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.
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.
Regulation 8(4) of the 2017 Preferential Procurement Regulations provides that if there is no
designated sector, an organ of state may include, as a specific condition of the tender, that only locally produced
services or goods or locally manufactured goods with a stipulated minimum threshold for local production and content,
will be considered. The per the standard issued by National Treasury designated sectors circular number 11 of 2019/2020.
Please note that the Minister of Finance has approved the following 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
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
For local content enquiries or complaints, please send an e-mail to email@example.com