Procurement salaries in South Africa grew by 7.2% in 2021, according to the CIPS/Hays Procurement Salary Guide.
The average salary for all South African procurement and supply chain professionals in 2021 was R601,000.
Average pay for professional level roles such as procurement manager was R976,000, and for operational roles such as procurement specialists it was R394,000. For advanced professional level roles such as procurement director the average pay was R1.4m.
Across sub-Saharan Africa, procurement salaries grew by 9.7%, according to the survey, which covered 6,512 professionals working in procurement globally. The average salary for all sub-Saharan Africa procurement and supply chain professionals was $34,677.
Average pay for professional level roles such as procurement manager was $44,000, for operational roles such as procurement specialist it was $27,000. Average pay for advanced professional level roles such as a procurement director was $63,000.
The average pay increase for procurement professionals in both South Africa and sub-Saharan Africa overall was above the average increase, the report said.
Men were on average paid more than women in South Africa, with the gender pay gap being 35%. In sub-Saharan Africa, the average gender pay gap was only 1%, although the gap varied considerably depending on the role levels.
According to the survey, 47% of procurement professionals in South Africa reported a pay increase in 2021. The average bonus was 8.6% of salary, with 61% of those eligible receiving one in the last year.
For sub-Saharan Africa, 40% of procurement professionals received a pay rise in 2021. The average bonus was 8.7%, with 64% of those eligible receiving one in the last year.
Three quarters (75%) of respondents in South Africa agreed that directors and heads of other departments understood what procurement specialists can offer. For sub-Saharan Africa, the figure was 87%.
Soft skills continue to be key across all procurement role levels in South Africa and sub-Saharan Africa, with negotiation cited as the most important in both regions (54% and 55% respectively), followed by supplier relationship management (49% and 50%). In South Africa, contract management (44%) was the next most important skill, while in sub-Saharan Africa it was sourcing (45%).
MCIPS improved salaries compared to those without it, the data showed, by 34% in South Africa and by by 28% in sub-Saharan Africa.
In South Africa, the main procurement challenge over the next 12 months will be recovering from the Covid-19 pandemic, cited by 46% of respondents, followed by budget restraints (41%) and managing risk in the supply chain (39%).
For sub-Saharan Africa budget restrains was top (52%). This was closely followed by recovering from the Covid-19 pandemic (50%) and managing supply chain risk (45%).
Scott Dance, director, Hays Procurement and Supply Chain, said the fact so many procurement professionals had received pay rises over the past year demonstrated the importance of the function and increased investment into it.
“Employers will now need to evaluate how employee priorities have changed during what has been a very turbulent year, and tailor their benefits packages accordingly to ensure they’re able to secure the talent they need,” he said.
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