Employment Creation through Preferential Procurement and Enterprise Development

by MEHLELI,M., 2009/10
Research Report. Centre for Poverty Employment and Growth, Human Sciences Research Council

Initiated in 2008, the Human Sciences Research Council’s Employment through Procurement Project developed a knowledge base of procurement and enterprise development strategies to achieve socio-economic objectives, with an emphasis on employment creation. It focused on whether programmes contributed to: The creation of enterprises that supply previously imported goods and services  – Increased competitiveness of existing suppliers – The creation of new downstream industries (i.e. forward linkages), or – The transfer of business from a capital-intensive supplier to a more labour-intensive supplier. The project comprised three phases. The first involved a literature review of preferential procurement and the policy and institutional landscape in South Africa, coupled with extensive interactions with members of the National Business Initiative. The second phase comprised a set of case studies on the strategies of companies and municipalities to achieve socio-economic objectives through procurement. The third phase aimed at assisting the City of Tshwane in developing a strategy to promote employment through procurement. A key research output was a generic framework for developing preferential procurement strategies. This report consolidates the findings from all three phases. For confidentiality reasons, issues specific to the City of Tshwane are excluded from this report