Black Africans in KZN to benefit
The KZN government will embark on ‘radical economic transformation’, giving priority to black Africans when the tenders are awarded.
|||Durban - The KwaZulu-Natal government has resolved to embark on “radical economic transformation”, giving priority to black Africans when government tenders are awarded.
The main aim is to support those previously disadvantaged, and have been left out when business opportunities are awarded.
At a meeting convened by Premier Senzo Mchunu on Wednesday to consider the recommendations of a Procurement Indaba held in Durban last month, Mchunu and his executive council reaffirmed their commitment to ensuring government suppliers of goods and services are representative of South Africa’s demographics and “blacks in particular”.
In advancing this resolution, procurement opportunities in government will be disaggregated by sectors to ensure opportunities are matched with available skills within the small medium and micro enterprises sector. This will ensure balance between the quality of service and quantity of providers.
Present at this meeting were heads of department, chief financial and chief executive officers of the provincial public entities.
Provincial government spokesman, Thami Ngwenya, said the indaba’s strategic objective was to create a platform for all stakeholders and the state to position public procurement as a necessary tool to advance radical economic transformation in the province.
For this purpose, an ad-hoc committee to lead the process was appointed. It comprises the MEC for Economic Development, Tourism and Environmental Affairs (EDTEA) Mike Mabuyakhulu as the convener, Human Settlement MEC Ravi Pillay and MEC for Finance Belinda Scott. The three will carry out instructions to convene further engagements with other stakeholders at national and municipal level.
“The indaba explored the possibility of localising and ring-fencing certain economic sectors to achieve real economic transformation in KZN. It also sought to look at identifying and reaching a conclusion on what the obstacles are to the meaningful and sustainable participation of black people, especially Africans, on procurement opportunities provided by the government and private sector,” Ngwenya said.
When asked who he referred to by black Africans, and which sectors were targeted to help push the transformation, Ngwenya said these excluded Indians and coloureds.
“As a point of departure, you need to bear in mind that Section 217(2) of the constitution allows for procurement policy that provides for preference and advancement of persons previously disadvantaged pre-1994. In terms of the National Cabinet Resolution in line with the Industrial Policy Action Plan, there were items that were identified for such.
“The provincial executive council took a resolution in this regard. We’re looking at advertising, media and communication, interior and exterior cleaning services and product supplies; clothing and textiles; computer equipment and consumables; interior and exterior furniture and decor and many others,” Ngwenya said. He said EDTEA and the Treasury were in talks with the national government to amend the Preferential Procurement Policy Framework.
Ngwenya said there was a view that transformation policies have not proportionately benefited black people, in particular, among the previously disadvantaged group. Thus, the government’s political will and commitment to transformation has been called into question by some stakeholders.
“This means there are areas of supply of goods and services still skewed in favour of established business, which places black owned enterprises at a disadvantage,” he said.
He said the revised codes of the B-BBEE placed greater emphasis on enterprise development.
Last month, Co-operative Governance Minister Pravin Gordhan reportedly told the indaba that there was a need to eradicate inter-generational poverty to avoid the passing on of poverty from one generation to the next.
Mabuyakhulu said this would allow the province to redress past injustices.
“This redress will not be exclusional. In this inclusiveness it should take into cognisance the imbalances of the past. We are very clear that those who come from the majority of the population are not left out and we should not be apologetic in ensuring that redress takes place. The private sector should come on board because 79% of the economy is in their hands,” Mabuyakhulu said.
Small Business Minister Lindiwe Zulu said the government needed to fast-track the amendment of the Preferential Procurement Policy Framework to enable provinces to implement their economic transformation plans.
“Who is considered as a beneficiary depends on provinces and how bad individual groups were affected by being left out disadvantaged,” she said.
The Business Unity South Africa (Busa) could not comment. Executive director Vanessa Phala said: “Commenting on this issue would require board members’ consultation. However, as Busa we support transformation and we believe in engaging all parties involved when pushing transformation and BEE policies.”
Daily News