The Manufacturing Circle welcomed the Department of Trade and Industry’s (DTI’s) announcement on Tuesday that valves, manual and pneumatic actuators, electrical and telecommunications cables, as well as solar water heater components had been designated for local production and as requiring specified local content levels in the public sector procurement system.

The organisation called on all departments and entities in the national, local and provincial government spheres, as well as the private sector, to immediately align their tenders and procurement with this move.

“It will be important that the instruction notes on the latest designations are signed off and distributed government-wide as quickly as possible – a step which has lagged with previous designations.

“However, all entities and departments across government spheres should align themselves with this step immediately in recognition of the importance of the national goal of promoting sustainable economic growth and achieving shared prosperity through employment growth. Line departments in national government and local authorities have been found particularly wanting in this regard in the past,” the Manufacturing Circle said in a statement.

It added that reports at the end of 2012 had shown that the private sector had yet to take meaningful steps towards aligning with the drive for local procurement as it agreed to under the New Growth Path.

“Business has to make good on the position of the Business Unity South Africa-led contingent during the New Growth Path discussions of 2011, that concerted efforts in terms of local procurement between government and the private sector were essential to allow for the necessary economies of scale to promote the competitiveness of local manufacturing.”

Domestic demand for locally manufactured goods was under severe pressure as a result of the proliferation of unfairly incentivised and illegal imports.

“This led to the consistent deterioration of South African manufacturing, which is under the top three multiplier sectors in terms of job creation, over the last two decades. Supporting local procurement is an important step in creating many more good jobs and reclaiming our position as a top producer of international-quality goods,” the organisation stated.