More international articles
☛ Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily
8 December 2011 | Angeline Albert
Electricity pylons, buses and canned
vegetables are among the products designated by the South African government in
its first wave of preferential procurement.
Yesterday the Department of Trade and Industry (DTI) revealed the first products
and sectors that will require set minimum percentages for local procurement. Included
in the first wave are power pylons, rail rolling stock, buses, canned
vegetables, clothing, textiles, footwear, leather products and set top boxes.
More will be selected next year. The DTI says the attempt to increase local
sourcing is to reverse the country’s “industrial decline”.
Where relevant, the designations also set
out specific recommendations for ensuring competition amongst domestic
producers and value for money for the state.
The new regulations will apply to public
sector buyers and those buyers working at private firms, trade unions and
voluntary organisations that have signed the Local Procurement Accord,
which commits these groups to work together to increase local procurement by
monitoring and evaluating their progress on agreed local sourcing goals.
“The first designations mark an important
milestone in government efforts to arrest and reverse industrial decline with
and in support of the private sector,” said a government statement. “The
designation instrument serves to strengthen public procurement in support of
the multipliers derived from reducing the trade deficit, strengthening and
diversifying South Africa’s industrial base and to build up competitive
value-adding exports onto the rest of the continent, high growth developing
economies and traditional export markets.”
But it added: “We wish to reiterate that
all procurement officers are under an obligation to secure the most competitive
prices for products which fall in designated sectors,” the government said in a
The government can remove a product or
sector’s preferential status if the supply base fails to make progress or there
is evidence of anti-competitive behaviour.