South Africa to audit local purchasing compliance

Adam Leach is a freelance business journalist
17 July 2013

Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily   

The South African government has stepped up its efforts to use purchasing as a lever for economic growth by launching a local procurement verification service.

 

The Local Content Verification Office, part of the South African Bureau of Standards (SABS), was this month handed powers by the Department of Trade and Industry to examine whether businesses are complying with local procurement regulations.

 

Under the Preferential Procurement Policy Framework Act, introduced in December 2011, businesses operating in a number of sectors - including rail rolling stock and power pylons - are required to source from local suppliers.

 

Speaking at the launch this month, minister of trade and industry Rob Davies, said: “Through local procurement, a policy lever is provided, among others, to minimise import leakages which represent an outflow of funds while at the same time attempting to increase both aggregate demand and supply in the South African economy.”

 

During the verification process SABS officials will conduct site visits at factories of companies operating in the designated sectors, which also include set-top boxes for televisions and footwear, two times a year. The verification process is intended to boost compliance with local procurement regulations that have been designed to boost economic growth and create jobs in the South African supply chain.

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE