ANNOUNCEMENT 12 Dec 2017

In December 2017, the South African National Treasury issued National Treasury Designated sectors Circular Number 3 of 2017/2018 setting minimum procurement localisation requirements for pumps, medium voltage (mv) motors and associated accessories.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

South African National Treasury, National Treasury Designated sectors Circular Number 3 of 2017/2018, 12 December 2017: http://ocpo.treasury.gov.za/Resource_Centre/Legislation/National%20Treasury%20Designated%20Sectors%20Circular.pdf

Inception date: 10 Jan 2018 | Removal date: open ended
Still in force

Public procurement localisation

The National Circular Number 3 of 2017/2018 designating pumps, medium voltage (mv) motors and associated accessories for public procurement was issued on 13 December 2017 and entered into force on 10 January 2018. The Circular designates minimum procurement localisation requirements for the subject goods under the Preferential Procurement Regulations, 2017, see related state act.

The minimum local content requirement on pumps and medium voltage (mv) motors procured by South African government entities must contain a local content threshold per unit of 70%. In this context, certain components and associated accessories of medium voltage (mv) motors as well as testing of the unit must contain a local content threshold of 100%.

Ball and roller bearings, rubber for lining pumps, mechanical seals and steel billets and/or bars used in the fabrication of the shafts used as primary input materials for pumps and anti-friction bearings, electrical steel and special copper alloys, insulation material and resin used as primary input materials for medium voltage (mv) motors  are exempt from the local content threshold.

AFFECTED SECTORS