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433369666-The-Case-for-Investing-in-South-Africa

South Africa's investment proposal

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110 |<br />

INFRASTRUCTURE DEVELOPMENT PLAN PRESENTS<br />

SUBSTANTIAL INVESTMENT OPPORTUNITIES<br />

• <strong>The</strong> <strong>South</strong> <strong>Africa</strong>n government is committed to <strong>in</strong>creased public sector procurement from local suppliers so as to have<br />

beneficial impacts on the domestic economy.<br />

• A wide range of products has been designated <strong>for</strong> procurement by public sector entities (national, prov<strong>in</strong>cial and municipal<br />

government departments, as well as state-owned companies) from local producers.<br />

• Product designations can play a crucial role <strong>in</strong> support<strong>in</strong>g production activity <strong>for</strong> local producers, as they secure a<br />

considerable source of demand <strong>for</strong> the respective products.<br />

• Product designations also open up opportunities <strong>for</strong> the expansion of exist<strong>in</strong>g production capacity or <strong>in</strong>vestment <strong>in</strong> new<br />

domestic manufactur<strong>in</strong>g capacity.<br />

PRODUCTS DESIGNATED FOR PROCUREMENT BY SOUTH AFRICAN PUBLIC SECTOR ENTITIES FROM DOMESTIC<br />

PRODUCERS, WITH MINIMUM LOCAL CONTENT THRESHOLDS<br />

Industry/sector/sub-sector<br />

M<strong>in</strong>imum threshold<br />

<strong>for</strong> local content<br />

Buses (bus body) 80%<br />

Textiles, cloth<strong>in</strong>g, leather and footwear 100%<br />

Steel power pylons, monopole pylons,<br />

Steel substation structures, powerl<strong>in</strong>e hardware,<br />

Street light steel poles<br />

Steel lattice towers<br />

100%<br />

100%<br />

100%<br />

100%<br />

Canned / processed vegetables 80%<br />

Pharmaceutical products:<br />

OSD tender<br />

Family plann<strong>in</strong>g tender<br />

Rail roll<strong>in</strong>g stock 65%<br />

Set top boxes (STB) 30%<br />

Furniture products:<br />

Office furniture<br />

School furniture<br />

Base and mattress<br />

70% (volumes)<br />

50% (value)<br />

85%<br />

100%<br />

90%<br />

Solar water heater components 70%<br />

Electrical and telecom cables 90%<br />

Valves products and actuators 70%<br />

Residential electricity meters:<br />

Prepaid electricity meters<br />

Post-paid electricity meters<br />

SMART meters<br />

70%<br />

70%<br />

50%<br />

Work<strong>in</strong>g vessels / boats (all types):<br />

Components 10%-100%<br />

Conveyance Pipes 80%-100%<br />

Trans<strong>for</strong>mers and shunt reactors:<br />

Class 0<br />

Class 1<br />

Class 2<br />

Class 3<br />

Class 4<br />

Components and conversion activities<br />

Solar PV components:<br />

Lam<strong>in</strong>ated PV modules<br />

Module frame<br />

DC comb<strong>in</strong>er boxes<br />

Mount<strong>in</strong>g structure<br />

Inverter<br />

Source: (tables) Department of Trade, Industry and Competition<br />

90%<br />

70%<br />

70%<br />

45%<br />

10%<br />

50%-100%<br />

15%<br />

65%<br />

65%<br />

90%<br />

40%<br />

Industry/sector/sub-sector<br />

Two-way radio term<strong>in</strong>als and associated<br />

equipment:<br />

Portable radio<br />

Mobile radio<br />

Repeater<br />

Components<br />

Rail signal<strong>in</strong>g<br />

Components<br />

M<strong>in</strong>imum threshold<br />

<strong>for</strong> local content<br />

60%<br />

60%<br />

60%<br />

20%-100%<br />

65%<br />

40%-100%<br />

Wheely b<strong>in</strong>s 100%<br />

Fire-fight<strong>in</strong>g vehicle:<br />

Crew cab<strong>in</strong><br />

Super structure<br />

Assembly<br />

Steel products and component <strong>for</strong><br />

construction:<br />

• Steel value-added products<br />

Fabricated structural steel<br />

Jo<strong>in</strong><strong>in</strong>g/connect<strong>in</strong>g components<br />

Frames<br />

Roof and cladd<strong>in</strong>g<br />

Fasteners<br />

Wire products<br />

Duct<strong>in</strong>g and structural pipework<br />

Gutters, downpipes and lauders<br />

Plates<br />

Sheets<br />

Galvanised and colour-coated coils<br />

Wire rod and drawn wire<br />

Sections<br />

Re<strong>in</strong><strong>for</strong>c<strong>in</strong>g bars<br />

Pumps, medium voltage (MV) motor and<br />

associated accessories:<br />

Cast<strong>in</strong>g or frame fabrication<br />

Fabrication and w<strong>in</strong>d<strong>in</strong>g of the rotor core<br />

Accessories<br />

Assembly and test<strong>in</strong>g of the fully-built unit<br />

Rail permanent way:<br />

Rails and rail jo<strong>in</strong>ts<br />

Ballasts<br />

Ballastless<br />

Turnouts/switches and cross<strong>in</strong>gs<br />

Railway sleepers<br />

Rail fasten<strong>in</strong>g and accessories<br />

Railway ma<strong>in</strong>tenance of way plant and equipment<br />

Assembly and test<strong>in</strong>g of fully built units<br />

30%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

70%<br />

100%<br />

100%<br />

100%<br />

100%<br />

90%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

100%<br />

70%<br />

100%

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