Department Of Trade And Industry Local Content

By | December 9, 2021

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-sectorMinimum threshold for local content
Buses (Bus Body)80%
Textile, Clothing, Leather and Footwear100%
Steel Power Pylons,
Monopole Pylons,
Steel Substation Structures,
Powerline Hardware,
Street Light Steel Poles,
Steel Lattice Towers
Canned / Processed Vegetables80%
Pharmaceutical Products:
OSD TenderFamily Planning Tender70% (volumes)50% value
Rail Rolling Stock65%
Set Top Boxes (STB)30%
Furniture Products:
Office FurnitureSchool FurnitureBase and Mattress85%100%90%
Solar Water Heater Components70%
Electrical and telecom cables90%
Valves products and actuators70%
Residential Electricity Meter :
Prepaid Electricity MetersPost Paid Electricity MetersSMART Meters70%70%50%
Working Vessels/Boats (All types):60%
Components10% – 100%
Conveyance Pipes80% – 100%
Transformers and Shunt Reactors:
Class 0Class 1Class 2Class 3Class 490%70%70%45%10%
Components and conversion activities50% – 100%
Solar PV Components:
Laminated PV ModulesModule FrameDC Combiner BoxesMounting StructureInverter15%65%65%90%40%
Two Way Radio Terminals and Associated Equipment:
Portable RadioMobile RadioRepeater60%60%60%
Components20% – 100%
Rail Signaling:65%
Components40% – 100%
Wheely Bins:100%
Fire Fighting Vehicle30%
Crew CabinSuper StructureAssembly100%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 Accessories70%
Casting or Frame FabricationFabrication and winding of the Rotor CoreAccessoriesAssembly and testing of the fully-built unit100%100%100%100%
Rail Permanent Way90%
Rails and rail jointsBallastsBallastlessTurnouts/switches and crossingsRailway sleepersRail fastening and accessoriesRailway maintenance of way plant & equipmentAssembly and testing of fully build unitst100%100%100%100%100%100%70%100%

To access the practice notes to the above designated sectors, please go to

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]