Tough new stand on local content

A new government office related to local content was not a surprise to the SA motor vehicle industry, according to Nico Vermeulen, director of the National Association of Automobile Manufacturers of SA (Naamsa). The minister of trade and industry, Dr Rob Davies, has just announced the launch of the local content verification office that will ensure that only domestically produced products and services are sourced by all levels of government and parastatals, and that the suppliers meet the minimum requirements. The office – in partnership with the SA Bureau of Standards (SABS) – will now require suppliers to submit a declaration of local content certificate as part of all tender submission forms and documents. But the motor vehicle makers, probably one of the country’s main suppliers of products to government in all its forms, is satisfied that it will comply completely with the standards that will be laid down. “This is a development that we have expected,” Vermeulen told FTW. “Indeed, Naamsa has been part of the SABS committee that defined and calculated local content.” He added that the requirement that the verification office would be demanding was an expected part of the government procurement process. The only sector of the motor vehicle industry yet included in the list of products which have been defined by the SABS is bus manufacturing, which Vermeulen told FTW had to have an 80% local content. “But,” he added, “it is intended to extend this to other vehicles at a later date.” He feels that the bus manufacturers should have no difficulty complying with the 80% level required. “Bus bodies, seats, other interior fitments and tyres, for example, are all made locally.”