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<\/a><\/p>\nThobile Hans<\/p>\n
7 December 2011<\/p>\n
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The South African government and its key departments, including trade and industry and economic development, and labour are geared to create about 300 000 jobs by 2020, with majority of those coming from the green economy.<\/p>\n
Minister for Economic Development Ebrahim Patel addressing press in Durban on Wednesday during COP 17 said all government departments had in October signed an accord geared to create 30 000 jobs which is said to be the “most comprehensive social partnerships on the green economy” in the world.<\/p>\n
Patel and the Trade and Industry minister Rob Davies have declared the amended Regulation to the Preferential Procurement Policy Framework Act. Davies said in terms of the new regulation, his department may designate sectors and products for local procurement. Davies said, “The first wave of designation which will become effective as from today (Wednesday) are: Power Pylons, Rolling Stock, buses, canned vegetables, clothing, textiles, footwear and leather products and set top boxes. Further designation will follow in 2012.”<\/p>\n
“Each designation will stipulate a minimum level of local content for the relevant sector or set of products. Where relevant, the designation also set out specific recommendations for ensuring competition amongst domestic producers and value for money for the state.”<\/p>\n
Davies mentioned the expected jobs would be created on mass transport routes through the upgrade of the Passenger Rail Agency of South Africa infrastructure and rolling stock construction across the country, feeding into bus rapid transit system in major cities.<\/p>\n
Scores of jobs in the solar water heating system industry – including the manufacture of solar water panels – are also envisaged. South Africa is also set to benefit from the switch to biofuels to replace fossil fuels.<\/p>\n
Some of the key points in the plan include government’s commitment to install one million solar water heaters by 2014\/15 financial year. Government also sets out to procure 3 752 of renewable energy for use in the grid by 2016.<\/p>\n
The designation take place against the backdrop of extensive sector specific research including the significance of public procurement in sectors to be considered for designation; domestic product production and employment levels; levels of industry concentration and competition; imports, price considerations and availability and security supply.<\/p>\n
The new regulations enable all organs of state to include as a specific tendering condition that only locally produced services, works or goods or locally manufactured goods with a stipulated threshold for local production and content be procured.<\/p>\n
Davies said the national treasury, which has a functional responsibility for state procurement has issued a guideline to all public institutions with respect to those clauses of the new regulations which deal with designations and procurement support for local production.<\/p>\n
It is expected that the collective efforts of the social partners to stem the decline of our industrial base by utilising the local procurement lever should be underpinned by efforts to promote a national culture and sentiment to buy South African products.<\/p>\n
Patel emphasized that there will be more “strengthening of black owned manufacturers of goods” with high preference to affordable “green economy”.<\/p>\n
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