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The SABS Local Content Grading Scheme

The South African Bureau of Standards (the SABS) Local Content Grading Scheme was established and launched in October 2021. The scheme was designed for suppliers that wanted to verify and leverage their locally manufactured goods and services that did not fall within the scope of Public Procurement. The SABS Local Content Grading Scheme presents an opportunity for private corporates and natural citizens who consciously want to support locally produced products to do so from an informed perspective. Manufacturers can also use the local content grades achieved to market their products to citizens who desire to support the local economy.




To facilitate the verifications linked to the SABS Local Content Grading Scheme, the SABS has developed a declaration and guidelines for completing the declaration. Once a declaration is completed and submitted to the SABS, a review to develop the scope of work will be conducted and a quotation will be generated. If the quote is accepted, the Local Content Department will conduct the local content verification and eventually issue the local content certificate.

Local content is calculated using the following formula:

A = (B – C)/B * 100

Where:

A is the percentage of local value add

B is the sale price in Rand excluding mark-up, intangible value and indirect overheads

C is the value of imported inputs/components

Once the local content of the verified goods is determined, the following table is applied to the respective applicable grades:

Local Content % Range Grade
Product with local content from 90% to 100% A
Product with local content from 80% to 89% B
Product with local content from 70% to 79% C
Product with local content from 60% to 69% D
Product with local content from 50% to 59% E
Product with local content from 40% to 49% F
Product with local content from 30% to 39% G
Product with local content from 20% to 29% H
Product with local content from 10% to 19% I
Product with local content from 1% to 9% J

The SABS Local Content Grading Scheme certificates are valid for a period of five (5) years, subject to annual surveillance verifications. Certificates are issued with an annexure detailing the products verified and the local content outcomes of the products verified.

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