SABS launches local content verification scheme

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24 November 2021 News

A new certification and grading scheme launched by the South African Bureau of Standards (SABS) intends to harmonise local content and local production for producers and manufacturers, levelling the playing field and cutting out those who seek to ‘cheat the system’.

“Product certification is a large portion of our quality assessment business and our ability to provide domestic producers with a combined product and local content certification will enhance their selling opportunities in the public and private procurement system,” SABS said in a statement. “In turn, this will strengthen the quality of goods and products bought throughout the supply chain. This will increase the demand for quality locally-produced products.”

Government is a major buyer of products and services via its state tenders. Therefore, procuring locally manufactured goods has apparent benefits for national competitiveness and economic growth. The local production and content initiative mandates minimum local content requirements for state tenders in designated sectors. Local production and content are usually stipulated as a minimum percentage of the tender price and specific production conditions. So, for example, a tender for goods from a designated sector may specify that at least 60% of the tender price must consist of products manufactured within South Africa and those specific components used in the production process must be sourced from local manufacturers.

SABS says there has been steady progress towards the desired outcomes, with policy coherence improving across government and a growing appreciation of the importance of procurement policy as a lever for the industrial policy as a whole. Compliance has improved across departments and spheres of government, although more needs to be done to build capacity. There has also been intervention in non-compliant tenders to ensure that local content obligations are not bypassed.

The following supporting materials are available to further explain the new local content verification (LCV) scheme:

• Launch webinar: www.youtube.com/watch?v=e7xdeGyLwwY

• LCV slideshow: www.youtube.com/watch?v=liMNw9eKWcY

• LCV training: www.youtube.com/watch?v=NPvviKRUP9s

• Proudly SA presentation: www.youtube.com/watch?v=mF2t7eW1yV8

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SABS launches local content verification scheme

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