# South African Government Enforces Localisation Policy

South Africa's government procurement policy aims to boost local industries by mandating localisation targets, particularly in clothing, textiles, footwear, and leather (CTFL) sectors. Despite an estimated **R7.5 billion** government expenditure on CTFL products in 2025, only 32% of procurement met the local sourcing target, falling short of the 65% goal set for 2030. This shortfall highlights enforcement weaknesses, inconsistent application across departments, and monitoring gaps that undermine the policy's industrial and economic benefits. Procurement professionals should anticipate stronger verification and compliance measures from agencies like the Department of Trade, Industry & Competition (DTIC) to ensure localisation requirements are met and to support domestic supplier development.

- The Department of Trade, Industry & Competition (DTIC) is expected to increase oversight and enforcement of localisation mandates across government procurement.
- Procurement officers should prepare for more rigorous documentation and verification processes to demonstrate compliance with local content thresholds.
- Local suppliers in CTFL sectors may see increased opportunities as government agencies align purchasing with localisation targets.
- Organizations involved in government contracts should evaluate their supply chains to enhance local sourcing and avoid non-compliance risks.

**Jurisdictions:** sled
**Industries:** Construction & Infrastructure
**Topics:** Regulatory Compliance
**Published:** September 17, 2026

### Government Entities
- Department of Trade, Industry & Competition (DTIC)
- Department of Health
- South African National Roads Agency Ltd (Sanral)

### Sources
- [EDITORIAL | Government procurement fails to deliver on localisation promise https://t.co/TLGvbAZpDy](https://x.com/TenderPoint/status/2100472929351782876) - twitter-fed-procurement