ANNOUNCED AS TEMPORARYNo
Public procurement localisation
This intervention designates minimum procurement localisation requirements for various sectors in South Africa. Effective 27 July 2016, the following sectors steel procured by the South African government entity must contain varying local content values, ranging from of 30%-100%:
· Steel power pylons
· Working vessels
· Furniture products
· Photovoltaic meters
· Two-way radio terminals
· Large bore spiral submerged arc welded steel conveyance pipes
· Rail signalling systems
· Electric cables
Under the procurement rules of 2011, the South African Department of Trade and Industry (DTI), alongside the National Treasury, has the power to designate specific sectors in where public procurement bids have to comply with a set of local production requirements stipulated minimum (see related measure). Such minimums vary by sector. If raw materials or input are not available to produce such products, bidders must obtain written authorization of the DTI to import such materials.
Any organ of the state may also choose to establish local manufacturing minimum for non-designated sectors. Such minimums must follow the DTI and the National Treasury’s directives and consult with them beforehand.
Such minimums may include small variations amongst the percentage of a minimum required depending on the length of the public procurement contract.
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