https://www.engineeringnews.co.za
Africa|Business|Electrical|Engineering|Environment|Manufacturing|Power|Seifsa|Steel|Transformers|Manufacturing |Products
Africa|Business|Electrical|Engineering|Environment|Manufacturing|Power|Seifsa|Steel|Transformers|Manufacturing |Products
africa|business|electrical|engineering|environment|manufacturing|power|seifsa|steel|transformers|manufacturing-industry-term|products

SEIFSA welcomes high court ruling in favour of designation and localisation

6th August 2020

By: Creamer Media Reporter

     

Font size: - +

This article has been supplied as a media statement and is not written by Creamer Media. It may be available only for a limited time on this website.

The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) has welcomed yesterday’s high court ruling in favour of the Department of Trade, Industry and Competition (DTIC) in a procurement matter, saying that it will boost struggling local businesses amid the pandemic-induced economic recession, and has lauded the DTIC for its continuous support to the local industry.

The court challenge had arisen from DTIC’s refusal to exempt a regional supplier, Continental Power Supplies (Pty) Ltd, from a localisation condition to enable imports of electrical transformers, on the basis that local capacity exists to produce the required transformers.

Transformers and shunt reactors require a local content threshold of 90% and are among 27 important products which have been designated for local production. SEIFSA Chief Economist Michael Ade said the designation process is rigorous, involving investigations conducted by the various government departments with the local industry before a final decision is made. He said that meant that a product cannot just be designated without documented support of the existence of sufficient local productive capacity.

Dr Ade said the local manufacturing industry has made several submissions to policy makers to help arrest the extent to which total domestic demand for inputs and products in the country is satisfied by imports.

He said SEIFSA believes the judgment, along with the Government’s commitment to assist struggling business, will help create an enabling environment for local businesses to increase their production output, thereby reducing the need to import goods.

“Indeed, this is not just victory for the local industry and the DTIC; it is victory for SA Inc. since, during these tough economic times when companies are low on cashflow, demand for goods is stagnant and jobs are at risk, any form of support – including a backing for local content – is welcome,” he said.

Dr Ade said the ruling that the DTIC’s procurement condition was rational, lawful, reasonable and procedurally fair gives SEIFSA hope that there is commitment across all spheres of the Government to assist local businesses, whose struggles predate the COVID-19 pandemic.

“The essence is to be inward-looking in the short term, at least for the next year or so, in order to stabilise domestic businesses through increased demand, to get the country out of the deep economic recession and to boost economic growth in the medium to long term,” Dr Ade said.
Issued

Edited by Creamer Media Reporter

Comments

Showroom

Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine image
Magazine round up | 12 July 2024
12th July 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.328 0.385s - 195pq - 2rq
Subscribe Now