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DTI ring fences all government apparel & footwear needs for local factories

1st Aug 2012 , S&V Footwear and Leather Goods

Components must also be local

Pretoria (SA) – The Department of Trade & Industry has ring fenced all textile, clothing, leather and footwear requirements, for all tiers of government, and all parastatal operations, for local manufacturing.

Aside from municipalities and provinces, it includes entities with big staff complements like ACSA, Armscor, Eskom, SAA, Safcol, SA Post Office, Telkom and Transnet.

Previously, only the requirements of national departments – mainly the army, air force, navy, police and correctional services – were restricted to local manufacture.

“How much this will add up to is unknown,” said DTI director: footwear and leather, Jay Irkhede. “There are figures, but they are not well supported. We think the ex-factory value of all the affected products – textiles, clothing, leather and footwear – will be in the region of R3 billion. We work on the total ex-factory value of all these industries being in the region of R35 billion to R40 billion, so the value of this business would be under 10% of the total industry output.”

The sweeping instruction from the National Treasury, dated July 17 and addressed to ‘accounting officers of all national departments and constitutional institutions’, ‘accounting officers of all municipalities and municipal entities’, ‘accounting authorities of all schedule 2 and 3 public entities’, and ‘head officials of provincial treasuries’, was signed by Minister of Finance Pravin Gordhan.

Key points in the document include:

1. They may buy only locally made textiles, clothing, leather and footwear, made from local components. “The stipulated minimum threshold percentages for local production and content [for this sector] is 100%,” the document says.

2. If a local component is not available, bidders need written authorisation from the DTI to import an alternative.

3. To prevent profiteering, “AOs/AAs are required to ensure that reasonable or market related prices are secured for the textiles, clothing, leather and footwear being procured, taking into account factors such as benchmark prices, value for money and economies of scale…[they] may approach the DTI to assist…The DTI will be in a position to provide price references for different products that have been designated for local production and content.”

4. “Contractors must not be allowed to sub-contract in such a manner that the local production and content of the overall value of the contract is reduced to below the stipulated minimum threshold [100%].” – [Tel: +27 (0)12 394 5166, email: JIrkhede@thedti.gov.za]

This is a list of Schedule 1, 2 and 3 Public Institutions as listed on the National Treasury website, http://www.treasury.gov.za.

All of these institutions are now obliged to source all their apparel and footwear needs from local manufacturers, using local components, unless they can get exemptions from the Treasury.

SCHEDULE 1

CONSTITUTIONAL INSTITUTIONS

1. The Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities

2. The Commission on Gender Equality

3. The Financial and Fiscal Commission

4. The Independent Communications Authority of South Africa

5. The Independent Electoral Commission

6. The Municipal Demarcation Board

7. The Pan South African Language Board

8. The Public Protector of South Africa

9. The South African Human Rights Commission

SCHEDULE 2

MAJOR PUBLIC ENTITIES

1. Air Traffic and Navigation Services Company Limited

2. Airports Company of South Africa limited

3. Alexkor Limited

4. Armaments Corporation of South Africa Limited

5. Broadband Infrastructure Company (Pty) Ltd

6. CEF (Pty) Ltd

7. DENEL (Pty) Ltd

8. Development Bank of Southern Africa

9. ESKOM

10. Independent Development Trust

11. Industrial Development Corporation of South Africa Limited

12. Land and Agricultural Development Bank of South Africa

13. South African Airways (Pty) Limited

14. South African Broadcasting Corporation Limited

15. South African Express (Pty) Limited

16. South African Forestry Company Limited

17. South African Nuclear Energy Corporation Limited

18. South African Post Office Limited

19. Telkom SA Limited

20. Trans-Caledon Tunnel Authority

21. Transnet Limited

22. All subsidiaries of the above public entities

SCHEDULE 3

OTHER PUBLIC ENTITIES

PART A:

NATIONAL PUBLIC ENTITIES

1. Accounting Standards Board

2. Africa Institute of South Africa

3. African Renaissance and International Cooperation Fund

4. Agricultural Research Council

5. Agricultural Sector Education and Training Authority

6. Artscape

7. Banking Sector Education and Training Authority

8. Boxing South Africa

9. Breede River Catchment Management Agency

10. Castle Control Board

11. Chemical Industries Education and Training Authority

12. Clothing, Textiles, Footwear and Leather Sector Education and Training Authority

13. Commission for Conciliation Mediation & Arbitration

14. Compensation Fund, including Reserve Fund

15. Competition Commission

16. Competition Tribunal

17. Construction Education and Training Authority

18. Construction Industry Development Board

19. Council for Geoscience

20. Council for Medical Schemes

21. Council for the Built Environment

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22. Council on Higher Education

23. Cross-Border Road Transport Agency

24. Die Afrikaanse Taal Museum

25. EDI Holdings (Pty) Ltd

26. Education Labour Relations Council

27. Education, Training and Development Practices Sector Education and Training Authority

28. Energy Sector Education and Training Authority

29. Estate Agency Affairs Board

30. Film and Publication Board

31. Financial Intelligence Centre

32. Financial Services Board

33. Food and Beverages Manufacturing Industry Sector Education and Training Authority

34. Forest Industries Sector Education and Training Authority

35. Freedom Park Trust

36. Health and Welfare Sector Education and Training Authority

37. Human Sciences Research Council

38. Independent Regulatory Board for Auditors

39. Information Systems, Electronics and Telecommunications Technologies Training Authority

40. Ingonyama Trust Board

41. Inkomati Catchment Management Agency

42. Insurance Sector Education and Training Authority

43. International Marketing Council

44. International Trade Administration Commission

45. iSimangaliso Wetland Park

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46. Iziko Museums of Cape Town

47. Legal Aid Board

48. Local Government, Water and Other Related Services Sector Education and Training Authority

49. Luthuli Museum

50. Manufacturing, Engineering and Related Services Sector Education and Training Authority

51. Marine Living Resources Fund

52. Market Theatre Foundation

53. Media Development Diversity Agency

54. Media, Advertising, Publishing, Printing and Packaging Sector Education and Training Authority

55. Medical Research Council of South Africa

56. Mine Health and Safety Council

57. Mining Qualifications Authority

58. Municipal Infrastructure Investment Unit

59. Natal Museum

60. National Agricultural Marketing Council

61. National Arts Council of South Africa

62. National Consumer Commission

63. National Consumer Tribunal

64. National Credit Regulator

65. National Development Agency

66. National Economic Development and Labour Council

67. National Electronic Media Institute of South Africa

68. National Empowerment Fund

69. National Energy Regulator of South Africa

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70. National Film and Video Foundation of South Africa

71. National Gambling Board of South Africa

72. National Health Laboratory Service

73. National Heritage Council of South Africa

74. National Home Builders Registration Council

75. National Housing Finance Corporation Limited

76. National Library of South Africa

77. National Lotteries Board

78. National Metrology Institute of South Africa

79. National Museum, Bloemfontein

80. National Nuclear Regulator

81. National Regulator for Compulsory Specifications

82. National Research Foundation

83. National Student Financial Aid Scheme

84. National Urban Reconstruction and Housing Agency

85. National Youth Commission

86. Nelson Mandela National Museum

87. Northern Flagship Institution

88. Office of the Ombud for Financial Service Providers

89. Office of the Pension Funds Adjudicator

90. Performing Arts Council of the Free State

91. Perishable Products Export Control Board

92. Ports Regulator of South Africa

93. Private Security Industry Regulatory Authority

94. Productivity SA

95. Public Sector Education and Training Authority

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96. Railway Safety Regulator

97. Road Accident Fund

98. Road Traffic Management Corporation

99. Robben Island Museum

100. Rural Housing Loan Fund

101. Servcon Housing Solutions (Pty) Ltd

102. Services Sector Education and Training Authority

103. SETA for Finance, Accounting, Management Consulting and Other Financial Services

104. Small Enterprise Development Agency

105. Social Housing Foundation

106. South African Civil Aviation Authority

107. South African Council for Educators

108. South African Diamond and Precious Metals Regulator

109. South African Heritage Resources Agency

110. South African Library for the Blind

111. South African Local Government Association

112. South African Maritime Safety Authority

113. South African National Accreditation System

114. South African National Biodiversity Institute

115. South African National Parks

116. South African Qualifications Authority

117. South African Revenue Services - (SARS)

118. South African Social Security Agency

119. South African Tourism

120. South African Weather Service

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121. Special Investigation Unit

122. State Information Technology Agency

123. The Co-Operatives Banks Development Agency

124. The National English Literary Museum

125. The Playhouse Company

126. The South African Institute for Drug-free Sport

127. The South African National Roads Agency Limited

128. The South African State Theatre

129. Thubelisha Homes

130. Tourism, Hospitality & Sport Education & Training Authority

131. Transport Education and Training Authority

132. uMalusi Council for Quality Assurance in General and Further Education and Training

133. Unemployment Insurance Fund

134. Universal Service And Access Agency of South Africa

135. Universal Service and Access Fund

136. Urban Transport Fund

137. Voortrekker Museum

138. War Museum of the Boer Republics

139. Water Research Commission

140. Wholesale and Retail Sector Education and Training Authority

141. William Humphreys Art Gallery

142. Windybrow Theatre

143. All subsidiaries of the above public entities

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SCHEDULE 3

PART B:

NATIONAL GOVERNMENT BUSINESS ENTERPRISES

1. Albany Coast Water Board

2. Amatola Water Board

3. Bloem Water

4. Botshelo Water 5. Bushbuckridge Water Board

6. Council for Mineral Technology

7. Council for Scientific and Industrial Research

8. Export Credit Insurance Corporation of South Africa Limited

9. Ikangala Water

10. Inala Farms (Pty) Ltd

11. Khula Enterprises Finance Limited

12. Lepelle Northern Water

13. Magalies Water

14. Mhlathuze Water

15. Namaqua Water Board

16. Ncera Farms (Pty) Ltd

17. Onderstepoort Biological Products Limited

18. Overberg Water

19. Pelladrift Water Board

20. Public Investment Corporation Limited

21. Rand Water

22. SA Bureau of Standards

23. SA Rail Commuter Corporation Limited

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24. SA Special Risk Insurance Association Limited

25. Sedibeng Water

26. Sentech Limited

27. State Diamond Trader

28. Umgeni Water

29. Umsobomvu Youth Fund

30. All subsidiaries of the above public entities

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SCHEDULE 3

PART C:

PROVINCIAL PUBLIC ENTITIES

EASTERN CAPE

1. Eastern Cape Appropriate Technology Unit

2. Eastern Cape Arts Council

3. Eastern Cape Gambling and Betting Board

4. Eastern Cape Liquor Board

5. Eastern Cape Parks Board

6. Eastern Cape Rural Finance Corporation Limited

7. Eastern Cape Socio-Economic Consultative Council

8. Eastern Cape Tourism Board

9. Eastern Cape Youth Commission

10. Any subsidiary of any of the above provincial public entities

FREE STATE

1. Free State Gambling and Racing Board

2. Free State Tourism Authority

3. Free State Youth Commission

4. Phakisa Major Sport and Development Corporation

5. Any subsidiary of any of the above provincial public entities

GAUTENG

1. Blue IQ Investment Holdings (Pty) Ltd

2. Gauteng Economic Development Agency

3. Gauteng Enterprise Propeller

4. Gauteng Gambling Board

5. Gauteng Partnership Fund

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6. Gauteng Tourism Authority

7. Gautrain Management Agency

8. XHASA ATC Agency

9. Any subsidiary of any of the above provincial public entities

KWA-ZULU NATAL

1. Amafa AkwaZulu Natali

2. Ezemvelo KwaZulu-Natal Wildlife

3. KwaZulu-Natal Agricultural Development trust

4. KwaZulu-Natal Gambling Board

5. KwaZulu-Natal House of Traditional Leaders

6. KwaZulu-Natal Provincial Planning and Development Commission

7. KwaZulu-Natal Tourism Authority

8. Natal Sharks Board

9. UMsekeli Municipal Support Services

10. Any subsidiary of any of the above provincial public entities

LIMPOPO

1. Limpopo Appeal Tribunals

2. Limpopo Development Enterprise

3. Limpopo Development Tribunals

4. Limpopo Gambling Board

5. Limpopo Housing Board

6. Limpopo Liquor Board

7. Limpopo Local Business Centres

8. Limpopo Panel of Mediators

9. Limpopo Planning Commission

10. Limpopo Roads Agency

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11. Limpopo Tourism and Parks Board

12. Trade and Investment Limpopo

13. Any subsidiary of any of the above provincial public entities

MPUMALANGA

1. Mpumalanga Gaming Board

2. Mpumalanga Regional Training Trust

3. Mpumalanga Tourism and Parks Board

4. Any subsidiary of any of the above provincial public entities

NORTHERN CAPE

1. Northern Cape Tourism Authority

2. Northern Cape Gambling Board

3. Any subsidiary of any of the above provincial public entities

NORTH WEST

1. Invest North West

2. Mmabana Arts, Culture and Sport Foundation

3. North West Eastern Region Entrepreneurial Support Centre

4. North West Gambling Board

5. North West Housing Corporation

6. North West Parks and Tourism Board

7. North West Provincial Aids Council

8. North West Provincial Arts and Culture Council

9. North West Provincial Heritage Resources Authority

10. North West Youth Development Trust

11. Any subsidiary of any of the above provincial public entities

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WESTERN CAPE

1. Destination Marketing Organisation

2. Western Cape Commissioner for the Environment

3. Western Cape Cultural Commission

4. Western Cape Gambling and Racing Board

5. Western Cape Investments and Trade Promotion Agency

6. Western Cape Language Committee

7. Western Cape Liquor Board

8. Western Cape Nature Conservation Board

9. Western Cape Provincial Development Council

10. Western Cape Provincial Youth Commission

11. Any subsidiary of any of the above provincial public entities

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SCHEDULE 3

PART D:

PROVINCIAL GOVERNMENT BUSINESS ENTERPRISES

EASTERN CAPE

1. East London Industrial Development Zone Corporation

2. Eastern Cape Development Corporation

3. Mayibuye Transport Corporation

4. Any subsidiary of any of the above Provincial Government Enterprises

FREE STATE

1. Free State Development Corporation

2. Any subsidiary of any of the above Provincial Government Enterprises

KWA-ZULU NATAL

1. Cowslip Investments (Pty) Ltd

2. Ithala Development Finance Corporation

3. Mjindi Farming (Pty) Ltd

4. Mpendle-Ntambanana Agricultural Company (Pty) Ltd

5. Any subsidiary of any of the above Provincial Government Enterprises

LIMPOPO

1. Gateway Airport Authority Limited

2. Limpopo Development Corporation

3. Any subsidiary of any of the above Provincial Government Enterprises

MPUMALANGA

1. Mpumalanga Agricultural Development Corporation

2. Mpumalanga Economic Growth Agency

3. Mpumalanga Housing Finance Company

4. Any subsidiary of any of the above Provincial Government Enterprises

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NORTH WEST

1. North West Development Corporation

2. Mafikeng Industrial Development Zone (Pty) Ltd

3. Any subsidiary of any of the above Provincial Government Enterprises

WESTERN CAPE

1. Casidra (Pty) Ltd

2. Any subsidiary of any of the above Provincial Government Enterprises

 

 

 

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