Procurement

The document identifies systemic obstacles to local procurement in South Africa, including exclusionary tender specifications, inadequate tracking of imports, and weaknesses in BBBEE certification. It proposes that both public and private entities record the share of imports in their procurement, reform public sector budget processes to allow local producers to match import prices, and create a dti-managed fund to cover cost differences for local products that support industrial deepening and job creation.

• Local procurement in South Africa is hindered by several factors: local producers often lack the scale or experience to compete on price and time, and government departments frequently use unnecessary specifications copied from international examples that exclude local suppliers.
• Current BBBEE reporting on 'measured procurement spend' is flawed because it allows companies to exclude imports of capital goods or branded intermediate inputs, leading to reported local procurement figures near 100% despite substantial importing.
• The public sector budget process creates barriers to local production by failing to require that local producers be allowed to match import prices and by lacking the long-term procurement guarantees necessary to justify large-scale domestic investment, as seen in the case of Aspen Pharmaceuticals.
• The 2013 Local Procurement Accord was largely ineffective because it lacked a high-level oversight and unblocking system to address obstacles and resolve caveats in commitments.

APA

Makgetla, N. (2018). Procurement. Institute for Economic Justice. https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-1-Procurement.pdf

Chicago

Makgetla, Neva. Procurement. Institute for Economic Justice, 2018. https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-1-Procurement.pdf.

Wikipedia

{{cite report |last1=Makgetla |first1=Neva |title=Procurement |publisher=Institute for Economic Justice |date=August 2018 |url=https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-1-Procurement.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{makgetla2018procurement, author = {Makgetla, Neva}, title = {{Procurement}}, institution = {Institute for Economic Justice}, year = {2018}, month = aug, url = {https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-1-Procurement.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }