1 year ago

Opportunity Issue 98

  • Text
  • Property
  • Sme
  • Automotive
  • Manufacturing
  • Africa
  • Investment
  • Trade
  • Afcfta
  • Sacci
  • Midvaal
  • Economy
  • Programme
  • Petroleum
  • Sector
  • Global
  • Economic
  • African
  • Municipality
  • Infrastructure
Opportunity magazine is a niche business-to-business publication that explores various investment opportunities within Southern Africa’s economic sectors and looks to provide its readers with first-hand knowledge about South African business. Opportunity also looks to present South African business to international markets that may have interests in investing in South Africa. The publication is endorsed by the South African Chamber of Commerce and Industry (SACCI).

TRANSPORT Listed below

TRANSPORT Listed below are a few recommendations that may assist in the success of the initiative. Political continuity. African business leaders have shown great appetite for the AfCFTA but they need to remain committed to its success. Policy choices. There is no universal recipe for industrialisation. It will require smart policy choices backed by supportive regulations and frameworks – and may need a lighter bureaucratic touch than African governments are willing to give. Africa’s internal trade is more diversified and technology and manufacturing driven than its global trade, providing a platform to build on. Connectivity and corridors. This requires matching policy with infrastructure and creating hubs around ports and linked to transport corridors. As neighbouring markets grow interdependent, their requirements are likely to improve export sophistication and develop regional industrial clusters. This requires improved connectivity by road, rail and air, to support growing demand. Africa, while it also requires large infrastructure projects, also needs to invest in joining up existing infrastructure – stretches of rail to each other, roads to rail, bridges at strategic junctures and so on. Improving Africa’s main trade highways should be a priority: removing roadblocks, fixing roads, building supporting infrastructure and services along routes and ensuring better management of border posts, with outputs closely monitored. Business climate. Improving the business climate is a critical element of competitiveness and attracting investment. Governments need to build meritocratic institutions that focus on reducing the cost of doing business. The greater use of technology in improving trade and the capacity of people to trade is critical, as well as a more decisive shift to e-government. Keeping business on board. Best – and worst – practice. Stakeholders need to look to success and failure at home and elsewhere for how to change the trade trajectory. Financing trade. The banking sector will play a vital role in supporting the AfCFTA and Africa’s development generally. Flag success stories. No matter how small, these may create momentum and aspirational sentiment among businesses in Africa. The big success stories may do the same, possibly prompting African governments to analyse the constraints to their own success nationally, and possibly to act on them. About the author Dianna Games is Chief Executive of Africa @ Work, an advisory company focusing on African business. She is a leading commentator on business issues, trends and developments in Africa and has travelled extensively around the continent. She specialises in corporate engagements across Africa and has done research into regional economic developments, corporate and government investment trends, sector analysis for private clients and tracks business developments in Africa’s key markets.

ADVISORY SERVICES Understanding Government’s Tendering Process Tendering and procurement is a uniform process and tender forms are standardised. The tendering process in government is primarily driven by instructions found in the Constitution and in particular in Section 217, which prescribes that a tender system must at all times be “Fair, equitable, transparent, competitive and cost-effective”. It further instructs government to create a “Framework”, giving preference to historically disadvantaged individuals and the Preferential Procurement Policy Framework Act (PPPFA) is a response to that instruction. It introduces a preferential point system, which is either the 80-20 equation for tenders with a value of below R50-million or the 90-10 equation for tenders with a value of above R50-million. The greater part of the point systems is always afforded to the lowest-priced tender as a maximum point, whereas the smaller part is allocated for B-BBEE points, for each bidder. The actual procurement process is either governed by the Public Finance Management Act (PFMA) and Treasury Regulations which is applicable to organs of state above local government, or the Municipal Finance Management Act (MFMA) and Supply Chain Management Regulations, which govern the process at local authority level, which could be a municipality, a water board or even a zoo or a museum. Committee system The regulations of the PFMA and MFMA prescribe a committee system, which must be implemented to manage the whole of the tender process. Committee members are appointed by the Accounting Officer of the specific organ of state. The first structure is the Bid Specifications Committee (BSC), which is tasked with approving the actual requirement of the goods and services as well as the stipulated specifications or scope of works, depending on whether it is a tender for purchases or works. The next structure is the Bid Evaluation Committee (BEC), which is tasked with conducting a technical evaluation on all valid, Gerrit Davids qualified and responsive tenders, either by using an “apples vs apples” approach or applying the functionality methodology, which is a points system requiring a minimum score that must be achieved by all bids that have graduated to this stage of the process. Bidders will also be afforded points for price and for B-BBEE. The last structure of the system is the Bid Adjudication Committee (BAC), which will consider a shortlist of potential bidders as compiled by the BEC and has the authority to reject its recommendations, send it back for review and where in agreement, select a recommended bidder for consideration by the Accounting Officer, who will eventually contract on behalf of the organ of state with the successful bidder. According to Gerrit Davids, Lead Advisor at tendering agency TaranisCo Advisory, Tendering and procurement within the government sphere is a uniform process and tender forms are standardised, as issued by National Treasury. Bidders should be aware that, irrespective of where they tender, the process is exactly the same for all organs of state. “Also, as per the prescript in Section 217, bidders have a right to access a decision made by any of these committees and they have a constitutional right to object, lodge a dispute or an appeal, if they are unhappy with such decisions,” says Davids. TaranisCo Advisory CC Mobile: +27 (0) 82 496 1657 | E-mail: | Website: | 43

Other recent publications by Global Africa Network: