The Implementation of Preferential Procurement Policy in Gauteng Province: Challenges and Solutions

Abstract

The South African government established the Preferential Procurement Policy (PP Policy) to provide Historically Disadvantaged Individuals (HDIs) economic opportunity in the state procurement process. There were a number of challenges in the implementation of the policy. The challenges include non compliance with procurement processes, limited knowledge of preferential procurement targets, late payments of suppliers, and fraud and corruption. In addition to putting measures to improve inefficiencies embedded in the preferential procurement system, this article asserts that the achievement of the objectives of the Preferential Procurement Policy lies mainly in the commitment by top management and the empowerment of the people tasked with the implementation of the policy. This means that the top management should receive training about the importance of the policy to create economic opportunities for black people. Furthermore, Supply Chain Management (SCM) officials in government should be given appropriate authority in the public procurement system.