KZN vows to buy local goods

The KwaZulu-Natal provincial government has committed to buy at least half of its goods and services from local suppliers this year with the targets set to increase to 70 percent over the next 10 years. As part of the deal though, local businesses that get contracts from the government would have to “reciprocate this gesture” by buying locally produced goods. This ambitious plan, the government believes, would serve as an economic stimulus while also creating and saving many jobs in different industries. MEC for Economic Development and Tourism Mike Mabuyakhulu announced this on Wednesday during the signing of the launch of a partnership between his department and Proudly SA.

The pledged signed by the two parties is centred around the commitment to give preferential procurement to locally produced goods by government. KwaZulu-Natal is the first province to enter into such a partnership with Proudly SA. Explaining the reasons behind the partnership, Mabuya-khulu said only economies that take bold steps would survive the pending global economic crisis. “It is undeniable that today, as opposed to five decades ago, the economic environment has become both global and highly-competitive. “What this situation demands of successful economies is that they must be dynamic and be a step ahead of the game,” Mabuyakhulu said.

He warned that any failure to safeguard the economy had a direct link to the perpetuation of poverty, unemployment and inequality – the three main challenges facing the country as identified by government. Mabuyakhulu said this was evident in the near collapse of the textile and clothing industry which had led to many workers losing jobs. Mabuyakhulu said it was his department’s prerogative to ensure the acceleration of broad-based black economic empowerment (BBBEE) in the province. “It is our key responsibility to ensure that all the players in the economy, including the private sector and government, make a conscious effort to ensure that their procurement spends benefits local companies,” he said.

He said an analysis of the provincial government’s accessible procurement of 2009/2010 showed that provincial government revealed that the government only spent 23 percent (R740 million) of R3.2 billion expenditure on BEE companies during this period. “Clearly, this shows that we still have a long way to go as government,” he said. KZN is the first province to sign such a pledge to buy locally produced goods. Mabuyakhulu said the goods that would be affected by this pledge would include advertising, media and communication, interior and exterior cleaning services, clothing and textile, computer equipment maintenance and repair of buildings and stationery.

Cosatu in KZN welcomed the news saying that it was what the labour union had long been calling for. Provincial secretary Zet Luzipo, said the union had in 2006 and 2007 waged a series of marches calling for the procurement of locally produced goods. He said one focus of the campaign would have to educate the public and to try and persuade the members of the public to buy locally produced goods.