Sent from my BlackBerry® wireless device -----Original Message----- From: Sikhumbuzo Thomo <[email protected]> Sender: [email protected] Date: Tue, 1 Nov 2011 12:43:17 To: <[email protected]> Reply-To: [email protected] Subject: Re: [YCLSA Discussion] 75% local procurement target agreed for the New Growth Path
Dear Comrades, Now we are gettting somewhere, I just hope that the PPPFA and the NIPF are fine tuned to realise this objective in particular clear desinations! ST On Tue, Nov 1, 2011 at 6:54 AM, Dominic Tweedie <[email protected]>wrote: > > [image: Business Report] > > > *Accord sets 75% target for procuring goods made in SA***** > ** ** > ** ** > *Ayanda Mdluli, Business Report, Johannesburg, 1 November 2011* > ** ** > Leaders from business, the government and organised labour signed an > accord yesterday that sets a target to procure at least 75 percent of > supplies from locally based companies to protect and create jobs and > enterprises.**** > ** ** > The accord is one of the latest steps taken to achieve some of the aims of > the New Growth Path, which hopes to create 5 million jobs by 2020.**** > ** ** > The accord identified a number of immediate steps to be taken by the > social partners to achieve the goal as part of efforts to increase jobs and > deepen industrialisation, Economic Development Minister Ebrahim Patel said. > **** > ** ** > The accord was a result of extensive engagement between large and small > businesses, the government and civil society. An agreement was reached to > ensure that all the main economic groups spent more on the local economy, > skills development and infrastructure.**** > ** ** > The Departments of Economic Development, Finance, Trade and Industry, > Energy, Public Enterprises and Rural Development were actively involved in > the discussions.**** > ** ** > Patel said the participation of both the public and private sectors “will > direct billions of rands” to locally made goods.**** > ** ** > Trade and Industry Minister Rob Davies said the accord would multiply the > effect through commitments made by big business. “The government is on > track to change the profile of purchasing decisions.”**** > ** ** > Investors had to understand that they could replace imports with products > manufactured in South Africa, Davies said.**** > ** ** > Fifteen companies with a combined annual turnover of about R350 billion > pledged their support in the accord.**** > ** ** > “Further companies will be recruited from the largest procurers of goods > and services in the economy, in support of this initiative, and a target of > at least 25 companies by March 2012 is being pursued, rising by at least 10 > companies per year,” the accord says.**** > ** ** > Business will increase investment in viable business opportunities that > may emerge as a result. Business will also “investigate potential linkages, > evaluate and develop multiplier opportunities among firms to effect > economies of scale and increase local manufacturing output and > competitiveness in specific value chains”, it reads.**** > ** ** > Oupa Bodibe, the chief director of specialist sectors at the Department of > Economic Development, said it was as yet unclear how much businesses and > the government procured from local suppliers.**** > ** ** > “We are trying to get information from across the sectors in the economy,” > he said.**** > ** ** > However, he said it was established that there was a huge influx of > imports, including capital goods, clothing and labour intensive products.* > *** > ** ** > The accord has been signed at a time when the government and unions are > embroiled in a bitter battle to ensure more stringent conditions are > imposed on US retail giant Walmart after it bought a controlling stake in > Massmart.**** > ** ** > On October 10, Cosatu called for Massmart and other local retailers to > meet a 75 percent quota for local products.**** > ** ** > Finance Minister Pravin Gordhan said supply chains across the world were > changing and new opportunities in the value chain should be identified and > explored.**** > ** ** > Gordhan added that the procurement process for the state had been damaged > by fraud and corruption. Business would work with the state to eliminate > these practices.**** > ** ** > Some goods procured by the state were inflated. For example, if the market > value for a laptop was R9 999, the state would pay R19 999, he noted.**** > ** ** > Business Unity SA chief executive Nomaxabiso Majokweni said the accord was > an indication that the partners had moved beyond talking and were at a > point of action.**** > ** ** > Businesses committed to revisit their supply chain policies and procure > from local suppliers in an effort to create and develop more enterprises. > These firms would be able to supply competitive products that were produced > efficiently and of sufficiently high quality.**** > ** ** > “We will up our effort to source locally produced goods.” > ** ** > ** ** > *From: > http://www.iol.co.za/business/business-news/accord-sets-75-target-for-procuring-goods-made-in-sa-1.1168655 > * > * * > * > > * > > -- > You are subscribed. This footer can help you. > Please POST your comments to [email protected] or reply to > this message. > You can visit the group WEB SITE at > http://groups.google.com/group/yclsa-eom-forum for different delivery > options, pages, files and membership. > To UNSUBSCRIBE, please email [email protected]. > You don't have to put anything in the "Subject:" field. You don't have to > put anything in the message part. All you have to do is to send an e-mail > to this address (repeat): [email protected] . > -- You are subscribed. This footer can help you. Please POST your comments to [email protected] or reply to this message. You can visit the group WEB SITE at http://groups.google.com/group/yclsa-eom-forum for different delivery options, pages, files and membership. To UNSUBSCRIBE, please email [email protected] . You don't have to put anything in the "Subject:" field. You don't have to put anything in the message part. All you have to do is to send an e-mail to this address (repeat): [email protected] . -- You are subscribed. This footer can help you. Please POST your comments to [email protected] or reply to this message. You can visit the group WEB SITE at http://groups.google.com/group/yclsa-eom-forum for different delivery options, pages, files and membership. To UNSUBSCRIBE, please email [email protected] . You don't have to put anything in the "Subject:" field. You don't have to put anything in the message part. All you have to do is to send an e-mail to this address (repeat): [email protected] .
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