MEDREGULATIONGPWCKZNECLPMPNWFSNC National Treasury OCPO Instruction Notes
National Treasury has published a mandatory instruction that sets minimum local production and content thresholds for solar water heater components. All organs of state must now incorporate these thresholds into bid specifications and evaluate bids against them. This directly changes the qualification criteria for a significant category of renewable energy procurement.
Bidders must restructure supply chains, source locally manufactured components, and provide verifiable local content declarations to remain eligible. Importers and assemblers without local manufacturing partnerships face immediate disqualification risk.
A binding National Treasury instruction now mandates minimum local content thresholds for solar water heater components in all government tenders.
This instruction signals a broader enforcement of localisation across renewable energy procurement. It sets a precedent for other designated sectors (heat pumps, PV components, batteries) and raises the compliance bar for all infrastructure tenders with local content requirements. Procurement teams must update bid templates and evaluation checklists immediately.
Local manufacturers of solar water heater components (tanks, collectors, valves, controllers) gain a protected market. Suppliers should verify the designated thresholds, obtain SABS/local content certification, and form JVs with local fabricators. Monitor tenders from DMRE, Eskom, metros, and provincial public works for solar water heater rollout programmes.
Failure to submit a compliant local content declaration (SBD 6.2 or equivalent) with auditable evidence will render bids non-responsive. False declarations expose suppliers to blacklisting, contract termination, and criminal liability under the PPPFA and PFMA.
Stay ahead of procurement changes