President Cyril Ramaphosa signs legislation beginning a single public procurement framework.

President Cyril Ramaphosa has signed into law the Public Procurement Bill, which establishes a unified framework for regulating public procurement, including preferential procurement, by all state organs. This legislation aims to enhance efficiency, cost-effectiveness, and integrity in public procurement processes.

The new law complies with Section 217 of the Constitution, which mandates that the procurement of goods and services by state organs must follow a system that is fair, equitable, transparent, competitive, and cost-effective. It also requires national legislation to provide a framework for implementing procurement policies.

The Public Procurement Act addresses past weaknesses in the procurement system that allowed for corruption and state capture. It acknowledges that previous procurement regulations were fragmented and hindered the justified advancement of individuals or groups capable of providing goods or services.

By establishing a single regulatory framework for public procurement, the Act promotes the use of technology to improve efficiency and effectiveness. It seeks to enhance transparency and integrity to combat corruption, ensure the efficient use of public resources, and support economic transformation and broader participation.

The Act also aims to stimulate economic development through the procurement of locally produced goods and services and procurement practices that are developmental in nature.

Administered by the Minister of Finance, the Act applies to government departments, constitutional institutions, municipalities, municipal entities, and public entities. Certain clauses also apply to Parliament and provincial legislatures.

The Act governs all procurement activities by procurement institutions, including those funded by donors or grants, and any person submitting or awarded a bid. It specifies that certain individuals, such as public office bearers, employees of Parliament or provincial legislatures, and officials or employees of public entities, are prohibited from submitting bids.