Implementing Sustainable Public Procurement in South Africa: Where to start

The report argues that South Africa's existing legal and policy frameworks, particularly those addressing social equity and industrial development, provide sufficient space to implement sustainable public procurement (SPP) without requiring new legislation. While the social pillar of SPP is well-established through Broad-Based Black Economic Empowerment (B-BBEE) and preferential procurement, the environmental pillar is less formalized but gaining traction through renewable energy targets and subnational initiatives. The document highlights that government spending represents 29.1% of GDP, offering significant leverage for sustainable development. It identifies a decentralized procurement system that allows provinces and municipalities, such as the City of Cape Town and Western Cape, to run pilot projects. The report recommends aligning SPP with existing investment incentives and developing specific technical guidance to scale up 'green' procurement.

• Public procurement in South Africa has a massive economic impact, with total government spending estimated to reach over R1.1 trillion for the 2014/15 financial year, accounting for 29.1 per cent of GDP.
• The South African Constitution provides a strong legal basis for the social dimension of SPP, specifically allowing for the 'protection or advancement of persons or categories of persons, disadvantaged by unfair discrimination' in contract allocation.
• The Broad-Based Black Economic Empowerment (B-BBEE) framework is a primary tool for social SPP, using a preference point system of 80/20 (for contracts R30,000 to R1 million) or 90/10 (for values over R1 million) to award tenders based on B-BBEE ratings.
• The 2011 amendments to the Preferential Procurement Policy Framework Act (PPPFA) introduced a 'functionality assessment' as a first step in bid evaluation, which the report identifies as a key entry point for integrating environmental criteria like durability and energy efficiency.
• South Africa uses 'Local Content Designations' to drive industrial growth, requiring minimum local content thresholds for seven specific sectors: rolling stock (65%), power pylons (100%), bus bodies (80%), canned/processed vegetables (80%), textile/clothing/leather/footwear (100%), set-up boxes for digital TV migration (30%), and pharmaceuticals (73%).
• The Renewable Energy Independent Power Producer Procurement Programme (RE IPPPP) leverages procurement to increase renewable energy capacity, weighting bids 70% on tariff and 30% on economic development criteria.
• Subnational governments are leading SPP implementation; the City of Cape Town has implemented GPP guidelines and pilots, such as awarding points for fuel efficiency in vehicle fleets and reducing paper bills by 40% through double-sided printing defaults.
• The Department of Environmental Affairs (DEA) has demonstrated best practices through a public-private partnership for its Pretoria head office, which achieved a six-star Green Star SA Office Design certificate.
• Pervasive corruption in public procurement is a major barrier, with estimates that between R25 billion and R30 billion of the annual procurement budget was lost to corruption, incompetence, and negligence in 2011.
• The report suggests that SPP can be synergized with existing fiscal incentives, such as the 15% tax allowance for energy-efficiency-related equipment and the 12I Tax Allowance Incentive for greenfield and brownfield investments.

APA

Turley, L., & Perera, O. (2014). Implementing Sustainable Public Procurement in South Africa: Where to start. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/implementing_spp_south_africa.pdf

Chicago

Turley, Laura, and Oshani Perera. Implementing Sustainable Public Procurement in South Africa: Where to start. International Institute for Sustainable Development, 2014. https://www.iisd.org/system/files/publications/implementing_spp_south_africa.pdf.

Wikipedia

{{cite report |last1=Turley |first1=Laura |last2=Perera |first2=Oshani |title=Implementing Sustainable Public Procurement in South Africa: Where to start |publisher=International Institute for Sustainable Development |date=May 2014 |url=https://www.iisd.org/system/files/publications/implementing_spp_south_africa.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{turley2014implementing, author = {Turley, Laura and Perera, Oshani}, title = {{Implementing Sustainable Public Procurement in South Africa: Where to start}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = may, url = {https://www.iisd.org/system/files/publications/implementing_spp_south_africa.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }