On August 1, 2014, the South African Department of Trade and Industry, alongside the National Treasury, designated a new sector, residential electricity meters, to benefit from the Preferential Procurement Policy Framework Act passed in 2011.

On 26 May 2017, the South African authorities repealed and replaced this instruction on electricity meters as of 22 June 2017, see related state act.



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Inception date: 21 Aug 2014 | Removal date: 22 Jun 2017
Still in force

Public procurement localisation

This intervention designates minimum procurement localisation requirements for the residential electricity meters. Effective 21 August 2014, residential electricity meters procured by the South African government entity must contain a local content value of 70% or more.

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.