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Industrial Procurement

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
100%
Canned / Processed Vegetables80%
Pharmaceutical Products: 
  • OSD Tender
  • Family Planning Tender
  • 70% (volumes)
  • 50% value
Rail Rolling Stock65%
Set Top Boxes (STB)30%
Furniture Products: 
  • Office Furniture
  • School Furniture
  • Base and Mattress
  • 85%
  • 100%
  • 90%
Solar Water Heater Components70%
Electrical and telecom cables90%
Valves products and actuators 70%
Residential Electricity Meter : 
  • Prepaid Electricity Meters
  • Post Paid Electricity Meters
  • SMART Meters
  • 70%
  • 70%
  • 50%
Working Vessels/Boats (All types): 60%
  • Components
  • 10% - 100%
Conveyance Pipes 80% - 100%
Transformers and Shunt Reactors:
  • Class 0
  • Class 1
  • Class 2
  • Class 3
  • Class 4
  • 90%
  • 70%
  • 70%
  • 45%
  • 10%
  • Components and conversion activities
  • 50% - 100%
Solar PV Components: 
  • Laminated PV Modules
  • Module Frame
  • DC Combiner Boxes
  • Mounting Structure
  • Inverter
  • 15%
  • 65%
  • 65%
  • 90%
  • 40%
Two Way Radio Terminals and Associated Equipment: 
  • Portable Radio
  • Mobile Radio
  • Repeater
  • 60%
  • 60%
  • 60%
  • Components
  • 20% - 100%
Rail Signaling:
  • 65%
  • Components
  • 40% - 100%
Wheely Bins:100%
Fire Fighting Vehicle 30%
  • Crew Cabin
  • Super Structure
  • Assembly
  • 100%
  • 100%
  • 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

All these documents are important for the calculation, measurement and verification of local content.

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: cmatidza@thedti.gov.za

For local content enquiries or complaints, please send an e-mail to localcontent@thedti.gov.za