The Competition Commission has issued draft guidelines on collaboration between competitors on localisation initiatives for public comment.

"In response to the economic consequences of the Covid-19 pandemic, government developed the Economic Reconstruction and Recovery Plan (ERRP), which maps out interventions aimed at promoting inclusive growth and employment in the domestic economy.

"One of the key objectives of the ERRP is increased localisation by increasing the share of total procurement of an identified input from local suppliers and decreasing the share of procurement of imports of the same input. In terms of the draft guidelines, a localisation initiative is any project or effort to achieve greater levels of local procurement or production."

Localisation initiatives may be initiated by government or private players themselves. Government-initiated localisation initiatives may include initiatives such as the Department of Trade, Industry and Competition (DTIC) CEO Localisation Initiative or localisation initiatives that arise from the DTIC’s industry-focused master plan processes.

In addition, localisation initiatives may be initiated by any government entity. Outside of government, the Competition Commission recognises that industry participants or market players may also wish to engage in initiatives to increase localisation in terms of the ERRP, and in line with government policy.

"Collaboration among competitors may be required to advance such localisation initiatives, whether led by government or industry. The draft guidelines have been developed to guide the process by which such collaboration between competitors may occur and aim to provide guidance to industry and government as to how localisation initiatives may be appropriately identified and implemented, in a manner that does not raise competition concerns," the commission highlights.

The draft guidelines, which were published in the Government Gazette on August 13, are in respect of localisation processes and relate to collaboration amongst buyers and/or suppliers of products earmarked for greater localisation.

Interested parties may submit written submissions on the draft guidelines by September 27.