The Gauteng Provincial Government (GPG) has significantly increased its strategic procurement spending in the empowerment of youth owned companies.
The commodity of goods and services procured from youth owned companies ranged from the supply of catering, printing, stationery, cleaning, and pharmaceutical services. Some of them provided equipment and construction related services which included building, maintenance and renovations. Substantial spending was also realised on the information communication technology and in related industry sectors.
This was all part of the Provincial Government’s initiatives to empower and increase youth entrepreneurship initiatives.
Furthermore, the GPG established procurement functions and activities which support overall economic growth, and reinforce its attainment.
What was important in the realisation of these objectives was the implementation of an integrated supply chain management process. This system sought to bridge the divide which arose from an outdated provisioning function, and into a transformed world-class procurement practice that is “fair, equitable, transparent, competitive and cost effective.”
The Head of the Procurement Services Unit in the Gauteng Department of Finance - Mr Alan Moonsammy said “the Gauteng Provincial Government has used its massive procurement budget as a strategic lever to facilitate inclusive economic growth, particularly to specifically designated demographic groups.”
Mr Moonsammy added that since April 2010, the GPG has spent approximately R 1.8 billion rand in the procurement of goods and services from youth owned companies. Similarly, the number of youth owned companies that benefited from these contracts grew from 926 in the 2010/11 financial year to over 4 000 in the 2012/13 financial year.
For enquiries contact:
Sithembiso Ndlovu, Acting Director: Media Liaison
Tel: 011 689 6950
Cell: 072 183 8922
E-mail: sithembiso.ndlovu@gauteng.gov.za
John Mgwenya, Acting Chief Director: Communications
Tel: 011 689 4771
E-mail: john.mgwenya@gauteng.gov.za
