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The Manufacturing Circle welcomes the Department of Trade and Industry’s announcement yesterday of further designations for the public sector procurement system. We call on all departments and entities in the national, local and provincial government spheres, as well as the private sector to immediately align their tenders and procurement with this step.
 
The Department of Trade and Industry yesterday announced the designation of valves, manual and pneumatic actuators, electrical and telecommunication cables as well as components of solar water heaters for local production and content in the public sector procurement system. This is in addition to designations announced on 7 December 2011, which extended to Power Pylons; Rolling Stock; Buses; Canned Vegetables; Clothing, Textiles, Footwear and Leather products and Set Top Boxes.


It will be important that the instruction notes on the latest designations are signed off and distributed government-wide as quickly as possible – a step which has lagged with previous designations. However, all entities and departments across government spheres should align themselves with this step immediately out of in recognition of the importance of the national goal of promoting sustainable economic growth and achieving shared prosperity through employment growths. Line departments in national government and local authorities have been found particularly wanting in this regard in the past.
 
Reporting toward the end of last year has also showed that the private has yet to take meaningful steps towards aligning with the drive for local procurement as it agreed to under the New Growth Path. Business has to make good on the position of the BUSA-led contingent during the New Growth Path discussions of 2011, that concerted efforts in terms of local procurement between government and the private sector was essential to allow for the necessary economies of scale to promote the competitiveness of local manufacturing.
 
Domestic demand for locally manufactured goods are under severe pressure as a result of the proliferation of unfairly incentivised and illegal imports. This has lead to the consistent deterioration of South African manufacturing, which is under the top three multiplier sectors in terms of job creation, over the last two decades. Supporting local procurement in so far it can encourage competitiveness is an important step in creating many more good jobs and reclaiming our position as a top producer of international quality goods.