South African localisation push

SAAEA 19 September 2012.

The government has been prescribing percentages of local content, over and above black economic empowerment (BEE) quotas, for companies bidding for tenders from it and parastatals.

But it has had challenges with local manufacturers struggling to provide the required goods at prices cheaper than their foreign rivals, resulting in projects becoming more expensive than they would if the goods were sourced abroad.

Localisation or local content may soon become one of the requirements for companies seeking funding from state-owned financier the Industrial Development Corporation (IDC). ..