1. The SA Economic Highway: Congestion and Tolls or Freeway
Andrew Layman
PURCO Conference, 2015

2. Overview
“As a major part of the economy and public spending, public procurement can demonstrate government efficiency. In an era of fiscal austerity, ensuring efficiency and integrity in public procurement is essential to ensure sound public service delivery and maintain citizens’ trust in government. Governments are recognising the potential of procurement to improve public sector productivity through savings and economies of scale. In addition, governments are tapping into the potential of procurement as a strategic policy lever to advance socio-economic and environmental objectives.” Angel Gurría: Secretary-General, OECD

3. SA Business Roadway

4. Congestion Delays Decision-making Contestation Labour disputes
Inefficiency
Non-compliance
Legislation

5. Costs High cost of doing business Unrealistic wage increases
Annual compliance reports
Red tape
High transport costs

6. Conditions of Constraint
Socio-political agendas
Employment equity
BBBEE
Immigation
Anti-capital sentiment

7. Why capital is hoarded

8. Bongani Mbindwane: Daily Maverick, 1 October 2015
“Corporate South Africa appears to be on an investment strike …… long-term cash-hoarding is unpatriotic and counter-intuitive and is directly linked to slow economic growth.”
Bongani Mbindwane: Daily Maverick, 1 October 2015

9. Freeway Procurement Administrative function, not strategic
More professionalism required
Assessment of risks and opportunity costs
Fragmentation

10. Procurement (OECD)
More managerial in pursuit of value for money, instead of strict compliance
Strategic position for government
Sound stewardship of public funds
Monitoring and evaluation
Potential of consolidation and integration
Community of practice
Strict control of exceptions
Sufficient flexibility for different situations

11. SME Development What are these SMMEs? Emerging start-ups?
Co-operatives?
Functioning small businesses?
Capacity for survival and growth

12. 8 ‘Big Ideas’ in Mexico Smarter use of free trade agreements
Dedicated access to SMEs through government fairs
Centralised e-procurement platform
National credit guarantee system
Lower interest rates
Public procurement contracts as collateral
Financing of innovation
Preferential purchasing programmes with SOEs