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South Africa reforms public procurement to save R25bn

February 26, 2016

South Africa reforms public procurement to save R25bn

posted by Anna Scott
in Procurement, Public sector

South Africa’s finance minister has set out reforms to public purchasing processes that it is hoped will save the government R25bn out of an annual procurement spend of R500bn.

Pravin Gordhan announced in Wednesday’s budget for 2016-17 that it will become mandatory for all government procurement of goods and services to be undertaken through centrally negotiated contracts.

The government is holding talks with its top 100 suppliers to reduce prices and renegotiating contracts for banking services, ICT infrastructure, health technology and learner support materials, he added.

In addition, the procurement process must now be managed through the eTender portal, and no tenders can be submitted on paper. The automated process is expected to reduce corruption by lowering the risk of human intervention to override established protocols, Gordhan claimed.

Read more at CIPS Supply Management News.

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