A Public Procurement Blueprint for Socio-economic Development

  • Intaher Marcus Ambe University of South Africa, School of Public and Operations Management
Keywords: public procurement, blueprint, socio-economic development, South Africa


The ambition to create a developmental state in South Africa and to transform the apartheid economy has been hamstrung by ineffectiveness, poor coherence, inadequate capability and corrupt procurement practices. Procurement in the South African public sector is a strategic tool is used to facilitate long-term socio-economic development, inclusive growth and industrialisation throughout southern Africa. In 2004, supply chain management (SCM) was introduced as a procurement tool to the South African public sector in order to accelerate socio-economic development. Despite the implementation of SCM to address tremendous social and economic challenges in South Africa, poverty, unemployment and inequality still reign. This article is based on an exploratory review and suggests a procurement blueprint for accelerating inclusive growth in South Africa. The core drivers of the blueprint are efficient capacity and professionalisation plans; ethics and good governance; strategic procurement; and information and communication technology.


Ambe, I. M. (2009) An exploration of supply chain management practices in the central district municipality, Educational Research and Review, 4(9), pp. 427-435.

Ambe, I. M. & Badenhorst-Weiss, J. A. (2012) Procurement challenges in the South African public sector. Journal of Transport and Supply Chain Management, 6(1), pp. 242–261.

Arrowsmith, S. (2010) Public procurement: Basic concepts and the coverage of procurement rules, In: Arrowsmith, S. (ed.) Public procurement relations: an introduction (EU Asia InterUniversity Network).

Asian Development Outlook (2012) Confronting Rising Inequality in Asia (Mandaluyong City: Asian Development Bank).

Auditor General of South Africa (2015) Consolidated general report on the audit outcomes of Local Government, 2012-2015 (Pretoria: AGSA).

Boateng, D. (2008) Government service delivery lies in supply chain management, not centralised procurement, smart procurement, available at: www.smartprocurement.co.za (February 1, 2012).

Business Day (2011) Irregular state expenditure jumps 62%. Smart procurement, available at: www.smartprocurement.co.za/achives/irregular_state_enpenditure_62.p (February 10, 2012).

Dzuke, A. & Naude, M. J. A. (2015) Procurement challenges in the Zimbabwean public sector: a preliminary study, Journal of Transport and Supply Chain Management, 9(1), pp. 1-9.

Essig, M. & Dorobek, S. (2006) Adapting the balanced scorecard to public supply chain management. Working Paper for the 15th Annual IPSERA Conference, San Diego, CA.

Eyaa, S. & Oluka, P. N. (2011) Explaining non-compliance in public procurement in Uganda, International Journal of Business and Social Science, 2(11), pp. 35–45.

Gansler, C., Luby, J. R. & Kornberg, B. (2004) Supply chain management in government and business, in: Gansler, J. & Luby, J. R. (eds.) Transforming government (Washington, D.C.: The IBM Centre for the Business for Government Series).

Garg, M. & Gupta, S. (2012) Cases on Supply Chain and Distribution Management: Issues and Principles (Hershey: IGI Global).

Huka, H. A., Mchopa, A. D & Kimambo, J. J. (2014) Analysis of Procurement Procedures in Local Government Authorities: Experience after Procurement Reforms and Case Analysis from Selected Councils in Kilimanjaro Tanzania, European Journal of Business and Management, 6(18), pp.16-22.

Irene, B. N. O. (2017) The Macroeconomic Landscape of Post-Apartheid South Africa: A Critical Review of the Effect of the Broad-Based Black Economic Empowerment (BBBEE) Program on the Success of Female SMEs Operators, Journal of Educational and Social Research, 7(1), pp. 145-150.

Kadima, R. Z., Musiega, D., Kibet, Y. & Wafula, G. (2013) An analysis of procurement procedures on the implementation of Government construction projects in Kenya Public Universities; Case study of Masinde Muliro University, International Journal of Innovation Research and Development, 2(11), pp. 23-29.

Knight, L., Harland, C., Telgen, J., Thai, K.V., Callender, G. & McKen, H. (2007) Public Procurement: International Cases and commentary. 1st ed. (London: Routledge).

Luthuli, T. B. (2007) Performance measurement as a public policy implementation tool in the South Africa public service. D Phil thesis (Pretoria: University of South Africa).

Mahmood, S. A. I. (2010) Public procurement and corruption in Bangladesh: confronting the challenges and opportunities, Journal of Public administration and Policy Research, 2(6), pp. 103-111.

Matthee, C. A. (2006) The potential of internal audit to enhance supply chain management outcomes. Master’s dissertation (Stellenbosch: University of Stellenbosch).

Migiro, S. O. & Ambe, I. M. (2008) Evaluation of the implementation of public sector supply chain management and challenges: a case study of the central district municipality, North-West Province, South Africa, African Journal of Business Management, 2(12), pp.230-242.

Musanzikwa, M. (2013) Public procurement system challenges in developing countries: The case of Zimbabwe, International Journal of Economics, Finance and Management Sciences, 1(2), pp. 119–127, https://doi.org/10.11648/j.ijefm.

National Treasury (2005) Supply chain management: a guide for accounting officers and municipal entities (Pretoria: Republic of South Africa).

National Treasury (2015) 2015 Public Sector Supply Chain Management Review, available at: http://www.treasury.gov.za/publications/other/SCMR%20REPORT%202015.pdf (February, 10, 2019).

Naude, L. J. (2003) The people and customer effects of bus reforms in South Africa. Paper presented at the 8th Thredbo Conference in Rio de Janeiro, 14-18 September 2003, available at: http://www.thredbo-conference-series.org/downloads/thredbo8_papers/ thredbo8-workshopE-Naude.pdf (May 15, 2016).

Naude, M. J., Ambe, I. M. & Kling, R. (2013) Supplier relationship management – anathema for the South African public procurement sector, Journal of Transport and Supply Chain Management, 7(1), pp. 1-8.

Ngoepe, K. (2016) Fronting remains a huge problem – BBBEE Commission. News24, 31 May. available at: https://www.news24.com/SouthAfrica/.../fronting-remains-a-huge-problem-bbbee-co (December 15, 2017).

Odhiambo, W. & Kamau, P. (2003) Public procurement: Lessons from Kenya, Tanzania and Uganda. OECD Development Centre Working Paper No. 208 (Paris: OECD).

OECD (2013) Government at a Glance (2013). Procurement Data OECD Meeting of Leading Practitioners on Public Procurement. 11-12 February 2013 (Paris: OECD Conference Centre).

Perera, O. & Colverson, S. (2012) Sustainable Procurement in Fragile States, available at: http://www.iisd.org/pdf/2012/procurement_fragile_states.pdf (February 10, 2019).

Public Service Commission (2011) Report on Profiling and Analysis of the Most Common Manifestations of Corruption and its Related Risks in the Public Service (Pretoria: Silowa Printers).

Rypstra, U. (2011) Critical analysis. Cargocarriers, available at: http://www.focusontransport.co.za/regulars/focus-on-bus-and-coach/bus-and-coach/610-critical-analysis.html (April 19, 2017).

Simpson, Z., McKay, T., Patel, N., Sithole, A., Chipp, K. & Mambo, J. (2012) Past and present Travel patterns in the Gauteng City-region, Research report commissioned by the Gauteng City Region Observatory. Awaiting Publication.

Smart Procurement (2011) SA public procurement: poor value for money, available from: www.smartprocurementworld.com (February 10, 2012).

Seidu, S. S., Fatawu, A. & Ahmed, S. (2014) Assessing the Contribution of Public Procurement in Revenue Mobilisation in Ghana (The Case Of Tamale Polytechnic), International Journal of Economics, Commerce and Management, 2(9), Sep 2014.

South Africa. National Treasury. (2003) Policy strategy to guide uniformity in the procurement reform processes in government. [Online]. available at: http://www.treasury.gov.za/divisions/sf/sc/Guidelines/policy.pdf (May 10, 2016).

Speckman, A. & Ndlovu, R. (2017) Storm brews over SA's rash of consultants: Ire over billions spent on outsiders to do work that should be done in-house, available at: https://www.businesslive.co.za/.../2017-07-08-storm-brews-over-sas-rash-of-consultants (July 9, 2017).

Thai, K.V. (2006) Advancing public procurement: practices, innovation and knowledge sharing, In: Thai, K. V. & Piga, G. (eds.) Advancing public procurement: practices, innovation and knowledge sharing (ch. 1) (Boc Raton: Pr Academics Press), pp. 1–13.

Turley, L. & Perera, O. (2014) Implementing sustainable public procurement in South Africa: Where to start? (Winipeg: The International Institute for Sustainable Development).

Uyarra, E. & Flanagan, K. (2009) Understanding the innovation impacts of public procurement. Manchester Business School Working Paper, No. 574, available at: http://www.mbs.ac.uk/ research/workingpapers/ (January 19, 2012).

Venter, M. (2016) Enterprise and Supplier Development (ESD), available at: https://www.esi-africa.com/wp-content/uploads/2016/05/Mario-Venter-.pdf (february 10, 2019).

Walters, J. & Cloete, D. (2008) The South African experience with negotiated versus competitively tendered bus contracts, Transport Research Part A, 42(9), pp.1163–1175.

Walters, J. (2012) Overview of public transport policy developments in South Africa. Department of Transport. 2002. Report on the optimisation of bus subsidies (Pretoria. South Africa).

Walters, J. & Heyns, G. (2012) Problems with the implementation of bus transport contracting in South Africa, Journal of Transport and Supply Chain Management, 6(1), pp. 35-54.

Zamfir, L. (2016) Africa's economic growth: Taking off or slowing down?, available at: http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_IDA(2016)573891 (December 9, 2016).

Zitha. H. E. (2016) Compliance to procurement processes, deviant behaviour and effects on service delivery in the public sector, Journal of Public Administration and Development Alternatives, 1(1), pp. 59-76.