The importance of verifying local content

In order for our country to achieve key industrial policy objectives, it is important that local production should increase within the economy.  To this end, the Department of Trade and Industry has put regulations in place to ensure that local content (generated and produced in South Africa) is present in goods, works and services offered via government procurement for all organs of state, as well as public and municipal entities.  

Companies importing raw material and converting it in South Africa also contribute to local content to the extent that the South African value-add processes and additional inputs count as local content. But how do we go about verifying local content?

When tendering, suppliers are required to submit both a ‘declaration of local content’ and proof of verification that consist of a certificate/report from an accredited verification authority. This is where the SABS comes in. The SABS, as the national standards body, has been appointed as the Local Content Verification Agency and has published the approved Technical Specification (SATS 1286) for determining local content.  

It is important that designers take note of regulations on local content so that they factor it into their design of goods or services. To read more on local content and these specifications, visit https://www.sabs.co.za/Local-Content/index.asp