policy-insights-90-de-weerdt-geipel-545ebe9dca1aaa95.pdf

This policy brief provides an overview of local procurement regulations for the mining and petroleum sectors across the Southern African Development Community (SADC) region. It distinguishes between demand-side policies, which encourage companies to buy locally, and supply-side policies, which support local supplier capacity. The document highlights a regional trend toward state intervention to create backward linkages from extractive activities to the wider economy, noting that while most SADC countries have some form of local procurement language, the depth of regulation varies significantly, ranging from vague 'best effort obligations' to specific, measurable targets.

• Local procurement regulations in the SADC region vary in specificity, with the Democratic Republic of Congo, Namibia, South Africa, and Tanzania employing detailed approaches, while other countries often rely on vague 'best effort obligations' that are difficult to enforce.
• South Africa's 2018 Mining Charter mandates specific procurement targets: 70% of the budget for goods must be spent on items manufactured in South Africa, and 80% of the service procurement budget must go to South African-based suppliers.
• Tanzania implements escalating local procurement targets for the mining sector based on the age of the licence: 10% of total spending for the first five years, 50% after five years, and 60–90% after ten years.
• Namibia's Mining Charter requires that 40% of 'discretionary expenditure' be directed to Namibian-owned enterprises, provided they are competitive in cost and quality; this requirement is reduced by 50% during a project's construction phase.
• In the Democratic Republic of Congo, the Modified Mining Code of 2018 imposes a 14% tax on the total value of any service contract entered into with a foreign company to encourage the use of Congolese businesses.
• Angola and Mozambique both utilize price-preference thresholds for local procurement in their petroleum and mining sectors, allowing local goods and services to be prioritised if their prices do not exceed foreign alternatives by more than 10%.

APA

South African Institute of International Affairs (n.d.). policy-insights-90-de-weerdt-geipel-545ebe9dca1aaa95.pdf. https://saiia.org.za/wp-content/uploads/2020/08/Policy-Insights-90-de-weerdt-geipel.pdf

Chicago

South African Institute of International Affairs. policy-insights-90-de-weerdt-geipel-545ebe9dca1aaa95.pdf. n.d. https://saiia.org.za/wp-content/uploads/2020/08/Policy-Insights-90-de-weerdt-geipel.pdf.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=policy-insights-90-de-weerdt-geipel-545ebe9dca1aaa95.pdf |url=https://saiia.org.za/wp-content/uploads/2020/08/Policy-Insights-90-de-weerdt-geipel.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairsndpolicyinsights90deweerdtgeipel545ebe9dca1aaa95pdf, author = {{South African Institute of International Affairs}}, title = {{policy-insights-90-de-weerdt-geipel-545ebe9dca1aaa95.pdf}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2020/08/Policy-Insights-90-de-weerdt-geipel.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }