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Public procurement localisation
This piece of legislation gives the South African Department of Trade and Industry (DTI), alongside the National Treasury, power to designate specific sectors in where public procurement bids have to comply with a set of local production requirements stipulated minimum. 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.
On 20 January 2017, the South African authorities issued the Preferential Procurement Regulations 2017, which replaces and repeals the above Preferential Procurement Regulations 2011 as of 1 April 2017 (see related state act).
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