SA National Treasury introduces new measures for COVID-19 emergency procurement

The South African National Treasury is replacing measures relating to the COVID-19 Disaster Management Central Emergency Procurement Strategy.

The replacement follows concerns about the procurement process, stating that the approach adopted has excluded a number of domestic suppliers and has covered too wide an array of goods, especially goods that can be manufactured locally.

The following statement provides more information:

Measures for COVID-19 emergency procurement

National Treasury is replacing measures relating to Covid-19 Disaster Management Central Emergency Procurement Strategy, namely Instruction Note 3 of 2020/21 and Circular 101. The new measures will be Instruction Note 5 of 2020/21 for PFMA institutions and Circular 102 for MFMA institutions. The new Instruction Note and Circular will be on the National Treasury website soon.

The replacement follows various representations that have raised concerns about the procurement process, that the approach adopted has excluded a number of domestic suppliers and that it covered too wide an array of goods, especially goods that can be manufactured locally. The replaced Instruction Note and Circular were an initial response to the outbreak of the pandemic, and was to allow for urgent procurement of critical health products at a time of great global shortages. Given the rapid changes in demand for specialised products like testing kits and ventilators and further exacerbated by export bans, a national regulatory approach to procure goods centrally was required.

The Covid-19 pandemic has brought about a new environment, necessitating procurement regulations to keep up with the rapid changes of demand. In the past few weeks there has been an increase in the number of companies able to respond to the emergency procurement needs.

National Treasury is fully committed to the Constitutional objective of having fair, equitable, transparent, competitive and cost-effective procurement processes that take into account the need for procuring essential health products required to fight the COVID-19 pandemic. These processes should be compliant with the country’s imperatives of promoting structural transformation and broadening participation in the economy to strengthen economic development and empowerment of previously disadvantaged groups and individuals.

In response to the changing demand and supply as well as to give effect to the strict monitoring and reporting measures required during times of emergency procurement, the new Instruction Note and Circular will:

  • provide measures to put in place for COVID-19 emergency procurement
  • open the supply of these products to all suppliers conforming to specifications and are registered on the Central Supplier database (CSD) of government.]
  • outline the required PPE item specifications according to the Department of Trade, Industry and Competition (DTIC), National Department of Health and World Health Organisation requirements
  • outline the maximum prices at which government will procure these PPE items
  • outline the emergency procurement, monitoring and reporting requirements

Issued by National Treasury

Date: 28 April 2020

For more coverage on COVID-19 visit:

Partner Content


THE COVID-19 GLOBAL pandemic has brought forward the future. It has brought about humanity’s biggest challenge in a century, to choose between...

Mauritius-Africa, a partnership for shared prosperity

By: Mathieu Mandeng In the current complex and challenging circumstances that are testing the...


The City of eThekwini pulled out all stops to give fans of the annual Vodacom Durban July (VDJ). The Virtual Vodacom Durban...

GAUTRAIN – Why It Matters

Economic growth continues to be one of the focus areas for the Gauteng Provincial Government (GPG) and the Gautrain responds to that...

Trending Now

South Africa tries to recover over $23 mln from SAP for ‘unlawful’ contracts

JOHANNESBURG (Reuters) - South African investigators are seeking to recover more than 400 million rand ($23 million) from German software firm SAP...

A generally positive trading week for the NSE

It’s been a largely positive trading week in Nigeria’s stock market. As company financial statements continue to filter into the market, Muktar Mohammed, Analyst at Assar Investments joins CNBC Africa to discuss how investors are pricing in the earnings....

Ecobank CEO on how COVID-19 has impacted the company’s first half earnings

Ecobank reported an 18 per cent decline in its profit-after-tax to 48.5 billion naira for the first half of the year. As the stock market prices in the result, the bank’s Group CEO, Ade Ayeyemi joins CNBC Africa for more.

Gautrain: MEC Mamabolo on achieving smart mobility & Gautrain’s public transport objectives

Why it matters to have a rail system such as Gautrain as the backbone of the public transport system in Gauteng. In this episode of Gautrain: Why It Matters, Gauteng MEC for Public Transport and Roads Infrastructure, Jacob Mamabolo about public transport and Gautrain's objectives....

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

- Advertisement -