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SA policy allows space to procure locally

PRETORIA: South Africa has the policy space to prefer local manufacturers in the purchasing of goods and services from local companies, says Economic Development minister Ebrahim Patel.
Ebrahim Patel
Ebrahim Patel

Speaking on Wednesday in Pretoria at a seminar on public procurement, the minister said the reason for this was because the country did not sign up with the procurement protocols in the World Trade Organisation.

The objective of the seminar was to engage with the public sector and private sector on how to implement pro-competitive local procurement.

He said five years ago every minibus taxi in South Africa was imported, but government tweaked its policy to allow for investment in the public transport system. "Today we have two plants, a third one about to be launched that manufactures minibus taxis. Over the last couple of years, we have produced 31,000 minibus taxis locally and we are deepening the local component sector," Patel said.

We need to accelerate the growth rate

Competition Commission of South Africa commissioner, Tembinkosi Bonakele, said the commission's strategy for the next five years is driven by its vision to contribute to a growing and inclusive economy. The vision of the commission is aligned to the National Development Plan, the New Growth Path and the Industrial Policy Action Plan.

"We need to accelerate the growth rate to create wealth that enhances the standard of living for all South Africans, dramatically increase employment creation, develop industrial capabilities to decrease the country's dependence on commodity exports and transform the ownership and management profile of the economy to reflect the broader South African population," he said.

Bonakele said South Africa as a medium sized economy needs to optimise the demand created by government and large enterprises. "Strategic procurement is therefore a logical response aimed at supporting supplier development and localisation," he said.

The Competition Commission of South Africa is empowered by the Competition Act to investigate, control and evaluate restrictive business practices, abuse of dominant positions and mergers in order to achieve equity and efficiency in the South African economy. Its purpose is to promote and maintain competition in South Africa.

SOURCE is a South African government news service, published by the Government Communication and Information System (GCIS). (formerly BuaNews) was established to provide quick and easy access to articles and feature stories aimed at keeping the public informed about the implementation of government mandates.

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