Revisions to public procurement regulations to further boost economy
The revised Preferential Procurement Regulations, which were gazetted on January 20, have introduced prequalification criteria, which allow the advancement of selected categories of people by limiting competition.
The restriction will limit the inclusion of well-established companies, unless they meet further requirements of subcontracting to these groups should they be successful.
“The release of the revised regulations will use public procurement as a lever to promote socioeconomic transformation, empowerment of small enterprises, rural and township enterprises, designated groups and promotion of local industrial development,” Finance Minister Pravin Gordhan said on Tuesday.
“This is in line with the current dialogue on inclusive economic growth in South Africa,” he noted.
The regulations were first promulgated in 2001 and revised in 2011, before the latest revision this year.
The regulations will see government set aside 30% of appropriate categories of State procurement for procurement from the groups mentioned by Gordhan.
Further, the revisions acknowledge that while high-value tenders in the region of R30-million and above tend to be awarded to established companies, owing to economies of scale and affordability, leaving out aspiring businesses, the revised regulations require all those with the ability to deliver the required service to demonstrate the element of subcontracting to the categorised groups at a tendering stage.
The revisions also tackle discontent from categorised groups, who felt that the threshold of R1-million was too insignificant for them to grow to the same level as established companies. Current regulations have increased to R50-million. This now gives the smaller companies greater chances to compete in the economy in a meaningful way.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Design, Construction and Maintenance of Site Erected, Welded Bulk Storage Tanks for the Petrochemical, LNG, Ammonia and Sustainable fuel Sectors.
VISIT SHOWROOM
We at Hawk High Pressure Pumps specialise in industrial pumps and pumping systems. Our high pressure washing equipment is locally manufactured and...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
