19 C
Pretoria, ZA
Monday, November 19, 2018

Background

As part of the national effort to develop national infrastructure, State Owned Companies (SOCs) have embarked on large capital expansion programmes. These large programmes are most often procured from overseas Original Equipment Manufacturers (OEMs). Whilst these infrastructures are essential, it has become global practice to link such procurement programmes with some offset commitments to use local suppliers/equipment and ensure some level of technology transfer to the recipient.

The DST realised that technological upgrading or support is most often the key intervention required to improve the competitiveness of a firm, or to enable the firm to achieve the levels of quality, time and cost required by the OEM, or by the SOC. The DST therefore developed the Technology Localisation Plan (TLP) to support technology localisation and the support mechanism to deliver technological support is the Technology Assistance Packages (TAPs). The TLP presents an overarching and generic framework for DST’s engagement in technology localisation initiatives, including the CSDP.

Localisation aims at increasing the local industrial activity – manufacturing or services. Successful localisation is viewed as increased local content in capital programmes and operations. Bold intervention is required to raise the capabilities of local manufacturing companies so that they can earn a share of the recapitalisation investments, and ultimately enter export markets as competitive suppliers into the OEM’s global supply chains