Durban - Government says the amendments to the country's Preferential Procurement Policy Act will boost local entrepreneurs, while creating much needed jobs in the private sector.
The new regulations, which came into effect today, give powers to the Minister of Trade and Industry to designate sectors and products for local procurement.
In launching the regulations, Minister Rob Davies told reporters on the sidelines of COP17 in Durban that the first designations, kicking off on Wednesday, marked an important milestone in government's efforts to support the sector and reverse industrial decline.
The affected sectors for now include transport, canned vegetables, clothing, textiles, footwear, leather products and set top boxes. Further designations will follow next year.
"Each designation will stipulate a minimum level of local content for the relevant sector. Wherever relevant, the designations also set out specific recommendations for ensuring competition amongst domestic producers and value for money for the state," Davies said.
National Treasury has led workshops to make supply chain officials aware of the new regulations.
"Supply chain practitioners are crucial implementation agents of government's localization programme, given the quantum of capital expenditure budgets in the years ahead," said Davies.
The designation takes place just weeks after the adoption by government, business, labour and social partners of a Procurement Accord. It commits the parties to work together to increase local procurement as part of South Africa's plans to create five million jobs in the next decade.
On Wednesday, Davies said the regulations would also enable organs of state to include as a specific tendering condition that only locally produced services, works and goods can be procured.
