JOHANNESBURG - Once a product has been designated for local production, all
organs of state have to comply with the requirements said Rob Davies, Minister
of Trade and Industry.
Speaking at Annual Report presentation to the Portfolio
Committee of Trade and Industry in Parliament, Cape Town, Davies said to ensure that public
entities or organs of state comply with the requirements National Treasury is
tasked with the responsibility of issuing instruction/circulars on localisation.
“Localisation is one of the levers that South Africa
has identified as a tool to fast-track industrialisation.”
“As South African government we are not signatory
to the World Trade Organisation’s Government Procurement Agreement which
does allow localisation polices.”
Minister Davies urged the public to report any incident of
non-compliance on local content as government cannot act if there is
no evidence or reports.
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“In the forthcoming Public Procurement Bill that is
led by the National Treasury, the area of compliance will be beefed
including consequences for non-compliance.”
“There are number of localisation successes that
can be pointed out such as one being the Bus
Recapitalisation scheme where busses were manufactured in South Africa,
including the procurement of locally manufactured steel and the
clothing and textile sectors, and local pharmaceutical companies that
benefitted from the policy, said Davies.”
Minister Davies stated that government cannot
impose location policy on the private sector.
“Area of concern is still that under the trade relations
investment measures under the WTO as a country we can’t impose localisation
on the private sector.”
“We have to use other tools like working together with
Proudly South Africa, the private sector and manufacturing sector to engage
them on the implementation and also pursue more retailers to come on board too.”