for local firms in line with the Broad-Based Black Economic Empowerment (B-BBEE) Act. The B-BBEE Act aims to eliminate any economic disadvantages that are remnants of the Apartheid regime by promoting corporate ownership, management positions, employment equity, enterprise development etc. among the black population.
In line with this policy, the Preferential Procurement Regulations provide for a preference point system whereby tenderers that have a higher B-BBEE status level (i.e. that score better in terms of black economic empowerment) enjoy progressive procurement preferences.
Moreover, in the case of designated sectors where local production and content is deemed 'of critical importance', the tendering procedure must be restricted to locally produced goods, services or works only (Art. 9(1)).
As of April 2014, these designated sectors are:
And the shipbuilding sector is about to be designated (see "Related measures").
The "Tariff lines affected", "Sectors affected", and "Affected trading partners" listed here are those with respect to the designated sectors. As the B-BBEE scheme covers all economic activities, though, the true number of tariff lines, sectors and trading partners affected is likely to be higher.
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