SA's economic pressures require increased procurement controls

| 0 Comments

 

JannieRossouw_400x640.JPGThe continued pressure on South Africa’s economic landscape requires procurement professionals to keep tight control on procurement processes.


“There is a danger of taking shortcuts, even in procurement”, said Professor Jannie Rossouw of Wits University.


There is pressure at all levels, said Rossouw, speaking at the Smart Procurement World Western Cape Conference. Owed to the pressure on government, community, financial and business spheres there will be increased instances of policies and procedures being disregarded, he explained.


He advised procurement professionals to be extra diligent during these tough times.


Furthermore, the Rand’s exchange rate volatility is currently a significant business cost and procurement must plan for continued volatility, he noted.


The exchange rate has also driven inflation and, in turn, interest rates, both of which procurement must plan for in its input-cost forecasts.

 

DawieRoodt_600x655.JPGInterest rates are low, in fact they are at a 700-year low, said Dawie Roodt, Director and Chief Economist at Efficient Group, telling conference delegates that interest rates are likely to increase.


Rossouw noted that higher interest rates are likely in 2016 and 2017 and he suggested that South Africa must consider a lower inflation target range of 2% to 4% per annum.


Meanwhile, Moody’s predicted that economic growth would drop to 0.5% this year as a "consequence of the intensification of this year's drought, low commodity prices and volatility in global and domestic markets". It is concerned about potential strikes and government debt, which has climbed as a percentage of GDP since 2009.


Practical take aways of the current economic overview:

• Lower investments this year
• Subdue demand
• Accelerating inflation
• Higher tax
• Volatile and increasing exchange rates
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Trade Compliance Senior Analyst

  • <500 000 >500 000 Analyst Buyer Gauteng Permanent
Trade Compliance Senior AnalystLocation – Rosslyn, South AfricaThe ...More

Logistics Controller

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Based in Stellenbosch, South Africa’s leading fruit exporter ...More

SUSTAINABILTY MANAGER - FARMING

  • >500 000 Gauteng Permanent Procurement Management Strategic Sourcing
(Total Cost to Company R900k – R1.2mil) includes ...More

Category Manager Logistics

  • >500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
(Total Cost to Company R900k – R1mil) includes ...More

Group Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management
Location: Johannesburg .Cost to Company R1.2mil – R1.4mil excluding ...More

Procurement Analyst

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R200K – R400K)We are ...More

Industrial Engineers

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Strategic Sourcing
(Total Cost to Company R400K – R550K)We are ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Location: Johannesburg Cost to Company R1mil – R1.4mil ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Location: Johannesburg Cost to Company R1mil – R1.4mil ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Location: Johannesburg Cost to Company R1mil – R1.4mil ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Role: The Category Manager will be responsible for ...More
Location: Johannesburg Description: To develop and manage relationships ...More
Location: Johannesburg Description: To develop and manage relationships ...More

Global Commodity Manager: Mining Commodities

  • Commodities Gauteng Permanent
Location: Johannesburg Description: Ensuring continuity of supply ...More

Global Commodity Manager: Mining Equipment

  • Commodities Gauteng Permanent
Location: JohannesburgDescription: The commodity manager is accountable for ...More

Mining Project Manager

  • Gauteng Permanent Projects / Category Management
Location: Johannesburg.Description : Responsible for successful implementation and ...More

Mining Project Manager

  • Gauteng Permanent Projects / Category Management
Examples of high impact initiatives are Equipment Automation, ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R 650 000 –R 800 000 CTC pa GautengA ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Management
R 600 000 – R 700 000 CTC ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Officer / Specialist
R 500 000 – R 550 000 CTC ...More