Describing this as a “radical” stage of the country’s economic “transition”, he said the department was in the process of engaging with National Treasury over the reform of the Preferential Procurement Policy Framework Act (PPPFA), as there was a “major” problem with the designation of goods and services under this legislation.
“We need to change the PPPFA so that it is aligned with the new manifesto of the ruling party [to advance black economic inclusion] and ensure that 70% of government goods and services are procured from local, [black-owned] firms.
“In its current form, the policy is [anti-transformational] and a hindrance,” he is reported as saying.
Among the aspects of the PPPFA identified by the DTI as problematic were the inability to institute set-asides, as well as what the DTI considered to be low BEE accreditation requirements.
Saying the DTI would be “rough, not reckless”, Masina added that the department had established an advisory panel to assist government to “work fast” in the creation of a framework strategy and implementation plan for the creation of the envisaged black industrialist class and would announce a suite of related incentives by the end of the month.
DTI director-general Lionel October further noted that no global business class had been created without the support of the State and it allowing preferential access to finance and procurement.
“We will fast-track these incentives. The DTI provides just under R6-billion a year to the private sector [through its various incentive schemes] and, in future, the bulk of that must go towards black industrialists.”
The full report can be found here:
