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A Strategic Public Procurement Paradigm for South Africa

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This research paper by the Public Affairs Research Institute (PARI) advocates for a 'strategic procurement paradigm' to replace the 'administrative paradigm' currently dominating South Africa's public procurement system. The authors, acting as a Joint Strategic Resource (JSR) for the National Economic Development and Labour Council (Nedlac), argue that the existing system's rigidity facilitates state capture and hinders complex infrastructure delivery. They propose a legislative framework that empowers accounting officers, integrates procurement with technical delivery functions, and implements 'guardrails' such as open contracting and incentivised whistleblowing to ensure integrity.

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  • The current South African public procurement system operates under an 'administrative paradigm' that is suitable for basic, off-the-shelf goods but fails in complex purchasing and infrastructure projects. This approach prioritizes rigid procedural rules and expenditure control over delivery priorities, which the authors argue has 'arguably facilitated state capture' by marginalizing technical professionals and eroding checks on illicit interference.
  • The administrative paradigm creates five primary systemic problems: it is ill-suited for infrastructure; it prevents the development of long-term supplier relationships necessary for preferential procurement; it conflicts with the legal accountability of accounting officers by shifting power to clerical supply chain management (SCM) units; it distances decision-making from technical specialists; and it provides impunity for corrupt actors due to a lack of transparency and enforcement.
  • The JSR proposes a 'strategic procurement paradigm' as a proof of concept within the Public Procurement Bill. This model is defined by four elements: granting accounting officers freedom to develop implementation frameworks tailored to their institution's environment; linking procurement as a strategic function to specialist delivery functions; allowing professionals to tailor purchasing strategies to specific requirements; and shifting the focus of integrity from restrictive rules to stronger enforcement mechanisms.
  • To prevent corruption while allowing flexibility, the JSR suggests five 'guardrails' for the Bill: alignment with Section 217 of the Constitution and Chapter 10 public administration principles; the establishment of clear, statutory principles for measuring official capacity; a gradual rollout of strategic procurement only after institutions meet objective standards of ability and integrity; empowering the Public Procurement Office (PPO) to prohibit undesirable practices; and enhancing transparency through open contracting and incentivised whistleblowing.
  • The authors argue that the Public Procurement Bill must be a comprehensive Act of Parliament that embeds substantive policy choices and procurement principles directly in the statute. They oppose the National Treasury's preference for relying on regulations and PPO instructions to interpret the Act's intent, asserting that such a delegation of power repeats the failures of previous regulatory instruments.

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APA
Klaaren, J., Brunette, R., Quinot, G., & Watermeyer, R. (2023). A Strategic Public Procurement Paradigm for South Africa. Public Affairs Research Institute. https://pari.org.za/wp-content/uploads/2023/07/PPP28-06MAINfinx-1.pdf
Chicago
Klaaren, Jonathan, Ryan Brunette, Geo Quinot, and Ron Watermeyer. A Strategic Public Procurement Paradigm for South Africa. Public Affairs Research Institute, 2023. https://pari.org.za/wp-content/uploads/2023/07/PPP28-06MAINfinx-1.pdf.
Wikipedia
{{cite report |last1=Klaaren |first1=Jonathan |last2=Brunette |first2=Ryan |last3=Quinot |first3=Geo |last4=Watermeyer |first4=Ron |title=A Strategic Public Procurement Paradigm for South Africa |publisher=Public Affairs Research Institute |date=May 2023 |url=https://pari.org.za/wp-content/uploads/2023/07/PPP28-06MAINfinx-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{klaaren2023strategic, author = {Klaaren, Jonathan and Brunette, Ryan and Quinot, Geo and Watermeyer, Ron}, title = {{A Strategic Public Procurement Paradigm for South Africa}}, institution = {Public Affairs Research Institute}, year = {2023}, month = may, url = {https://pari.org.za/wp-content/uploads/2023/07/PPP28-06MAINfinx-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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