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COSATU Today  |  COSATU Press Statements

COSATU welcomes government’s further commitment to local procurement

8 December 2011

On 7th December 2011 the Departments of Trade and Industry (dti) and Economic Development (EDD) announced the coming into effect of the amended Regulations to the Preferential Procurement Policy Framework Act (PPPFA).

The new regulations empower the dti to designate sectors and products for local procurement. The first phase prioritises power pylons, locomotives and coaches, buses, canned vegetables’ clothing, textiles, footwear and leather products and set top boxes. It is expected that government and its enterprises will procure these goods from manufacturers that meet requirements for local content.

COSATU welcomes this initial and decisive step by government which will go a long way in ensuring industrialisation and the creation of decent jobs for the unemployed, particularly the youth, of our country. COSATU is pleased that this important support for the local manufacturers will be accompanied by Conditionalities, including value-for-money for the state, no involvement in anti-competitive behaviour and commitment by manufacturers to support the buy local drive.

COSATU insists adds that another conditionality must be emphasised: observance of labour laws and respect of workers’ rights generally.

The federation repeat its call for the urgent review of the Preferential Procurement Policy Framework Act to align it with the country’s determination to use procurement instrument to strengthened local manufacturing capacity and creation of decent work.

COSATU will play its part in ensuring that its members are aware of the designated sectors and products and complement the work of government in enforcing compliance by all levels of government and its agencies. We shall also continue with our anti-corruption campaign to ensure that the designation notion achieves the intended objectives.

Patrick Craven (National Spokesperson)
Congress of South African Trade Unions
1-5 Leyds Cnr Biccard Streets

P.O.Box 1019
South Africa

Tel: +27 11 339-4911/24
Fax: +27 11 339-5080 / 6940
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E-Mail: patrick@cosatu.org.za