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Articles in category: Preferential Procurement
Transnet Port Terminals CEO Karl Socikwa says the assembly of rolling stock will be beneficial for the development of the local manufacturing sector.
Speaking at the South Africa Local Content Summit for oil and gas in Cape Town on Wednesday, Transnet Port Terminals CEO Karl Socikwa said the state-owned company had a significant role to play in driving economic growth and transformation in SA.(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)
While Trade and Industry Minister Dr Rob Davies has commended the release of the first baseline report for the construction sector, which focuses on the progress made on the implementation of a Construction Sector Code – a requirement in terms of broad-based black economic-empowerment (BBBEE) policy – he has expressed concern that BBBEE targets in the sector remain unachieved.(Read Full Article)
A new business association has been formally launched to link foreign suppliers of equipment to State-owned companies (SoCs) with large and small domestic companies in an effort to improve prospects for higher levels of local content in South Africa’s multibillion-rand infrastructure programme.
Known as the Industrialisation Supplier Development Association (ISDA), the organisation was unveiled during a televised breakfast in Sandton on Thursday, hosted by SABC 2 and The New Age newspaper and addressed by Public Enterprises Minister Malusi Gigaba.(Read Full Article)
Explore Engineering News (Apr 24 2014) Preferential Procurement , Procurement Ethics , Supplier Diversity , Supplier Relationship Management , Manufacturing & Automotive , Public Sector , Transport & Logistics
A new business association has been formally launched to link foreign suppliers of equipment to State-owned companies (SoCs) with large and small domestic companies in an effort to improve prospects for higher levels of local content in South Africa’s multibillion-rand infrastructure programme.(Read Full Article)
Zambian Government is implementing various strategies to ensure Micro Small and Medium Enterprises (MSMEs) progressively migrate to large-scale enterprises, President Michael Sata has said. Mr Sata said on his Facebook wall yesterday that some of the initiatives to help the migration of MSMEs were the full implementation of preferential procurement as provided under the Citizens’ Economic Empowerment Act, linking the MSMEs to the export market.(Read Full Article)
The amended Broad-Based Black Economic Empowerment (B-BBEE) Codes published on 11 October 2013 will prove problematic to the current BBBEE status of many South African businesses. This is according to John Botha, Labour Law Specialist.
The recent amended Codes include a number of provisions that are likely to place pressure on businesses’ B-BBEE verification scores as they attempt to retain their current status. The provisions which may prove challenging for businesses include:
- The B-BBEE levels and the corresponding points required have been recalibrated. As an example, a score of 86 that once measured a level 2 will now be classified ...
A helicopter view of South Africa’s public-sector procurement system highlights not just its scale, scope and complexity, but also some of its key fragilities. Every year, departments and agencies across the three tiers of government spend more than R460-billion on procuring goods and services, ranging from automobiles for the police, to textbooks for schools and medication for hospitals.(Read Full Article)
In a rare criticism of transformation legislation, Deputy President Kgalema Motlanthe has conceded deficiencies in broad-based black economic empowerment (BBBEE), saying on Wednesday that shortcomings in the implementation of this legislation had emerged.
Speaking at the Mail & Guardian’s 20 Years of Economic Transformation Summit, in Sandton, he asserted that, among others, emphasis on ownership and senior management had unintended consequences, resulting in fronting, speculation and abuse of the tender system.(Read Full Article)
BBBEE regulations, Motlanthe said, had also failed to adequately incentivise job creation and provide support for small enterprises and local procurement.
Local content is a policy tool used by some countries to create jobs and develop local supply chains to become internationally competitive. Local content requirements usually include a combination of mandates to investing companies to develop and employ local people, to procure local goods and services, develop local suppliers and to transfer technology through licensing arrangements, joint ventures, training or other means.(Read Full Article)
Standard Bank has joined forces with construction materials group Massbuild to provide a R20-million credit facility for select black economic-empowerment (BEE) building contractors, aimed at enabling them to establish sustainable businesses and improve their ability to deliver as preferred suppliers to government.(Read Full Article)