Local Content Designated Sectors
By Werner van Rooyen, Director of HowToTender (Pty) Ltd which specializes in tender consulting and tender training.
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 new sectors/industries to the list of Designated Sectors, which now includes:
- Buses (Bus Body)
- Textile, Clothing, Leather and Footwear
- Steel Power Pylons; Monopole Pylons; Steel Substation Structures; Powerline Hardware;
- Street Light Steel Poles; Steel Lattice Towers
- Canned / Processed Vegetables
- Pharmaceutical Products
- Rail Rolling Stock
- Set Top Boxes (STB)
- Furniture Products
- Solar Water Heater Components
- Electrical and telecom cables
- Valves products and actuators
- Residential Electricity Meter
- Working Vessels/Boats
- Conveyance Pipes
- Transformers and Shunt Reactors
- Solar PV Components
- Two Way Radio Terminals and Associated Equipment
- Rail Signalling
- Wheely Bins
- Fire Fighting Vehicle
- Steel Products and Component for Construction
- Pumps, Medium Voltage (MV) Motor and Associated Accessories
- 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, regarding 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 tender conditions attend our “Become a Tender Expert” 2-Day workshops presented in Johannesburg, Pretoria, Durban, Port Elizabeth, and Cape Town. Book and pay online at https://howtotender.co.za/tender-expert-form/
(We also present a Local Content Specialist Workshop for experienced bidders)
Contact us at wernervr@howtotender.co.za should you require more information.
You can also purchase a Tender Manual (Handbook) on our website https://howtotender.co.za/ which is a step by step guide how to respond to a South African Tender. It includes examples of completed SBD forms.
