RE: PROPOSAL TO TRAIN COOPERATIVES AND

SMMEs ON PREFERENTIAL PROCUREMENT

INTRODUCTION
The recent amendment on Preferential Procurement
Regulations in line with Broad Based Black Economic
Empowerment offers good prospects for active
participation of targeted groups in the mainstream
economy. This amendment was introduced ensure
compliance by entities bidding for public procurement
opportunities. The targeted groups have not been able to
exploit procurement opportunities despite the
introduction of different interventions such as sector
charters and enabling legislation, namely, Preferential
Procurement Policy Framework Act No 5 of 2000. It is
therefore the purpose of document to identify the
challenges, constraints and possible solutions.
CRITICAL SUCCESS FACTORS

Sustainable SMMEs
Job creation
Functional Cooperatives
Reduction of state grant beneficiaries

CHALLENGES AND CONSTRAINTS

The targeted groups are faced with socio-economic
problems poverty and unemployment which are
attributable to among others the following:
Lack of training
The targeted groups are unable to respond to
procurement opportunities as they do not have
requisite skills.

 Lack of skill
As mentioned above the lack of skill poses a serious
challenge.
Lack of information
The targeted groups are also faced with the problem
of access to information.
Lack of resources
The targeted groups are unable to access information
because of lack of resources such as internet and fax
facilities
Lack of networking
The targeted groups need to establish support
groups for co-operation among themselves
PROPOSED INTERVENTION
As the country is faced with a high level of
unemployment and poverty the successful
implementation of the new procurement legislation can
significantly contribute towards solution of these
challenges. It will however require a multi-stakeholder
participation to implement the intervention. The
intervention should have a significant bias for rural areas
as the socio-economic challenges such as poverty and
unemployment are rife. The following stakeholders can
play a very significant role for successful implementation
of the intervention:
Private sector
Local Municipalities Local Economic Unit
Organized Labour - Trade Unions (Social Labour
Plans)

 Local Communities
The intervention can be implemented as follows:

Practical hands-on training

Regular training sessions
Formation of cooperatives
Formation of joint ventures
Submission of real life tenders
Monitoring and evaluation of submitted tenders

CONCLUSION
As procurement is one of the key economic drivers it is
our opinion that successful implementation of this
proposal will certainly yield desired impact. We are willing
to make a presentation if a need for clarity should arise.

Prepared by: Booksy Sello Managing Member

Sello & Associates