Issue Date: 
Wednesday, October 5, 2016

7 New Sectors added to Designated Sectors

Designated Sectors are those sectors that have been identified to have a certain percentage of Local Content. Meaning that Designated Sectors' goods must be manufactured locally or a certain percentage of these goods must be manufactured locally.

Recently the National Treasury added seven new sectors/industries to the list of Designated Sectors. The 7 new Designated Sectors/Industries are:

  1. Solar PV components;
  2. Two Way Radio Terminals and Associated Equipment;
  3. Rail signaling;
  4. Wheely Bins.
  5. Steel Products and Component for Construction
  6. Pumps, Medium Voltage (MV) Motor and Associated Accessories
  7. Rail Permanent Way

If you are manufacturing or supplying any of these goods you will have to comply with the Local Content percentages. You can find these percentages by following this link: http://www.thedti.gov.za/industrial_development/ip.jsp.

When responding to a tender you will be required to complete a Standard Bidding Document 6.2 or Municipal Bidding Document 6.2 form, with regard to Local Content. These forms are difficult to complete, without the necessary knowledge.

You can obtain this knowledge by attending one of our How-to-Tender workshops, where we will teach you to complete these forms and others like them.

The National Treasury also considers other industries, sectors and sub-sectors for designation. Once thorough research and consultations have been concluded a decision to designate will be communicated to the public

To learn more about this and many other Bidding Documents please attend one of our How-to-Tender workshops. Workshop dates are published on our website at www.how2tender.com. For more information on the tender courses please email Werner at werner@how2tender.com.

This article was written by Werner van Rooyen, Director of HowToTender (Pty) Ltd. which specializes in tender consulting and tender training.

 

 

7 Disadvantages of Competitive Bidding

The bidding process can be very tedious sometimes. Here are some of the disadvantages of the bidding process.

1.    Leading suppliers may not tender

In Australia, for example, government procurement guidelines only allow suppliers who actually tender to be considered for a procurement decision. If the leading supplier or suppliers do not tender, the purchaser can only consider bids from suppliers who do tender. If leading suppliers are not considered, the purchaser may end up buying inferior product or service... Read More

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