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SACTWU hails govt guideline on local procurement
26
Jul '12

The Southern African Clothing and Textile Workers’ Union (SACTWU) welcomes the National Government’s Instruction Note relating to local procurement, released by Treasury. The note stipulates that if any government department and any State owned enterprise (SOE) purchases clothing, textile, footwear and leather (CTFL) products, these products must be 100% locally made.

Furthermore, the inputs to these products must be 100% locally made as well, unless that raw material cannot be sourced locally. This Instruction Note was effective immediately and a copy thereof is attached hereto.

This Instruction Note is a major step forward in the implementation of the local procurement regulations initiated and promulgated by Government in June 2011. The implementation of these regulations is a boost for local jobs in the domestic CTFL industry because it now directs millions of State and SOE spending towards local CTFL manufacturing.

This is a very significant development for our industry, as it compels that all inputs to the final product, that are purchased by the State or SOE, must be made locally as well. This means that when the Post Office buys uniforms, it will have to buy it from a local clothing manufacturer, who has sourced its inputs made in a local weaving mill.

Or if the armed forces buy boots, the leather uppers to those boots will have to come from a local footwear manufacturer who has sourced its inputs from a local tannery.

These now statutory local purchases directives to government departments and SOE’s will result in major job creation and job retention in the domestic CTFL sector, we expect. It is a major boost for local production.

These new regulations are a key component of the dti’s re-industrialisation plans for our country and we specifically acknowledge and appreciate the dti’s unwavering determination in this regard.

The Southern African Clothing & Textile Workers Union (SACTWU)

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