Rethinking the buy local conditions in the SA infrastructure investment programme

This research paper examines the potential implementation of 'buy local' conditions within South Africa's infrastructure investment programme, arguing that such measures act as import restrictions that encourage monopolistic pricing and reduce economic competitiveness.

• South Africa has been executing a large-scale infrastructure investment programme since 2005, with a recent announcement of an investment of approximately R787 billion over three years targeting power generation, transport networks, bulk water schemes, clinics, school buildings, and municipal infrastructure.
• The Department of Trade and Industry’s 2007 National Industrial Policy Framework (NIPF) Action Plan aimed to coordinate parastatal infrastructure plans with domestic capabilities to lower import leakage from 40% to 30% by 2012.
• The 'Framework Document for South Africa’s Response to the International Economic Crisis' suggests extending 'buy local' conditions to various sectors, including pharmaceuticals, medical supplies, clothing, textiles, food, computers, automobiles, and consulting services.
• The author argues that 'buy local' conditions function like traditional import restrictions, limiting consumer choice and encouraging monopolistic pricing for goods like steel and cement where local suppliers lack economies of scale, ultimately making the domestic economy uncompetitive.
• South Africa is not a signatory to the World Trade Organisation's (WTO) plurilateral agreement on government procurement (GPA), meaning the WTO legality of 'buy local' conditions is not applicable to the country.

APA

South African Institute of International Affairs (2009). Rethinking the buy local conditions in the SA infrastructure investment programme. https://saiia.org.za/research/rethinking-the-buy-local-conditions-in-the-sa-infrastructure-investment-programme/

Chicago

South African Institute of International Affairs. Rethinking the buy local conditions in the SA infrastructure investment programme. 2009. https://saiia.org.za/research/rethinking-the-buy-local-conditions-in-the-sa-infrastructure-investment-programme/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Rethinking the buy local conditions in the SA infrastructure investment programme |date=15 May 2009 |url=https://saiia.org.za/research/rethinking-the-buy-local-conditions-in-the-sa-infrastructure-investment-programme/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2009rethinking, author = {{South African Institute of International Affairs}}, title = {{Rethinking the buy local conditions in the SA infrastructure investment programme}}, institution = {South African Institute of International Affairs}, year = {2009}, month = may, url = {https://saiia.org.za/research/rethinking-the-buy-local-conditions-in-the-sa-infrastructure-investment-programme/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }