Department Of Trade And Industry Local Content, the revised Preferential Procurement Policy Framework Act (PPPFA) regulations which came into effect on the 7 December 2011 empower the Department of Trade and Industry (the dti) to designate industries, sectors and sub-sectors for local production at a specified level of local content.
The following industries, sectors and sub-sectors have so far been designated for local production with minimum local content thresholds.
| Industry/sector/sub-sector | Minimum threshold for local content |
| Buses (Bus Body) | 80% |
| Textile, Clothing, Leather and Footwear | 100% |
| Steel Power Pylons, Monopole Pylons, Steel Substation Structures, Powerline Hardware, Street Light Steel Poles, Steel Lattice Towers | 100% |
| Canned / Processed Vegetables | 80% |
| Pharmaceutical Products: | |
| OSD TenderFamily Planning Tender | 70% (volumes)50% value |
| Rail Rolling Stock | 65% |
| Set Top Boxes (STB) | 30% |
| Furniture Products: | |
| Office FurnitureSchool FurnitureBase and Mattress | 85%100%90% |
| Solar Water Heater Components | 70% |
| Electrical and telecom cables | 90% |
| Valves products and actuators | 70% |
| Residential Electricity Meter : | |
| Prepaid Electricity MetersPost Paid Electricity MetersSMART Meters | 70%70%50% |
| Working Vessels/Boats (All types): | 60% |
| Components | 10% – 100% |
| Conveyance Pipes | 80% – 100% |
| Transformers and Shunt Reactors: | |
| Class 0Class 1Class 2Class 3Class 4 | 90%70%70%45%10% |
| Components and conversion activities | 50% – 100% |
| Solar PV Components: | |
| Laminated PV ModulesModule FrameDC Combiner BoxesMounting StructureInverter | 15%65%65%90%40% |
| Two Way Radio Terminals and Associated Equipment: | |
| Portable RadioMobile RadioRepeater | 60%60%60% |
| Components | 20% – 100% |
| Rail Signaling: | 65% |
| Components | 40% – 100% |
| Wheely Bins: | 100% |
| Fire Fighting Vehicle | 30% |
| Crew CabinSuper StructureAssembly | 100%100%100% |
| Steel Products and Component for Construction | |
| Steel Value-added ProductsFabricated Structural SteelJoining/Connecting ComponentsFramesRoof and CladdingFastenersWire ProductsDucting and Structural pipeworkGutters, downpipes & laudersSteel Value-added ProductsPlatesSheetsGalvanised and Colour Coated CoilsWire Rod and Drawn WireSectionsReinforcing bars | 100%100%100%100%100%100%100%100% 100%100%100%100%100%100% |
| Pumps, Medium Voltage (MV) Motor and Associated Accessories | 70% |
| Casting or Frame FabricationFabrication and winding of the Rotor CoreAccessoriesAssembly and testing of the fully-built unit | 100%100%100%100% |
| Rail Permanent Way | 90% |
| Rails and rail jointsBallastsBallastlessTurnouts/switches and crossingsRailway sleepersRail fastening and accessoriesRailway maintenance of way plant & equipmentAssembly and testing of fully build unitst | 100%100%100%100%100%100%70%100% |
To access the practice notes to the above designated sectors, please go to www.treasury.gov.za
Other industries, sectors and sub-sectors are still being considered for designation. Once a thorough research and consultations have been concluded a decision to designate will be communicated to the public.
Please note that the Minister of Finance has approved the attached instructions relating to the amendment of:
- Declaration Certificates for Local Production and Content for designated sectors (SBD 6.2 and MBD6.2); and
- National Treasury Instruction on: Invitation and evaluation of bids based on a stipulated minimum threshold for local production and content for Valve Products and Actuators
These instructions will be effective from the date of issue and can be accessed on the National Treasury website.
The standard bidding documents (SBD 6.2 or MBD 6.2) must be completed in line with the requirements of the SABS approved technical specification number SATS 1286:2011 and the Guidance Document for the Calculation of Local Content together with the Local Content Declaration Templates
- Annexure C: Local Content Declaration – Summary Schedule,
- Annexure D: Imported Content Declaration – Supporting Schedule to Annexure C and
- Annexure E: Local Content Declaration – Supporting Schedule to Annexure C.
All these documents are important for the calculation, measurement and verification of local content.
- SATS 1286:2011 Edition 1
- Guidance Document for the Calculation of Local Content
- Annexures C, D and E – Download in [PDF] or [XLS] format.
- Examples of completed annexures
- Buses
- Canned vegetables
- Preferential Procurement Regulations, 2017
- Process when requesting exemption letters
For local content related enquiries, please call the helpline on +27 (12) 394 1435.
For technical enquiries please contact Ms Cathrine Matidza:
Director: Fleet Procurement
Tel: +27 (12) 394 5598
E-mail: [email protected]
For local content enquiries or complaints, please send an e-mail to [email protected]