Local Procurement Regulations for Extractive Industries in the SADC Region

The document maps local procurement regulations in the SADC region, distinguishing between demand-side policies (encouraging companies to buy locally) and supply-side interventions (supporting local supplier capacity). It finds that while most SADC countries have some form of local procurement requirement, the level of detail varies significantly, with the DRC, Namibia, South Africa, and Tanzania employing specific targets and plans, while others rely on vague 'best effort obligations'.

• Local procurement regulations in the SADC region vary from vague 'best effort obligations' to highly specific, measurable targets. While most countries with extractive activity have some regulations, only the Democratic Republic of Congo, Namibia, South Africa, and Tanzania have implemented detailed approaches.
• South Africa employs strict percentage targets for the mining sector, requiring 70% of the procurement budget for goods and 80% for services to be spent on South African-based suppliers, with enforcement linked to the B-BBEE scoring system.
• Tanzania has implemented escalating local procurement targets for mining; spending must be 10% local for the first five years, 50% after five years, and between 60% and 90% after ten years. Additionally, non-indigenous providers must generally enter joint ventures with at least 25% indigenous equity.
• Namibia's Mining Charter requires 40% of 'discretionary expenditure' to be directed to Namibian-owned enterprises, a target that increased from 25% prior to 2016. These requirements are reduced by 50% during a project's construction phase.
• The Democratic Republic of Congo (DRC) imposes a 14% tax on service contracts entered into with foreign companies in the mining sector and limits the total value of a contract that can be subcontracted to 40%.
• Angola's petroleum sector prioritizes local goods and services if prices are not more than 10% above foreign competitors, and mandates that foreign companies supplying specialized goods or services must partner with an Angolan company.
• Mozambique's mining and petroleum laws allow for a 10% price premium for local suppliers over foreign alternatives and require foreign companies to 'associate with' Mozambican businesses to meet eligibility requirements.

APA

de Weerdt, K., & Geipel, J. (2020). Local Procurement Regulations for Extractive Industries in the SADC Region. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2020/08/Policy-Insights-90-de-weerdt-geipel.pdf

Chicago

de Weerdt, Kyela, and Jeff Geipel. Local Procurement Regulations for Extractive Industries in the SADC Region. South African Institute of International Affairs, 2020. https://saiia.org.za/wp-content/uploads/2020/08/Policy-Insights-90-de-weerdt-geipel.pdf.

Wikipedia

{{cite report |last1=de Weerdt |first1=Kyela |last2=Geipel |first2=Jeff |title=Local Procurement Regulations for Extractive Industries in the SADC Region |publisher=South African Institute of International Affairs |date=August 2020 |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{deweerdt2020local, author = {de Weerdt, Kyela and Geipel, Jeff}, title = {{Local Procurement Regulations for Extractive Industries in the SADC Region}}, institution = {South African Institute of International Affairs}, year = {2020}, month = aug, 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} }