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Procurement overhaul in South Africa

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17 February 2010 | Jake Kanter

The South African government is planning a “significant overhaul” of procurement legislation to boost jobs in manufacturing.

Trade and industry minister Rob Davies said the Industrial Policy Action Plan, to be published this week, will set out how the government’s 846 billion rand (£7.1 billion) infrastructure spend over the next three years will be used to benefit the domestic economy.

A previous government scheme to boost supplier competitiveness and capability will be aligned to a separate rule requiring public bodies to contract with domestic vendors, he said.

“This will create improved opportunities for local industries to supply a greater proportion of the inputs needed in ways that will boost decent employment.”

According to the minister, the South African manufacturing industry suffered 202,000 job losses between October 2008 and December 2009.

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Comments
South Africa is a developing country where government expenditure represents a great proportion of the GNP. To effective make use of public money it is important to have a well defined procurement rules and regulations. These can help to promote fairness, transparency and accountability in the government system. Procurement rules and regulations encourage domestic and foreign investment; motivate competition; and reduce corruption.
Rules and regulations alone are not enough to enable a procurement system to work effectively. We need also officers of high level of integrity; competent institutions to instruct public bodies and to monitor compliance of the rules and regulations; capacity building to enhance skills and knowledge of all the procurement practitioners; seminars and workshop to raise the awareness of the community of bidders and suppliers of the new rules and regulations; commitment of top management and politicians.
It is also high time to recognize the importance of the procurement function and motivate them to continue to add value by for example rewarding them through an award ceremony at the end of year or by providing a decent salary to procurement officials.

Amoordon Pooben (19/02/2010 05:25:12)