BIESIESPOORT (KM 26.00) - South African

A new R300m fund by SEDFA and cidb will provide financial support to emerging contractors, likely increasing their participation in government tenders. This shifts the competitive landscape in public sector construction procurement, particularly for smaller bids where HDIs were previously excluded due to financial constraints.

• R300 million allocated by SEDFA and CIDB to support emerging construction contractors.

National Treasury has issued a binding instruction stipulating minimum local production and content thresholds for valve products and actuators procured by the state. This regulation applies to all government entities and will disqualify non-compliant bids, directly affecting contractors and suppliers in water, sanitation, mining, and industrial infrastructure projects. Local manufacturers of valves and actuators gain a protected market position, while importers and foreign-owned suppliers must restructure supply chains or partner locally to remain eligible.

• New mandatory minimum local content thresholds established for valve products and actuators in government procurement

The Minister of Trade, Industry and Competition has announced new or updated local production and content designations, setting mandatory minimum local content thresholds for designated product categories in government procurement. This policy instrument under the PPPFA requires all organs of state to enforce these thresholds during tender evaluation, directly impacting bid compliance and award decisions across every sector.

• Ministerial designation of local content requirements creates mandatory local production thresholds for designated sectors