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Amended regulations to the Preferential Procurement Policy Framework Act (PPPFA), Act 5 of 2000, which came into effect in December 2011  empower the Minister of Trade and Industry to utilise government procurement to ensure achievement of key industrial policy objectives, namely, increased local production within the economy.  These regulations have application to government procurement for all organs of state as contemplated in section 1 (iii) of the PPPFA, and all public entities listed in Schedules 2, 3A, 3B, 3C and 3D to the PFMA and municipal entities.  

The implication of the new regulations for businesses, local and foreign, is that all suppliers in the designated sectors will have to meet the set minimum local content requirements if they are tendering for goods, works and service contracts within the public sector. Suppliers are required to submit both a ‘declaration of local content’ and proof of verification (certificate/report from an accredited verification authority).

The SABS, as the national standards body, has published the approved Technical Specification (SATS 1286) for determining local content.  Businesses affected by the procurement regulations will have to apply the SATS 1286 formula when calculating and declaring local content.

The South African Bureau of Standards is an agency of the dti with a mandate for standards, assessment and certification.  The SABS has access to expertise across a wide range of industrial areas with engineers and technical experts located across ninety test laboratories in fields such as electro-technical, food & health, transportation, mining & minerals and materials (piping, plastics, and textiles). Eighty percent of SABS business is in conformity assessment services, thus the SABS works directly with industry and has knowledge of local manufacturers in the various industry sectors designated for local content.  The SABS, as a dti agency, has therefore been appointed the Local Content Verification Agency.


Contact our call centre on 0861 277 227; or
Send an e-mail to localcontent@sabs.co.za or info@sabs.co.za.