Question

Discuss the advantages and limitations of the procurement process and its effect on small business development in south Africa.

in your response, focus in particular on these areas of interest:
•Procedures
•Tendering in South Africa
•Challenges affecting the procurement process
•Sustainability and good corporate governance (30 Marks)

Answer 1

South Africa is facing a plethosa of development challenges, a persistent unemployment Coisis, particularly anogst the youth population social and sacial segregation that continues to thwast econor mic growth and low economic productruity in companion to their BRICS counterparts. In light of these challenges and albers, economic competitivenne is still in early stages in today's South Africa and is driven by a vision for a mose labous-intensive and inclusive growth Path, one that focuses on value added exports and Supporting domestic industry and manufacturing. Pao curement system is to be fair, equitate tsansparent, competitive and cost effective procurement Policy may provide for a categories of preference in the allocation of contracts and b the protection of or advancement of persons or categories of persons. dis advantaged by unfair discrimination the development of dedicted guidance on the procurement i sustainable building/infzastructure. This could include a qualitative and quantitative assessment on the potential saur ngs and efficiency gains in the South African context in South African law, public tender Processes are regarded as administrative processess but once the tender is awarded. The parties conclude a contract whese after their relationship is governed by the law of contract public procurement is thus a field where the poinciples of both pablic and private law ase selevant

itis ageneoally accepted poinciple of good governance that effective legal nemedies should be available in the case of the breach of a legal duty by a procuring entity. h public procurement this will amongst olhens i ensure accountability, caurdability and the integrity of the procurement regione. A number of international instruments contain paescriptions on semedies that will vindicate the night of participants in the procurement process. The advantages of procurement are improved Spend visibility and lower costs, Global procurement Better operational neoformance standaadized wood flow simplified processess, improved Data Accusancyintegnal integration and electronic catalogs The public procurement chall enges are lack of pooper brno coledge Shill ond capacity inon compliance with som policy and regulation, accontability, fraud and Cossuption, in adequate monitoring and evaluation of Scmi unethical behaviour, heffectweness of the black economia empowerment policy paocurement aducing the pores and costs of saw material and finding better Supply Sources.