Preferential Procurement a boost to Proudly South Africa campaign

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Herbert Mkhize.JPGThe finalisation of the long-awaited Preferential Procurement Regulations (presently awaiting cabinet approval to finalise the new Procurement Framework), will be a significant boost for Proudly South Africa (PSA), according to the “buy local” campaign’s acting CEO Herbert Mkhize.

The regulations will help stimulate greater demand for local goods and services (and in so doing create more jobs), encourage the trend to local procurement and bolster local manufacturers who are vying for government tenders, said Mkhize.

PSA was launched by government and organised business and labour in 2001. It is funded and regulated by the Department of Trade and Industry and is instrumental in reviewing government procurement legislation.

PSA is renewing its efforts to gain concrete commitment from public and private sector entities to local procurement, said Mkhize. For example, it will approach a government department to sign up with PSA and commit to buying 60% of their daily consumables from suppliers of goods and services made in South Africa.

Futhermore, it intends to target civil servants to use their collective buying power to buy local goods and services.

Meanwhile, Mhkize urges South Africa’s clothing and textile, and canning industries, which have been hard hit by the strong Rand and the consequent shift to cheaper imports, to continually address their cost structures to remain internationally competitive.

Herbert Mkhize’s comments were drawn from Jana Marais’ article Boost to ailing PSA campaign, in Sunday Business Times, April 24 2011.

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