Designation research studies are underway to strengthen the role of local production and content in the South African public procurement system, says Chief Director of Industrial Procurement and Development at the Department of Trade, Industry and Competition (the dtic).
Makube on Tuesday made a presentation at the 11th Manufacturing Indaba Conference and Exhibition in Johannesburg.
The Manufacturing Indaba is an annual event in South Africa that brings together key stakeholders from the manufacturing sector, including business leaders, government representatives, investors, and industry experts.
Its purpose is to foster growth, collaboration and innovation in the manufacturing industry, providing a platform for discussion on challenges, opportunities and policy frameworks.
The event aims to enhance industrialisation, drive economic growth and promote sustainable practices in manufacturing across the continent.
Makube’s presentation, which focused on “Localisation in the Public Procurement System”, highlighted key areas where policy adjustments could better support South Africa's economic growth, emphasising the strategic importance of localisation in stimulating the local economy by leveraging public sector expenditure.
He provided a comprehensive analysis of the current economic landscape, underscoring the importance of targeted interventions to drive growth.
"It is crucial that we intervene strategically in the economy by being deliberate about our procurement and purchasing choices. This requires rigorous economic analysis.
"While South Africa faces challenges in achieving the growth rates outlined in the National Development Plan, efforts to strengthen the localisation framework are essential.
“We need to address structural challenges in our economy, such as the declining manufacturing value addition to gross domestic product (GDP), high unemployment rates and scaling up export growth that will ensure sustainable economic development,” Makube said.
He emphasised the potential for localisation to drive economic multipliers, such as job creation and industrial development through strategic procurement.
Local production, particularly in sectors like manufacturing, can significantly enhance South Africa’s economic resilience.
“Manufacturing has historically been a key contributor to the GDP product, and we need to revive its role by focusing on sectors where we have a competitive advantage.
“Public procurement serves as a powerful tool to achieve this by prioritising South African-made goods and services. Such measures would help address issues related to South Africa’s reliance on imports and support government's broader economic transformation agenda,” Makube said.
Looking ahead, Makube highlighted the dtic's commitment to fostering a fair, transparent and competitive public procurement environment that benefits local producers and suppliers. He noted that recent legislative developments, such as the development of the Public Procurement Act, offer new opportunities for supporting local industries.
“Our goal is to ensure that procurement processes not only meet constitutional requirements but also contribute to building a stronger local economy.
“By enhancing transparency and competitiveness, we can create a more inclusive market that benefits all South Africans, especially those previously excluded from economic participation,” Makube said. – SAnews.gov.za
