Trade and Industry Minister Dr Rob Davies on Friday selected certain pharmaceutical products for domestic production in the 'second wave' of designations in line with the amendments to the Preferential Procurement Policy Framework Act (PPPFA).

A potential list of more than 70 pharmaceutical products was being finalised and included a two-year, R2.5-billion oral solid dosage tender.

The amended PPPFA, which was promulgated in December last year, allowed the Department of Trade and Industry (DTI) to stipulate sectors and products that departments, agencies and State-owned enterprises had to procure from local manufacturers or providers.

The act aimed to create security of demand for domestic production and enhance local manufacturing capacity to create decent jobs, add value and build export platforms.

In February, the ‘first wave’ of products was designated, and this included rolling stock, buses, canned vegetables, clothing, textiles, footwear and leather products and set-top boxes.

Davies stated that the designation of the pharmaceutical products would benefit the country both in terms of health and the economy.

The pharmaceuticals sector was the fifth-largest contributor to South Africa’s import burden and it was an important challenge to reverse this, while still ensuring that affordable healthcare is available to the private and public sector, he said. However, for security of supply purposes, government would still continue to source some of its medicines from importers.

Further, to ensure medicine remained affordable, prices would be internationally benchmarked and local manufacturers were required with comply to this benchmark.