Localisation should not lead to input-cost hikes, says trade department
The policy, viewed by critics as protectionism, calls on business to target 20% of nonpetroleum imports for local replacement within five years
18 October 2021 - 18:12
The department of trade, industry and competition says the government’s localisation drive will not necessarily lead to a sharp rise in input costs, and competition authorities are ready to pounce on companies that inflate prices.
Under SA’s preferential procurement policy framework, which has been in the making from as far back as 2007, the government can designate sectors for localisation, meaning that their products will be prioritised for purchasing by the state...
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