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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:

Industry/sector/sub-sector

Minimum threshold for local content

Buses (Bus Body)

80%

Textile, Clothing, Leather and Footwear

100%

Steel Power Pylons,
Monopole Pylons,
Steel Substation Structures,
Powerline Hardware,
Street Light Steel Poles,
Steel Lattice Towers

100%

Canned / Processed Vegetables

80%

Pharmaceutical Products:

 

·         OSD Tender

·         Family Planning Tender

·         70% (volumes)

·         50% value

Rail Rolling Stock

65%

Set Top Boxes (STB)

30%

Furniture Products:

 

·         Office Furniture

·         School Furniture

·         Base and Mattress

·         85%

·         100%

·         90%

Solar Water Heater Components

70%

Electrical and telecom cables

90%

Valves products and actuators

70%

Residential Electricity Meter :

 

·         Prepaid Electricity Meters

·         Post Paid Electricity Meters

·         SMART Meters

·         70%

·         70%

·         50%

Working Vessels/Boats (All types):

60%

·         Components

·         10% – 100%

Conveyance Pipes

80% – 100%

Transformers and Shunt Reactors:

 

·         Class 0

·         Class 1

·         Class 2

·         Class 3

·         Class 4

·         90%

·         70%

·         70%

·         45%

·         10%

·         Components and conversion activities

·         50% – 100%

Solar PV Components:

 

·         Laminated PV Modules

·         Module Frame

·         DC Combiner Boxes

·         Mounting Structure

·         Inverter

·         15%

·         65%

·         65%

·         90%

·         40%

Two Way Radio Terminals and Associated Equipment:

 

·         Portable Radio

·         Mobile Radio

·         Repeater

·         60%

·         60%

·         60%

·         Components

·         20% – 100%

Rail Signaling:

·         65%

·         Components

·         40% – 100%

Wheely Bins:

100%

Fire Fighting Vehicle

30%

·         Crew Cabin

·         Super Structure

·         Assembly

·         100%

·         100%

·         100%

Steel Products and Component for Construction

 

Steel Value-added Products

·         Fabricated Structural Steel

·         Joining/Connecting Components

·         Frames

·         Roof and Cladding

·         Fasteners

·         Wire Products

·         Ducting and Structural pipework

·         Gutters, downpipes & lauders

·          

Steel Value-added Products

·         Plates

·         Sheets

·         Galvanised and Colour Coated Coils

·         Wire Rod and Drawn Wire

·         Sections

·         Reinforcing bars

·         100%

·         100%

·         100%

·         100%

·         100%

·         100%

·         100%

·         100%

·         100%

·         100%

·         100%

·         100%

·         100%

·         100%

Pumps, Medium Voltage (MV) Motor and Associated Accessories

70%

·         Casting or Frame Fabrication

·         Fabrication and winding of the Rotor Core

·         Accessories

·         Assembly and testing of the fully-built unit

·         100%

·         100%

·         100%

·         100%

Rail Permanent Way

90%

·         Rails and rail joints

·         Ballasts

·         Ballastless

·         Turnouts/switches and crossings

·         Railway sleepers

·         Rail fastening and accessories

·         Railway maintenance of way plant & equipment

·         Assembly and testing of fully build unitst

·         100%

·         100%

·         100%

·         100%

·         100%

·         100%

·         70%

·         100%

Plastic Pipes

100%

·         Polyvinyl chloride (PVC) pipes

·         High density polyethylene (HDPE) pipes

·         Polypropylene (PP) pipes

·         Glass reinforced plastic (GRP) pipes

·         100%

·         100%

·         100%

·         100%

Air insulated MV Switchgear

50%

·         Instrument Transformers

·         Busbars

·         Housing

·         Switching Devices

·         15%

·         5%

·         25%

·         5%

Bulk Material Handling

85%

·          

·         Conveyer Idlers

·         Structural Steel

·         Rubber

·         Conveyor Belt

·         Pulleys

·         70%

·         100%

·         100%

·         100%

·         60%

Industrial lead Acid Batteries

50%

Cement

100%

·         Cem I

·         Cem II

·         Cem III

·         Cem IV

·         Cem V

·         Masonry Cement

·         100%

·         100%

·         100%

·         100%

·         100%

·         100%

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 on the DTIC’s website.

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 Local Content and many other tender conditions attend one of our “Specialised Local Content” or “Become a Tender Expert” workshops and webinars. You can book online at https://howtotender.co.za/workshops/. Contact us at info@howtotender.co.za should you require more information. 

Remember:  We have various manuals and guides to assist you in the process of completing your tender documents.

  • The Tender Manual is a comprehensive, step by step guide how to respond to a South African Tender. It includes examples of completed SBD forms.
  • The Local Content Instruction Manual – completing Standard Bidding Document (SBD) 6.2 and Annexures C, D & E
  • The SBD Manual: Examples of completed Standard Bidding Documents.
  • Joint Venture (JV) agreement template
  • Tender 101: A beginner’s guide to tenders.
  • Tender Example: Cleaning Services.
  • Tender example: Once-off supply (with NO Functionality requirements)
  • Tender example: Once-off supply (WITH Functionality requirements)
  • Tender Example: NEC3 term contract

….. More info