A minimum percentage of the content that goes into manufacturing set-top boxes must be sourced locally, government says.
digital television, a process that government aims to complete by the end of 2013.
The migration to digital television has the potential to ignite SA's flagging electronics manufacturing sector, as well as benefit empowerment companies.
This week, the ministers of economic development, finance and trade and industry said set-top box manufacturing would form part of a framework for preferential local procurement.
The amended Regulations to the Preferential Procurement Policy Framework Act (PPPFA), promulgated in June 2011 by finance minister Pravin Gordhan, came into effect on Wednesday.
Under the regulations, trade and industry may designate sectors and products for local procurement. The first wave of designations, which are now in effect, includes set-top boxes, said the statement.
“The first designations mark an important milestone in government efforts to arrest and reverse industrial decline with and in support of the private sector.
“The designation instrument serves to strengthen public procurement in support of the multipliers derived from reducing the trade deficit, strengthening and diversifying SA's industrial base, and to build up competitive value-adding exports onto the rest of the continent, high growth developing economies and traditional export markets,” the joint statement said.
Other sectors that will benefit from local procurement minimum levels include power pylons, rolling stock, buses, canned vegetables, clothing, textiles, footwear and leather products. More designated sectors will be announced next year.
The statement adds that each “designation” will stipulate a minimum level of local content for the relevant sector or set of products. However, it notes there is still an obligation to secure the most competitive price.
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