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Public Procurement in the South African Economy: Addressing the Systemic Issues

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  • David Fourie

    (School of Public Management and Administration, Faculty of Economics and Management Sciences, University of Pretoria, Pretoria 0001, South Africa)

  • Cornel Malan

    (Cornel Malan, Independent Industry Advisor, Privatebag X1007, Lyttelton 0140, South Africa)

Abstract

Public procurement fulfils an important role in the economy and public expenditure of a country and can be regarded as a critical indicator of the effectiveness of a government, because it is a central aspect of public service delivery. Notwithstanding various reforms made to date to public sector procurement in South Africa and the application of Supply Chain Management as a strategic policy strategic instrument, the South African public procurement system still faces several challenges and has been strongly criticised. This paper aims to understand the current public procurement environment in South Africa, its dilemmas and challenges, and to propose that public procurement be refocused towards a strategically placed business process, implemented by well-trained and competent procurement officials. The purpose is to provide a theoretical foundation as well as practical guidance regarding the role of public procurement in the South African public sector. The methodology involved an intensive literature study and document analysis to evaluate various official policy documents and official publications to determine the status of South African public procurement. The study found that the majority of challenges faced by public procurement in South Africa can probably be attributed to the implementation of the system, rather than to the system itself. In the shorter and longer term, the public procurement system in South Africa will have no choice but to emerge as a stronger, more resilient, streamlined and efficient provider of goods and services for the greater good of all.

Suggested Citation

  • David Fourie & Cornel Malan, 2020. "Public Procurement in the South African Economy: Addressing the Systemic Issues," Sustainability, MDPI, vol. 12(20), pages 1-23, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8692-:d:431655
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    References listed on IDEAS

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    2. Lerato Shai & Comfort Molefinyana & Geo Quinot, 2019. "Public Procurement in the Context of Broad-Based Black Economic Empowerment (BBBEE) in South Africa—Lessons Learned for Sustainable Public Procurement," Sustainability, MDPI, vol. 11(24), pages 1-27, December.
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    Cited by:

    1. Anna I. Denisova & Dzhamilya A. Sozaeva & Konstantin V. Gonchar & Griegory A. Aleksandrov, 2023. "Improving the Methodology for Assessing the Economic Efficiency of Public E-procurement of Medicines," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 63-81, August.
    2. Gezani Mazibuko, 2021. "The Relevance of Procurement in Public Administration: A South African Perspective," Journal of Social and Development Sciences, AMH International, vol. 11(4), pages 26-34.
    3. ENWEREJI, Prince Chukwuneme, 2022. "Enhancing Financial Accountability In South African Local Municipalities: A Consequence Management Viewpoint," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 26(4), pages 19-47, December.
    4. Joel R. Motaung & Portia Pearl Siyanda Sifolo, 2023. "Benefits and Barriers of Digital Procurement: Lessons from an Airport Company," Sustainability, MDPI, vol. 15(5), pages 1-18, March.

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