JOHANNESBURG, SOUTH AFRICA - MAY 25: President of the ruling African National Congress (ANC) and South African President, Cyril Ramaphosa speaks to supporters during the ANC Siyanqoba Rally held at FNB Stadium on May 25, 2024 in Johannesburg, South Africa. South Africa's national and provincial elections will be held on 29 May 2024 to elect a new National Assembly and provincial legislature in each of the nine provinces. (Photo by Chris McGrath/Getty Images)
A few weeks ago, President Cyril Ramaphosa passed into law the public procurement bill, ushering in a new era for South Africa’s procurement landscape.
The Public Procurement Act (PPA) offers sweeping reforms aimed at revolutionising South Africa’s public and preferential procurement system by introducing a comprehensive regulatory framework, promoting preferential procurement, transparency, efficiency and accountability, and aims to address socio-economic problems.
In my view, the president’s decision to sign the bill into law was a surprise move, particularly given the criticism it faced from the Democratic Alliance (DA) in the run-up to the elections.
Conventional wisdom suggests that, amid the complexities of the government of national unity (GNU), Ramaphosa would have opted for caution and referred the bill back to parliament for further refinement. Instead, the president chose to wield his executive authority, fast-tracking this pivotal legislation into law.
Evidently the ANC remains steadfast in its dedication to its signature black economic empowerment (BEE) policies, seemingly resistant to any attempts at dialogue. Minister of Trade, Industry and Competition Parks Tau recently issued a stern call for stricter adherence to broad-based BEE legislation by private sector entities as he seeks to drive empowerment and transformation through his department.
It seems ANC ministers are increasingly galvanised to champion preferential treatment policies in South Africa, underscoring a commitment to economic transformation.
The introduction of the public procurement bill has placed the DA in a delicate quandary as the party grapples with the inherent paradox of its dual identity as both a governing partner in the GNU and a robust opposition force.
The DA’s silence on the president’s signing of the bill into law is remarkable, given its opposition to the legislation in the past. Prior to the elections and the formation of the GNU, the DA condemned the bill as “disastrous” and “race-based”, warning that it would exacerbate South Africa’s economic burdens.
The party argued that the bill’s emphasis on preferential treatment and government intervention, at the expense of price and efficiency, would have far-reaching negative consequences, including the aggravation of economic stagnation, the entrenchment of racial divisions and the further distortion of the procurement system.
A striking inconsistency emerged during Deputy Minister of Finance Ashor Sarupen’s recent budget address, as he seemingly departed from the DA’s erstwhile position on the bill. Sarupen expressed support for the government’s initiative to streamline the bill’s implementation through the Chief Procurement Officer, with the goal of fostering regulations that guarantee “transparency and value for money”, which appears to contradict the DA’s prior scathing critique of the legislation.
In my view, the DA’s seeming ambivalence on the bill could mask a more astute political plan, one that prioritises strategic nuance over overt opposition. By adopting a more subtle approach, the DA might be seeking to contest the bill’s provisions through a range of mechanisms, including parliamentary and provincial channels, thereby harnessing its presence in the GNU to achieve a more effective and sustainable form of opposition.
This perspective was reinforced by Western Cape Premier Alan Winde’s recent letter to the presidency, in which he launched a scathing attack on the Act, denouncing it as a “handbrake for service delivery” and questioning its constitutional validity. Winde’s concerns underscore the Act’s potential to undermine provincial and municipal autonomy, impose significant financial burdens and precipitate state failure, thereby compounding South Africa’s governance challenges.
As the ANC forges ahead with preferential procurement, a provincial countermovement by the DA-led Western Cape government is gathering momentum, poised to spark a potential legal showdown.
The unfolding scenario presents a fascinating spectacle, with the dynamics of preferential procurement politics between the ANC and DA offering a compelling case study in GNU politics. The eventual outcome will serve as a critical litmus test for the GNU’s cohesion, stability and governing efficacy and provide valuable insight into the complexities of coalition governance.
Author Profile
Siseko Maposa is director of Surgetower Associates, a management consultancy specialising in government, corporate and foreign affairs. Holding a master’s in International Relations and a certificate in Contracts and Commercial Law from the University of Cape Town, he is a prominent voice on domestic and international political-economy.