South Africa’s Supply Chain Council (SCA) says President Cyril Ramaphosa’s signing into law of the Public Procurement Bill marks a “historic moment” introducing a new era of efficiency, economic transformation and support for local businesses.
SCA executive chairman Kamogelo Mampane said the new law which Ramaphosa signed on Tuesday marks “a significant milestone” for the supply chain industry and the economy.
“President Cyril Ramaphosa has officially signed the much-anticipated Procurement Bill into law, ushering in a new era of efficiency, economic transformation, and support for local production and services,” Mampane said.
“This landmark legislation is set to revolutionise procurement practices across the country, presenting a myriad of opportunities and benefits for supply chain professionals, businesses, and communities,” he said.
The law is a comprehensive framework designed to streamline procurement processes, making the procurement and supply chain environment more transparent, efficient, transformative, developmental and accountable. By introducing standardised procedures and stringent oversight mechanisms, the law aims to minimise bureaucratic delays and reduce opportunities for corruption.
“Supply chain professionals will benefit from clearer guidelines and faster decision-making processes, enabling them to focus on strategic planning and execution,” Mampane said.
One of the core objects of the law is to drive economic transformation. It mandates that a significant portion of government procurement contracts be awarded to historically disadvantaged individuals and small, medium, and micro enterprises (SMMEs).
“This inclusive approach is expected to level the playing field, providing equal opportunities for all businesses to compete and thrive. Supply chain professionals will play a pivotal role in identifying and collaborating with diverse suppliers, fostering a more equitable and inclusive economy,” Mampane said.
He said a key highlight is its strong support for local production and manufacturing.
“The law stipulates that government entities prioritise locally produced goods and services in their procurement decisions. This provision aims to boost local industries, create jobs, and stimulate economic growth,” Mampane said.
He said supply chain professionals will need to cultivate robust relationships with local suppliers to ensure the procurement of locally manufactured products meets quality and cost-efficiency standards.
The law also emphasises sustainable development by prioritising environmentally friendly and socially responsible procurement practices. It encourages the adoption of green technologies, sustainable materials, and ethical sourcing methods.
“The enactment of the Procurement Bill presents both challenges and opportunities for supply chain professionals. On the one hand, complying with new regulations and standards will require adaptation and continuous learning,” Mampane said.
“On the other hand, the law opens up new avenues for innovation, collaboration, and value creation. Supply chain professionals will be at the forefront of driving change, leveraging their expertise to optimise procurement processes,” he said.
Mampane said the signing of the bill into law was “a historic moment” for the country.
“It signifies a bold commitment to enhancing procurement practices, fostering economic transformation, promoting sustainable development, and supporting local production. As supply chain professionals, we are responsible for embracing this new framework, harnessing its potential, and contributing to building a more efficient, equitable, and prosperous future for all,” he said.
