Products added for preferential procurement

8 February 2013

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8 February 2013 | Andy Allen

The South African Department of Trade and Industry (DTI) has listed a new range of products including electrical and telecommunications cables that must be purchased locally as part of public sector procurement programmes.

Local producers of electrical valves, manual and pneumatic actuators, components of solar water heaters have also benefited from being listed in the country’s preferential procurement policy list.

The Preferential Procurement Policy Finance Act (PPPFA) was introduced in 2011 and obliges public procurement programmes to purchase locally from designated industries, sectors and sub-sectors.

Rail rolling stock, power pylons, canned and processed vegetables, furniture and textiles and leather and footwear are among the products already listed.

Trade and industry minister Rob Davies said: “In the year ahead the DTI will significantly scale up designations and other procurement policy levers in support of domestic manufacturing.”

The designation policy instrument is one of several methods designed to maximise support for domestic manufacturing. These include the Competitive Supplier Development Programme - which is led by the Department of Public Enterprises and governs the procurement programmes of state owned companies.

The National Industrial Participation Programme obliges overseas companies which have won tenders worth more than US$10 million to invest in the domestic economy.

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