Missed opportunities in preferential procurement: Definitional ambiguity and its implications for effective implementation within the South African government

Abstract

Reforms in the South African public procurement system have been declared a new era of accountability and a new beginning in procurement. The modifications sought to rectify past disparities by fostering economic inclusion for under-represented groups via preferential procurement. Historically, procurement procedures benefited established organisations, restricting market access for black-owned businesses. The implementation of the Public Procurement Act introduced additional obstacles as it aimed to rectify imbalances in public procurement. The preferred procurement policy fundamentally defines "black people" as per the Broad-Based Economic Empowerment (BBBEE) framework, encompassing Black Africans, Indians, and Coloured individuals. This designation has resulted in definitional uncertainty and operational difficulties in guaranteeing equal procurement opportunities for "black individuals." This paper critically examines the South African government's failure to leverage its transformative potential by using the term "black people" to encompass three racial groups—Black Africans, Indians, and Coloureds—in procurement policies and legislation, thereby constraining the transformative impact on Black Africans' access to opportunities in public procurement. The essay advocates for a restructuring of the preferential procurement framework, based on empirical studies and policy evaluations, to explicitly prioritise black Africans, so ensuring greater inclusivity and verifiable socio-economic benefit. 

Keywords: {'name': 'Preferential Procurement, Public Procurement, Public Sector, Small Businesses'}

Authors & affiliations

Sanele Khomo
Affiliation not supplied

Snenhlanhla Molefe
Affiliation not supplied

Hlengiwe Mabizela
Affiliation not supplied

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