Manufacturing Tenders: Local Content and Steel Designation

Protected Industries

Government uses tenders to re-industrialize South Africa. The Preferential Procurement Policy Framework Act (PPPFA) regulations create 'Designated Sectors'. Steel Products are designated at 100%. This means if you bid to supply school desks, burglar bars, or solar structures, the steel MUST be melted and manufactured in South Africa. Importing cheap kits from China is illegal and will get you blacklisted.

The Paperwork: MBD 6.2

The MBD 6.2 (Local Content Declaration) form is the most important page in your bid. You must calculate the local value add. If you lie on this form, the DTI (Department of Trade and Industry) can audit you and ban you from trading with the state for 10 years.

SABS Designation

Manufacturing tenders usually require SABS / SANS certification. Example: A refuse bin tender will require SANS 1494 compliance (Galvanizing thickness). If your product is not SABS mark bearing, you might need to send a sample for destructive testing before award.

Conclusion

Manufacturing is the engine of the economy. These tenders are protected from import competition, giving local factories a massive advantage. Play by the rules, buy your steel from local merchants, and keep your SABS permits current.