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Government list of designated products published
Engineering News Online reports that the government has named the "first wave" of products that will require a minimum level of local content in terms of the Preferential Procurement Policy Framework Act. The list of designated products include power pylons, rolling stock, buses, canned vegetables, clothing, textiles, footwear, leather products and set-top boxes.
Further designations would follow in 2012. The list comes against the background of the recently unveiled 'Local Procurement Accord', which commits business, labour and government to increase local procurement.
Trade and Industry Minister Rob Davies told Engineering News Online that the amendments to the Act were part of several interventions reflecting the confidence in the future of the country's manufacturing industry. He added that the designations are not intended to take the place of other efforts by government institutions - particularly state-owned enterprises (SoEs) - but rather support them in order to encourage local procurement and supplier development strategies. This includes ongoing mobilisation within SoEs to introduce localisation and supplier development into the procurement process under the direction of the public enterprises minister, Davies said.
According to Davies, the designation instrument served to strengthen public procurement in support of the multipliers derived from reducing the trade deficit, and to build up competitive value-adding exports to the rest of continent, high-growth developing economies and traditional export markets. "We wish to reiterate that all procurement officers are under obligation to secure the most cost competitive prices for products which fall in designated sectors," Davies said, warning industry to support and create jobs, and not seek "abnormal rates".
Read the full article on www.engineeringnews.co.za.
