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Johannesburg - It is critical that SA retains and builds its capacity and engineering and technical capabilities to manufacture a range of "working" vessels to required global standards, Minister of Trade and Industry Rob Davies said on Monday.
The National Treasury has issued instruction notes that local procurement requirements are binding on all government departments at national, provincial and municipal level and all state entities.
"Research indicates that government and state owned companies (SOCs) have spent R19bn on working vessels since 1994, but only R900m of this total was spent on local procurement," said Davies.
"The designation of boats for local procurement is a significant step towards greater support for the industry. The designation also makes provision for the importation of components not produced in SA."
However, the department of trade and industry (dti) will be stepping up its work with boat-builders located in South Africa.
This is to ensure that further effort and conditional support measures go into increasing local manufacturing capabilities, especially with respect to components higher up the technology and value chain.
Davies said boatbuilding has been identified as a strategic industry with strong and extended linkages for economic growth and with significant employment multipliers.
Electricity meters
Davies added that he designation of residential electricity meters is similarly binding on the public sector, including and especially municipalities.
"South Africa possesses the capacity and capabilities to manufacture smart meters locally to the required high standards," said Davies.
"Public procurement has been spent on imported products in conditions where local manufacturers have the capacity to manufacture locally, at competitive prices."
He said the designation of electricity meters and set top boxes for the digital migration, the localisation possibilities arising from the roll-out of broadband and the provision by government of a range of other policy measures inclusive of incentives are contributing to the creation of an enabling environment to significantly grow the domestic electro-technical sector.
"A supportive effort by the South African Bureau of Standards (SABS), which has been at the global frontier of this work, has ensured that the requisite standards for the industry have been set," said Davies.
"Work by the National Regulator for Compulsory Specifications (NRCS) is also underway to "lock-out" sub-standard and unsafe products in this sector, amongst others, in the interests of consumers."
Davies said government is resolutely committed to support local manufacturers with a range of local procurement instruments.
“These designations are part of this broader effort and must be accompanied by commitments from manufacturers to raise competitiveness, including in relation to export markets," said Davies.
"Government also once again calls on large companies with significant procurement budgets to support the buy local, 'Buyback SA’ campaign, including in this sector.”
- Fin24
