Home  »  Articles   »   DTIC Shines Light on Local Content Policy

DTIC Shines Light on Local Content Policy

June 24, 2020

Department of Trade, Industry and Competition

The trade, industry and competition department plans to strengthen the work of the personal protective equipment (PPE) Local Manufacturing Partnership.

The department revealed this during a briefing on local content policy/designation and measures to ensure compliance and verification in a virtual meeting in parliament.

According to the department, critical areas affecting the local procurement of PPE include the availability of raw material in South Africa; testing, certification & standards; expansion of production; matching of demand and supply; visibility of tenders and awards, especially from provincial and local governments a major problem, adherence to procurement regulations and the issuing of timely orders by organs of state and reporting on contract awards and expenditure.

Other steps to be taken include working in partnership with national treasury, business and labour to monitor PPE tenders, contract awards and expenditure; continue efforts to match the supply and demand of PPE; scale up the work by the South African Bureau of Standards to test and approve the quality of PPE commodities and report on local content verification; enforce local content requirements and enforce compulsory reporting of tender awards within a scheduled time in the Central Supplier Database managed by treasury.

In a briefing on mineral beneficiation, the department pointed out that the “comparative advantage from a national resource endowment has not been fully leveraged to build a dynamic industrial economy – the backward, forward and sidestream linkages”.

A key challenge is leveraging the comparative advantage from a national resource endowment to build a dynamic industrial economy.

For the department, a supportive policy and legislative regime for domestic value-addition is key.

The department confirmed that phase 1 of the Steel and Metal Fabrication Sector Master Plan will be completed in the current financial year.

A draft Plastics Masterplan has also been developed through a social compact with the aim of securing reciprocal commitments and will be completed within the current financial year.

The department emphasized that, in order to fully leverage the opportunities in each stage of value addition, government needs to create an “enabling environment through supportive policy, legislative regime (energy, transport, trade policies) and targeted industrial financing support”.