Procurement Bill to transform SA’s supply chain industry
The Supply Chain Council says legalising South Africa’s Procurement Bill is set to revolutionise procurement practices in the country and present a myriad of opportunities for supply chain professionals, businesses, and communities alike.
Kamogelo Mampane, Executive Chairman, The Supply Chain Council joins CNBC Africa for more.
Wed, 24 Jul 2024 16:15:29 GMT
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AI Generated Summary
- Consolidation of regulatory frameworks to streamline the procurement process
- Increased opportunities for small and black-owned businesses through local procurement initiatives
- Focus on professionalization and capacity building to support infrastructure development projects
South Africa's Procurement Bill is poised to transform the country's supply chain industry, offering a plethora of opportunities for supply chain professionals, businesses, and communities. Kamogelo Mampane, the Executive Chairman of The Supply Chain Council, believes that the legalization of the Procurement Bill will streamline regulatory frameworks and eliminate conflicts that previously hindered the sector's growth. The bill aims to consolidate various laws and regulations into a single governance structure, simplifying interactions between suppliers and the procurement sector.
Historically, the procurement process in South Africa has been convoluted, with numerous policies and procedures creating bottlenecks for businesses, particularly small and disadvantaged enterprises. The lack of a coherent regulatory framework led to inefficiencies and missed opportunities for transforming the economy. Mampane highlights that public sector procurement accounts for about 25% of the country's GDP, emphasizing the need for a transparent and inclusive procurement system.
The new Procurement Bill addresses past challenges by promoting fair competition and empowering local businesses. State entities can now allocate contracts to small and black-owned enterprises, as well as prioritize locally produced goods and services. This shift aims to redress historical imbalances and promote sustainable economic development.
The bill also focuses on enhancing the professionalization of procurement practitioners. By requiring professionals to be registered with a professional body and adhere to a code of conduct, the legislation aims to improve transparency and accountability in the industry. Additionally, the bill seeks to build capacity and skills among procurement professionals to better support infrastructure development projects.
Looking ahead, the industry anticipates swift implementation and tangible outcomes following the enactment of the Procurement Bill. By fostering a more competitive and inclusive procurement landscape, South Africa aims to drive economic growth and empower local businesses to thrive.
