Trade and Industry Minister Rob Davies has conceded there have been shortcomings in the implementation of the government’s policy of localisation, but says work is underway to ensure more monitoring and consequence management takes place. The most glaring example of the failure of state-owned enterprises (SOEs) to comply with the localisation policy is the R50bn contract awarded by Transnet to China South Rail to procure 1,064 locomotives. None of those acquired so far were manufactured in SA. The regulations under the Preferential Procurement Policy Framework Act empowers the government to designate certain products that organs of state and SOEs are obliged to procure from local suppliers at a prescribed level of local content. So far, 21 products have been designated with more in the pipeline. Replying to a question by DA spokesperson on trade and industry, Dean Macpherson, in the National Assembly on Wednesday, Davies said that between March 2015 and June 2017 almost R60bn had be...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.