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South Africa's Finance Minister Tito Mboweni Reveals First Budget

South Africa’s New Tendering Laws

“My company relies on government tenders, I am worried that this new procurement bill by government will impact my business. Is this true?” Yes true, you need to pay attention and understand its implication on your business.

The goal of these new public tendering or procurement laws by government is enforcement of compliancy.

South Africa’s government is inviting the public in its scraping of the old tendering laws or procurement regulations called the Preferential Procurement Policy Framework Act (“PPPFA”), to be replaced by one set of regulations and laws which will control all government departments, so that they all procure goods and select bidders the same way, because government procurement policy is currently all fragmented, and so the major goal of this draft procurement bill is enforcing compliance, and SMMEs committing fraud will barred from doing business with government for a certain period of time.

The other major change coming with this new set of rules and regulations for controlling government procurement is the introduction of pre-qualifying criteria for bidders to prefer certain vulnerable groups, and any bidder who does not meet these common pre-qualifying criteria will be barred from any invitation for tender or request for quotations bidding process.

The Minister is also tasked with introducing a new procurement point system thereby modifying the current 80/20 rule.

The new South African tendering laws will also promote the use of systems that enforce the open tender ideology of transparent tendering processes.

NEXT WEEK: We help an SMME with funding to deliver a number of ULV disinfecting machines (pictured below) to a large organisation in South Africa. The machines are weapons against COVID-19 and popular amongst pest control companies, and also are bought by large organisations to serve as back up, we also seek distributors/re-sellers to distribute these “weapons” to the public and private organisations across South Africa. To join this re-seller program click here.

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