Minister of Trade and Industry Rob Davies
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.”

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