SA Government &
South Africa’s first democratic government was elected in 1994, with a clear mandate to redress the inequalities of the past in every sphere: political, social and economic. Since then, government has embarked on a comprehensive programme to provide a legislative framework for the transformation of South Africa’s economy. In 2003, the Broad-Based Black Economic Empowerment (B-BBEE) Strategy was published as a precursor to the B-BBEE Act, No. 53 of 2003. The fundamental objective of the Act is to advance economic transformation and enhance the economic participation of black people in the South African economy.
The government uses procurement as one of its primary instruments to effect social and economic transformation.
Register with the Central Supplier Database
Supplier information i.e. supplier type, identification number, supplier name, trading name and country of origin;
Supplier contact i.e. preferred contact person, preferred communication method, email address, cell phone number, telephone number, etc.;
Supplier address i.e. country, province, municipality, city, suburb, ward and postal code;
Bank account information;
Supplier tax information;
Ownership information, i.e. name and identification number of directors, members etc.;
Association to any other suppliers i.e. branch, consortium member etc.; and
Commodities the supplier can supply.
Sign up on the E-Tender Portal
The portal provides a single point of access for any tender issued by public sector organisations in all spheres of government. The portal also has tenders advertised in all national, provincial, metro, district and municipal departments. This includes those from state owned enterprises (SOE) and constitutional bodies.
Information includes advertised, awarded, closed and cancelled bids as well as templates of bid documents.
Ensure B-BBEE confirmations
SMMEs that qualify as exempt micro enterprises (EME) and black-controlled and owned qualifying small enterprises (QSE) are no longer required to obtain B-BBEE certificates to confirm their status level.
They do, however, need to get a sworn affidavit annually confirming their annual total revenue and level of black ownership. The affidavit is only valid for 12 months by a date signed by a commissioner of oaths.
An EME is an entity with an annual turnover or R10 million or less. A QSE, on the other hand, is an entity that has an annual turnover of R10 million or more, but less than R50 million.
The purpose of this intervention, according to the B-BBEE Commission, is to reduce the cost of compliance and the cost of doing business for SMMEs in the country.
According to section 65(2)(e) of the Public Finance Management Act, claims need to be settled within 30 days after receiving the relevant invoice.
To ensure that you are not paid late, first make sure that you are responding to a valid bid. This is due to a prevalence of fake tenders in South Africa.
Then take care that the government department followed the correct bidding process when awarding the contract. Lastly, keep your tax affairs in order.