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Articles in category: Preferential Procurement
Noting that the South African public sector spent an “enormous” R500-billion on goods and services and construction works in the 2013/14 fiscal period, National Treasury has called for various reforms of government’s strategic sourcing, procurement and supply chain management (SCM) practises.(Read Full Article)
Cabinet approves implementation of programme to ensure compliance by government departments with policy on procuring goods, services from local suppliers(Read Full Article)
Trade and Industry Minister Dr Rob Davies reiterated on Tuesday that the procurement of goods that conform to local content requirements was not just a recommendation for State entities but a legal requirement.
During a Portfolio Committee on Trade and Industry briefing, he noted that all organs of State were obligated to procure goods that were on the designated list and that conformed to local content requirements.(Read Full Article)
LACK of oversight and compliance and the high cost of local goods are some of the hurdles hampering government’s local procurement drive, says Leslie Sedibe, CEO of Proudly SA, a "Buy Local" marketing initiative.
Speaking at a local procurement conference, held in partnership with the Congress of South African Trade Unions (Cosatu) in the Western Cape on Tuesday, Mr Sedibe said that some local, provincial and national departments were effectively breaking the law by not adhering to the local procurement policies put in place by government.(Read Full Article)
Pretoria – President Jacob Zuma has appointed new members of the Presidential Black Economic Empowerment (BEE) Advisory Council.
MAJORITY of more than 900,000 active tax-paying companies operating in the South African economy will be affected by the new empowerment codes that are coming into effect from May next year, the Department of Trade and Industry said on Friday.
The new requirements were gazetted two weeks ago, with the comment period ending on November 14. They are for businesses with a R10m-R50m annual turnover. The codes, which are also referred to as the qualifying small enterprises (QSE) codes and their amended codes, are aimed at boosting small business participation in the mainstream economy.(Read Full Article)
Trade and Industry Minister Rob Davies has gazetted the second phase of the Amended Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice for public comment.
Economic and social transformation in South Africa is an evolving and fluid issue, with the rules being written by, and through our actions. The revision of the Codes of Good Practice (RCoGP) governing B-BBEE is a reflection of some of this fluid nature over approximately the past seven years.(Read Full Article)
It is critical we approach supplier development “with the right intentions”. This was according to Mark Frankel, the CEO of Shanduka Black Umbrellas, a nonprofit company involved in the support of emerging black businesses through enterprise development.(Read Full Article)
Transnet Port Terminals CEO Karl Socikwa says the assembly of rolling stock will be beneficial for the development of the local manufacturing sector.(Read Full Article)
The Department of Trade and Industry (DTI) aims to improve the enforcement of localisation by having the Auditor General flag as “irregular expenditure” any flouting of buy-local procurement rules by government departments and State-owned companies.
Preferential Procurement Policy Framework Act regulations came into force on December 7, 2011, empowering the DTI to ‘designate’ the products that should be sourced locally.(Read Full Article)
SA’s small-business policy is like a mother feeding a baby with one hand and throttling it with the other. Small business is big business, if new Small Business Development Minister Lindiwe Zulu is taken seriously. But will her department be another costly farce? What small business needs is not rocket science. Nor is that which makes it almost impossible for her to succeed: all of her Cabinet colleagues and most departments and agencies contribute to a relentless tsunami of anti-small-business measures.
Meaningless promises of red-tape reduction have been made repeatedly by President Jacob Zuma and the worst-offending ministries: finance ...(Read Full Article)
With the original B-BBEE Codes released in 2007, the BEE Act allows various industry sectors to issue their own sector codes. Nine sectors, including construction, have their own codes and the Construction Sector Codes were issued in June 2009.
This implies that anyone in the construction sector must follow the construction codes. The construction codes apply to any business involved in “construction related activities”.(Read Full Article)
Trade and Industry Minister Dr Rob Davies has assured that the Department of Trade and Industry (DTI) would be “playing its part” in ensuring that government procured 75% of its goods and services from local companies, announcing on Tuesday the next designation of products for government procurement. These included steel, conveyance pipes, transformers, building and construction materials and rail signalling and components.(Read Full Article)
The introduction of the amended Broad-Based Black Economic-Empowerment Codes of Good Practice on May 1, 2015, could result in more than half the economy becoming noncompliant. The revamped codes were published on October 11, 2013, and the transitional period was initially scheduled to endure for a year until October 10, 2014.(Read Full Article)
An understanding of what drives the procurement decision can be the advantage that wins that next tender or that next customer.
Traditionally the main drivers of any procurement decision are price, quality and service, but with the importance placed on BEE compliance, the fourth driver of procurement decisions is a supplier’s BEE status.
Amended Codes' Preferential Procurement scorecard(Read Full Article)
Government was well on its way to meeting the 75 percent local procurement target set by President Jacob Zuma before 2019, trade and industry minister Rob Davies said on Wednesday.
Speaking during the debate on Zuma's state-of-the-nation address, Davies said: “We are on target to meet this before the end of this term.”
Davies defended the central theme of Zuma's speech which was “radical economic transformation”.(Read Full Article)
Proudly South African (Proudly SA) has welcomed the new administration’s commitment to promote local procurement.
Delivering his State of the Nation Address (SONA) on Tuesday night, President Jacob Zuma announced that government will continue to roll out the implementation of the Industrial Policy Action Plan, which will help promote local procurement.
It will also increase domestic production by having the state buy 75% of goods and services from South African producers. "President Zuma and the government's commitment to ‘Buy Local’ speaks directly to job creation and efforts to alleviate the triple challenges of unemployment, poverty and inequality in ...
An intervention is required to enhance black participation in procurement in engineering and construction, writes Thami Mazwai(Read Full Article)
The local procurement accord, which aims to promote the buying of South African goods and services, should now be presented as an instruction rather than in the form of an appeal or advice, Trade and Industry Minister Rob Davies said yesterday.
Davies told Business Report that, although the aspirational target of 75 percent local procurement was a good move, the government and public entities should now be obliged to procure at this level.(Read Full Article)
In her new job as Small Business Development Minister, Lindiwe Zulu can make a big difference to South Africa’s fortunes. But a lot of work lies ahead for her and fellow ministers in the sector.
One task awaiting her is to "massify" the many good policies that already exist but which lack sufficient scale. Others are to secure a part of the government’s annual procurement budget of nearly R190bn for goods and services for the small business sector, cut red tape and ensure that the government pays small businesses on time as it has promised repeatedly to do ...(Read Full Article)
The implementation of Black Economic Empowerment (BEE) and employment equity will be improved in the new administration’s five-year term, under newly inaugurated President Jacob Zuma.
“We will improve the implementation of the employment equity and BEE laws during this term,” the President said on Saturday.
Addressing the nation shortly after being inaugurated for a second term in office, President Zuma said while progress has been made in changing the ownership and control of the country’s economy, “much more work” must be done.
SANLAM CEO Johan van Zyl has fired a broadside at the government’s plan to set up a small business ministry, saying better outcomes are possible if businesses themselves ramp up efforts to support and grow smaller suppliers in their value chain systems.
The ruling African National Congress, which easily won the May 7 elections despite pressure from jobs-focused new parties, is expected to set up a ministry to oversee small, medium-size and micro enterprises when it reconfigures the country’s government departments.(Read Full Article)
Supply chain professionals have a responsibility to develop local suppliers and must step up to meet the challenge. This was the view of Peter van Rijs, supply chain manager, MENA at Shell speaking at the CIPS Middle East Conference in Dubai this week. Van Rijs told delegates that both governments and communities expect to benefit from the investment and resources of businesses through capacity building and job creation, and there are advantages for companies too.(Read Full Article)