Procurement overhaul in South Africa

17 February 2010

17 February 2010 | Jake Kanter

The South African government is planning a “significant overhaul” of procurement legislation to boost jobs in manufacturing.

Trade and industry minister Rob Davies said the Industrial Policy Action Plan, to be published this week, will set out how the government’s 846 billion rand (£7.1 billion) infrastructure spend over the next three years will be used to benefit the domestic economy.

A previous government scheme to boost supplier competitiveness and capability will be aligned to a separate rule requiring public bodies to contract with domestic vendors, he said.

“This will create improved opportunities for local industries to supply a greater proportion of the inputs needed in ways that will boost decent employment.”

According to the minister, the South African manufacturing industry suffered 202,000 job losses between October 2008 and December 2009.

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