The new local content rulings will not apply to every type of product that the government purchases, Naamsa’s Nico Vermeulen told FTW. About ten sectors have been designated for local procurement with stipulated minimum thresholds of local content. The designated sectors are: rail rolling stock; steel power pylons; bus bodies; canned/processed vegetables; textiles, clothing, leather and footwear; pharmaceutical products; set-top boxes for television digital migration; office and school furniture products; components of solar water heaters; and power and telecommunication cables. “Other sectors and products are undergoing research for further designation,” said trade and industry minister Rob Davies. He also detailed the reasons behind these latest amendments to the Preferential Procurement Policy Framework Act (PPPFA) of 2011. “Through local procurement,” said Davies, “a policy lever is provided, amongst others, to minimise import leakages, which represent an outflow of funds.” At the same time, he added, it is an attempt to increase both aggregate demand and supply in the SA economy. The demand is simple. Companies in the identified sectors that want to tender for government work will have to meet the stipulated thresholds. INSERT Some of the designated local content sectors: * rail rolling stock * steel power pylons * bus bodies * canned/processed vegetables * textiles, clothing, leather and footwear * pharmaceutical products
